Ripley Corp (RIPLEY) Q3 2024 earnings summary

Executive summary

• Revenue grew 8.7% year-over-year in Q3 2024, driven by recovery in discretionary spending in Chile and Peru, expansion of Mall Aventura, consolidation of two new shopping centers, and currency appreciation.

• Net income increased by CLP 30,575 million, reaching CLP 6,252 million, reflecting operational improvements in retail and banking, and cost efficiencies.

• EBITDA rose by CLP 45,241 million to CLP 31,639 million, up 40.8% year-over-year, marking the best Q3 in company history excluding 2021, with strong contributions from all segments and expense control.

• Gross margin expanded by 806 basis points year-over-year, led by banking segment recovery, lower net risk charge, and improved inventory management.

• Strategic focus on women's fashion, customer experience, and recognition for advertising innovation and sustainability in Peru.

Financial highlights

• Q3 2024 revenues reached CLP 467,702 million, up from CLP 430,388 million in Q3 2023 (+8.7% YoY); retail +11.1%, real estate +49.7%, banking +0.1%.

• Gross profit increased 40.8% year-over-year to CLP 165,195 million; gross margin 35.3% (+806 bps YoY).

• EBITDA for Q3 2024 was CLP 31,639 million (+993 bps margin expansion YoY), a significant turnaround from a negative EBITDA in Q3 2023.

• Net income for Q3 2024 was CLP 6,252 million, reversing a loss in Q3 2023.

• Digital GMV sales grew 10.2% YoY to CLP 116,645 million; digital penetration 27.9%.

Outlook and guidance

• Revenue growth is expected to continue, supported by improved consumer spending, recent mall openings, and ongoing expansion in Peru’s real estate segment.

• Retail and banking segments are positioned for further profitability due to efficiency measures, lower risk costs, and further digitalization.