Colombia's Grupo Éxito Sees Sales Impacted By Currency Effects
Colombian retailer Grupo Éxito, which is 55% owned by Groupe Casino, has posted net revenue of COP 12.7 billion (€346 million) in the third quarter of its financial year, with the group impacted by negative currency effects across its main markets.
If currency fluctuations are included, the group's net revenue was 8.4% down, however if they are excluded, the group actually saw a 9.5% revenue rise.
Gross profit stood at COP 2.96 billion, which is an 8.8% increase if currency effects are excluded.
Revenues (ex-currency) were up across all the markets in which Grupo Éxito has a presence, rising by 0.5% on Colombia, 12.4% in Brazil, 4.6% in Uruguay and 23.8% in Argentina.
Consolidated recurring EBITDA in the third quarter of 2018 totalled COP 661 million, equivalent to a 5.2% margin, the group said.
In Colombia, the group has introduced new store formats, including Éxito Wow, a new 'digitally connected' hypermarket format, and Carulla's FreshMarket, as well as enhancing its e-commerce presence.
Focus On Innovation
“Innovation has been the differentiating factor of Grupo Éxito’s operations in the four countries in which it is present, which has produced positive figures from the actions implemented to this effect," said Grupo Éxito’s CEO, Carlos Mario Giraldo M.
"In Colombia, the results of the first nine months of the year have been driven by the new concepts of Éxito Wow and Carulla FreshMarket, our focus on e-commerce channels and the monetization of traffic through real estate and other complementary businesses. Brazil continues to produce solid results, including ongoing growth at Multivarejo and further consolidation at Assaí."
Grupo Éxito is also the only Latin American retail company whose sustainability standards have been recognised by the Dow Jones Emerging Markets Sustainability Index.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.