Grupo Éxito lost $37,863 million in the first quarter due to lower consumption by its clients

The operation in Colombia represented 74 percent of Grupo Éxito’s operating income. Income in the country increased 2.6 percent driven by the increase in omnichannel sales, the food category and the contribution of the real estate business.

Colombia generally recorded a resilient performance, considering the base effect of high increase in sales and non-recurring real estate income, recorded in the first quarter of 2023.

Grupo Éxito’s consolidated recurring EBITDA was 302,113 million pesos, and reflected the positive performance of the gross margin in Uruguay, which gained 67 bps, and efficiencies in spending in Colombia, which grew below inflation, thanks to
internal efforts.

However, The consolidated result was affected by the slowdown in consumption in the region, higher expenses from international operations due to inflationary pressures and higher non-recurring base income from the sale of assets in Colombia during the first quarter of last year.

During the first quarter of 2024, the Grupo Éxito reported losses of 37,863 million pesos, while A year ago it had registered profits of 45,118 million pesos.

(Read also: The annual variation in the cost of living in Colombia was 7.16% in April: Dane)

The company explained that The profit was impacted by the macroeconomic conditions in consumption in the region, and its effect on the operating result; the increase in financial expenses due to the negative effect of the exchange rate and the higher non-recurring expenses in Colombia required for the optimization of the store portfolio and its restructuring to benefit the profitability of the operation in the country.

“Grupo Éxito’s consolidated results in this first quarter are resilient and demonstrate the organization’s ability to face challenging moments such as those experienced at the macroeconomic level in the countries where it operates,” said Carlos Calleja, president of Grupo Éxito.

Likewise, he assured that these results present “an opportunity to rethink some strategies that we allow us to strengthen some formats such as Éxito and Carulla in Colombia, strengthen the assortment, continue growing omnichannel and be empathetic actors with our customers and our fellow citizens.

In colombia, Operating income in the country reached 3.9 trillion pesos in the quarter, a growth of 2.6 percent compared to the first quarter of last year.

The performance in the country reflected an increase in sales of 2 percent in the midst of an environment of low household consumption. The contribution of omnichannel sales stands out, which contributed 14.6 percent to the country’s result and the increase in sales of 5.8 percent in food, higher than the reported food inflation of 1.7 percent, as well as recurring income from the real estate business, which grew 5.6 percent.

Recurring EBITDA reached 177,111 million pesos in the quarter and reflected the implemented efficiencies plan that allowed operational expenses grew below annualized inflation and the double-digit annual increase in the minimum wage, in addition to the base effect due to non-recurring real estate income and the sale of assets that occurred in 2023.
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(Also read: Canacol would be thinking of selling its assets in Colombia; Ecopetrol could buy them)