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Exito 'FreshMarket' Format Key to Profit Growth Exito 'FreshMarket' Format Key to Profit Growth Source: Grupo Exito

Éxito 3Q 2020 Profits Soar 369% Year-on-Year; ‘Sustainable Livestock’ Initiative Launches

Published in Companies Written by  October 29 2020 font size decrease font size increase font size 0
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Medellin-based multinational supermarket and home-products giant Grupo Exito announced October 28 that its third quarter (3Q) 2020 net profits jumped by 369% year-on-year, to COP$52 billion (US$13.5 million).

On the other hand, recurring earnings before interest, taxes, depreciation and amortization (EBITDA) actually dipped 9.4% year-on-year, although sales rose a modest 2.4%.

Through the first nine months of 2020, net profits are COP$86 billion (US$22 million) -- a substantial improvement over the COP$19.5 billion (US$5 million) net loss for first nine months of 2019, according to the company.

The improved results “were leveraged especially by the positive performance of direct and electronic commerce channels in Colombia, which had a record growth of 250%, or 3.5-times the figure of the previous year, and by the good evolution of retail sales in Uruguay, which increased by 11.3%,” according to Exito.

Sales via electronic and direct commerce reached COP$1 trillion (US$259 million) in September, “a first in the history of Grupo Éxito or any other merchant in Colombia,” according to the company.

Colombia operations generated sales of COP$2.67 trillion (US$692 million), “even with the negative effect generated by mobility restrictions as a result of Covid-19,” according to Exito.

“Innovation continues to be a differential element. In Colombia, ‘Éxito Wow’ sales grew by 8.1% and ‘Carulla FreshMarket’ by 24%,” according to the company.

In Uruguay, sales grew 11.3% in local currency, “driven by the result of the electronic and direct commerce channels, as well as the ‘FreshMarket’ format, which had a sales growth of 11.7% and represented 41.7% of total sales in this country,” according to Exito.

“In Argentina, recurring EBITDA reached a positive margin of 1.9%, even in the midst of a complex macroeconomic environment and mobility restrictions,” the company added.

‘Sustainable Livestock’ Initiative

On another front, Grupo Éxito announced the launch of its “Sustainable Livestock” initiative.

“We are making progress in the consolidation of our sustainable livestock model, which has satellite-monitored the preservation of forests [surrounding] farms where the livestock that supplies the company are scattered in eight departments of [Colombia],” according to Exito.

“With this process, we have evaluated at 70% of our live cattle suppliers, and we expect to reach 100% of them by the end of the year.

“In November we will launch our ‘premium quality’ product that includes audit processes to guarantee a sustainable livestock process,” according to Exito.

Grupo Éxito ended 3Q 2020 with 630 stores: 515 in Colombia, 90 in Uruguay and 25 in Argentina, the company added.

Read 730 times Last modified on Last modified on October 29 2020

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