Grupo Éxito Posts Net Loss for 1Q 2024
Medellin-based multinational supermarket/dry-goods retailer Grupo Éxito – now a subsidiary of El Salvador-based Grupo Calleja – on May 8 posted a COP$37.8 billion (US$9.7 million) net loss for first quarter 2024.
That represents an 184% decline from the net profit of COP$45 billion (US$9.6 million) posted in 1Q 2023.
“During the first quarter of 2024, the net profit result was impacted due to the macroeconomic conditions on consumption in the region,” along with an “increase in financial expenses due to the negative effect of the exchange rate and the higher non-recurring expenses in Colombia required for optimization and restructuring of the store portfolio,” according to Éxito.
Gross revenues during 1Q 2024 also declined 3.8% year-on-year, to COP$5 trillion (US$1.28 billion), while recurring earnings before interest, taxes, depreciation and amortization (EBITDA) likewise fell 22% year-on-year, to COP$302 billion (US$77 million), according to the company.
If exchange-rate effects were excluded, then consolidated revenues for 1Q 2024 actually rose 7.9% for Éxito’s three national markets: Colombia, Uruguay and Argentina, according to the company.
“Sales in Colombia reached COP$3.7 trillion [US$949 million] and showed a resilient growth of 2%, given the challenging macroeconomic context,” according to the company.
“Uruguay sales increased by 7.6% in local currency and above the inflation rate, and in Argentina, sales grew 228.1%, amid inflationary pressures that affected consumption,” the company explained.
As for the company’s commercial real-estate division, this unit “continued to be an important pillar of growth for Grupo Éxito in the region, and increased its recurring revenues by 5.6% in Colombia and 193% in Argentina in local currency,” the company added.
