Grupo Éxito posted solid consolidated growth during 3Q22
03 of November of 2022
Grupo Éxito posted solid consolidated growth during 3Q22; Net Revenue rose 22.6% to COP5.1 billion driven by retail and the real estate business performances
In Colombia, Grupo Éxito sales growth far exceeded total inflation from internal efforts and anticipated purchases (internal food inflation grew 5.7 percentage points below the country's)
YTD sales in Colombia amounted to COP10.2 billion; e-commerce channels maintained a solid 19.1% growth, while innovative formats, led by Éxito Wow and Carulla FreshMarket, accounted for 38.4% of sales
Consolidated recurring EBITDA was COP398,998 million during 3Q22 (+12.9%) and reflected the good performance of innovative formats, digital platforms, and the real estate business
The “Insuperables” (unbeatable price products) that guarantee the lowest price on the market, grew sales by 31.8% and accounted for 4.0% of total Group sales in Colombia
“Puntos Colombia” continued consolidating as the leading loyalty program in Colombia, offering more and more options for redemption in products and services to its more than six million customers
Three of the stores acquired from La 14, opened in Tuluá, Jamundí, and Cartago; thus, the Company continues promoting the recovery of employment and supplier activity in the Valle del Cauca region
- Grupo Éxito reached consolidated Net Revenue of COP5.1 billion during 3Q22 (+22.6%) and showed good sales growth (+23.1%), thanks to the performance of innovative formats, the dynamics of digital platforms, and complementary businesses, mainly real estate.
- The real estate business continued contributing to the consolidated result. During 3Q22, occupancy rates at shopping centers reached 96.3% in Colombia, and 90.3% in Argentina.
- In Colombia, innovative formats such as Éxito Wow, Carulla FreshMarket, SuperInter, and Surtimayorista contributed with 39% of total sales of the operation in the country.
- e-commerce sales channels in Colombia grew 23.2% during 3Q22 and kept a double-digit share in the company's total sales (12%).
- Consolidated Net Income was COP49,937 million and reflected higher variations of tax rates, the inflationary adjustment in Argentina, and higher interest rates in Colombia.
- In Uruguay, Net Revenue grew 11.7% in local currency, driven by FreshMarket sales, which represented a share of 51.5% on total sales.
- In Argentina, the real estate business and the new Mini Mayorista format were important levers of the quarter's results (sales grew 131.6% in local currency).
- More than 470,000 trees were donated by customers, employees, suppliers, and allies, and about 265,000 trees planted as a result of the #UnArbolALaVez. This joint initiative of Grupo Éxito and Celsia, aims to increase forest cover, restore the country's watersheds, and protect its biodiversity.
Grupo Éxito's Consolidated Results (Colombia, Uruguay, and Argentina)
Consolidated Net Revenue grew 22.6% to COP5.1 billion in 3Q22. The result reflected a good sales performance (+23.1%) thanks to the innovative formats, the omni-channel strategy, and the growth of complementary businesses (+11.7%), driven mainly by the real estate. YTD Net Revenue amounted to COP14.4 billion, a growth of 23.5%.
During 3Q22, recurring EBITDA was COP398,998 million (+12.9%) and reflected the good performance of innovative formats in Colombia, Uruguay, and Argentina, and the improvement of the real estate business in Colombia and Argentina.
The Company posted a consolidated Net Income of COP49,937 million, which reflected higher interest rates in Colombia, inflationary adjustments in Argentina, and changes in tax.
“At Grupo Éxito, we remain committed with our customers by providing the best experience and offering convenient accessible options for basic food, house cleaning and personal care products, amidst an inflationary environment. The Company managed to grow food prices by 5.7 percentage points below the index in Colombia, by offering a portfolio of “Unbeatable Products,” with competitive prices in basic basket grocery shopping and taking advantage of having 94% of apparel manufactured locally in Colombia to hedge devaluation. We also continued anticipating purchasing, to benefit prices for customers. Digital platforms already exceeded 9 million deliveries year-to-date, and complementary businesses such as shopping centers, financial services, insurance, travel, and Puntos Colombia, strengthened our complete portfolio. We continue strengthening our social contribution and delivered 164,000 nutritional grocery baskets to more than 45,000 children, promoted recycling, as well as sustainable livestock farming. More than 470,000 trees have been donated by customers, employees, suppliers, and allies, and nearly 265,000 trees have already been planted this year, within the #UnArbolALaVez (one three at a time) initiative between Grupo Éxito and Celsia to increase forest cover, restore the country's watersheds and protect its biodiversity, to ratify our superior purpose: Nourishing Colombia with Opportunities,” said Carlos Mario Giraldo, Grupo Éxito CEO.
Consolidated Results - Grupo Éxito
All figures expressed in millions of Colombian pesos (COP)
Colombia sales growth reflected good commercial performance, consistency in the omni-channel strategy, profitability of innovative formats, and a higher contribution of the real estate business.
Net sales surpassed COP3.5 billion in Colombia during 3Q22 (+16.1% vs 3Q21) and represented 72% of the Group's consolidated Net Sales. YTD, share on sales was 74% and amounted to COP10.2 billion. Quarterly sales in Colombia grew above inflation, driven by the performance of innovative formats such as Éxito Wow, Carulla FreshMarket, SuperInter, and Surtimayorista which grew 14.1% and contributed to 39% of the total sales of the operation in the country.
- Éxito Wow with 26 stores in the country, represented 32.7% of the brand's total sales for 3Q22.
- Carulla FreshMarket, with 26 stores in this format, accounted for 53.1% of the brand's total sales for 3Q22.
- Super Inter grew sales by 8.9% thanks to the performance of its 35 stores under the “Vecino” format, six renovated during the quarter. The “Vecino” format represented 70.8% of the brand's total sales in this period.
- Surtimayorista, the cash and carry format, with 42 stores grew sales by 36.6% and represents 5.4% of the total sales of the operation in Colombia.
Omni-channel sales reached COP426,000 million during 3Q22, continued with a double-digit growth (23.2%) and represented 12% of the company's total sales in Colombia. To highlight over 200,000 orders at exito.com and carulla.com (COP89,700 million). Marketplace represented 7.3% of e-commerce sales, a total of 2.9 million orders were delivered.
Recurrent EBITDA in Colombia reached COP284,702 million (+2.1%) from commercial dynamism and the performance of the innovative formats mentioned above. Margins in Colombia reflected price investments and the portfolio of more than 300 "unbeatable" products to guarantee the best prices, mainly in personal care and home products.
Complementary businesses also contributed to results, especially real estate (+25.4%) while the financial business with TUYA was affected by higher provisions required from increased commercial performance.
Three of the stores acquired from La 14 opened in Tuluá, Jamundí, and Cartago; the Company continued its commitment to recover employment in the Valle del Cauca region, where it expects to be have near 5,000 new jobs by the end of the year. In addition, 100 suppliers from La 14 were codified to continue doing business with Grupo Éxito and create jobs and opportunities.
#UnArbolALaVez, is the joint initiative of Grupo Éxito and Celsia to increase forest cover, restore the country's watersheds, and protect its biodiversity, as a strategy to reduce, mitigate and offset the impact on the planet. More than 470,000 native trees have been donated by customers, employees, suppliers, and allies, and close to 265,000 native trees have already been planted in according to the ecosystems in the regions of Valle del Cauca and Tolima.
The aim is to reach 1,000,000 native trees between both companies, the equivalent of 625 football fields, and the goal may be surpassed by year’s end.
Uruguay showed improved consumption and maintained profitability growth with a solid contribution of its FreshMarket format.
Uruguay's Net Sales grew 11.7% in local currency, above inflation, and reflected the improved consumption trend. The country contributed near to 18% of consolidated Net Sales during the quarter. Recurrent EBITDA grew 32.3%, to a 10% margin, in line with the same period last year, as a result of controlled expenses and operating efficiencies.
The FreshMarket format with 23 stores, maintained a solid share on total sales in Uruguay which reached 51.5% in 3Q22; renovated stores grew 7.7 percentage points above regular stores during the period.
Devoto Express grew by 23.4%, from a well-received improved product assortment, and higher traffic levels in stores, which ratified the economic recovery.
Uruguay continues to be Grupo Éxito most profitable operation.
In Argentina, the real estate business and the new Minimayorista format were important levers for the quarter's results.
Libertad sales grew 131.6% in local currency, above inflation, mainly from increased traffic in shopping malls, the contribution of recently opened Minimayorista format (5 stores), and omni-channel growth (+218.4%). Argentina contributed to near to 10% of the Group's consolidated net sales during the period.
The real estate business of Libertad shopping centers showed an increase in traffic and occupancy rates (90.3% as of September 2022).
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