Exito Posts 2Q 2019 Net Loss
Medellin-based multinational retail giant Grupo Exito on August 14 reported a COP$18 billion (US$5.2 million) net loss for second quarter (2Q) 2019, down from a COP$114 billion (US$33million) net profit in 2Q 2018.
Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) were flat year-on-year, at COP$868 billion (US$252 million).
Meanwhile, operating revenue (measured in Colombian pesos) rose 12.3%, to COP$14.5 trillion (US$4.2 billion).
Revenue growth was strongest in Brazil (up 11.2%) and in Colombia (up 3.3%) thanks to the “multichannel” strategy, which combines conventional store sales with growing on-line (internet) and home-delivery sales.
Colombia sales so far this year have benefitted from a 47% jump year-on-year in internet and home-delivery sales, totaling 1.7 million shipments in first-half 2019, representing 4.7 % of total sales of Grupo Éxito Colombia, according to the company.
“The positive results of the organization in Colombia were also leveraged on [store] innovation, with the Éxito ‘Wow,’ Carulla ‘FreshMarket’ and ‘Surtimayorista’ value formats, which grew double-digit sales,” according to the company.
Meanwhile in Brazil, the Grupo Pão de Açúcar (GPA) division “continued to report outstanding figures, due to the consistent growth of the ‘Assaí’ wholesale model and the digital transformation actions,” according to Exito.
As for Uruguay operations, this division “had a solid growth in profitability.”
As for Argentina operations, this division “achieved positive EBIDTA margins amid a challenging macroeconomic context,” according to Exito.
“The joint work between the four countries where the company has a presence continues to focus on digital transformation initiatives and synergies of best commercial practices and joint purchases,” according to Exito.
Grupo Éxito ended the second quarter of 2019 with 1,510 food outlets: 531 in Colombia, 864 in Brazil, 91 in Uruguay and 24 in Argentina, with a consolidated sales area of more than 2.8 million square meters.
