158% growth in sales and almost threefold growth in EBITDA was observed, both when compared to the third quarter.
The flow of visitors was up 145% compared to the previous quarter and the conversion rate increased 46%.
23 February 2021 – The operation of Mallplaza’s 25 shopping centers in the region showed a positive and sustained recovery. According to the Financial Statements report for the last quarter of 2020, the normalization of operations made it possible to go from an average of 45% of leasable area open in the third quarter to 75% in the last quarter of the year.
For their part, tenants’ sales were increased by 158% compared to 3Q2020 and 9% compared the same quarter the year before. The visitor flow was 52 million people, up 145% over 3Q2020 and with a conversion rate that increased 46% during 4Q2020. Regarding total revenues in the quarter, they saw 105% growth compared to the previous quarter and down by just 16% when compared to the same period in 2019. Meanwhile, administrative expenses decreased 40% in 4Q2020.
4TH QUARTER RESULTS STATEMENT
CLP millions
| 4Q 2020 | 4Q 2019 | VAR. | % | |
| REVENUES FROM REGULAR ACTIVIITES | 60.721 | 72.274 | (11.553) | (16%) |
| SALES COSTS | (24.052) | (24.959) | 907 | -4% |
| ADMINISTRATIVE COSTS | (9.398) | (15.695) | 6.297 | (40%) |
| EBITDA | 41.036 | 45.115 | (4.079) | (9%) |
| PROFITS ATTRIBUTABLE TO THE OWNERS OF THE CONTROLLER | 8.519 | 12.413 | (3.894) | (31%) |
Gastronomy was among the sectors that adapted best during the period, with over 530 kitchens operating in hybrid modality in the three countries, with service to the public in the shopping centers and home delivery. “In this fourth quarter our gastronomy tenants showed a positive evolution compared to previous months, achieving same store sales levels of 75% compared to the same quarter 2019 and surpassing 1.4 million orders dispatched during the second half of the year,” Mallplaza Executive Vice President Fernando de Peña explained.
In line with the recovery, total EBITDA was CLP 41.036 billion, with a margin over revenues of 68%, up almost threefold compared to the previous quarter and just 9% less than the EBITDA of 4Q2019, surpassing market expectations.
Keys to the result
In the pandemic scenario, in the second half of the year Mallplaza focused its efforts on the following aspects, closing 2020 with a positive evolution in its performance and adapting to face the current industry challenges.
- Permanent focus on the long-term business.The company did not charge rent during the most difficult months of the pandemic and supported its tenants with special discounts, allowing them to maintain sustainable occupancy cost to sales ratios. It implemented best practices to reduce expenses, transferring the reductions to its tenants in their entirely, which were added to average reductions of 20% in the operating cost items (common expenses), a process audited by independent firms and continuously informed to tenants.
- Positive occupancy rate.Mallplaza closed 2020 with an occupancy rate of 94% (same malls compared to the year before) in its urban centers thanks to the support and flexibility agreed to with its tenants, in addition to special discounts and the transfer of lower operating costs. This was added to the positive trend toward recovery during the second half of the year.
- Incorporation of entrepreneurs. Entrepreneurship was strengthened, permanently incorporating it into the company’s value proposition to make the commercial offering even more attractive and diverse for customers, becoming part of the mix of recycling of its leasable surface. They have helped to drive the reactivation, strengthen ties with communities and improve the experience for visitors. The implementation of the “Plaza Emprende” stores stands out, with groups of entrepreneurs making use of premises in the shopping centers. As of December, there were 11 of these stores in shopping centers in Chile and 5,300 entrepreneurs actively participating.
- Omnichannel solutions to boost sales and business. It consolidated its omnichannel ecosystem, becoming part of the digital value chain between tenants and their customers, adding new platforms to boost its tenants’ business and sales (Click & Collect, Pit Stop, Pide y Lleva, services like safe delivery, alliance with Linio, among others).
- Recovery of visitor flows and strengthening of safety protocols. There was an accelerated return of visitors to shopping centers, which drove Mallplaza to continue strengthening its health safety with better technology and in coordination with the authorities to implement their high standards of prevention and health protocols, in addition to exploring and adopting the best international experiences.
“Today Mallplaza is in a better position to deal with the future, given the lessons learned, the work with its tenants, the improved prospects for increased openness due to progress with the vaccination process to address the pandemic,” Fernando de Peña said.
Mallplaza, a leading company in Latin America, currently operates 25 shopping centers in 16 cities in Chile, Peru and Colombia, with over 4,000 stores distributed over 1.8 million m2 of leasable area.
