SANTIAGO (Reuters) -Chilean retailer Falabella on Tuesday reported a 51.7% year-on-year drop in its second quarter net profit, hit by increased costs.
The company’s profit for the quarter was 65.12 billion pesos ($70.8 million).
Second quarter net revenue grew 16.1% to 3.08 trillion pesos ($3.3 billion).
The company was impacted “by the complex global and local scenario, with pressures on margins in Chile and increases in expenses,” Falabella Chief Executive Gaston Bottazzini said in a statement.
He also highlighted additional expense related to the “development of capacities” across digital platforms, while the financial report itself noted currency variations as a key factor for the drop in profit.
The company’s consolidated earnings before taxes, interests, depreciation and amortization (EBITDA) fell 31.7% to 245 billion pesos in the quarter, missing the Refinitiv forecast of 316 billion pesos.
(1 dollar = 919.97 Chilean pesos by end June)
(Reporting by Fabian Cambero and Carolina Pulice; Editing by Isabel Woodford and Sandra Maler)
