Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Q2 2024 Earnings Presentation
37 slides from Almacenes Exito Sa's earnings presentation, Aug 13, 2024
Slide 1: 2Q24 Grupo Éxito Financial Results
2Q24 Grupo Éxito Financial Results August 13, 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
Agenda ▪ Words from our CEO, Mr . Carlos Calleja ▪ 2 Q/ 1 H 24 Financial and Operating Highlights ▪ 2 Q/ 1 H 24 Financial Performance ▪ Conclusions and Q&A session 3
Slide 4: Words from our CEO Mr. Carlos Calleja
4 Words from our CEO Mr. Carlos Calleja
Slide 5: Operating and Financial Highlights
5 Operating and Financial Highlights
Slide 6: 2Q24 and 1H24 highlights
• 2 Q Retail Sales growth in LC : Col - 0 . 1 % , Uru + 4 . 4 % , Arg + 192 . 2 % . Positive performance of other revenue (+ 7 . 0 % excluding FX) driven by complementary businesses • Top Line 1 H : - 2 . 1 % , + 7 . 2 % excluding FX • Gross Profit : - 3 . 0 % to 25 . 6 % margin during 2 Q, - 5 . 4
Slide 7: Financial Performance
4 re ) Financial —™ Performance
Slide 8: Top line performance by country
• CPI 4.96% LT - June (vs 5.98% y/y), 4.54% food inflation • Retail Sales and SSS in LC : + 4 . 4 % , + 2 . 3 % , boosted by : x Sound political and economic environment x N on - food category (+ 9 . 7 % ) driven by commercial activities around “ Copa América” x 32 Fresh Market stores (+ 2 . 2 % gro
Slide 9: Strategic focus in Colombia: efficient operation under the most beloved brands
“Efficient operation under the most beloved brands” Strategic focus in Colombia Focus on brand unification, assortment expansion, and savings through high - low promotions and competitive pricing strategies Banners unification under Éxito and Carulla banners plan to convert stores to the main banner
Slide 10: Strategic focus in Colombia: commercial strategy offering savings
Strategic focus in Colombia Strong commercial strategy focused on offering savings to clients High and low strategy in alliance with suppliers “Better price perception in key buying moments” Unbeatable prices on private label and national brands “High competitivity to increase traffic in stores” Suc
Slide 11: Strategic focus in Colombia: a leaner operation
“A leaner operation to improve agility and profitability” Strategic focus in Colombia Focus on streamlining the cost/expense structures Saving plan and processes optimization 2.6% 31 M USD SG&A growth, below inflation and with an improved trend q/q in savings already captured Main activities x Expen
Slide 12: 2Q/1H24 Performance by segment
A solid sales growth , driven by : • F ood (+ 7 . 3 % ) and omni - channel (+ 26 . 9 % ) during 1 H 24 • Omnichannel share of 28 . 5 % on retail sales in 1 H 24 • 31 Fresh Market stores represented a 63 . 7 % share on the segment ´ s sales (+ 81 bp vs 2 Q 23 ) • 2 store conversions during 2 Q 24 • F
Slide 13: Omni-channel performance highlights
Highlights ( 1 ) Include . com, marketplace, home delivery, Shop&Go, Click&Collect, digital catalogues and B 2 B virtual ; the base was adjusted with new channels included : SOC and Midescuento . 5.8 M Orders (+24%) 2 Q24 14.5 % Share on Retail Sales Omni - channel 1 performance Omni - channel share
Slide 14: Real Estate performance 1H24
Real Estate performance 1H24 Viva Malls, the leading shopping center operator in Colombia 1 Real Estate Business Real Estate revenue decreased 11.4% in Colombia due a higher base of fees and property sales 2 of COP $51.7K M 787,600 sqm of GLA (33 assets ) Occupancy rate 97.4% (vs. 96.6% y/y ) Note :
Slide 15: Operating Performance
Operating Performance Recurring EBITDA reflected a better trend q/q despite the challenging macro context across the region and higher base in Colombia Note : The Colombia perimeter includes Almacenes Éxito S . A . and its subsidiaries . Data in COP at consolidated level includes a - 11 . 4 % FX eff
Slide 16: Net Group Share Result
Net loss during 2 Q 24 reflected : o The positive variations of non - operating lines and net income contribution of Uruguay offset by : • Operating performance in Colombia and Argentina affected by macro and consumer head winds, and • TUYA share of profit affected by higher value adjustment for exp
Slide 17: Free cash flow, leverage and cash
Free cash flow reached COP$406,000 M driven by improved management of working capital 2Q24 Leverage and Cash at holding level 1 Improved cash flow generation despite a slightly higher NFD (COP $ 59 , 000 M) from higher assortment Free cash flow 2 : • Reached COP $ 130 , 000 M despite economic slowdo
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Slide 19: Conclusions
Note : Consolidated data include results from Colombia, Uruguay and Argentina, eliminations and the FX effect of - 6 . 9 % at Net Revenue and - 4 . 5 % at Recurring EBITDA during 2 Q 24 and of - 8 . 7 % and - 6 . 6 % , respectively, during 1 H 24 . 19 Advances on the unification project under the Éx
Slide 20: Appendices
Appendices 20
Slide 21: Notes and Glossary
Notes and Glossary 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 22: Ownership Structure
Ownership Structure Note : Own ership structure as of June 30 , 2024 . 22
Slide 23: Management Team
Management Team Carlos Mario Giraldo General Manager Colombia General Manager Uruguay General Manager Argentina Ramón Quagliata 23 Jean Christophe Tijeras CEO Grupo Éxito Juan Carlos Calleja
Slide 24: ESG Strategy
ESG S trategy 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 25: Consolidated Income Statement
Consolidated Income Statement Notes : Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect of - 11 . 4 % in Uruguay at Net Revenue and at Recurring EBITDA and - 62 . 7 % in Argentina during 2 Q 24 and of - 8 . 7 % and - 6 . 6 % , respectively, during 1 H 24 , and
Slide 26: 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 - 11 . 4 % FX effect in Uruguay at Net Revenue and at Recurring and - 62 . 7 % in Argentina EBITDA during 2 Q 24 and of - 8 . 7 % and - 6 . 6 % , respectively, d
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Note : Consolidated data include figures from Colombia, Uruguay and Argentina . 27 in COP M Jun 2024 Dec 2023 Var % Assets 17,615,259 16,339,761 7.8% Current assets 5,412,684 5,283,091 2.5% Cash & Cash Equivalents 1,282,504 1,508,205 (15.0%) Inventories 2,801,059 2,437,403
Slide 28: Consolidated Cash Flow
Consolidated Cash Flow Note : Consolidated data include figures from Colombia, Uruguay and Argentina . 28 in COP M Jun 2024 Jun 2023 Var % Profit 27,224 126,611 (78.5%) Operating income before changes in working capital 583,475 743,994 (21.6%) Cash Net (used in) Operating Activities (562,857) (414,4
Slide 29: 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) . 29 in COP M 2Q24 2Q23 % Var 1H24 1H23 % Var Ret
Slide 30: Holding Balance Sheet
Holding Balance Sheet 1 ( 1 ) Holding : Almacenes Éxito Results without Colombia subsidiaries . 30 in COP M Jun 2024 Dec 2023 Var % Assets 14,265,269 13,580,684 5.0% Current assets 4,139,166 4,015,527 3.1% Cash & Cash Equivalents 821,809 980,624 (16.2%) Inventories 2,231,888 1,993,987 11.9% Accounts
Slide 31: 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 32: Store number and Retail Sales area
Store number and Retail Sales area Note : The store count does not include the 2 , 834 allies in Colombia . 32 Banner by country Store number Sales area (sqm) Colombia Exito 201 619,511 Carulla 114 87,861 Surtimax 73 26,361 Super Inter 53 49,850 Surtimayorista 62 53,752 Total Colombia 503 837,334 Ur
Slide 33: Accounts Reconciliations
Accounts Reconciliations Note : Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non - recurring operational income (expense) . Data in COP at consolidated level includes a - 11 . 4 % FX effect in Uruguay at Net Revenue and at Recurring EBI
Slide 34: 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) . Data in COP at consolidated level includes a - 11 . 4 % FX effect in Urugua
Slide 35: 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 35 in COP M 2Q24 2Q23 1H24 1H23 Operating Income (EBIT) 62,331 57,696 84,821 75,336 Non-Recurring Income/(Expense) 575 29 584 445 Expense D&A 15,093 14,332 30,
Slide 36: Investor Relations contact
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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