Almacenes Exito Sa · BVC:EXITO
Almacenes Exito Sa — Q3 2024 Earnings Presentation
38 slides from Almacenes Exito Sa's earnings presentation, Nov 13, 2024
Slide 1: Grupo Éxito Financial Results 3Q24
Grupo Éxito Financial Results 3Q24 November 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 the issuer”.
Slide 2: Note on forward looking statements
• Grupo Éxito operates in a competitive and rapidly changing environment ; therefore, it is not able to predict all the risks, uncertainties or other factors that may affect its business, their potential impact on its business, or the extent to which the occurrence of a risk or a combination of risk
Slide 3: Agenda
Agenda ▪ Words from our CEO, Mr. Carlos Calleja ▪ Sustainability Strategy ▪ 3Q24 Financial and Highlights Operating ▪ 3Q24 Financial Performance ▪ Conclusions and Q&A session 3
Slide 4: Words from our CEO Mr. Carlos Calleja
Words from our CEO Mr. Carlos Calleja
Slide 5: Sustainability Strategy
Sustainability Strategy
Slide 6: ESG initiatives to generate value
Zero Malnutrition Sustainable Trade My Planet Governance & Integrity Healthy lifestyle ESG initiatives to generate value: economic growth, social development and environmental protection • 15 , 448 children benefited in nutrition and complementary programs for a total of 49 , 982 children served dur
Slide 7: Operating and Financial Highlights
7 Operating and Financial Highlights
Slide 8: Operating and Financial Highlights 3Q24
• 3Q Retail Sales growth in LC : Col 2.5%, Uru +5.0%, Arg +79%. • Top Line 9M: - 0.7%, +6.9% excluding FX • Gross Profit : +0.5% to 24.5% margin during 3Q, - 3.6% to 25.1% 9M, reflecting strong commercial strategy 3Q, - 11.3% 9M) • Recurring EBITDA 3 : (+4.1% reflected efforts on expenses • 3Q SG&A
Slide 9: Financial Performance
9 Financial Performance
Slide 10: Performance by country: Colombia and Uruguay
• CPI: 5.32% LT - September (vs 3.87% y/y), 5.95% food inflation • Retail Sales and SSS in LC : +5.0%, +3.7% in 3Q24, (+5.7%,+3.9% 9M) boosted by: x Stable political and economic context x Non - food category (+10.2%) driven performance of commercial activities by good and redefinition of Textile in
Slide 11: Strategic focus in Colombia: banners and assortment
Strategic focus in Colombia Focus on strengthening Éxito and Carulla banners by enhancing of assortment and adding value to the customer experience Improvement of assortment +9% growth food sales evolution 3 - years plan to convert stores to the main banners in Colombia +30% Increase in SKUs availab
Slide 12: Strategic focus in Colombia: savings to customers
+16% Average same - day sales increase 8.5 M Units since implementation “Martes del campo” +33% Average same - day sales increase 3.5 M Units since implementation “Viernes de celebración” Strategic focus in Colombia Commercial strategy centered on providing savings to customers Unbeatable prices 10.
Slide 13: Strategic focus in Colombia: cost and expense initiatives
Strategic focus in Colombia Strategic focus on cost - expenses initiatives and process optimizations Savings Captured Main Activities Other optimization levers x Focus on improving shrinkage levels x Systemic negotiations with key suppliers x A leaner operating structure COP $103,000 M in savings ca
Slide 14: 3Q24 Performance by segment
High single digit growth: • Food +9.7% mainly by FMCG + 10 . 1 % vs 3 Q 23 • Omnichannel share of 28 . 9 % on retail sales in 3 Q 24 and + 21 . 9 % vs 3 Q 23 • 31 Fresh Market stores represented a 62% share on the segment Dz s sales during 3Q24 • One opening and 14 conversions store during 9M24 • Fre
Slide 15: Omni-channel performance YTD
(1) Include .com, marketplace, home delivery, Shop&Go, Click&Collect, digital catalogues and B2B virtual; the base was adjusted with new channels included: SOC and Midescuento 17 M Orders (+24%) 14.7% Share on Retail Sales 9M24 COP $1.6 B In Retail Sales (+4.4%) 5.9 M Orders (+16%) 3Q24 15% Share on
Slide 16: Real Estate performance 9M24
Real Estate performance 9M24 Viva Envigado, the largest shopping and business center in Colombia with 159,000 sqm and attracting 2.7 million visitors per month (1) Viva Malls is a JV with Fondo Inmobiliario Colombia (FIC) in which Grupo Éxito has 51% stake and consolidates the business; Viva Malls h
Slide 17: Operating Performance
Operating Performance Consolidated Recurring EBITDA shows a recovery across the region driven by Colombia and Uruguay operation growing at +10.9% and +28.6% in LC, respectively Colombia Uruguay Note: The Colombia perimeter includes Almacenes Éxito S.A. and its subsidiaries. Data in COP includes a -
Slide 18: Net result highlights
Highlights Net loss during 3Q24 reflected: o Positive contribution of retail operations from Colombia and Uruguay from sales performance and cost and expense control partially offset by : o Operating performance in Argentina affected by macro and consumer head winds, and o Higher non - recurring exp
Slide 19: 3Q24 Leverage and Cash at holding level
3Q24 Leverage and Cash at holding level 1 Free cash flow 2 affected by the operational result despite improvement in working capital and optimization of investments Net Financial debt impacted by: » Operational performance reflected macroeconomic » » headwinds and slowdown in consumption Higher extr
Slide 20: Conclusions
20 Conclusions
Slide 21: Conclusions
21 A solid commercial strategy to boost sales in Colombia. Focus on banners efficiencies and customer experience and aiming to generate savings for the clients Best quarterly sales performance in Colombia driven by i. food category (+3.0%), above food inflation ii. Non - food category showing signs
Slide 22: Appendices
Appendices 22
Slide 23: 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 figures. • All
Slide 24: Ownership Structure
Ownership Structure Note: Ownership structure as of September 30, 2024. 24
Slide 25: Management Team
Management Team Carlos Mario Giraldo General Manager Colombia Jean Christophe Tijeras General Manager Uruguay Ramón Quagliata General Manager Argentina 25 Juan Carlos Calleja CEO Grupo Éxito
Slide 26: Consolidated Income Statement
Consolidated Income Statement Notes : Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect o( 4 . 1 % at Net Revenue and - 4 . 2 at Recurring EBITDA during 3 Q 24 and . 7 . 2 % and - 6 . 0 % in 9 M 24 , respectively ( 1 ) Recurring EBITDA refers to Earnings Befor
Slide 27: 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 o( 4 . 1 % at Net Revenue and - 4 . 2 at Recurring EBITDA during 3 Q 24 and . 7 . 2 % and - 6 . 0 % in 9 M 24 , respectively . Recurring EBITDA refers to Earnings B
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Note: Consolidated data include figures from Colombia, Uruguay and Argentina. 28
Slide 29: Consolidated Cash Flow
Consolidated Cash Flow Note: Consolidated data include figures from Colombia, Uruguay and Argentina. 29
Slide 30: 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). 30
Slide 31: Holding Balance Sheet
Holding Balance Sheet 1 (1) Holding: Almacenes Éxito Results without Colombia subsidiaries. 31
Slide 32: 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 33: Store number and Retail Sales area
Store number and Retail Sales area Note: The store count does not include the 2,668 allies in Colombia. Argentina 88,082 15 Libertad 14,872 12 Mayorista 102,954 27 Total Argentina 1 ,039,719 635 TOTAL 33 Uruguay 41,838 66 Devoto 35,934 30 Disco 16,411 2 Geant 330 1 Six or Less 94,513 99 Total Urugua
Slide 34: 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 includes a - 4 . 9 % FX effect in Uruguay at Net Revenue and at Recurring EBITDA and - 44 . 6 % in A
Slide 35: 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 includes a - 4 . 9 % FX effect in Uruguay at Net Revenue and at
Slide 36: Recurring Income of the 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 36 Note: Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non - recurring operational income (expen
Slide 37: Investor Relations contact
Ivonne Windmuller. Chief Financial Officer | IRO +57 (604) 6049696 Ext 306560 iwindmuller@grupo - exito.com Cra 48 No 32 B Sur 139, Viva Envigado Medellín, Colombia www.grupoexito.com.co exitoinvestor.relations@grupo - exito.com • “The Issuers Recognition - IR granted by the Colombian Stock Exchange
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