Grupo Éxito Full Year 2024 Profits Fall 57% Year-on-Year
Medellin-based multinational supermarket giant Grupo Éxito announced February 26 that its full-year 2024 net income dropped 57% year-on-year, to COP$54.7 billion (US$13 million), versus COP$126 billion (US$30 million) in 2023.
Despite the profits drop, sales revenues rose 3.2% year-on-year, to COP$20.8 trillion (US$5 billion), while recurring earnings before interest, taxes, depreciation and amortization (EBITDA) dipped 1%, to COP$1.62 trillion (US$394 million), according to the company.
The revenue gains “were leveraged by the strong performance of the operation in Uruguay, the resilient performance of retail in Colombia, and the positive result of the real estate business,” according to Éxito.
“These factors managed to offset a challenging context for the retail business in Argentina, especially affected by macroeconomic measures aimed at containing high inflation levels.”
The profits decline came from “the high inflationary effect in Argentina, the slowdown in consumption and Exchange-rate impacts, especially in the first half of the year,” according to the company.
“Additionally, the result was impacted by higher non-recurring expenses explained by the restructuring process in Colombia.”
Despite the yearr-on-year profits decline, “consolidated net profit grew by 23% in the fourth quarter [4Q]” compared to 4Q 2023, the company added.
As for its Colombia operations for full year 2024, revenues rose 2.7% compared to 2023, “reaching COP $16.3 trillion [US$3.97 billion], representing 74% of Grupo Éxito’s consolidated revenues,” according to the company.
In Colombia, “recurring EBITDA grew by 4.7% and reached COP$1.2 trillion [US$2.9 billion], with a margin over revenues of 7.3%. This result was leveraged by the positive contribution of complementary businesses and a significant operational excellence program focused on logistical improvements, contract renegotiations, and structural adjustments.”
Éxito also highlighted “gradual unification of brands to consolidate operations around the ‘Éxito’ and ‘Carulla’ brands.”
“By the end of the year 2024, 26 stores were converted (16 conversions to the Carulla brand and 10 to Éxito), whose sales grew by 12%; and the opening of two Éxito stores and one Carulla store.”
The company also cited a boost in product assortments “in stores across all regions of the country, with more than 2,000 new references per store from over 80 brands, representing an increase of more than 30% in the existing products on the shelves.”
