Top Financial Results and Growth Strategies: Mall Plaza Quarterly Report Analysis

2024-05-07 23:10:21

A start to the year with solid financial results is what Mall plaza reported in its latest quarterly report. The company, with 26 city centers in Chile, Peru y Colombia, recorded revenues of 114,106 million Chilean pesos, achieving growth of 14.2% compared to the same quarter last year. Meanwhile, EBITDA for the period was 86,852 million Chilean pesos, with growth of 15.9% quarter over quarter. On the operational efficiency side, measured as EBITDA over revenue, this reached 76.1%, which shows an improvement of 1.1 percentage points compared to 2023. Likewise, sales from commercial partners in the first quarter increased by 3.9% compared to the first quarter 2023, mainly due to sales growth in Colombia.

“The financial results with which we started this 2024 show the success of the execution of our business strategy and which today allows us to have a varied, improved value proposition focused on the customer, and with urban centers capable of delivering multiple and powerful visitor purposes, with new brands, services and categories. We therefore opened 196 new stores in our city centers in the first three months of the year, continuing the sustained pace of openings we started in 2022,” he said. Fernando de Peña, general manager of Plaza SA

Inside the new shops opened by Mall plaza H&M, Decathlon, Victoria’s Secret, Miniso and Samsung stand out; along with new Cinemark theaters and service rooms such as the offices of the Civil Registry of Chile and Credit Bank of Peru.

ALSO READ: Mallplaza approves capital increase of more than USD 300 million for purchases in Peru

Investments and growth

In terms of the growth of mergers and acquisitions, and as a fact after the quarter, in April Mall plaza agree with Falabella the acquisition, by Plazaof Falabella Peru SAAwhich controls 100% of the operation of Open Plaza Peru and 66.6% of Mall Plaza in Peru. This transaction will make it possible to consolidate the Peruvian business, which means increasing the portfolio of Mall plaza in approx. 619,000 m2 GLA and has 15 town centres.

“This transaction will allow us to achieve synergies by merging two companies and their structures, as well as achieve efficiency gains thanks to a greater operational scale,” explained Fernando de Peña.

During the first quarter, the company also opened the doors to its fifth city center in Colombia and 26 in the region. Mall plaza Cali added 67,000 m2 of gross leasable area (GLA) to the portfolio and started operations with 91% of the GLA marketed and with an occupancy rate of 70% in the first days of operation.

As regards investments in the portfolio, the company will promote organic growth of 225,000 m2 of gross lettable area (GLA) over the next 5 years. Of these, 100,000 m2 will correspond to the assets that will be incorporated in Peru to improve shopping centers in Angamos, Trujillo, Piura, La Marina, Atocongo, Arequipa and Bellavistaalong with a plan that would allow it to have a second level A (flagship that contributes the highest share of Ebitda to the company) in that market, which will be Angamos, located in Lima.

For Chile, meanwhile, the company has planned a robust organic growth plan of 125 thousand m2 GLA in Mallplaza Vespucio, Mallplaza Trébol, Mallplaza Oeste, Mallplaza Norte, Mallplaza Antofagasta, Mallplaza La Serena, Mallplaza Iquique and Mallplaza Biobío.

These investment plans correspond to the presented financial position Mall plazawith a ratio between net financial debt and EBITDA of 3.1 times at the end of the first quarter of 2024.