Wednesday, May 18, 2022

Become part of our community

Exito 'Wow' Hypermarket Store Exito 'Wow' Hypermarket Store Source: Grupo Exito

Exito 1Q 2022 Net Income Dips 24% Year-on-Year, but EBITDA Rises

Published in Companies Written by  May 04 2022 font size decrease font size increase font size 0
Rate this item
(1 Vote)

Medellin-based multinational supermarket and dry-goods retailer Grupo Exito announced May 3 that its first quarter (1Q) 2022 net income dropped 24% year-on-year, to COP$64 billion (US$15.9 million), from COP$85 billion (US$21 million) in 1Q 2021.

However, sales actually rose 22% year-on-year, to COP$4.37 trillion (US$1.08 billion), while recurring earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 15.8% year-on-year, to COP$355 billion (US$88 million).

The company blamed the profits decline on “a higher tax rate than in the same quarter of the previous year and higher interest rates.”

On the other hand, the boost in EBITDA came as a result of “great commercial dynamism and operational efficiencies in the three countries where it has a presence,” namely Colombia, Argentina and Uruguay.

“The strengthening of the omnichannel strategy in Colombia allowed e-commerce and direct channels to reach a share of 11.8% of [Exito’s total Colombia] sales in the quarter,” according to the company.

Meanwhile, “innovative formats continue to be important levers of differentiation and competitiveness. ‘Success Wow’ represented 29.5% of the brand’s total sales while ‘Carulla FreshMarket’ took 46.3%. Likewise, ‘Super Inter Vecino’ took 47% and ‘Surtimayorista’ took 4.7% of the total sales of the operation in Colombia.

“Sales from electronic and direct commerce channels in Colombia reached $395.8 billion [US$98 million] in the quarter and already represent 11.8% of the company’s total sales,” according to Exito.

“The diversification strategy of complementary businesses, mainly real estate, continued to contribute to the result. The occupancy rate of shopping centers reached 93.1% in Colombia and 89.6% in Argentina in March.

“The gradual recovery of the economy in Uruguay, benefited by the tourist season, was reflected in a growth in sales of 11.8% in local currency, higher than the annualized inflation. A higher recurring EBITDA margin of the operation in that country (11.2%) was the result of greater productivity and strict control of expenses.

“The participation in sales of direct and electronic commerce channels in Uruguay was 2.6%. The stores that operate under the ‘Fresh Market’ model participated with 46.6% of total sales, growing 13.7 points more than the non-reformed stores.

“In Argentina, ‘Grupo Libertad’ sales in local currency grew by 62.4% -- above the high level of inflation -- and benefited by economic reactivation and the result of electronic and direct commerce channels, which reached a share of total sales of 2.3%,” the company added.

Read 85 times Last modified on Last modified on May 04 2022

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

About Medellin Herald

Medellin Herald is a locally produced, English-language news and advisory service uniquely focused upon a more-mature audience of visitors, investors, conference and trade-show attendees, property buyers, expats, retirees, volunteers and nature lovers.

U.S. native Roberto Peckham, who founded Medellin Herald in 2015, has been residing in metro Medellin since 2005 and has traveled regularly and extensively throughout Colombia since 1981.

Medellin Herald welcomes your editorial contributions, comments and story-idea suggestions. Send us a message using the "contact" section.

Contact US

logo def
Medellin Herald: Find news, information, reviews and opinion on business, events, conferences, congresses, education, real estate, investing, retiring and more.
  • COL (4) 386 06 27
  • USA (1) 305 517 76 35
  •  This email address is being protected from spambots. You need JavaScript enabled to view it. 
  • Medellin, Antioquia, Colombia

Medellín Photo Galery

Medellin, contrasting colors and styles by Gabriel Buitrago