This article first appeared on GuruFocus .
Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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InRetail Peru Corp ( LIM:INRETC1 ) reported a 10.2% year-over-year increase in consolidated revenue for Q1 2026.
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The company achieved a 22.2% growth in consolidated adjusted EBITDA, driven by revenue growth and gross margin improvement.
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Food Retail segment posted a robust revenue growth of 13.1%, with a 30.7% increase in adjusted EBITDA.
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Pharma segment delivered a 6.2% revenue growth, resulting in a 12.3% increase in adjusted EBITDA.
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Shopping malls saw a significant adjusted EBITDA growth of 41.8%, benefiting from a low comparison base from the previous year.
Negative Points
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Net income decreased slightly due to a net FX loss in Q1 2026 compared to a net FX gain in the prior year period.
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The Peruvian sol's depreciation led to non-cash P&L impacts from dollar-denominated lease liabilities.
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There are concerns about potential inflationary risks due to geopolitical tensions and local political uncertainty.
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The Pharma segment's distribution unit experienced a decline in margins, particularly in Ecuador.
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The ongoing investigation and closure of the Trujillo Mall present challenges and uncertainties for future operations.
Q & A Highlights
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Q: Could you provide comments on the early months of the second quarter, particularly regarding same-store sales and the impact of the pension fund withdrawals? Also, when do you expect the effects of the Finance XP joint venture to reflect in results? A: In April, we observed similar positive trends as in Q1, with slight double-digit growth in food retail and around 5% growth in pharma. May's data is still early to assess due to the shifted Mother's Day campaign. Regarding Finance XP, we see significant upside potential, but impacts may start to show by the end of the year as the company rebounds and launches new financial products.
Q: Regarding the renovation of your MAS stores, are these changes mainly cosmetic, or do they involve significant layout changes? What are the plans for the rest of the year? A: The renovations are part of a broader strategic plan focusing on proximity, high-quality, and low prices. We plan to renovate 800 stores by year-end, involving both minor and major overhauls, including layout changes and infrastructure upgrades to enhance customer experience.
Q: Will the strong Q1 2026 results lead to an upgrade in the 2026 guidance? A: We are maintaining our guidance of high single-digit growth in revenues and adjusted EBITDA. For food retail, we expect high single-digit revenue growth with slight operating leverage. Pharma is expected to see mid-single-digit growth, benefiting from the pharmacist unit's growth. Shopping malls should return to 2024 adjusted EBITDA levels.
Q: Could you provide more details on the new Trujillo Mall project, including CapEx and any challenges with permits? A: The Trujillo Mall project is in preliminary stages, with an early CapEx estimate of 500 million soles. We are collaborating with authorities, but the project has not been formally submitted yet. The goal is to create a modern space that integrates with the community and strengthens our regional position.
Q: Can you comment on the recently approved share repurchase program? A: The buyback program, approved for up to $100 million, is part of our strategy to deliver long-term value to shareholders. It allows us to invest in our shares at attractive valuations, signaling confidence in our growth potential while maintaining focus on strategic initiatives.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
