Falabella (FALABELLA) Q1 2025 earnings summary

Executive summary

• Achieved strong, consistent performance across five growth engines and main markets in Q1 2025, with broad-based improvements and accelerated ecosystem development, despite macroeconomic volatility and tariff tensions.

• Consolidated revenues rose 9% year-over-year to $3,278 million, with all retail segments contributing to growth and Falabella Retail leading at +19% YoY.

• EBITDA margin improved to 15.1% (+471 bps YoY), with EBITDA up 59% YoY to $494 million, driven by operational efficiencies and higher gross profit.

• Net income tripled YoY to $201 million (6.1% margin), reflecting strong business performance and lower cost of risk in the banking segment.

• E-commerce and digital banking saw robust growth, with online GMV up 17% YoY, seller sales up 33% YoY, and over 715,000 new digital bank accounts opened.

Financial highlights

• Total sales reached $3,148 million, up 11% YoY; total revenue grew 9% to $3,278 million compared to Q1 2024.

• Gross profit increased 22% YoY to $1,273 million, with margin expansion to 38.8% (+400 bps YoY).

• EBITDA rose 59% to $494 million, with an EBITDA margin of 15.1%.

• Cash position (non-banking) increased 13% to $1,128 million as of March 2025.

• Net financial debt (non-banking) fell to $2,731 million (-24% YoY), with Net Financial Debt/EBITDA at 2.5x.

Outlook and guidance

• Management expects continued strong operational performance, with guidance trending toward the upper end of the EBITDA margin range (13.1% for the last 12 months), but remains cautious due to macroeconomic uncertainties.

• Focus remains on enhancing profitability, accelerating ecosystem development, and sustaining value creation and market leadership in core categories.

• Anticipate close to double-digit loan portfolio growth regionally and stable ROE in Chile around 20%, with strong improvements in Peru and Colombia.