During the second quarter of 2014, Grupo Éxito's sales
increased 9.7% and operating income increased 13.8%
as a result of the adequate performance of the
omni-channel strategy
• During the second quarter of the year, Grupo Éxito's sales grew by 9.7%, driven by a
good economic dynamic, the effect of the World Cup, the results of the Éxito's Anniversary Promotion and the alternate sales channels, especially electronic commerce.
• In the same period, the operating income increased 13.8%, thanks to the strict control
on costs and the contribution of supplementary businesses, including real estate and Éxito Credit Card.
• For the aggregate of the first six months of the year, sales grow by 5.4%, operating
income by 8.2%, and net profit by 6.5%, with a positive performance of margins.
• With the opening of VIVA Fontibón and VIVA Caucasia, we strengthened the real
estate business, adding about 30 thousand sq.mt of leasable area during this half-year.
• Éxito confirmed its commitment with Customers and Service by presenting the
"Consumer Protection Manual."
• The Fundación Éxito executed an agreement for the care of 500 expecting families in
the Wayuu indigenous community of Manaure and Riohacha.
During the second quarter of 2014, Grupo Éxito's sales increased 9.7%, as a result of the good performance of Éxito's Anniversary Promotion, which this year recorded a growth close to 10% with respect to the sales of last year. Similarly, the positive outcome of sales was due to the major impact of those generated by the categories related to the World Cup. For this World Cup, Éxito became the FIFA official store and, in more than 90 stores including exito.com, we had about 150 references available in 21 cities. Another contribution to the results was the good performance of supplementary businesses, including real estate, which created about 30,000 sq.mt of leasable area during this half-year, thanks to the opening of Viva Fontibon in Bogota and Viva Caucasia in Antioquia, two recently opened malls. The expansion of the real estate business estimated for 2014 will be around 60,000 sq.mt with the start of operations of Viva Villavicencio and other shopping centers.
Furthermore, this period stands out for a growth of 13.8% in operating income, which reflects how the Company's model makes it possible that the investment required for the development and performance of strategic projects, as the expansion plan and omni-channel strategy, is compensated by the strengthening of results obtained from supplementary business and increases in productivity through efficient operations.
Press release
Envigado, July 22, 2014
Further information:
Grupo Éxito Communications Office Phone (57 + 4) 339 65 07 Follow us on: facebook.com/GrupoExitoColombia
Twitter: @grupo_exito
With regard to the net profit, the result showed an increase of 1.8% for a margin of 3.0%. The net result reflected a nearly 25% tax rate and an impact on the exchange rate due to the consolidation of the operation in Uruguay.
"We highlight a half year of good sales, operational efficiency, and focus on the development of the omni-channel strategy, in which the customer chooses what, how and when to buy. Customers once more have given us their vote of confidence; they still prefer us and allow us to move forward in the development of projects and initiatives in favor of better service that suits their needs, tastes and preferences."
Carlos Mario Giraldo Moreno - CEO, Grupo Éxito
Financial results (amounts expressed in millions of Colombian pesos)
Éxito confirmed its commitment with customers and good service.
As a token of its commitment to the satisfaction of our nearly 6 million customers in the country, and compliance with regulations on consumer protection, Grupo Éxito presented its "Consumer Protection Manual" to the Superintendency of Industry and Commerce last June. This is a manual prepared voluntarily and proactively by the Company, which includes the main mandates established by law to protect the rights of consumers in the country, as well as internal policies defined by the company to provide its service at all their points of sale. This document was delivered to the managers of the 474 points of sale of Éxito, Carulla and Surtimax brands in the country.
Likewise, the Éxito brand recently presented its new slogan "Serving you" and renewed its Service Promises 2014 through which it will continue to strengthen the bonds of trust with its customers to provide them with the best service.
Second Quarter 2014
Second Quarter 2013
Quarter variation %
First Half-Year 2014
First Half-Year 2013
Half-Year Variation %
Operating revenues 2,754,545 2,510,463 9.7 5,392,512 5,114.926 5.4
Gross profit 686,563 657,510 4.4 1,380,449 1,321,297 4.5
Operating profit 100,957 88,710 13,8 211,851 195,810 8.2
Net income 81,389 79,915 1.8 180,329 169,247 6.5
The new promises of Éxito brand for 2014 are the following: Unbeatable prices: If the customer finds that one of
the products marked with "unbeatable price" is less costly elsewhere, we refund double the difference (applicable to marked products).
Unique price: If there is a difference in the prices announced in the gondola, advertising material or box, the customer is charged the lowest price published.
Easy change: If the customer is dissatisfied with any of our products, he/she can change it easily (except spirits, underwear and drugs).
Expiration date: If customer finds an expired product in any of the Éxito stores, the brand gives him/her another with the same characteristics.
Businesses supplementing retail
• Aliados Surtimax has consolidated as our innovative bet on sustainable trade and
the first quarter of 2014 ended with 394 allied stores in Bogotá, Barranquilla and Antioquia. Allies receive assistance and support from Grupo Éxito regarding supplies, inventory management, and commercial strategies, among other topics.
• Moreover, innovation allows us to strengthen direct trade channel, deliveries and
e-commerce means, the latter with a 40% increase in sales versus the same period of the previous year. In the third edition of CyberMonday that took place on May 19, exito.com, carulla.com and Cdiscount.com.co brands had 380,000 visitors and sales multiplied by 10.
• Trade fairs for differentiation of the company and customer binding: The ninth
edition of the trade fair Expovinos Carulla [wine exhibit], held from June 18 to 21 in Corferias Bogota, had the participation of 100 national and international experts, 80 stands, 29,612 visitors, and sales in the amount of COP$1,400,000 million during the event. We highlight the presence of international experts such as María Isabel Mijares, Stéphane Queralt, and Francisco Baetigg.
"Service is a big commitment for Grupo Éxito: a commitment to customers, the community, Colombia, and ourselves. It is an attitude towards life. It is betting on joy, passion, people and values above all. It is to believe that if we win the people's hearts, we will have their loyalty. It is to commit ourselves to do things right from the beginning."
Carlos Mario Giraldo Moreno - CEO, Grupo Éxito
Press release
Envigado, July 22, 2014
Further information:
Grupo Éxito Communications Office Phone (57 + 4) 339 65 07 Follow us on: facebook.com/GrupoExitoColombia
Twitter: @grupo_exito
• First export to France: Didetexco,
textile subsidiary of Grupo Éxito, carried out its first export to France, thus entering the European market. It was a total of 95,000 units of women, men, and children clothing with products such as t-shirts, leggings, sporting shorts, and pajamas under the exclusive Éxito's brand, Bronzini. For this production, which finished in a record time of 30 days, we were supported by 19 suppliers, out of which 12 are workshops of the Grupo Éxito's textile industry.
Fundación Éxito, committed with a Zero Malnutrition Generation - Gen Cero: In the framework of the program Gen Cero, Fundación Éxito, Chevron Petroleum Company, Baylor International Pediatric AIDS Initiative - BIPAI, and Baylor College of Medicine Children's Foundation Colombia entered into an agreement for the care of 500 expecting families and 40 children with a diagnosis of acute malnutrition, moderate or severe, belonging to the Wayuu indigenous communities of Manaure and Riohacha certified by the Colombian Ministry of Internal Affairs. The contribution of COP$812,400,000 to be made by Fundación Éxito will help reduce the serious public health problem that La Guajira is facing today: malnutrition.
Nutritional status of La Guajira
• Of every 100 households, 59 have food insecurity issues. • 38% of children are born with inadequate weight.
• 39% of children suffer from anemia in their first years of life.
• Of every 100 children under five suffering from chronic malnutrition, 28 are from La
Guajira.
In La Guajira, 50 of every 1000 children under five die from diseases associated with malnutrition, such as diarrhea and respiratory infections, while the national
average is 22 per 1000.
For children under one year of age, the figure is even more critical: of every 1000 children, 32 die in La Guajira, while the national average is 18.
Reducing child mortality has to be a purpose for everyone. For this, comprehensive nutrition in the first 1000 days is crucial.
Omni-channel Strategy, so that the customer can choose how, when and where to buy.
• 5 new points of sale for a total of 528: 474 in
Colombia and 54 in Uruguay.
• More than 200 thousand st.mt of leasable area
in the malls in operation.
• 579 Aliados Surtimax.
• 3 e-commerce alternatives: exito.com;
carulla.com; CDiscount.com
• 2 Grocery Delivery Points (Pick up). • Virtual catalogs in 86 Éxito, Carulla and
JUNE 2014 JUNE 2013 CURRENT ASSETS
CASH 1.425.806 1.077.066
TRADABLE INVESTMENTS 948.115 1.227.681
ACCOUNTS RECEIVABLE, NET 443.813 323.244
INVENTORIES, NET 1.159.419 1.132.768
DEFERRED ASSETS, NET 48.336 50.263
TOTAL CURRENT ASSETS 4.025.489 3.811.022
NON-CURRENT ASSETS
ACCOUNTS RECEIVABLE, NET 57.901 65.229
PERMANENT INVESTMENTS, NET 137.450 140.476
PROPERTY, PLANT AND EQUIPMENT, NET 2.217.049 2.172.523
INTANGIBLE ASSETS, NET 2.084.755 2.112.109
DEFERRED ASSETS, NET 326.844 336.607
OTHER ASSETS 285 285
REVALUATIONS 1.497.866 1.439.380
TOTAL NON-CURRENT ASSETS 6.322.150 6.266.609
TOTAL ASSETS 10.347.639 10.077.631
DEBTOR AND CREDITOR MEMORANDUM ACCOUNTS 6.257.944 4.656.931
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES
FINANCIAL DEBT 4.416 4.408
TRADE ACCOUNTS PAYABLE 1.486.934 1.441.562
ACCOUNTS PAYABLE 474.381 460.912
TAXES, DUTIES AND LEVIES 168.042 180.934
LABOR OBLIGATIONS 94.941 82.928
ESTIMATED LIABILITIES AND PROVISIONS 88.480 78.536
DEFERRED LIABILITIES, NET 1.848 798
BONDS 150.000 0
OTHER LIABILITIES 64.539 25.784
TOTAL CURRENT LIABILITIES 2.533.581 2.275.862
NON-CURRENT LIABILITIES
TAXES, DUTIES AND LEVIES 0 25.858
LABOR OBLIGATIONS 488 540
RETIREMENT PENSIONS ESTIMATED LIABILITIES 16.871 16.636
BONDS 0 150.000
DEFERRED LIABILITIES, NET 5.063 12.300
OTHER LIABILITIES 55.836 57.936
MINORITY INTEREST 13.254 14.094
SHAREHOLDERS’ EQUITY
COMPANY CAPITAL 4.482 4.482
CAPITAL SURPLUS 4.788.216 4.822.899
RESERVES 1.217.837 1.017.108
SHAREHOLDERS’ EQUITY REVALUATION 127.388 127.797
RETAINED EARNINGS -21.873 3.508
PROFIT OF THE YEAR 180.329 169.247
VALUATION SURPLUS 1.426.167 1.379.364
TOTAL SHAREHOLDERS’ EQUITY 7.722.546 7.524.405
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 10.347.639 10.077.631
DEBTOR AND CREDITOR MEMORANDUM ACCOUNTS 6.257.944 4.656.931
FDO FDO
FILIPE DA SILVA NOGUEIRA CLAUDIA PATRICIA ALVAREZ AGUDELO
Legal Representative of Almacenes Éxito S.A. Public Accountant of Almacenes Éxito S.A. Professional Card No. 69447-T
JUNE 2014 JUNE 2013
OPERATING REVENUES
Sales 5.108.483 4.855.447
Other operating revenues 284.029 259.479
TOTAL OPERATING REVENUES 5.392.512 5.114.926
COST OF SALES (4.012.063) (3.793.629)
GROSS PROFIT 1.380.449 1.321.297
OPERATING ADMINISTRATIVE AND SALES EXPENSES
FOR THE YEARS ENDED ON JUNE 30, 2014 AND 2013 (Amounts in millions of Colombian pesos)
ALMACENES EXITO S.A.
TOTAL ADMINISTRATIVE AND SALES EXPENSES (1.168.598) (1.125.487)
OPERATING PROFIT 211.851 195.810
NON-OPERATING REVENUES AND EXPENSES
Financial income 81.314 95.804
Dividends and shares 292 298
Financial expenses (34.572) (51.531)
Other non-operating revenues and expenses, net (27.629) (14.542)
TOTAL NON-OPERATING REVENUES AND EXPENSES 19.405 30.029 PROFIT BEFORE TAXES AND MINORITY INTEREST 231.256 225.839
SHARE OF MINORITY INTERESTS (439) (570)
PRE-TAX PROFIT 230.817 225.269
INCOME AND COMPLEMENTARY TAXES
Current (54.446) (40.315)
Deferred 3.958 (15.707)
TOTAL INCOME AND COMPLEMENTARY TAXES (50.488) (56.022)
NET PROFIT 180.329 169.247
FDO FDO
FILIPE DA SILVA NOGUEIRA CLAUDIA PATRICIA ALVAREZ AGUDELO
Legal Representative of Almacenes Éxito S.A. Public Accountant of Almacenes Éxito S.A. Professional Card No. 69447-T
