Medellin-based multinational supermarket and dry-goods retailer Grupo Éxito announced May 2 that its first quarter (1Q) 2023 net income fell 30% year-on-year, to COP$45 billion (US$9.6million), as its retail food prices failed to keep pace with inflation.

Despite the dip in profits, revenues nevertheless rose 18.6% year-on-year, to COP$5.4 trillion (US$1.16 billion), mainly thanks to a 9.4% revenue hike in Colombia and “great dynamism in Uruguay and Argentina,” according to the company.

Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9% year-on-year, to COP$387 billion (US$83 million), with EBITDA margin at 7.1%, according to the company.

“Sales in Colombia were driven by strong omnichannel growth (+13.9%) as well as innovative formats that increased their share of total sales to 41%,” according to Éxito.

“Sales in Uruguay grew 13.5% in local currency above the country's inflation index, leveraged by the 19.6% growth of the ‘FreshMarket’ format, which reached a share of 60.1% of the country's total sales.

“In Argentina, revenues in local currency grew 129.5%, outpacing the country's inflation rate. This growth was marked by a positive performance of the ‘cash & carry’ format, the evolution of digital channels and the good performance of the real estate business.”

“Éxito Wow,” “Carulla FreshMarket” and “Surtimayorista” stores all led the growth in the company’s “innovative format” sales in Colombia.

“Operating income in Colombia reached COP$3.8 trillion [US$814 million] with a growth of 8.4%, accounting for 70% of the company's corporate-wide revenues,” the company added.

Corporate-wide, revenue boosts were “driven by the good performance of the innovative formats, the revitalization of sales both in the physical and electronic commerce channels, and the evolution of the real estate business,” according to Éxito.

Grupo Éxito now has a total of 636 stores in Colombia, Uruguay and Argentina.