Grupo Éxito recorded COP 56.4 billion in Consolidated Net Revenues in 2017, for a 9.4% increase, and a Net Group Share Result of COP 217,000 million, five times more than in 2016

Grupo Éxito’s internationalization strategy showed positive results in 2017, mainly from the  contribution of Brazil and Uruguay.

Consolidated recurring EBITDA totaled COP 3.6 billion, to a 6.4% margin and a grew 24.4% versus 2016.

The synergies managed between the four countries achieved recurring benefits of USD 100 million.

In Brazil, Grupo Pão de Açúcar improved its operational performance, driven by the 8.2% sales growth in local currency in the food business.

In Colombia, the Surtimayorista brand opened eight new stores and recorded a 52.5% growth in sales.

  • The earnings per share increased five times compared to the previous year.
  • The implementation of 28 synergy initiatives among the operations in Colombia, Brazil, Uruguay and Argentina, with an outstanding result of USD 100 million at the EBITDA, showed the progressive regional integration and effective best practices exchange.
  • In Colombia, the reduction in volumes according to the Nielsen Basket Index (-2.8% as at December) affected sales and operating income. However, the Company remained focused on strengthening the multichannel strategy, implementing the cash and carry model under the Surtimayorista brand and exclusive and innovative concepts in the country, such as Carulla Fresh Market.
  • Additionally, in Colombia, the real estate business, including Viva Malls, allowed the monetization of the customer traffic with a 25% growth in revenue.
  • In Brazil, the Assaí cash and carry model showed the greatest growth with a 27.8% increase in net sales, and ratified its positive and consistent results during the year. It consolidated itself as the main driver of the food segment, with 126 stores.
  • In Uruguay, sales grew 7.7% in local currency; a figure higher than the 6.55% inflation; additionally, an EBITDA margin of 7.8% was recorded in Colombian pesos.
    In this country, the proximity business model stands out with the opening of 9 stores this year, for a total of 33 Devoto Express stores.
  • In Argentina, the shopping mall business had a relevant contribution to operating income and totaled 170,000 m2 with the expansion and remodeling of the Paseo San Juan and Rivera Indarte shopping malls.
  • In order to achieve its objective of a generation with zero chronic malnutrition by 2030, Fundación Éxito benefited more than 51,000 children.

Grupo Éxito's consolidated results (Colombia, Brazil, Uruguay and Argentina)

In 2017, Grupo Éxito’s diversification strategy was enhanced, thanks to the progressive recovery of the economies in Brazil and Argentina, thus mitigating a challenging context for the operation in Colombia. In 2017, Grupo Éxito recorded COP 56.4 billion in consolidated revenue, accounting for a growth of 9.4% compared to 2016.

The recurring EBITDA was COP 3.6 billion, with a 6.4% margin and a growth of 24.4%, reflecting the operational optimization efforts made in all the countries where the Group is operating.  Besides, Brazil posted operational improvement driven by the commercial dynamics of the food business, mainly of the Cash and Carry business model through the Assaí brand.  Finally,  Uruguay posted an outstanding EBITDA margin of 7.8%.

The Group’s consolidated net income was COP 217,000 million, five times more than that obtained in 2016.  The result derived mainly from Brazil’s solid operating income, improved productivity throughout the region and a lower net financial income from lower interest rates in Colombia and Brazil. The earnings per share increased five times.

With 69 new stores, between openings and conversions in the four countries, the Group ended 2017 with 1,573 stores: 574 in Colombia, 882 in Brazil, 88 in Uruguay and 29 in Argentina; 2.8 million m2 and 140,000 employees.

In terms of synergies, the contribution to the EBITDA reached USD 100 million, thanks to the 28 initiatives implemented as part of the integration process between the countries where Grupo Éxito is operating. These results significantly exceeded the goal initially set for 2017 and ratified Grupo Éxito’s commitment to continue to capture benefits in the coming years.

Grupo Éxito’s Consolidated Operating Income
Amounts expressed in millions of Colombian pesos

  Year 2016 Year 2017 Var % COP
Net Revenues 56.442.803 51.606.955 9.4%
Gross Profit 14,030,623 12,529,515 12%
SG&A Expenses -11.431.648 -10.057.359 8.8%
Recurring Operating Income (ROI) 2.598.975 2.022.156 28.5%
Recurring EBITDA 3.618.060 2.908.350 24.4%


“The strategic decision of international diversification of Grupo Éxito showed positive results with the capturing of synergies for 100 million dollars in the region, the contribution of the Brazilian operation and the consolidation of the Real Estate dual model in Argentina. The competitive environment in Colombia is dynamic and we are facing it with innovative strategies and activities in e-commerce, the expansion of the Cash & Carry format under Surtimayorista brand, the Fresh Market model and the traffic monetization through complementary businesses. Grupo Éxito continues as the leading regional food platform in South America", said Carlos Mario Giraldo Moreno, CEO Grupo Éxito.

In Colombia, the Company faced the challenging economy with innovative strategies.

Grupo Éxito in Colombia reached COP 11.1 billion in Net Revenues.  The outcome reflected a challenging consumption trend as volumes posted a 2.8% drop as at December 2017, according to the Nielsen Basket Index, and the reduction in food inflation to 1.9% (versus 7.2% in 2016), The recurring EBITDA margin was 5.7% in 2017.

In 2017, modern and innovative actions were implemented in Colombia with positive results, such as:

  • The omnichannel strategy, through which Grupo Éxito takes the Colombian retail business to the advanced standards that govern e-commerce around the world. The Company aims to ease purchasing for customers by offering them multiple channels in the physical and virtual world.  In 2017, e-commerce, including online sales and home deliveries, recorded a growth of 19%, with sales totaling more than COP 270,000 million, having a material impact on the total sales figure. 

    • The com and websites; Éxito and Carulla deliveries, digital catalogs, and the market place recorded more than 51 million hits and 837,000 orders during the year.
    • The market place (a virtual platform for other companies) ended 2017 with 700 vendors and 50,000 products offered.
    • The digital catalogs, are present at 144 stores in the country distributed in 76 municipalities, had more than 50,000 orders and a 38% increase in sales in 2017.
    • The Éxito app, focused mainly on food sales, accounts for 22% of the sales of and 60% of the traffic.
    • The Company became the top home delivery retailer thanks to our exclusive alliance with Rappi, the home delivery “last mile” leader, which allows the optimization of time delivery t for customers. The home delivery channel grew by 26% in sales compared to the previous year.
  • The expansion of Surtimayorista, “The corner supermarket”. Surtimayorista, the brand of the Cash and Carry business model, had a growth in sales of 52.5% in 2017 and opened eight new stores, for a total of nine in the country. This brand, inspired by Brazil’s Assaí, confirmed the importance of this new proposal for the market, as a business model that is widely accepted by store owners and other professional customers, as well as by end customers.
  • Carulla Fresh Market, A unique and innovative business model arrived in Colombia. It is the first store of its kind in the country: a differential concept located in Bogotá with more than 1,300 m2. It is the first supermarket to offer, among others, an indoor vegetable garden, artisan pizza, certified sustainable beef, craft beer served directly from tap and lettuce harvested the same day.

The Company also developed commercial strategies to attract new customers:

  • Products at unbeatable prices, An Éxito brand strategy that ensures the lowest price in more than 200 categories of food, cleaning and personal care products, with the promise that, if the customer finds the same product at a lower price somewhere else, the Company will refund twice the difference.

  • Modernity, technology and service through specialized customer service support, are the focal points of the Tecnamórate strategy of Éxito brand’s electrodigital business, implemented at 16 stores in the country, which increased its sales by 10% and received 73,000 new customers.

Additionally, in Colombia, Grupo Éxito continued to develop the traffic monetization strategy of its clients through:

  • The real estate business that continues to grow in Colombia. Viva Malls was internationally awarded as the best developer of commercial real estate assets in Colombia and has 14 shopping malls and commercial galleries, 2 of which are in progress and an expected leasable area of more than 434,000 m2 as at 2018 (Viva Envigado and Viva Tunja, scheduled to open in the second half of 2018).

  • In 2017, Puntos Colombia, the partnership between Grupo Éxito and Bancolombia, is a new loyalty program to provide customers more and better benefits, by earning and redeeming points with Grupo Éxito, Bancolombia and other associated businesses that will be a part of the alliance. Puntos Colombia will begin operations in the first half of 2018.

  • As far as complementary businesses, there were significant results:
    • Éxito Credit Card is the leader in Colombia with 2.6 million cards issued.
    • Seguros Éxito now covers more than one million customers through micro-insurance alternatives. This business had a 10% growth in sales in 2017.
    • Viajes Éxito ended the year with a 17% growth in sales and more than 210,000 clients, consolidating itself as the second largest company in the sector selling tourism packages in Colombia.
    • The mobile phone business, through the Móvil Éxito brand, recorded a 40% growth in sales compared to 2016 and a 32% increase in new users, reaching more than 950,000 active lines.

Grupo Pão de Açúcar in Brazil recorded significant growth, consolidating its position in the food market.

Brazil’s economy showed a gradual recovery, a controlled devaluation of 1.7% and a reduction in inflation to 2.95%, which has increased Brazilians’ actual income, thus generating greater economic dynamics.

GPA recorded revenue of COP 41 billion with an annual increase of 8.2% in local currency compared to the previous year. Recurring operating income was nearly COP 2 billion and the recurring EBITDA of 6.6% for COP 2.7 billion with a 48.6% increase compared to the previous year.

Assaí, the Cash and Carry business, was ratified as Brazil’s most attractive and dynamic business model, with a share of 41% of GPA’s total food sales and a 27.8% increase in local currency. Assaí ended the year with 20 openings and conversions, totaling 126 stores.

In turn, Multivarejo, which brings together the Extra and Pão de Açúcar brands, ended the year with 756 stores and increased its market share. In 2017, Multivarejo focused on consolidating its business model through innovative proposals, such as the launch of the Meu Desconto (My Discount) app, the largest in Latin America with nearly 14 million loyal customers, by strengthening the multichannel model in Brazil. More than 4 million downloads done since the launch of the app in June 2017.

In Uruguay, the proximity business model continued to expand, along with the development of innovative concepts, such as the Fresh Market

Grupo Disco’s sales in Uruguay grew 7.7% in local currency, exceeding food inflation (5.1%). It also recorded a solid recurring EBITDA margin of 7.8% in Colombian pesos. The market share continued to grow and reached 45%.

The Company opened nine stores under the proximity business model, totaling 33 Devoto Express stores and consolidating market leadership in this format. The Disco brand is the pioneer and leader of the Fresh Market in South America; in 2017, Disco Punta Carretas opened under said model, with a sales area of nearly 4,000 m2and 1,800 m2 dedicated to the healthy proposal of the brand. There are now nine stores with the Fresh Market model.


Results in Argentina showed a significant contribution of the real estate business and the gradual recovery of the economy.

Argentina's economy showed a gradual recovery driven by the implementation of pro-market reforms. Inflation has reduced significantly, ending the year at 25.6%, below the 40.1% recorded in 2016.

In 2017, Libertad had a total revenue of COP 1.47 billion, 29 stores in operation, 15 hypermarkets and 14 proximity business model stores where the Mini Libertad and Petit Libertad brands stand out.  Libertad recorded a growth in sales of 21.5% in local currency and a recurring EBITDA margin of 4.3%, with a significant contribution from the real estate business.

Thanks to the combination of retail and the real estate business, Libertad was one of the companies from the retail sector with the best financial performance in this country. The dual retail and real estate model, a fundamental part of Libertad’s business plan, made significant progress in 2017.  The Paseo San Juan and Rivera Indarte shopping malls expanded and remodeled, and the real estate portfolio totaled 170,000 m2..  Libertad strengthened its position as the first shopping mall and commercial gallery operator outside of Buenos Aires.

28 activities executed obtained USD 100 million..

28 synergies were carried out between the different countries where Grupo Éxito is operating, as part of the value generation and integration process between the companies.  The outcome greatly exceeded the target set for 2017, for a contribution of USD 100 million at the consolidated recurring EBITDA, showing Grupo Éxito’s capacity for regional execution. The initiatives carried out included:

  1. Synergies focused on new business models:
    • The Cash & Carry business model in Brazil with Assaí, and replicated in Colombia with the Surtimayorista brand, which has nine stores in operation. The converted stores recorded nearly twice the sales compared to the previous business model.

    • The Fresh Market model: an innovative concept with an offering of high-value fresh products that ended 2017 with 16 stores in operation: nine in Uruguay, five in Pão de Açúcar in Brazil, one Carulla in Colombia and one Libertad in Argentina.

    • Formato Express: In Uruguay, the expansion of Devoto Express stands out, inspired by Colombia, with nine openings in the year and a total of 33 in operation in that country.

    • Real estate business: Colombia's expertise contributed to the expansion of the Paseo Libertad shopping malls in Argentina, which reached a total of 170,000 m2 of leasable area this year.

    • Colombian textile model: 57 stores implemented this model in the region, which includes activities from planning the purchase of the product to the displays in stores. In the countries, the textile business has gained a share in the sales mix.

  2. Synergies focused on cost efficiencies: Eight ongoing initiatives, among which the regional negotiators model stands out for the four countries, which led to consolidated purchases of indirect goods, services and technology. In addition, progress was made in the exchange of best practices to achieve efficiencies on the supply chain, waste and operational excellence.

  3. Synergies focused on the trade pillar and economies of scale; seven initiatives, among which the following stand out:

    • Joint purchase of more than 1,100 containers of commodities on domestic and foreign markets, of products such as wine, fish, beef, olive oil, salmon and fruit, among others, with a purchase value of nearly USD 45 million.

    • Food and non-food imports and exports as a result of the multi-sector business encounters carried out in 2017 in each of the countries where the Group is operating. In 2017, orders were placed for products such as coffee, meat, juices, cookies and textiles, among others, for 15 vendors in Colombia, Brazil, Uruguay and Argentina.

Childhood nutrition and local purchasing, Grupo Éxito’s priorities to contribute to the country’s development.

Grupo Éxito believes in Colombia and contributes to the country's development. That is why, in 2017, through Fundación Éxito, the Company moved forward to ensure that by 2030, no child in Colombia will suffer from chronic malnutrition in Colombia. Although chronic malnutrition went from 13.2% in 2010 to 10.8% in 2015, according to the National Survey on the Nutrition Situation (ENSIN, for the Spanish original), Fundación Éxito has continued working on the Gen Cero (Zero Chronic Malnutrition in Children) Goal, which aims to have the first generation with zero chronic malnutrition by the year 2030.  More than 51,000 children benefited from the care of Fundación Éxito in 2017.

82% of the fruit and vegetables sold in stores in Colombia were acquired directly from Colombian farmers, and 92% of the products sold are purchased in the country.  Additionally, Grupo Éxito contributes to generating win-win relationships with 1,281 mini-market and self-service owners, through the Surtimax - Super Inter Allies program.

For the fifth consecutive year, Grupo Éxito,  maintained its inclusion in the Dow Jones Sustainability Emerging Markets Index in the Retail (Food & Staples Retailing) industry sector, and for the first time, it was included in the Latin American Integrated Market Index (MILA, for the Spanish original), which recognizes the best sustainable practices of organizations that belong to the Pacific Alliance region.