Grupo Exito Posts Net Loss For 2Q 2023, Reversing Prior-Year Gains
Medellin-based multinational supermarket and dry-goods retailer Grupo Exito on July 31 posted a COP$6.2 billion (US$1.54 million) net loss for second quarter (2Q) 2023, down from a net profit of COP$62 billion (US$15.4 million) in 2Q 2023.
Despite the net loss, consolidated net revenue grew by 8.5% year-on-year, hitting COP$5.1 trillion (US$1.26 billion), “driven by strong double-digit sales growth in local currency from international operations, real estate outcome (+17.8%) and omni-channel growth (7.6%),” according to Exito..
Meanwhile, recurring earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 6.6%, to COP$395 billion (US$98 million), with EBITDA margin at 7.7%.
The EBITDA gain “reflected the solid operational performance in Uruguay and Argentina, which offset Colombia results affected by one [tax-free-sales] day in the base and a higher operating tax after the tax reform approved last year, as well as inflationary pressures across the region,” according to Exito.
Exito also cited “higher financial expenses via interest rates and non-recurring expenses related to the [New York and Brazil stock exchange] listing process,” according to the company.
During the quarter, Exito added, remodeled or upgraded 87 stores — 70 in Colombia, five in Uruguay and 12 in Argentina, bringing its corporate total to 639 new-and-existing stores in the region.
Meanwhile, France-based majority owner Casino Group last month “disclosed that it was working on a non-core asset disposal plan” including its Exito holdings as well as its “GPA” group holdings based in Brazil.
Cali, Colombia-based banker Jaime Gilinski subsequently announced two consecutive bids for the Exito assets — but Casino and its GPA subsidiary immediately rejected both bids as lowballing.