May 11, 2016 / 1:17 PM / 2 years ago

Chile's Falabella 1st-qtr net profit falls on currency impact

SANTIAGO, May 11 (Reuters) - Chile’s Falabella, one of Latin America’s largest retailers, said on late Tuesday that its first-quarter net profit slid 1.7 percent compared with a year earlier, due to currency depreciation in multiple countries.

Falabella reported a net profit of 104 billion pesos ($154.1 million) in the latest quarter, slightly below a Reuters forecast for a profit of 108.1 billion pesos ($160.1 million).

Sales for the group - which has operations in Argentina, Brazil, Peru, Colombia and Uruguay - grew to 2.054 trillion pesos ($3.042 billion), 4.9 percent above a year earlier.

“We have continued increasing participation in the market for our different business units,” said Falabella CEO Sandro Solari.

Falabella’s operations include department stores, supermarkets, home improvement centers, malls and financial services.

The company registered its largest increases in net sales in its namesake malls and in its Sodimac home improvement centers in Chile.

However, that was not enough to mitigate the impact of currency depreciation in Argentina, Colombia, Brazil, and Peru.

Earnings before interest, tax, amortization, and depreciation (EBITDA) rose 4.3 percent year-for-year in the first quarter to 254.2 billion pesos ($376.6 million).

$1 = 675.1 Chilean pesos Reporting by Antonio de la Jara and Gram Slattery; Writing by Gram Slattery Editing by W Simon

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