Éxito 3Q 2021 Profits More-Than-Double Year-on-Year
Medellin-based multinational supermarket and dry-goods retailer Grupo Éxito announced November 3 that its third quarter (3Q) 2021 net income rose 144% year-on-year, to COP$126 billion (US$32.8 million).
Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) rose 42%, to COP$353 billion (US$92 million), while sales rose 13.5%, to COP$3.98 trillion (US$1.04 billion), according to the company.
In Colombia, sales rose 14.3% year-on-year, to COP$3 trillion (US$782 million), “the best quarterly increase in recent years,” according to Éxito. Recurring EBITDA margin in Colombia was 8.7% over operating income — 200 basis points more — compared to the same period of 2020 and 8.5% so far this year.
“The higher levels compared to those reported in 2020 and 2019 reflect the operational efficiencies achieved in the midst of a recovery in consumption due to the economic reactivation” happening in Colombia, according to Éxito.
The jump in EBITDA is the result of Exito’s “strategy focused on innovation and omnichannel and optimal control of expenses in the three countries” where in operates: Colombia, Uruguay and Argentina.
In Colombia, electronic and direct commerce channel sales accounted for 12.2% of total sales, indicating that “virtual commerce is here to stay,” according to Éxito. Such sales in Colombia hit COP$344 billion (US$89 million) during 3Q 2021, the company added.
Meanwhile, “the innovative formats ‘Éxito Wow’ and ‘Carulla FreshMarket’ continue to be important levers of differentiation and competitiveness; the first represented 27.8% of Éxito’s total sales and the second, 36.2% of Carulla,” according to the company.
“The diversification strategy of complementary businesses — mainly financial and real estate — continued to contribute to the result. The occupancy rate of shopping centers reached 92% in Colombia and 89% in Argentina in September.
“The gradual recovery of the economy in Uruguay was reflected in a higher recurring EBITDA margin of the operation in this country (10.1%), benefited by higher productivity and commercial margin and a strict control of expenses.
“In Argentina, Grupo Libertad’s sales in local currency grew 58.1%, above the high level of inflation, benefiting from the economic reactivation, better performance of the food business and the electronic and direct commerce channels that reached a participation in total sales of 2.7%,” the company added.
In Colombia, recurring EBITDA margin was 8.7% over operating income — 200 basis points more — compared to the same period of 2020 and 8.5% so far this year.
“The higher levels compared to those reported in 2020 and 2019 reflect the operational efficiencies achieved in the midst of a recovery in consumption due to the economic reactivation of the country,” according to Éxito.
“The economic reactivation in the three countries where Grupo Éxito operates favored an atmosphere of optimism and confidence,” resulting in a 15% jump in sales corporate-wide, the company added.