April 13, 2024
Companies

Medellin-Based Exito Retail Chain Reports Huge Growth in 2015

Medellin-based supermarket and retail chain Grupo Exito announced March 1 that its full-year 2015 consolidated revenues skyrocketed by 219% thanks to recent acquisitions in Brazil, Argentina and Uruguay, in addition to continuing growth in Colombia.

Consolidated revenues hit COP33.4 trillion (US$10 billion) in 2015, while net income rose 14.8% year-on-year (y-o-y), to COP573 billion (US$178 million), according to the company.

Corporate-wide earnings before interest, taxes, depreciation and amortization (EBITDA) came-in at COP2 trillion (US$623 million) with a margin of 6.1%, while Colombia EBITDA grew 4.4% y-o-y, to COP805 billion (US$251 million) with a margin of 7.6%, according to the company.

“With these latest results, the company entrenches its leadership position in South America, being number-one in Colombia, Brazil and Uruguay, and the leader in the Córdoba región in Argentina,” according to Exito.

Grupo Éxito now has 2,606 retail outlets, including 1,941 in Brasil, 573 in Colombia, 27 in Argentina and 65 in Uruguay, plus nearly 60 millon clients — 18 million of which are buyers of electronic goods – along with roughly 200,000 employees, according to the company.

The year 2015 “without doubt is an historic year for Grupo Éxito” thanks to its internationalization strategy in Brazil and Argentina, including control of Grupo Pão de Açúcar (GPA) in Brazil and 100% of the Libertad store group in Argentina.

The new challenge for Éxito is to “consolidate our regional presence, take advantage of a [future] recovery of the economy in Brazil, and work on efficiencies and costs,” added Éxito president Carlos Mario Giraldo — a Medellin native who last month was named Colombia’s “empresario of the year” by business newspaper La Republica.

Exito’s corporate-wide integration strategy now includes 18 new projects in four countries, including consumer loyalty programs, comercial supplier negotiations, launching of new-format stores, construction of the first “Cash & Carry” store in Colombia and development of joint retail and comercial real-estate projects, according to Éxito.

The company also opened 49 new retail locations in Colombia last year, including 23 “Éxito” stores and several retail fuel stations.  

The company’s “Carulla” supermarket chain now totals 100 stores in 11 of Colombia’s departments (states), including new locations in Villavicencio and Pereira, according to Exito.

In its discount-store segment – including 153 “Surtimax” stores and and 58 “Super Inter” stores — sales rose 8.8% y-o-y in 2015 according to Éxito.

The company’s recently launched “Viva” shopping-center development division now has grown to 11 centers, with the “Viva Envigado” project adjacent to Medellin scheduled to become Colombia’s largest single shopping center.

The company also funded the production and debut last year of Colombia’s most-viewed feature-length film of all time: Colombia, Magia Salvaje (Colombia’s Wilderness Magic). The COP4 billion (US$1.2 million) proceeds from ticket sales went to the company’s Fundación Éxito food charity, which helps to support 28,600 poor children and 9,500 families.

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