FALABELLA S.A. Management Comments
Fourth quarter 2021 Earnings
Gaston Bottazzini
CEO of Falabella
Our commercial and digital banking strategy continues to advance with the development of Falabella's physical-digital ecosystem. Our omnichannel platform had e-commerce and physical store sales growth across the region that totaled 17% for the fourth quarter. The e- commerce platform recorded online sales (GMV) of US$ 992 million for the period (an increase of 19% YoY) and US$ 3,504 million for 2021. The marketplace business continues to grow, with GMV reaching US$ 700 million for the year.
2021 was a record year in terms of earnings, we reported US$772 million in Net Income, the highest in history, with a very good performance of our businesses and with key advances to strengthen our ecosystem.
We served 35 million customers across the region during 2021, by leveraging the omnichannel capabilities of our ecosystem. We believe that physical interaction with our customers will continue to be very important, so we are focused on rethinking and adapting our existing assets to enhance customer interaction and expand the role of the store from the customer's perspective.
The recently launched Department Store Flagship in Chile allow us to experiment and generate learning that goes beyond merely selling products, through creating experiences with far greater points of interaction with the customer and improved logistics options.
We continue to capitalize on strong
positive momentum for Home Improvement products. Regional revenue for the format grew 20% and its online business continues to expand, recording sales of US$ 921 million in 2021.
In January we announced our US$ 711 million investment plan for 2022, which aims to continue strengthening our digital capabilities, and focuses on our seven strategic growth platforms. These are e-commerce, marketplace, home delivery, payments, digital banking, our loyalty program, and digital capabilities for physical stores. They aim to increase interactions with our customers and generate long-term relationships with them.
We will continue to transform Banco Falabella into a fully digital bank. During 2021 we strengthened our digital product origination capabilities and opened more than 745,000 digital cards in Chile, Peru and Colombia, resulting in 59% of financial product origination coming through digital channels this year. These digital capabilities helped us to resume strong lending growth during the fourth quarter, as we achieved 21% YoY across the region, reaching pre-pandemic levels. We continued to digitize our customer interactions, as more than 96% of customer services in Chile are now provided through digital channels.
Our loyalty program proposal continues to grow, which is driving increased interaction with our customers
throughout the region and reached 15.7 million participants (+49% YoY).
I would also like to mention the debt refinancing transaction completed in October 2021, by issuing a US$ 650 million international bond at a spread of T+190bps. It was rapidly executed in a far more favorable scenario than at present.
Our current challenge is to continue driving the good performance of our ecosystem. Our marketplace and digital banking platforms will be key growth drivers to navigate the current environment.
We are confident that we can unlock the growth potential of our marketplace platform, following the introduction of the improved Sellers management platform and the recently inaugurated 32,700 square meters of fulfillment centers in Chile, Peru and Colombia, which will be key to enhancing our value proposition and driving growth in the number of Sellers.
Highlights
US$ million
4Q-2021 2021 4Q-2021 2021
Online GMV | US$ 992 | US$ 3,504 | Net Income | US$ 232 | US$ 772 |
+19% a/a | +25% a/a | +42% a/a | +2,020% a/a |
Store Sales | US$ 3,609 US$ 11,986 |
TPV | US$ 859 | US$ 2,625 |
+16% a/a | +35% a/a | +34% a/a | +20% a/a |
investors.falabella.com
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Highlights for the period
4Q20 | 4Q21 | Var (%) |
Main Indicators
US$ million
Total sales
GMV Online | 834 | 992 | 18,9% |
GMV retail (1P) | 647 | 806 | 24,7% |
GMV marketplace (3P) | 188 | 185 | -1,1% |
Total sales of physical stores | 3.101 | 3.609 | 16,4% |
Total sales | 3.935 | 4.601 | 16,9% |
TPV | 642 | 859 | 33,8% |
Financial Results | |||
Non-Banking Revenue | 3.217 | 3.677 | 14,3% |
Financial Services Revenue | 318 | 400 | 25,8% |
Total Revenue | 3.535 | 4.077 | 15,3% |
EBITDA | 548 | 572 | 4,3% |
Net (Loss) Income | 164 | 232 | 41,9% |
Balance Sheet | |||
Cash (non-banking) | 1.440 | 631 | -56,2% |
Gross Loan Book | 5.510 | 6.662 | 20,9% |
Total Net Debt (Exc. Banking) | 2.872 | 3.581 | 24,7% |
Note: Total sales correspond to the total value of the merchandise sold, including our own (1P) and third-party (3P) products, through our omnichannel platform (physical and online stores). Includes value added taxes. Calculated with a neutral exchange rate.
Retail business in Chile continues to grow steadily
Achieved double-digit growth again compared to the same quarter in 2019
Department Stores
Home Improvement
Supermarkets
"Strong sales growth continued in the fourth quarter for all retail formats in Chile, with businesses operating normally and robust growth in physical stores, together with sustained e-commerce performance."
Revenue 4Q 2021/2020 | Revenue 4Q 2021/2019 |
+21% +71%
+22% +78%
+7% +51%
Additionally, our Shopping Centers recovered traffic levels similar to pre-pandemicMallplaza reported a +51% YoY growth in terms revenues
03
Highlights for the period
Online business continues to strengthen
Online GMV reached US$ 992 million during the fourth quarter, which reflects an increase in sales of own brands products (+25%), while Markeplace sales remained flat compared to last year (-1%), in a context where travel restrictions diminished and physical channels recovered.
- Falabella triples online sales versus 2019 "
Total GMV (US$ million)Marketplace GMV (US$ million)
+2.8x | +2.8x | |||||
$3.504 | $700 | |||||
$1.259 | $250 |
Regional online penetration over the last 12 months reached 23%.
2019 | 2021 | 2019 | 2021 |
GMV reached US$ 3,504 million over the last 12 months, which is an increase of 25% over GMV for the comparable period.
Marketplace (3P) GMV reached US$ 185 million in 4Q21, which represents a 19% share of total online sales. Marketplace (3P) GMV reached US$ 700 million over the last 12 months.
Almost 11 million orders were delivered across the region during the quarter.
Regional
Online Penetration
12% 2019
E-commerce in Chile
El GMV grew by 25% YoY during the
quarter, driven by good performance from our retailers.
The online channel penetration within Department Stores reached 33% during the fourth quarter of 2021.
Marketplace sales grew by 2% in the fourth quarter, while they grew by 24% over the last 12 months.
Home Improvement continued to expand and achieved 88% growth compared to 4Q20. This represents sales of US$ 185 million in the quarter.
GMV for Department stores reached US$ 327 million during 4Q21, a decrease of -6%YoY.
Fazil is the group's on-demand- delivery App and it continues to grow and expand its coverage. Total orders captured by the App in Chile in the fourth quarter of 2021 were 3x the orders for the same period last year (+16% compared to 3Q21), and visits to the App increased by 229% YoY.
23% 2021 | App penetration | 48% 4Q-2021 |
Falabella.com |
Department Stores Chile
04
Highlights for the period
E-commerce in Peru
E-commerce in Colombia
Online sales in Peru grew 25% during 4Q21, while total GMV over the last 12 months grew by 45% YoY.
The penetration of online channels within Peru's formats rose 16% during 4Q21, to reach US$ 206 million.
Total Marketplace GMV in Peru grew by 4% in the quarter.
Home Improvement GMV grew by 136% YoY, while Department Stores GMV grew by 12% YoY.
The penetration of the online channels within Supermarkets was 6%.
GMV | in | Colombia | The online penetration |
decreased 6% | to | reach | within Colombia's formats |
US$ 102 | million, due to a | rose to 33% during 4Q21. | |
strong | recovery | within | |
physical | channels | during |
the quarter.
ONLINE GMV SUMMARY1
GROSS MERCHANDISE VOLUME (US$ million)
GMV | 4Q20 | % Total | 4Q21 | % Total | Var % | LTM |
Retail (1P) | 647 | 78% | 806 | 81% | 25% | 2.804 |
Deparment stores | 498 | 60% | 503 | 51% | 1% | 1.793 |
Home improvement | 121 | 14% | 260 | 26% | 115% | 860 |
Supermarkets | 27 | 3% | 43 | 4% | 58% | 152 |
Marketplace (3P) | 188 | 22% | 185 | 19% | -1% | 700 |
Total GMV | 834 | 100% | 992 | 100% | 19% | 3.504 |
GMV by country | 4Q20 | % Total | 4Q21 | % Total | Var % | LTM |
Chile | 484 | 58% | 606 | 61% | 25% | 2.223 |
Peru | 165 | 20% | 206 | 21% | 25% | 740 |
Colombia | 108 | 13% | 102 | 10% | -6% | 271 |
Others | 77 | 9% | 78 | 8% | 1% | 270 |
Total GMV by country | 834 | 100% | 992 | 100% | 19% | 3.504 |
- GMV figures are rounded. GMV is gross online sales including VAT using a neutral exchange rate for the Department Stores in Chile, Peru, Colombia and Argentina; Home Improvement in Chile, Peru, Argentina, Brazil and Uruguay; Supermarkets in Chile and Peru; and the Marketplace businesses.
INAUGURATION OF FULFILLMENT CENTERS
32,700 sqm of dedicated
third-party products distribution centers were added across the region to our existing capacity of 1.6 million sqm of logistics infrastructure.
Chile
13,500sqm
Colombia
10,000sqm
Peru
9,200sqm
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Falabella SA published this content on 01 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2022 21:21:01 UTC.
