InRetail Perú Corp.

InRetail reported Q4 2025 revenue growth of 6.3% and adjusted EBITDA growth of 4.9%. Net income was PEN 335 million, up 14.1% year over year. Food Retail Q4 revenue rose 7.4%, gross profit increased 9.8%, gross margin was 24%, and adjusted EBITDA grew 7.9%; Pharma Q4 revenue rose 4.3%, gross margin was 33.2%, and adjusted EBITDA grew 1.5%; Shopping Malls Q4 revenue rose 0.4%, gross margin was 66.8%, and adjusted EBITDA was PEN 135 million, down 1.5%. For full-year 2025, revenue grew 5.2% and adjusted EBITDA was flat overall; Food Retail revenue rose 7.1%, Pharma revenue grew 2.7% and adjusted EBITDA 3.9%, and Shopping Malls adjusted EBITDA fell 15.4%. The company ended 2025 with PEN 1.9 billion in cash, consolidated net debt of PEN 5,110 million, and a net debt/adjusted EBITDA ratio of 1.7x; short-term debt was PEN 377 million, or about 5% of total debt. Guidance for 2026 calls for high single-digit growth in consolidated revenue and adjusted EBITDA excluding about PEN 200 million of distribution revenue in Peru, with Food Retail expected to post high single-digit growth and Pharma expected to see low single-digit growth overall.

Juan Carlos Vallejo framed 2025 as a year of recovery in consumer demand, helped by low inflation, a stronger sol, rising consumer credit, a stronger labor market, and pension fund withdrawals. He said the company is focused on strengthening its formats and productivity, especially in Mass, where the strategy is shifting toward higher store productivity, better working-capital cycles, and a leaner operating model. He sounded constructive on 2026, saying the business should benefit from a more favorable economy and easier comparisons, while emphasizing that the company is not chasing growth at any cost.

Marcelo Ramos highlighted execution across expansion and balance sheet management: 314 new Mass stores and 124 new pharmacies were opened in 2025, along with a new pharma distribution center and multiple logistics investments. He said the company ended with PEN 1.9 billion in cash, refinanced about PEN 2 billion of bank debt, and replaced shopping mall bonds with roughly $500 million of new issuances, leaving short-term debt at about 5% of total debt. He also noted 2025 CapEx of about PEN 1.5 billion, and guided to around PEN 2.7 billion of CapEx over the next three years, with roughly 50% allocated to Food Retail.

Analysts asked about the schedule for the still-uncertain mall opening tied to the incident in Türkiye, why Mass openings slow to 200 in 2026, and how new stores are performing. Management said the mall timing depends on the authorities and remains unclear, while the Mass slowdown reflects a deliberate focus on productivity, store economics, logistics efficiency, and a more independent operating model; it added that new Mass stores are performing better than older openings. On guidance and working capital, management clarified that the high single-digit revenue outlook excludes the roughly PEN 200 million decline in Peru distribution revenue, and said the quarter’s working-capital improvement in Pharma should largely persist, while Food Retail should remain better than 2024 despite some December stock-outs. They also said the Miraflores store closures affected one Plaza Vea, one Vivanda, and two Mass stores, with no material impact expected on Q1 2026.