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]
Almacenes Exito S.A.(EXTO) - 2024 Q2 - Quarterly Report