Falabella, a Chilean retailer, has reported a net profit for the first quarter of 2021, marking a turnaround from a loss in the same period last year. The company’s profitability was driven by its operations in Peru, where it made a net profit of 58.50 billion pesos for the January-to-March period. In addition to Peru, the retailer’s units in Chile, Colombia, and Brazil also contributed to trimming losses from the previous year.

Revenues for Falabella rose by 4% to 2.86 trillion pesos in the first quarter of 2021. This growth was largely due to the foreign-exchange effect of the weaker Chilean peso compared to local currencies. CEO Alejandro Gonzalez noted increased visits to shopping centers and a reduction in inventories by 11% during the quarter. The company’s loan portfolio grew by 1% year-over-year, but delinquent payments also saw a slight increase to 4.4%.

Falabella’s core earnings more than doubled to 296.95 billion pesos in the first quarter of 2021, driven by improved performance across its various business segments. The company operates supermarkets, department stores, and home improvement stores, as well as delivery and financial services in several countries across Latin America.

Earlier this year, Falabella announced plans to invest $508 million by 2024, with a focus on store openings, remodeling, e-commerce, digital banking, and logistics. The company aims to boost profitability through these investments after implementing a plan to sell non-core assets and reduce leverage. Falabella’s leverage ratio improved from 7.3x to 5.7x in the first quarter of