Éxito Full-Year 2021 Profits Double Year-on-Year
Medellin-based multinational supermarket and dry-goods retailer Grupo Éxito announced February 21 that its full-year 2021 net profit soared by 105% year-on-year, to COP$474 billion (US$120 million).
Operating income for 2021 rose 7.5% year-on-year, to COP$16.9 trillion (US$4.3 billion), “marked by important macroeconomic and operational recoveries” not only in Colombia, but also in Argentina and Uruguay.
In Colombia, sales rose 5.5% year-on-year, to COP$12.3 trillion (US$3.1 billion), “driven by the performance of innovative store formats, omnichannel sales and the recovery of the real estate and financial businesses,” according to Éxito.
Consolidated recurring earnings before interest, taxes, depreciation and amortization (EBITDA) rose 20.7% year-on-year, to COP$1.5 trillion (US$381 million), with an EBITDA margin of 9.1%.
Electronic and direct-delivery channels in Colombia represented 11.9% of sales, totaling COP$1.5 trillion (US$381 million) in 2021, and 9.9% of sales corporate-wide.
“By 2022, the company will continue with the expansion plan for its innovative formats (Éxito Wow, Carulla FreshMarket, Super Inter Vecino, Surtimayorista and Surtimax) renewing between 50 and 60 stores in Colombia and six hypermarkets operated by ‘La 14,’” according to Éxito.
“Innovative formats increased their sales share to 33.3% in Colombia. By brand, ‘Éxito Wow’ stores accounted for 29.6% of sales, ‘Carulla FreshMarket’ 45.1%, ‘Super Inter Vecino’ 47.7% and ‘Surtimayorista,’ which accounted for 4.6% of the company’s sales.
“The operation in Uruguay registered a recurring EBITDA margin of 10.2% and continued as the most profitable operation of the Group. Omnichannel sales grew 9.8% in local currency and represented 3.6% of total sales in that country.
“In Argentina, the operation had significant growth in revenues (+46.8%) in local currency, marked by the recovery of consumption and the real estate businesses. EBITDA margin reached 3.4%, almost twice that registered in 2020,” the company added.
While 2021 delivered solid results corporate-wide, “in Colombia, the beginning of the year was complex, affected by warehouse closures and the national strike,” explained Grupo Éxito president Carlos Mario Giraldo.
“In Uruguay, we had the worst tourist season, and in Argentina we faced a difficult macroeconomic situation.
“However, the Group quickly adapted [thanks to] strengthening of our digital strategy, supported by our network of warehouses, consolidation of our innovative formats and the recovery of businesses in real estate and finance,” he added.