translated from Spanish: Cencosud announced conservative investment plan for 2019

The holding company Cencosud controlled by Horst Paulmann announced this afternoon its main guidelines for 2019. A series of projections which, in addition, include its investment plan for the year. One quite conservative taking into account, for example, the plan’s nearly $4 billion that rival Falabella has implemented for years.
The conglomerate of the elephant – controlling Jumbo, Paris and Easy, among other chains reported that during exercise you will have a working capital of US $300 million, of which US $100 will be allocated to digital advances. The amount seems like discreet, taking into account, for example, that Falabella paid for Linio US $138 million.
“During the year 2018 the company invested around USD280 million, focusing on 50% of this amount in remodeling and opening of new stores. For the year 2019 Cencosud decided to continue a conservative position in their investments with the aim of preserving a more flexible capital structure. It is for this reason that the plan considers USD300 million, with investments in renovations, technology and maintenance in proportions similar to those of the previous year. However, as the company reduced its level of indebtedness, the investment plan can be revised upward”, the company said.
The off-peak scenario has affected all retail, and also the speed which is scanning. In this context, the company said that it projects consolidated income equivalent to US $15.194 million in the year.
Also, Cencosud hopes to achieve a margin Ebitda adjusted around 7.7% in 2019 product improvements in profitability projected in all its business divisions, as a result of the focus on improving efficiency through the optimization of processes, maintaining always the high standard of care to its customers. This figure includes US $138,5 million positive impact on Ebitda for the sale of 51% of Bank Cencosud in Peru.
Succinctly, the company added that it works “rapidly” at the opening in bag of its real estate arm, which will take away a strong component of pressure levels of debt of the company.

Original source in Spanish