Exito First-Half 2017 Profits Rebound Year-on-Year

Medellin-based multinational supermarket giant Exito reported August 14 that its first-half (1H) 2017 net profits rebounded to COP$61.6 billion (US$20.7 million), up from a COP$47.7 billion (US$16 million) loss in 1H 2016.

Revenues also rose 12.4% year-on-year, to COP$26.8 trillion (US$9 billion), while recurring earnings before interest, taxes, depreciation and amortization (EBITDA) rose 40% year-on-year, to COP$1.7 trillion (US$573 million), according to the company.

While Colombia’s relatively weak economy this year pinched over-all results, a rebounding Brazilian economy boosted Exito’s corporate-wide earnings, according to the company.

In Brazil, Exito’s “Grupo Pão de Açúcar” (GPA) chain saw revenues rise 8.1% year-on-year (measured in local currency) and the “Assai” cash-and-carry supermarket chain saw a 28% jump in operational earnings.

In Uruguay, sales rose 7.4% year-on-year (measured in local currency) and EBITDA margin hit 8%, according to the company.

In Argentina, the company’s commercial real-estate business expanded to 161,000 square meters of rentable space, putting Exito in the number-one position (outside of Buenos Aires) in offering commercial gallery space.

In Colombia, Éxito’s “Surtimayorista” cash-and-carry chain continues to grow, with eight stores now open and showing promising results.

Surtimayorista is “one of the strategies of the [Éxito] group to confront the challenging macroeconomic situation” in Colombia, according to the company.

The private-label clothing business also is showing exemplary results, as 97% of all Éxito-branded clothing ítems are produced in Colombia, generating US$6 million in export income, according to the company.

Synergies between all of Éxito’s business lines in Latin America are now expected to deliver US$50 million in corporate-wide savings this year, the company added.

The company now has 1,563 retail locations, with 568 in Colombia, 884 in Brasil, 81 in Uruguay and 30 in Argentina.

“The first-half results continue to show us that our internationalization strategy is producing good results and positive diversification in income and profits for our group,” added Grupo Éxito president Carlos Mario Giraldo.