Grupo Éxito Posts 3Q 2024 Net Loss

Medellin-based multinational supermarket/dry-goods retailer Grupo Éxito on November 13 posted a COP$34.7 billion (US$7.8 million) net loss for third quarter (3Q) 2024 — slightly worse than its COP$31.7 billion (US$7.1 million) net loss in 3Q 2023.

Revenues improved slightly (up 2.2%) year-on-year, at COP$4.99 trillion (US$1.12 billion) in 3Q 2024, versus COP$4.91 trillion (US$1.1 billion) in 3Q 2023.

The 3Q 2024 revenues were “affected by the negative foreign-currency exchange [FX] effect – they would have been up 6.6% if excluding FX – along with better sales performance in Colombia, plus resilient performance in international operations as expressed in local currency terms: Uruguay up 5.0%, and Argentina up 79%,” according to Éxito.

Earnings before interest, taxes, depreciation and amortization (EBITDA) improved slightly year-on-year, hitting COP$310 billion (US$70 million) in 3Q 2024 versus COP$302 billion (US$58 million) in 3Q 2023.

Third quarter results covered operations in Colombia, Uruguay and Argentina, along with discountinued operations.

Gross profit for 3Q 2024 rose slightly — up 0.5% in Colombia pesos, or up 6.3% if excluding the FX effect — to COP$1.3 trillion [US$293 million], “reflecting a strong commercial strategy in Colombia and inflationary pressures in Argentina,” according to Éxito.

“The positive contribution of retail operations from Colombia and Uruguay partially offset operational performance in Argentina, affected by macro and consumer headwinds, and the higher non-recurring expenses by our restructuring process in Colombia,” according to Éxito.

So far this year (January through September), Éxito capital expenses are up 73% year-on-year, at COP$247 billion (US$55 million), “focused on retail and real-estate expansion, innovation, omni-channel, and digital transformation activities,” according to Éxito.

Those expenses covered 51 stores — 44 in Colombia, six in Uruguay, one in Argentina — with Colombia upgrades “focused on store conversions to ‘Éxito’ and ‘Carulla’ banners,” according to Éxito.