Firm had losses of $ 44,635 million in the second quarter versus a profit of $ 15,036 million. Revenues fell 52.6% in the period.
A second quarter of millionaire losses. That has been the trend in the framework of the results between April and June of all Chilean retailers due to the health crisis that forced them to close their stores. Along these lines, Ripley was no exception.
The company linked to the Calderón family reported pLosses for the second quarter of $ 44,635 million, compared to a profit of $ 15,036 million in the same period of 2019. At the accumulated level, the multi-store had a negative balance of $ 56,640 million, versus a profit of $ 21,859 million last year.
In terms of revenue, Ripley reported a 53% decline, going from $ 443,797 million in the second quarter of 2019 to $ 210,236 million in revenue in this period. As explained by the company, the foregoing would be understood as lower revenues, mainly explained by the drop in sales in the retail segment.
In fact, segment revenues decreased 66.4% compared to the second quarter of 2019, due to the 61.3% drop in sales in Chile and a 76.1% drop in Peru.
Ripley’s banking segment, the consolidated gross portfolio as of June 31, 2020 amounted to $ 1,166,813 million, 9.8% less than the same period of the previous year impacted by the current health crisis, with a decrease of 14.7 % in Banco Ripley Chile and growth of 1.2% in Banco Ripley Peru.
Ehe non-operating result reached a loss of Ch $ 14,494 million. Ebitda during the quarter was negative by $ 20,116 million.
In a statement, Ripley honestly stated the sharp drop in its results due to the prolonged closures of stores and bank branches, and in those that have been able to operate, due to sanitary measures that restricted hours, capacity and staffing. However, the retailer noted that this effect was “partially offset by unprecedented growth in our digital channels, and lower administrative expenses.”
Digital channel boost
Like the trend of the other players in the industry, Ripley’s online sales increased significantly. Digital sales rose 111% in the quarter compared to the same period of the previous year, representing 93% of total retail sales.
“This growth has been driven by the innovations of our RipleyLabs digital factory, by tripling our assortment of products and services with the entry of new suppliers and categories, and by the efficient use of our chain of stores as logistics centers that allow us to reduce delivery times and improve the quality of service. “
According to Ripley, this has allowed them to consolidate a home delivery network that is capable of handling 10 times the volume registered at the beginning of the year.
Currently, the company is shipping 1.5 million units per month, with a majority stake in the Ship from Store modality.
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