September 23, 2023

Exito Full-Year 2020 Net Profits Soar 300% Year-on-Year

While many companies have suffered steep reversals in 2020 during the Covid-19 pandemic, Medellin-based multinational supermarket/dry-goods retailer Grupo Exito actually saw its net profits soar 300%, to COP$231 billion (US$64 million).

Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) was nearly flat, at COP$1.27 trillion (US$353 million), while sales were up 7.2%, to COP$15 trillion (US$4.1 billion), according to the company’s February 22 filing with Colombia’s Superfinanciera oversight agency.

Operating income rose 2.9% year-on-year, to COP$15.7 trillion (US$4.4 billion), “as a result of the rapid adaptation of the company to the needs of customers and new ways of buying,” according to Exito.

Consolidated sales in Colombia rose 5.6% year-on-year, to $12.2 trillion (US$3.4 billion), representing 77% of the group’s consolidated income. while consolidated recurring EBITDA margin for the year was 8.1%, “mainly benefitting from the contribution of retail and the strict control of expenses,” according to the company.

“Electronic and direct commerce channels in Colombia represented 12.4% of the sales, multiplying 2.7 times compared to the previous year. More than 8.5 million orders, of which 85% were home deliveries, 1.8 times more than in 2019,” the company added.

“Differential formats also grew their sales significantly, twice digit, in the country: those of Éxito ‘Wow’ grew 13.9% in the year and represented 20.7% of the brand sales, while those of ‘Carulla FreshMarket’ increased by 18.4% and represented 26.5% of Carulla brand sales,” according to Exito.

Uruguay, Argentina Results

In Uruguay, Exitos saw revenues grow by 10.3% in local currency, above inflation, with recurring EBITDA margin at 10.3%. Electronic and direct commerce channels grew by 61% and accounted for 3.3% of total sales.

As for Argentina, Exito revenues grew 20.7% in local currency terms while recurring EBITDA margin came-in at 1.8%, according to the company.

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