Ripley Corp (RIPLEY) Q1 2025 earnings summary

Executive summary

• Achieved record first-quarter EBIT, with operating profit growing over 8x year-over-year to CLP 22,943 million, driven by strong retail and banking performance, and supported by increased consumer activity and favorable currency effects.

• Revenue increased 7.4% year-over-year, reaching CLP 495,094 million, with growth fueled by higher consumer activity, foreign tourist spending in Chile, and Peruvian sol appreciation.

• Net income turned positive, reaching CLP 15,376 million, reversing a loss in 1Q24 and marking a record first-quarter bottom line.

• Included in the MSCI Chile Small Cap Index, enhancing international visibility.

• Gross margin expanded by 518 bps, supported by lower net credit-risk charges, reduced funding costs in banking, and efficient inventory management.

Financial highlights

• Revenue: CLP 495,094 million (+7.4% YoY); Gross profit: CLP 180,587 million (+25.2% YoY); Gross margin: 36.5% (+518 bps YoY).

• EBIT: CLP 22,943 million (+731.2% YoY); EBITDA: CLP 42,888 million (+94.2% YoY), margin up 387 bps to 8.7%.

• Net income: CLP 15,376 million, reversing a loss of CLP 2,480 million in 1Q24.

• Expense-to-sales ratio increased to 31.8% from 30.7%, mainly due to higher banking segment expenses.

• Retail segment revenue: CLP 355,496 million (+10.3% YoY); banking segment revenue: CLP 127,454 million (-0.3% YoY); real estate segment revenue: CLP 16,349 million (+6.0% YoY).

Outlook and guidance

• Progressed to 78% of the goal for sustainable attributes in private-label apparel.

• Ongoing focus on ESG, with expanded GHG emissions measurement including Scope 3 for purchased goods.

• Expectation of progressive stabilization in Chilean banking capital ratios following new regulatory requirements.

• Inventory build-up in anticipation of key commercial events and continued focus on operational efficiency.