Wednesday, May 31, 2023

Become part of our community

"Exito Wow" Produce Section "Exito Wow" Produce Section Source: Grupo Exito

Grupo Éxito 1Q 2023 Net Income Drops 30% Year-on-Year

Published in Companies Written by  May 03 2023 font size decrease font size increase font size 0
Rate this item
(1 Vote)

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.

Read 131 times Last modified on Last modified on May 03 2023

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