Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Q1 2024 Earnings Presentation
40 slides from Almacenes Exito Sa's earnings presentation, May 9, 2024
Slide 1: Q1 24 Grupo Éxito Financial Results
1 Q2 4 Grupo Éxito Financial Results May 9, 2024 “ The Issuers Recognition - IR granted by the Colombian Stock Exchange is not a certification about the quality of the securities listed at the BVC nor the solvency of t he issuer ” .
Slide 2: Note on forward looking statements
2 Note on forward looking statements This document contains certain forward - looking statements based on data, assumptions, and estimates, that the Company believes are reasonable ; however, it is not historical data and should not be interpreted as guarantees of its future occurrence . The words “
Slide 3: Agenda
▪ Words from our CEO, Mr . Carlos Calleja ▪ 1 Q 24 Financial and Operating Highlights ▪ 1 Q 24 Financial Performance ▪ Conclusions and Q&A session Agenda 3
Slide 4: Words from our CEO Mr. Carlos Calleja
4 Words from our CEO Mr. Carlos Calleja Grupo Calleja
Slide 5: Operating and Financial Highlights
5 Operating and Financial Highlights
Slide 6: 1Q24 Consolidated highlights
Recurring EBITDA 3 COP $302,113 M ( - 22.0%, 5.7% margin; - 14.2% excluding FX ) Net Revenue COP $5.3 B ( - 3.3 % y/y, +7.9 % excluding FX) Notes : ( 1 ) Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect of - 10 . 4 % at Net Revenue and - 9 . 1 % at recurring
Slide 7: Financial Performance
grupo nto Financial Performance
Slide 8: Solid food sales growth in Colombia, Uruguay and Argentina
Solid food sales growth in Colombia, boosted trend in Uruguay from macro tailwinds and inflationary effects on consumption in Argentina Top line performance • CPI 7 . 36 % LT - March (vs 13 . 3 % y/y) , 1 . 7 % food inflation ; retail sales exc . gas and vehicles - 1 . 1 % y/y (Feb) • Volume grew 3
Slide 9: 1Q24 Performance by segment
1Q24 Performance by segment 9 • FMCG + 5 . 9 % and fresh + 4 . 7 % • 2 store conversions during the quarter • 32 Éxito WOW stores ( 36 . 2 % share on the segment ´ s sales) • Non - food s ales affected by electro ( - 4 . 8 % ) and apparel ( - 1 . 1 % ) Food sales in Éxito grew 3.3X and 4X in Carulla
Slide 10: Omni-channel performance highlights
Highlights Omni - channel 1 performance ( 1 ) Include . com, marketplace, home delivery, Shop&Go, Click&Collect, digital catalogues and B 2 B virtual ; new channels included : SOC and Midescuento and the base adjusted . 5.5 M Orders (+33%) 1Q24 14.6 % Share on Retail Sales Mid - teens share on sales
Slide 11: Real Estate performance 1Q24
Real Estate performance 1Q24 Real Estate Business Real Estate revenue decreased 17.6% in Colombia due a higher base of fees and property sales 1 of COP $32.8K M 788,000 sqm of GLA (33 assets) Occupancy rate 97.6% (vs. 96.4% y/y ) Note : ( 1 ) S ale of real estate property development projects (inven
Slide 12: Operating performance
Operating performance • GP : reflected resilient outcome of recurring real state income (+ 5 . 6 % ), offset by price investment and a higher non - recurring base from property sale 2 ( 67 bps effect) • Recurring EBITDA 1 : SG&A grew below inflation and the double - digit minimum wage increase from
Slide 13: Net loss reflected consumption deceleration, inflationary pressures and FX impacts
• 1Q24 Net loss of COP $37,863 reflected : o Operating performance affected by lagged consumption and inflationary pressures on SG&A o Higher non - recurring expenses in Colombia from the restructuring process, including the closing of non - profitable stores to increase profitability and a leaner c
Slide 14: Free cash flow reached COP$406,000 M
Free cash flow reached COP$406,000 M driven by improved management of working capital 1Q24 Leverage and Cash at holding level 1 • Free cash flow generation of 254 % y /y, COP $ 291 , 000 M • Working capital improvement from : o Lower inventory levels to 60 days ( - 4 . 7 days y/y, worth near COP $ 1
Slide 15: Conclusions
a exto Conclusions
Slide 16: Conclusions
A resilient top line performance by country in local currencies despite the slowdown in consumption across the region and a higher base of real estate development fees and property sales in Colombia 1 . Food sales grew above food inflation in Colombia and Uruguay. Boosted omni - channel perfor
Slide 17: Change of control and long-term strategy
Change of control over to Grupo Calleja. A clear strategy going forward to face main challenges: » Strengthening the commercial strategy to boost top line growth and improve sales/sqm mainly in Colombia » Focus on store portfolio optimization to Éxito, Carulla, Disco, Devoto and Libertad banners
Slide 18: Appendices
Appendices 18
Slide 19: Glossary and Notes
Glossary and Notes Notes: • Numbers are expressed in long scale, COP billion represent 1 , 000 , 000 , 000 , 000 . • Growth and variations are expressed in comparison to the same period last year, except when stated otherwise . • Sums and percentages may reflect discrepancies due to rounding of figu
Slide 20: Grupo Calleja: New controller of Grupo Éxito
Grupo Calleja: New controller of Grupo Éxito 20
Slide 21: Grupo Calleja takes control over Grupo Éxito
Grupo Calleja takes control over Grupo Éxito Float distribution 1 : BDR ´ s 83.3%, ADR ´ s 9.4% and BVC 7.3% 21 • Shareholder's base 1 is represented by around 42,000 holders distributed in 3 markets Grupo Calleja Key Facts in Salvador x One of the largest companies in El Salvador (+11 thousand coll
Slide 22: Ownership Structure
Ownership S tructure Note : Own ership structure as of March 31 , 2024 . 22
Slide 23: Update on the Corporate Strategy
23 Update on the Corporate Strategy
Slide 24: Management Team
Management Team Carlos Mario Giraldo General Manager Colombia General Manager Uruguay General Manager Argentina Ramón Quagliata 24 Jean Christophe Tijeras CEO Grupo Éxito Juan Carlos Calleja
Slide 25: Long-term strategic pillars
Long - term strategic pillars Main value - creation drivers and focus 25 Customer centric strategy Differentiated value • Increase product assortment / “Unbeatable” portfolio • Targeted offers and discounts • Improve sales per sqm Omnichannel experience • Lead digital sale of groceries • Create comp
Slide 26: Initiatives to address challenges and drive performance
Initiatives to address challenges and drive performance 26 Facts Challenges Colombia • The most relevant operation in terms of contribution to results and potential • Well - positioned retail and complementary businesses • Leading omnichannel platform in the region • Positive cash flow outcome • The
Slide 27: ESG strategy
ESG strategy Six pillars with clear purposes, strategic focus and contribution, aligned with Sustainable Development Goals Work towards the eradication of chronic child malnutrition in Colombia by 2030 • Communicate and raise awareness • Generate resources and alliances • Influence public policies •
Slide 28: Consolidated Income Statement
Consolidated Income Statement Notes : Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect of - 10 . 4 % at Net Revenue and - 9 . 1 % at recurring EBITDA during 1 Q 24 . Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization ad
Slide 29: Income Statement and CapEx by Country
Income Statement and CapEx by Country Notes : Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect of - 10 . 4 % at Net Revenue and - 9 . 1 % at recurring EBITDA during 1 Q 24 . Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortiz
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Note : Consolidated data include figures from Colombia, Uruguay and Argentina . 30 in COP M Mar 2024 Dec 2023 Var % Assets 17,291,241 16,339,761 5.8% Current assets 5,359,656 5,283,091 1.4% Cash & Cash Equivalents 1,410,742 1,508,205 (6.5%) Inventories 2,638,962 2,437,403
Slide 31: Consolidated Cash Flow
Consolidated Cash Flow Note : Consolidated data include figures from Colombia, Uruguay and Argentina . 31 in COP M Mar 2024 Mar 2023 Var % Profit (7,980) 79,063 (110.1%) Operating income before changes in working capital 286,975 384,260 (25.3%) Cash Net (used in) Operating Activities (749,879) (844,
Slide 32: Holding Income Statement
Holding Income Statement 1 ( 1 ) Holding : Almacenes Éxito Results without Colombia subsidiaries Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non - recurring operational income (expense) . 32 in COP M 1Q24 1Q23 % Var Retail Sales 3,708,
Slide 33: Holding Balance Sheet
Holding Balance Sheet 1 ( 1 ) Holding : Almacenes Éxito Results without Colombia subsidiaries . 33 in COP M Mar 2024 Dec 2023 Var % Assets 14,102,080 13,580,684 3.8% Current assets 4,115,414 4,015,527 2.5% Cash & Cash Equivalents 1,024,349 980,624 4.5% Inventories 2,082,605 1,993,987 4.4% Accounts r
Slide 34: Debt by country and maturity
Debt by country and maturity Note : The Colombia perimeter includes the consolidation of Almacenes Éxito S . A . and its subsidiaries in the country . 1 ) Debt without contingent warranties and letters of credits . ( 2 ) Holding gross debt issued 100 % in Colombian Pesos with an interest rate below
Slide 35: Store number and Retail Sales area
Store number and Retail Sales area Note : The store count does not include the 2 , 791 allies in Colombia . 35 Banner by country Store number Sales area (sqm) Colombia Exito 204 616,655 Carulla 112 87,509 Surtimax 78 30,923 Super Inter 56 54,015 Surtimayorista 63 54,877 Total Colombia 513 843,979 Ur
Slide 36: Accounts Reconciliations: Exchange Rates Effects on Results
Accounts Reconciliations Exchange Rates Effects on Results Note : Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non - recurring operational income (expense) . Data in COP includes a - 17 % FX effect in Uruguay at Net Revenue and at Recur
Slide 37: Accounts Reconciliations: Recurring EBITDA and Adjusted EBITDA
Accounts Reconciliations Recurring EBITDA and Adjusted EBITDA Note : Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non - recurring operational income (expense . Adjusted EBITDA refers to Earnings B efore Interest, Taxes, Depreciation, an
Slide 38: Accounts Reconciliations: Real Estate Business in Colombia
Accounts Reconciliations Recurring Income of the Real Estate Business in Colombia Net Revenue and Recurring EBITDA of Viva Malls in Colombia 38 in COP M 1Q24 1Q23 Operating Income (EBIT) 22,490 17,640 Non-Recurring Income/(Expense) 9 416 Expense D&A 15,147 14,239 Recurring EBITDA 37,646 32,295 Conso
Slide 39: Investor Relations contacts
María Fernanda Moreno R . Head of Investor Relations +(57) 312 796 2298 mmorenor@grupo - exito.com Éxito Calle 80, Cr 59 A No. 79 – 30 Bogotá, Colombia www.grupoexito.com.co exitoinvestor.relations@grupo - exito.com • “The Issuers Recognition - IR granted by the Colombian Stock Exchange is not a cer
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