Falabella Reports Record 2025 Results: $1.485B Net Profit & $2.144B EBITDA
Grupo Falabella reported annual net income of US$1.485 billion, driven by what the company described as “solid operational profitability across all of the company’s businesses.” This figure includes the impact of fair value adjustments, reaching US$897 million excluding those adjustments – a historical high and 1.9 times the results of the previous fiscal year.
Consolidated revenues for the conglomerate totaled US$14.679 billion, a 9.5% increase year-over-year, fueled by strong performance in its retail operations, sustained growth in online channels and a positive contribution from its financial services division, the company stated.
US$2.144 million of EBITDA was recorded by the group
The company highlighted that the expansion of its operational profitability was the result of the successful implementation of its strategy, even amidst a challenging external environment, and a strengthening of the group’s value proposition.
Falabella achieved a record EBITDA of US$2.144 billion, a 34% year-over-year increase. The EBITDA margin rose to 14.6%, an improvement from the 11.9% recorded in .
Fourth Quarter Performance
In the fourth quarter, the company reported net income of US$695 million, a 186% year-over-year increase, and an EBITDA of US$647 million, up 18% year-over-year. The EBITDA margin for the quarter was 15.1%, higher than the 14.1% reported in the fourth quarter of . Total revenues reached US$4.284 billion, a 10% year-over-year increase.
“The results reflect a significant improvement in profitability, built on consistent execution of the growth strategy we have driven in recent years to strengthen the experience of our customers, improve the efficiency of our operations, and grow profitably,” said Alejandro González, CEO of Grupo Falabella. “these results are not the product of circumstantial factors or a particularly favorable environment.”
Looking ahead, González added that the company “will continue to focus on deepening the growth strategy, strengthening its value proposition, maintaining efficient financial management, and advancing operational improvements to continue generating sustainable results.”
The positive results come as Grupo Falabella continues to navigate a complex economic landscape in its key markets. The company’s ability to improve its EBITDA margin to 14.9% in the second quarter of , up from 11.1% year-over-year, demonstrates a focus on operational efficiency and cost control. This margin improvement was driven by strong omnichannel retail growth, profitability in its digital banking operations, and momentum in e-commerce, according to the earnings call transcript.
Further bolstering investor confidence, Fitch Ratings recently upgraded Grupo Falabella’s international credit rating to BBB- with a stable outlook, restoring its investment-grade status after a two-year period. Management views this upgrade as recognition of the company’s financial performance and strategic direction.
The company also reported a decrease in net financial debt to US$2.3 billion and an improved net debt-to-EBITDA ratio of 1.8x for its non-banking businesses, indicating a strengthening balance sheet. This financial flexibility positions Falabella to pursue future growth opportunities and navigate potential economic headwinds.
Falabella’s strong performance in is a testament to its ability to adapt to changing market conditions and execute its strategic priorities. The company’s focus on omnichannel retail, digital banking, and operational efficiency appears to be paying off, driving both revenue growth and improved profitability. The upgrade in its credit rating further validates its financial strength and positions it for continued success in the years to come.
The company is scheduled to hold its 20th Annual Andean Conference on .