Exito 3Q 2016 EBITDA Improves, but Posts Net Loss
Medellin-based retail giant Exito reported November 29 that its third quarter (3Q) 2016 earnings before interest, taxes, depreciation and amortization (EBITDA) rose 4.2% year-on-year, to COP$732 billion (US$238 million) on sales of COP$16.5 trillion (US$5.36 billion), up 12.5%.
However, the company posted a net loss of COP$100 billion (US$32 million), down from a net profit of COP$147 billion (US$47.8 million) in 3Q 2015.
Exito attributed the net loss to “a difficult macroeconomic environment in Brazil and financing costs in Colombia that were impacted by a rise of 300 basis points (from 4.7%% to 7.75%) in [Colombia] Bank of the Republic interest rates in the last 12 months.”
Colombia store sales in 3Q 2016 rose 10.6% year-on-year, to COP$2.7 trillion (US$878 million), while Colombia EBITDA rose 6.5%, to COP$526 billion (US$171 million).
Sales in Brazil rose 4.4% year-on-year, while Uruguay sales rose 9.3% and Argentina sales jumped 23.4%, according to Exito.
Brazil sales included a notable 14% hike in food sales, sparked by a 45.7% hike in sales at Éxito’s large-format “Assaí” stores, according to the company.
“In commercial synergies, stand-outs were the launch of the ‘Surtimayorista’ [large-format store] in Bogota, under the Brazilian ‘cash-and-carry’ model; the introduction of Exito textiles in Brazil and Argentina; the launch of the ‘Aliados’ model that now totals 85 ‘Minimercados’ in Sao Paulo; and the introduction of Colombian name-brands in Brazil including ‘Juan Valdés,’ ‘Corona,’ ‘Colcafé’ and the ‘Formas Íntimas, ‘Elite Flowers’ and ‘Eurocorset’” brands, according to the company.
Meanwhile, Grupo Éxito and a Colombian national real-estate fund (Fondo Inmobiliario Colombia, FIC) recently signed a memo of understanding for investment in the growing chain of “Viva Malls,” with investment funds administered by Fiduciaria Bancolombia, Éxito noted.
Viva Malls specializes in development and operation of large malls in Colombia, with 440,000 square meters of commercial space in-operation or in-development, according to the company.