Credit Card Sales - In Colombia, credit card sales accounted for 30.2%, 32.7%, and 33.1% of consolidated revenue from contracts with customers for the years ended December 31, 2024, 2023, and 2022, respectively[43]. - In Uruguay, credit card sales represented 39.4%, 30.7%, and 29.7% of consolidated revenue from contracts with customers for the same years[43]. - In Argentina, credit card sales made up 41.0%, 35.0%, and 38.1% of consolidated revenue from contracts with customers for the years ended December 31, 2024, 2023, and 2022, respectively[43]. - The company is increasingly dependent on credit card sales, which may be adversely affected by changes in the policies of merchant acquirers[43]. - Éxito has over 1.3 million active credit cards through its consumer financial institution, Tuya, co-owned with Bancolombia[176]. Economic Conditions - Economic conditions in Colombia represented 74.3% and 75.0% of the company's consolidated revenue from contracts with customers for the years ended December 31, 2024 and 2023, respectively[75]. - Economic conditions in Colombia and other Latin American countries may significantly reduce consumer expenditure and available income, particularly for lower-income classes[65]. - The company's operations are affected by the weak GDP of the countries where it operates, particularly Colombia[66]. - Economic conditions in Colombia are correlated with those in the U.S., and adverse developments in the U.S. could negatively affect the Colombian economy and the company's market value[102]. Currency Depreciation - The Colombian peso depreciated against the U.S. dollar by 20.8% in 2022, appreciated by 20.5% in 2023, and depreciated by 15.4% in 2024[90]. - The Argentinian peso depreciated against the U.S. dollar by 70.2% in 2022, 362.4% in 2023, and 27.7% in 2024[92]. - More than 75% of the company's costs and expenses in Colombia were denominated in local currency as of December 31, 2024[86]. Inflation and Costs - Inflationary pressures affected approximately 40% of the company's expenses, with indexed and salary-related pressures impacting approximately 36% of expenses[86]. - High rates of inflation have historically impacted the company's business and may continue to do so, affecting consumer spending and revenues[85]. - The company may face significant additional costs if it loses its foreign private issuer status, which could require compliance with more extensive U.S. reporting requirements[155]. Competition and Market Dynamics - The company faces significant competition in the food retail industry, particularly from cash-and-carry and hard-discount sectors, which has imposed pressure on hypermarket stores[64]. - The retail sector in Colombia and other Latin American markets is experiencing a growing adoption of e-commerce platforms, which is expected to continue[39]. Regulatory and Legal Risks - The company may face legal and administrative proceedings that could materially affect its financial condition and results of operations[56]. - The company is subject to various regulations, including antitrust and competition laws, which may limit its ability to complete mergers and acquisitions[72]. - The Colombian government has significant influence over the economy, which may impact the company's financial condition and operations due to potential changes in monetary and fiscal policies[93]. Political and Social Factors - Political unrest and social protests in Colombia may hinder the company's ability to access capital effectively[108]. - The peace agreement with FARC may lead to new laws affecting operations, with unpredictable impacts on the company's financial condition[112]. Corporate Governance and Management - The company appointed a new board of directors on March 21, 2024, comprising seven members, three of whom are independent[196]. - Changes in senior management occurred on March 21, 2024, with Juan Carlos Calleja appointed as CEO, replacing Carlos Mario Giraldo[207]. - The Board of Directors has reduced its members to seven, eliminating several committees including the Appointments, Remuneration and Corporate Governance Committee, Business and Investment Committee, Financial Committee, and Sustainability Committee[216][217]. - The Audit and Risk Committee is now solely comprised of independent directors, ensuring financial literacy among its members[216]. Shareholder Rights and Market Dynamics - Holders of Éxito ADSs and BDRs do not have direct voting rights at shareholders' meetings, which may limit their influence[136]. - The volatility and illiquidity of the Colombian securities market may hinder the ability to sell Éxito shares at favorable prices[119]. - Future sales of substantial amounts of Éxito common shares or ADSs could adversely affect their market price and liquidity[124]. - Éxito is classified as a "foreign private issuer," which exempts it from certain NYSE corporate governance standards, potentially limiting investor protections[150]. - Grupo Calleja controls a majority of the voting power of Éxito's outstanding shares, reinforcing its status as a controlled company[152].

Financial Performance - Total revenue for the nine months ended September 30, 2024, was COP 15,592,485 million, a slight decrease from COP 15,706,751 million in the same period of 2023, representing a decline of 0.72%[4] - Gross profit for the nine months ended September 30, 2024, was COP 3,908,038 million, compared to COP 4,052,217 million in 2023, indicating a decrease of 3.55%[4] - The net loss attributable to equity holders of the Parent for the nine months ended September 30, 2024, was COP 91,331 million, compared to a profit of COP 7,249 million in 2023[4] - The company reported a profit for the period of COP 34,577 million for the nine months ended September 30, 2024, down from COP 133,798 million in 2023, a decrease of 74.16%[4] - Profit for the period decreased to COP 34,577 million in 2024 from COP 133,798 million in 2023, representing a decline of approximately 74%[13] - Operating income before changes in working capital was COP 913,575 million in 2024, down from COP 1,031,807 million in 2023, a decrease of about 11.4%[13] - The total comprehensive income for the first nine months of 2024 was $(2,368,565), compared to $(1,928,470) in 2023, reflecting a significant decline[171] Assets and Liabilities - Total current assets decreased to COP 5,207,222 million as of September 30, 2024, from COP 5,283,091 million at December 31, 2023, a decline of 1.44%[2] - Total liabilities increased to COP 9,440,762 million as of September 30, 2024, from COP 8,917,952 million at December 31, 2023, an increase of 5.86%[2] - Total non-current assets increased to COP 12,029,011 million as of September 30, 2024, from COP 11,056,670 million at December 31, 2023, an increase of 8.80%[2] - Total equity attributable to the equity holders of the parent decreased to COP 7,421,809 million as of December 31, 2023, from COP 7,842,839 million as of September 30, 2023, a decline of about 5.3%[11] - The company reported a decrease in trade payables and other accounts payable amounting to COP 1,010,957 million in 2024, compared to COP 1,252,719 million in 2023, a decrease of about 19.3%[13] Cash Flow and Investments - Net cash flows used in operating activities increased to COP 824,099 million in 2024 compared to COP 333,713 million in 2023, indicating a significant increase in cash outflow[13] - Cash and cash equivalents at the end of the period were COP 881,278 million in 2024, down from COP 1,098,682 million in 2023, reflecting a decrease of approximately 19.8%[13] - The acquisition of property, plant, and equipment in 2024 was COP 211,466 million, down from COP 357,751 million in 2023, indicating a decrease of about 40.9%[13] - The company made additions to property, plant, and equipment totaling $146,134 million during the reporting period[86] Ownership and Control - As of September 30, 2024, Cama Commercial Group Corp. owns 86.84% of Almacenes Éxito S.A., a significant increase from Casino Guichard-Perrachon S.A.'s 47.29% ownership as of December 31, 2023[19] - The company has 100% ownership in several subsidiaries, including Almacenes Éxito Inversiones S.A.S. and Logística, Transporte y Servicios Asociados S.A.S., indicating strong control over its operations[22] - The ownership structure reflects a strategic shift towards greater control by Cama Commercial Group Corp., which may influence future business strategies and market positioning[19] Revenue Streams - Retail sales for the first nine months of 2024 amounted to $14,886,333, down from $15,050,693 in 2023, indicating a decrease of about 1.09%[172] - Service revenue increased to $654,800 in the first nine months of 2024, compared to $599,648 in 2023, reflecting a growth of approximately 9.19%[173] - Revenue from transactions with joint ventures for the period January 1 to September 30, 2024, was $40,803, a decrease from $49,061 in the same period of 2023[61] Expenses and Costs - Total costs and expenses increased to $182,987 million in 2024 from $172,580 million in 2023, reflecting a rise of approximately 6.5%[63] - Total distribution, administrative, and selling expenses for the first nine months of 2024 were $3,500,688, an increase from $3,469,534 in 2023, representing a rise of about 0.91%[174] - The total cost of sales for the first nine months of 2024 was $11,684,447 million, compared to $11,654,534 million in 2023, reflecting a slight increase of about 0.3%[77] Taxation and Provisions - Current tax assets rose significantly from $524,027 on December 31, 2023, to $752,217 on September 30, 2024, an increase of approximately 43.5%[152] - Tax losses for Almacenes Éxito S.A. increased from $740,337 on December 31, 2023, to $1,006,444 on September 30, 2024, representing a rise of about 36%[150] - Provisions increased significantly to $59,583 million as of September 30, 2024, compared to $33,675 million at the end of 2023, driven by restructuring costs[135] Financial Reporting and Compliance - The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), ensuring compliance and transparency in financial reporting[25] - Exito Group's interim consolidated financial statements for the periods ended September 30, 2024, and 2023 are prepared in accordance with IAS 34, with no significant updates from the previous consolidated financial statements as of December 31, 2023[26] - The financial statements are based on historical cost, except for certain financial instruments and customer loyalty programs measured at fair value[27] Market and Economic Conditions - The average exchange rate for the US Dollar was 3,978.76 COP for September 30, 2024, compared to 4,325.05 COP for December 31, 2023, reflecting a depreciation of the Colombian peso[38] - The Internal Wholesales Price Index (IPIM) increased by 61.5% from September 30, 2023, to September 30, 2024[36] Employee and Management Costs - Key management personnel compensation rose to $95,955 million in 2024 compared to $68,672 million in 2023, an increase of about 39.7%[64] - Total employee benefit expenses for January 1 to September 30, 2024, amounted to 1,287,279, a decrease of 2.0% from 1,313,536 in the same period of 2023[30]

Financial Performance - Revenue from contracts with customers for the six months ended June 30, 2024, was COP 10,350,056 million, a decrease of 2.1% compared to COP 10,575,274 million in the same period of 2023[4] - Gross profit for the first half of 2024 was COP 2,621,657 million, down 5.4% from COP 2,772,347 million in the first half of 2023[4] - Operating profit decreased significantly to COP 243,391 million in the first half of 2024, compared to COP 412,706 million in the same period of 2023, reflecting a decline of 41.0%[4] - The company reported a net loss attributable to equity holders of the Parent of COP 56,598 million for the first half of 2024, compared to a profit of COP 38,934 million in the same period of 2023[4] - Total comprehensive income for the first half of 2024 was COP 140,656 million, compared to a loss of COP 468,273 million in the same period of 2023[7] - The profit for the period as of June 30, 2024, is 27,224 million Colombian pesos, compared to 83,822 million pesos for the same period in 2023, indicating a decline[11] - Basic loss per share attributable to equity holders of the parent for the first half of 2024 was (43.61) Colombian pesos, compared to earnings of 30.00 Colombian pesos in the same period of 2023[168] - Net profit from continuing operations for the first half of 2024 was $27.22 million, down from $126.61 million in the first half of 2023[169] Assets and Liabilities - As of June 30, 2024, total assets increased to COP 17,615,259 million from COP 16,339,761 million at December 31, 2023, representing a growth of 7.8%[3] - Total current liabilities increased to COP 7,478,488 million as of June 30, 2024, from COP 7,144,623 million at December 31, 2023, marking a rise of 4.7%[3] - The company’s cash and cash equivalents decreased to COP 1,282,504 million as of June 30, 2024, down from COP 1,508,205 million at December 31, 2023, a decline of 15.0%[3] - The total liabilities related to the put option on non-controlling interests have seen adjustments amounting to (49,732) million Colombian pesos[11] - The total amount of loans and borrowings hedged by forward exchange rate instruments was $2,101 as of June 30, 2024[74] - The total loans, borrowing, and other financial liabilities increased significantly from $1,266,205 at December 31, 2023, to $2,299,162 at June 30, 2024, primarily due to proceeds from loans and borrowings amounting to $1,087,244[108] Cash Flow - Net cash flows used in operating activities increased to COP (562,857) million in 2024 compared to COP (414,454) million in 2023, indicating a worsening cash flow situation[12] - Net cash flows used in investing activities decreased to COP (226,680) million in 2024 from COP (269,014) million in 2023, showing a reduction in investment outflows[12] - Net cash flows provided by financing activities increased to COP 545,193 million in 2024, up from COP 397,152 million in 2023, reflecting improved financing[12] Equity and Dividends - As of June 30, 2024, the total equity attributable to the equity holders of the parent is 7,870,687 million Colombian pesos, a decrease from 8,035,236 million pesos as of June 30, 2023[11] - The declared dividend for the period is 65,529 million Colombian pesos, which is a reduction from 82,460 million pesos in the previous period[11] - Almacenes Éxito S.A. declared a dividend of $65,529, equivalent to an annual dividend of $50.49 Colombian pesos per share[182] Operational Highlights - The company anticipates continued growth in service revenue driven by increased commissions and recovery of provisions in the upcoming quarters[2] - Retail sales for the first half of 2024 amounted to $9,888,571, down from $10,138,593 in the first half of 2023, reflecting a decline of 2.5%[156] - The operating segment in Argentina reported retail sales of $688,445 for the first half of 2024, down from $805,347 in the same period of 2023[189] Financial Ratios and Covenants - The company complied with its financial covenants as of December 31, 2023, maintaining a leverage financial ratio of less than 2.8x[119] - The income tax rate applicable to corporates is 35% for taxable years 2024 and 2023[135] Exchange Rates and Inflation - The exchange rate for the US Dollar as of June 30, 2024, is 4,148.04 Colombian pesos, compared to 3,822.05 pesos on December 31, 2023, reflecting a 8.54% increase[33] - The price index as of June 30, 2024, was 9,940.06, reflecting a 50.5% increase from the previous year[32] Changes in Accounting Policies - The Exito Group changed its inventory valuation policy from FIFO to Average Cost method starting January 1, 2024, aiming for more stable and consistent inventory valuation[36] - The new standards adopted by Exito Group effective January 1, 2024, did not result in significant changes to accounting policies compared to those applied in 2023[35] Miscellaneous - The company has no contingent assets to disclose as of June 30, 2024[178] - No significant subsequent events have occurred that would impact the financial position of the company as of June 30, 2024[197]

Financial Performance - Total revenue for Q1 2024 was COP 5,275,139 million, a decrease of 3.3% compared to COP 5,456,154 million in Q1 2023[4] - Gross profit for Q1 2024 was COP 1,321,953 million, down from COP 1,432,919 million in Q1 2023, reflecting a decline of 7.8%[4] - Operating profit decreased significantly to COP 95,228 million in Q1 2024 from COP 213,385 million in Q1 2023, a drop of 55.3%[4] - The company reported a net loss of COP 7,980 million for Q1 2024, compared to a profit of COP 79,063 million in Q1 2023[4] - Basic loss per share from continuing operations was COP (29.17) in Q1 2024, compared to earnings of COP 34.76 in Q1 2023[4] - The profit for the period was 45,118 million Colombian pesos, compared to a profit of 79,063 million Colombian pesos in the same period last year, indicating a decline of approximately 43%[11] - The company reported a total comprehensive income of COP 42,614 million for Q1 2024, compared to a loss of COP 161,264 million in Q1 2023[7] - The net financial result for Q1 2024 was a loss of $82,711 million, worsening from a loss of $66,822 million in Q1 2023[167] - The company reported a net loss attributable to equity holders of the parent of $37,863 million in Q1 2024, down from a profit of $45,118 million in Q1 2023[171] Assets and Liabilities - Total assets increased to COP 17,291,241 million as of March 31, 2024, up from COP 16,339,761 million at the end of 2023, representing a growth of 5.8%[3] - Current liabilities rose to COP 7,358,067 million in Q1 2024, compared to COP 7,144,623 million at the end of 2023, an increase of 3.0%[3] - Total shareholders' equity increased to COP 7,694,015 million as of March 31, 2024, up from COP 7,421,809 million at the end of 2023, reflecting a growth of 3.7%[3] - As of March 31, 2024, total equity amounted to 7,694,015 million Colombian pesos, reflecting a decrease from 8,226,102 million Colombian pesos at the end of Q1 2023[11] - Total loans, borrowing, and other financial liabilities increased to $2,262,671 as of March 31, 2024, from $1,266,205 as of December 31, 2023, representing a growth of 78.8%[107] - The total cash and cash equivalents included term deposit certificates of 20,415 as of March 31, 2024, compared to 7,244 as of December 31, 2023, showing an increase of approximately 182.5%[44] Cash Flow and Investments - Net cash flows used in operating activities were 749,879 million Colombian pesos, an improvement from 844,472 million Colombian pesos in the previous year[12] - The company invested 97,224 million Colombian pesos in property, plant, and equipment, a decrease from 150,041 million Colombian pesos in the same quarter of 2023[12] - Additions to property, plant, and equipment for cash flow purposes were $29,529 for the quarter ended March 31, 2024, down from $70,185 in the same quarter of 2023[81] Dividends and Shareholder Returns - Declared dividends for the period were 65,529 million Colombian pesos, down from 217,392 million Colombian pesos in the previous year[11] - Almacenes Éxito S.A. declared a dividend of $65,529, equivalent to an annual dividend of $50.49 Colombian pesos per share[184] - Total dividends declared to non-controlling interests in subsidiaries during Q1 2024 amounted to $28,593, while $28,956 was paid out[185] Financial Costs and Income - Financial costs decreased to COP 185,487 million in Q1 2024 from COP 237,300 million in Q1 2023, a reduction of 21.8%[4] - Interest expense on loans and borrowings increased to $51,220 million in Q1 2024, compared to $38,731 million in Q1 2023[167] - Financial income decreased to $102,777 million in Q1 2024, down 39.7% from $170,478 million in Q1 2023[167] Operational Metrics - Operating income before changes in working capital decreased to 286,975 million Colombian pesos from 384,260 million Colombian pesos year-over-year, reflecting a decline of approximately 25.4%[12] - Total distribution, administrative, and selling expenses for Q1 2024 were $1,205.139 million, compared to $1,222.564 million in Q1 2023, showing a decrease of 1.4%[160] - Total other operating revenue for Q1 2024 was $11,668 million, a decrease of 8.06% from $12,691 million in Q1 2023[164] Taxation - The income tax rate applicable to the company remains at 35% for both 2024 and 2023[138] - The total current tax expense for the parent and its Colombian subsidiaries was $5,523 for the quarter ended March 31, 2024, compared to $4,913 for the same period in 2023[138] - Tax losses amounting to $878,457 as of March 31, 2024, an increase from $740,337 at December 31, 2023[135] Market and Economic Conditions - The average exchange rate for the US Dollar was 3,914.97 for the quarter ended March 31, 2024, compared to 4,325.05 for the same period in 2023, indicating a strengthening of the Colombian peso[34] - The price index increased by 37% from March 31, 2023, to March 31, 2024, indicating significant inflationary pressures[168] Corporate Governance and Structure - The immediate holding company of Almacenes Éxito S.A. is Cama Commercial Group Corp., which owns 86.84% of its ordinary shares as of March 31, 2024[16] - Non-controlling interests represented by third parties' ownership interests in subsidiaries have been recognized and separately included in the consolidated shareholders' equity[25] - The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB)[21]

Financial Reporting - Almacenes Éxito S.A. filed its report under Form 20-F for the month of April 2024[2] - The report includes forward-looking statements regarding management's expectations for future economic conditions and company performance[8] - The company anticipates potential changes in economic and market conditions that could affect financial results[8]

Loans and Borrowings - As of December 31, 2023, total consolidated current loans and borrowings amounted to COP 1,029,394 million, an increase from COP 915,604 million as of December 31, 2022, representing a growth of 12.4%[587] - Total consolidated non-current loans and borrowings decreased to COP 236,811 million as of December 31, 2023, from COP 539,980 million as of December 31, 2022, a decline of 56.2%[587] - Bank loans increased by 3.1%, or COP 24,576 million, to COP 815,674 million as of December 31, 2023, compared to COP 791,098 million as of December 31, 2022[590] - Letters of credit liability decreased by COP 4,398 million to COP 8,189 million as of December 31, 2023, from COP 12,587 million as of December 31, 2022[594] - Unused revolving credit facilities available for short-term financing totaled COP 500,000 million with Bancolombia S.A. and COP 400,000 million with Banco Davivienda S.A. as of December 31, 2023[595] - Long-term debt obligations due within three years are estimated at COP 281,247 million as of December 31, 2023[597] - The company is in compliance with all loan and debt instruments as of the date of the annual report[588] Fair Value and Obligations - The fair value of the put option recognized in equity decreased by COP 209,557 million during the year ended December 31, 2023, compared to the previous year[592] - Total contractual obligations and commitments amounted to COP 3,321,639 million as of December 31, 2023, compared to COP 3,389,612 million as of December 31, 2022, indicating a decrease of 2%[597][599] Research and Development - The company does not have any significant research and development activities[601]

JuanmoninoAlmacenes Éxito (NYSE:EXTO) (Exito means success in Spanish) is a large supermarket chain in Colombia, and it also has stores in Uruguay. In addition to operating more than 600 stores, Exito has a substantial real estate business; it often owns the land under its stores and will develop and retain ownership in malls and shopping centers that use its stores as an anchor tenant. Exito is a fairly typical big-box grocer along the lines of Walmart (WMT). Around 40% of a standard store's space is d ...

Financial Performance - Total revenue for the nine months ended September 30, 2023, was COP 15,706,751 million, an increase from COP 14,423,027 million in the same period of 2022, representing a growth of 8.9%[4] - Gross profit for the nine months ended September 30, 2023, was COP 4,052,217 million, compared to COP 3,665,051 million in 2022, reflecting an increase of 10.6%[4] - Operating profit decreased to COP 549,223 million for the nine months ended September 30, 2023, down from COP 684,773 million in 2022, a decline of 19.8%[4] - Profit for the period was COP 133,798 million for the nine months ended September 30, 2023, significantly lower than COP 279,840 million in 2022, a decrease of 52.2%[4] - Basic and diluted earnings per share attributable to shareholders of the Parent for the nine months ended September 30, 2023, was COP 5.59, down from COP 136.18 in 2022[4] - The company reported a net profit attributable to non-controlling interests of COP 126,549 million for the nine months ended September 30, 2023, compared to COP 103,100 million in 2022, an increase of 22.8%[4] Assets and Liabilities - Total assets as of September 30, 2023, were COP 16,689,571 million, down from COP 18,183,289 million at December 31, 2022, a reduction of 8.2%[3] - Current liabilities increased to COP 6,897,383 million as of September 30, 2023, compared to COP 7,415,394 million at December 31, 2022, a decrease of 7.0%[3] - Total shareholders' equity decreased to COP 7,842,839 million as of September 30, 2023, from COP 8,434,446 million at December 31, 2022, a decline of 7.0%[3] - The total liabilities as of September 30, 2023, are 6,502,453 million Colombian pesos, indicating a significant financial structure[10] Cash Flow and Investments - Cash generated from operating activities before changes in working capital remained stable at COP 1,031,807 million compared to COP 1,029,796 million in the previous year[11] - Net cash flows used in operating activities improved to COP (333,713) million from COP (795,047) million, indicating a reduction in cash outflow[11] - Net cash flows used in investing activities increased to COP (458,597) million from COP (308,321) million, reflecting higher investment expenditures[11] - Proceeds from loans and borrowings rose significantly to COP 1,241,972 million from COP 843,513 million, indicating increased financing activity[11] - The company reported a net decrease in cash and cash equivalents of COP (554,974) million, compared to a decrease of COP (1,411,479) million in the prior year[11] Equity and Dividends - The company declared dividends amounting to 217,392 million Colombian pesos during the current period[10] - As of September 30, 2023, total equity attributable to the equity holders of the parent is 7,842,839 million Colombian pesos, a decrease from 8,434,446 million Colombian pesos at December 31, 2022[10] Revenue and Sales - Retail sales for the nine months ended September 30, 2023, reached $15,050,693, compared to $13,806,433 for the same period in 2022, indicating an increase of about 9.0%[141] - Total consolidated retail sales for the nine months ended September 30, 2023, reached $15,050,693, a 9.0% increase from $13,806,433 in the same period of 2022[177] Expenses and Costs - Total distribution, administrative, and selling expenses for the nine months ended September 30, 2023, increased to $3,469,534, up 14.9% from $3,021,092 in the same period of 2022[145] - Employee benefit expenses for the nine months ended September 30, 2023, rose to $1,313,536, reflecting a 17.9% increase compared to $1,113,790 in the prior year[146] - Total financial cost for the nine months ended September 30, 2023, amounted to $577,077, which is a 43.4% increase from $402,603 in the previous year[152] Acquisitions and Ownership - The company acquired 100% of Hipervital S.A.S. on August 15, 2023, and Costa y Costa S.A. on September 1, 2023, enhancing its retail self-service business[98][99] - The total identifiable assets from the acquisition of Hipervital S.A.S. were valued at $3,294, while Costa y Costa S.A. had identifiable assets of $7,635[99] Taxation - Almacenes Éxito S.A. reported tax losses of $964,565 million as of September 30, 2023, up from $740,337 million at the end of 2022, an increase of about 30.3%[121] - The current income tax expense for the nine months ended September 30, 2023, was $(75,602) million, compared to $(79,542) million for the same period in 2022, reflecting a decrease of approximately 4.9%[123] Other Financial Metrics - The company recognized service revenue of $599,648 for the nine months ended September 30, 2023, compared to $521,339 for the same period in 2022, marking an increase of approximately 15.0%[142] - Other revenue for the nine months ended September 30, 2023, was $56,410, a decrease from $95,255 in the same period of 2022, reflecting a decline of about 40.8%[143]

Financial Performance - Total revenue for the first half of 2023 reached 10,575,274 million Colombian pesos, an increase of 13.5% compared to 9,319,182 million in the same period of 2022[4] - Gross profit for the first half of 2023 was 2,772,347 million Colombian pesos, up 17.4% from 2,361,370 million in the first half of 2022[4] - Operating profit decreased to 412,706 million Colombian pesos in the first half of 2023, down 7.3% from 445,343 million in the same period of 2022[4] - Profit for the period was 126,611 million Colombian pesos, a decline of 32.0% compared to 186,270 million in the first half of 2022[6] - Basic and diluted earnings per share attributable to shareholders of the Parent decreased to 30.00 Colombian pesos from 97.70 in the first half of 2022[4] - The company reported a total comprehensive loss of 468,273 million Colombian pesos for the first half of 2023, compared to a comprehensive income of 302,131 million in the first half of 2022[6] Assets and Liabilities - Total current assets decreased to 5,519,330 million Colombian pesos as of June 30, 2023, down from 5,947,863 million at the end of 2022[3] - Total liabilities decreased to 9,344,287 million Colombian pesos as of June 30, 2023, compared to 9,748,843 million at the end of 2022[3] - Total shareholders' equity decreased to 8,035,236 million Colombian pesos as of June 30, 2023, down from 8,434,446 million at the end of 2022[3] - As of June 30, 2023, total equity amounted to 8,035,236 million Colombian pesos, reflecting a decrease from 8,434,446 million Colombian pesos at the end of 2022[10] Cash Flow and Investments - Cash generated from operating activities before changes in working capital increased to COP 743,994 million, up from COP 685,650 million, representing an increase of 8.5%[11] - Net cash flows used in operating activities improved to COP 414,454 million from COP 766,309 million, indicating a reduction of 45.9%[11] - Net cash flows used in investing activities increased to COP 269,014 million from COP 147,165 million, a rise of 82.7%[11] - Proceeds from loans and borrowings surged to COP 1,086,703 million, compared to COP 476,241 million, reflecting a growth of 128.5%[11] - Net decrease in cash and cash equivalents was COP 286,316 million, an improvement from COP 1,330,443 million in the previous period[11] - Cash and cash equivalents at the end of the period stood at COP 1,393,950 million, compared to COP 1,243,889 million, marking an increase of 12.1%[11] Revenue and Expenses - Total service revenue for the period from January 1 to June 30, 2023, was $396,087 million, representing a 19.2% increase from $332,354 million in the same period of 2022[141] - Total distribution, administrative, and selling expenses rose to $2,344,410 million for the period from January 1 to June 30, 2023, up from $1,952,574 million in the same period of 2022, an increase of 20%[144] - Employee benefit expenses increased to $866,948 million for the period from January 1 to June 30, 2023, compared to $702,542 million in the same period of 2022, reflecting a rise of 23.3%[145] Shareholder Information - Declared dividends for the period totaled 217,392 million Colombian pesos, an increase from 12,330 million Colombian pesos in the prior period[10] - The company reacquired shares worth 316,756 million Colombian pesos during the period, impacting the equity structure[10] Financial Ratios and Covenants - The leverage financial ratio must remain below 2.8x, as per the covenants under loans and borrowing contracts[102] - The company complied with its financial covenants as of December 31, 2022, ensuring adherence to its borrowing agreements[103] Related Party Transactions - Total revenue from related party transactions for the first half of 2023 was $33,467 million, a decrease of 20.5% compared to $42,081 million in the same period of 2022[53] - Total costs and expenses from related party transactions for the first half of 2023 were $70,863 million, down 22.7% from $91,589 million in the first half of 2022[53] Inventory and Asset Management - Total inventories as of June 30, 2023, were $2,765,708 million, slightly down from $2,770,443 million as of December 31, 2022[68] - The company recognized a loss on inventory obsolescence of $4,539 million during the first half of 2023, compared to a loss of $3,375 million in the same period of 2022[68] Tax and Deferred Tax - Deferred tax assets increased to $1,253,357 as of June 30, 2023, compared to $1,211,134 at December 31, 2022, indicating a growth of 3.5%[24.5] - The current income tax expense for the period ending June 30, 2023, was $(55,191), compared to $(64,104) for the same period in 2022, reflecting a decrease of 14.9%[123] Goodwill and Intangible Assets - Goodwill decreased to $3,355,987 as of June 30, 2023, from $3,484,303 at December 31, 2022, indicating a reduction of approximately 3.7%[97] - The total cost of other intangible assets decreased slightly to $595,987 as of June 30, 2023, from $599,018 at December 31, 2022[94] Miscellaneous - The company has not recognized material contingent assets as of June 30, 2023, and December 31, 2022[161] - No significant subsequent events have occurred that would impact the financial position of Éxito Group[175]