InRetail is a leading retail group in Peru, operating in three business segments: Food Retail, Pharma, and Shopping Centers. They were the first chain to open stores and shopping centers outside Lima, so they are present in all regions of Peru.
InRetail Peru is a leader in the Peruvian market, boasting a comprehensive platform with leading brands in its three business units.
In addition, they are a subsidiary of InterCorp Peru, one of the main economic groups in Peru, with activities in the financial, retail, real estate, and education sectors.
During the last few years, the Peruvian economy has been one of the best performing economies in Latin America. According to the World Economic Outlook - IMF (October 2020), the Peruvian economy was the second fastest growing economy in GDP between 2012 and 2019. However, due to the pandemic caused by COVID 19, the IMF projects a GDP contraction of 12.7%, caused by the impact of the health emergency on domestic demand and unemployment rates generated by the strict measures taken by the government.
As a result of the growth in the economy, more than 6% of the population has managed to get out of poverty, observing an increase in purchasing power, thus increasing the internal demand for the products that InRetail sells.
InRetail Peru's revenue in 2020 was S/14,409 million, 10.3% above 2019, explained by strong growth in the Food Retail segment and mid-single digit growth in the Pharma segment, despite a contraction in the Shopping Malls segment due to the measures taken by the Peruvian government in the face of the COVID 19 pandemic.
InRetail Peru's gross profit in 2020 was S/4,169 million, representing an increase of 5.6% over 2019. Gross margin in 2020 decreased to 28.9% from 30.2% in 2019, mainly due to a lower gross margin in the Shopping Malls segment, impacted by the reduction in revenue. InRetail Peru's net income was S/339 million, compared to S/597 million in 2019. Net margin in 2020 was 2.4%, down from 4.6% in 2019.
InRetail Peru's adjusted EBITDA in 2020 amounted to S/1,823 million, 2.7% higher than in 2019.
For the first quarter of 2021, Consolidated Revenue was S/4,344 million, 27.5% higher than the first quarter of 2020.
Adjusted EBITDA reached S/524 million, 19.1% higher than in the first quarter of 2020. However, consolidated net income was -S/35 million, mainly affected by extraordinary expenses related to the refinancing of a bond and the sale of non-material assets, resulting in a Net Margin of -0.8% compared to 2.7% in the first quarter of the previous year.
For the second quarter of 2021, the company's revenues rose by S/881 million due to the strong growth of Food Retail, which included the incorporation of Makro, a solid performance in Pharma, and a progressive recovery in Shopping Malls. Thus, net profit reached S/80 million, compared to S/12 million in the second quarter of 2020. Net Margin was 1.9% compared to 0.3% in the second quarter of 2020.
Adjusted EBITDA was S/514 million, 37.4% higher than the second quarter of the previous year.
