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Exito Retail Store Exito Retail Store Source: Exito

Exito Posts Net Loss in 3Q 2018, but Nine-Months 2018 Profits Soar

Published in Companies Written by  November 15 2018 font size decrease font size increase font size 0
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Medellin-based multinational retail giant Exito on November 14 posted a third quarter (3Q) 2018 net loss of COP$9.6 billion (US$3 million), but nine-months 2018 profits soared by 293%, to COP$119 billion (US$37 million).

Gross revenues as measured in Colombia pesos dipped 8.4% year-on-year in 3Q 2018, to COP$12.7 trillion (US$3.98 billion), but actually improved 9.5% if excluding Colombian peso weakening.

For nine-months 2018, gross sales are off 3.3% measured in Colombian pesos but up 8.2% if excluding the peso-weakness effect.

Sales in the four South American countries where Exito operates showed increases in local currencies: Colombia up 0.6%; Brazil 12.9%; Uruguay 4.7% and Argentina 23.5%, according to Exito.

Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) were COP$661 billion (US$207 million) with an EBITDA margin of 5.2%.

In Colombia, nine-months sales hit COP$8.1 trillion (US$2.5 billion), spurred by new retail formats (“Exito Wow” and “Carulla FreshMarket,”) new strategies, growing credit-card sales, income from the “Viva” real-estate venture and growing “e-commerce” sales, the latter of which now account for 3.6% of all Colombian sales, according to Exito.

The gradual improvement in sales here during the latest quarter came despite a 0.7% decline in the Colombian consumer confidence index, which has been weak in seven of the last 12 months, Éxito noted.

In Brazil, 3Q 2018 food sales rose 12.9% year-on-year, thanks to strong growth at “Assaí” stores as well as improvements at the “Extra” and “Pão de Açúcar” outlets, according to Exito.

In Uruguay, sales so-far this year have grown 6.4% in local currency “amid a challenging economic situation in the neighboring countries,” Exito noted.

Operating profit margin in nine-months 2018 in Uruguay was 6.9% compared to 6.7% in the same period of 2017, while recurring EBITDA margin was 8% compared to 7.7% in the same period of 2017.

As for Argentina, the “Libertad” store chain in 3Q 2018 showed a “growth in its sales of 23.5%. Libertad had the best market performance, and according to Nielsen, to August of this year registered 18% of the market share in the territory where it operates. The recurring EBITDA margin in the third quarter was 4.7%, mainly leveraged by the real estate operation in its 15 galleries commercials that maintain an occupation close to 95%,” according to Exito.

At the end of 3Q 2018, Exito had 1,536 stores, of which 549 are in Colombia, 870 in Brazil, 88 in Uruguay and 29 in Argentina.

Read 164 times Last modified on Last modified on November 15 2018

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