InRetail Peru - Q1 FY2026 Earnings Analysis

Performance Highlights

InRetail Peru reported Q1 FY2026 consolidated revenues of S/6.05 billion, a 10.2% year-over-year increase that outpaced expectations, while adj. EBITDA jumped 22.2% to S/785 million, expanding the margin from 11.7% to 13.0%. Reported net income of S/182 million fell 4.9% versus the prior year, dragged by a net FX loss of S/134 million as the sol depreciated to 3.495 against the dollar, though underlying net income excluding FX and mark-to-market effects rose 40.8% to S/229 million.

The primary operating driver was the Food Retail segment, where revenues grew 13.1% to S/3.52 billion and adj. EBITDA surged 30.7% to S/299 million as the EBITDA margin expanded to 8.5%, supported by Hard Discount same-store sales of 16.6% and Cash and Carry SSS of 13.7%. Pharma revenues rose 6.2% to S/2.33 billion with pharmacy-unit revenues up 11.9% and adj. SSS of 9.3%, while Shopping Malls posted 5.0% revenue growth and a 41.8% adj. EBITDA jump, aided by 95.5% occupancy and tenant SSS of 13.9%.

Management Outlook and Forward Catalysts

The strategic completion of the US$130 million acquisition of InFinance XP — structured as a 50-50 joint venture with Intercorp Financial Services — signals management's intent to embed consumer finance into InRetail's retail ecosystem, leveraging S/1.8 billion in loans, S/1.5 billion in deposits, and 2.7 million unique clients. This transaction marks a deliberate transition toward a retail-finance platform model, consistent with proven global analogues, and could materially expand the group's monetisation of its existing customer base.

Bulls will focus on whether the consumption recovery in Peru sustains double-digit SSS momentum across all three segments and whether the InFinance XP integration accelerates customer lifetime value; bears will watch the trajectory of FX losses given dollar-denominated debt, the gradual cost ramp from new store openings and the new distribution centre in Pharma, and lingering uncertainty around the Real Plaza Trujillo mall, which remains closed following the February 2025 incident. Net leverage of 1.8x provides balance sheet headroom, though short-term debt rose cyclically, warranting monitoring.