(Reuters) -Chilean retailer Falabella reported a more-than-ninefold leap in net profit in the fourth quarter on Tuesday, citing better margins and off the back of lower costs and a slimmed-down inventory.
The retailer’s net profit climbed to 70.42 billion pesos ($79.6 million), even as revenues dipped by 5.5% from the year-ago quarter to 3.12 trillion pesos.
Core earnings, or earnings before interest, taxes, depreciation, and amortization, grew 30% to 292.06 billion pesos, helped by an 8% costs dip and inventories 21% lower compared to a year earlier.
This helped Falabella, which has moved to sell off assets in recent quarters after losing an investment-grade rating on its high debt, close the quarter with a non-bank net debt-to-core earnings ratio of 6.5x, down from 8.6x in June.
Despite the improvements, Falabella saw sales fall in its main segments, such as department stores, home improvement stores and banking in Chile, while its sales from retail stores in Peru also shrank.
($1 = 884.59 Chilean pesos at end-December)
(Reporting by Kylie Madry; Editing by Sarah Morland)
