Interim consolidated financial statements
As of March 31, 2024, and December 31, 2023, and for the Periods ended March 31, 2024, and 2023
Almacenes Éxito S.A.
Interim consolidated statement of financial position
At March 31, 2024 and at December 31, 2023
(Amounts expressed in millions of Colombian pesos)
Notes |
At March 31, 2024 |
At December 31, 2023 | ||||||||
Current assets | ||||||||||
Cash and cash equivalents | 7 | 1,410,742 | 1,508,205 | |||||||
Trade receivables and other receivables | 8 | 614,940 | 704,931 | |||||||
Prepayments | 9 | 33,236 | 41,515 | |||||||
Receivables from related parties | 10 | 59,348 | 52,145 | |||||||
Inventories, net | 11 | 2,638,962 | 2,437,403 | |||||||
Financial assets | 12 | 1,596 | 2,452 | |||||||
Tax assets | 24 | 583,737 | 524,027 | |||||||
Assets held for sale | 41 | 17,095 | 12,413 | |||||||
Total current assets | 5,359,656 | 5,283,091 | ||||||||
Non-current assets | ||||||||||
Trade receivables and other receivables | 8 | 11,273 | 12,338 | |||||||
Prepayments | 9 | 4,660 | 4,816 | |||||||
Other non-financial assets from related parties | 10 | 38,750 | 52,500 | |||||||
Financial assets | 12 | 24,698 | 25,014 | |||||||
Deferred tax assets | 24 | 239,232 | 197,692 | |||||||
Property, plant and equipment, net | 13 | 4,197,005 | 4,069,765 | |||||||
Investment property, net | 14 | 1,746,654 | 1,653,345 | |||||||
Rights of use asset, net | 15 | 1,790,441 | 1,361,253 | |||||||
Other intangible assets, net | 16 | 393,921 | 366,369 | |||||||
Goodwill | 17 | 3,221,555 | 3,080,622 | |||||||
Investments accounted for using the equity method | 18 | 262,998 | 232,558 | |||||||
Other assets | 398 | 398 | ||||||||
Total non-current assets | 11,931,585 | 11,056,670 | ||||||||
Total assets | 17,291,241 | 16,339,761 | ||||||||
Current liabilities | ||||||||||
Loans, borrowings, and other financial liability | 20 | 2,056,303 | 1,029,394 | |||||||
Employee benefits | 21 | 5,074 | 4,703 | |||||||
Provisions | 22 | 35,823 | 22,045 | |||||||
Payables to related parties | 10 | 60,168 | 55,617 | |||||||
Trade payables and other payable | 23 | 4,496,384 | 5,248,777 | |||||||
Lease liabilities | 15 | 281,436 | 282,180 | |||||||
Tax liabilities | 24 | 115,290 | 107,331 | |||||||
Derivative instruments and collections on behalf of third parties | 25 | 133,188 | 139,810 | |||||||
Other liabilities | 26 | 174,401 | 254,766 | |||||||
Total current liabilities | 7,358,067 | 7,144,623 | ||||||||
Non-current liabilities | ||||||||||
Loans, borrowings, and other financial liability | 20 | 206,368 | 236,811 | |||||||
Employee benefits | 21 | 35,980 | 35,218 | |||||||
Provisions | 22 | 11,613 | 11,630 | |||||||
Trade payables and other payable | 23 | 19,342 | 37,349 | |||||||
Lease liabilities | 15 | 1,717,427 | 1,285,779 | |||||||
Deferred tax liabilities | 24 | 238,421 | 156,098 | |||||||
Tax liabilities | 24 | 7,670 | 8,091 | |||||||
Other liabilities | 26 | 2,338 | 2,353 | |||||||
Total non-current liabilities | 2,239,159 | 1,773,329 | ||||||||
Total liabilities | 9,597,226 | 8,917,952 | ||||||||
Shareholders' equity | ||||||||||
Issued share capital | 27 | 4,482 | 4,482 | |||||||
Reserves | 27 | 1,507,316 | 1,431,125 | |||||||
Other equity components | 27 | 4,863,409 | 4,665,070 | |||||||
Equity attributable to non-controlling interest | 1,318,808 | 1,321,132 | ||||||||
Total shareholders' equity | 7,694,015 | 7,421,809 | ||||||||
Total liabilities and shareholders' equity | 17,291,241 | 16,339,761 |
The accompanying notes are an integral part of the interim consolidated financial statements.
2
Almacenes Éxito S.A.
Interim consolidated statement of profit or loss
For the quarters ended March 31, 2024 and 2023
(Amounts expressed in millions of Colombian pesos)
Quarters ended March 31, | ||||||||||
Notes | 2024 | 2023 | ||||||||
Continuing operations | ||||||||||
Revenue from contracts with customers | 28 | 5,275,139 | 5,456,154 | |||||||
Cost of sales | 11 | (3,953,186 | ) | (4,023,235 | ) | |||||
Gross profit | 1,321,953 | 1,432,919 | ||||||||
Distribution, administrative and selling expenses | 29 | (1,205,139 | ) | (1,225,649 | ) | |||||
Other operating revenue | 31 | 11,668 | 12,691 | |||||||
Other operating expenses | 31 | (31,340 | ) | (4,884 | ) | |||||
Other (loss) net | 31 | (1,914 | ) | (1,692 | ) | |||||
Operating profit | 95,228 | 213,385 | ||||||||
Financial income | 32 | 102,777 | 170,478 | |||||||
Financial cost | 32 | (185,487 | ) | (237,300 | ) | |||||
Share of profit in associates and joint ventures | 18 | (22,060 | ) | (26,792 | ) | |||||
(Loss) profit before income tax from continuing operations | (9,542 | ) | 119,771 | |||||||
Income tax gain (expense) | 24 | 1,562 | (40,708 | ) | ||||||
(Loss) profit for the period | (7,980 | ) | 79,063 | |||||||
Net (loss) profit attributable to: | ||||||||||
Equity holders of the Parent | (37,863 | ) | 45,118 | |||||||
Non-controlling interests | 29,883 | 33,945 | ||||||||
(Loss) profit for the period | (7,980 | ) | 79,063 | |||||||
Earnings per share (*) | ||||||||||
Basic earnings per share (*): | ||||||||||
Basic (losses) earnings per share from continuing operations attributable to the shareholders of the Parent | 33 | (29.17 | ) | 34.76 |
(*) | Amounts expressed in Colombian pesos. |
The accompanying notes are an integral part of the interim consolidated financial statements.
3
Almacenes Éxito S.A.
Interim consolidated statement of other comprehensive income
For the quarters ended March 31, 2024 and 2023
(Amounts expressed in millions of Colombian pesos)
Quarters ended March 31, | ||||||||||
Notes | 2024 | 2023 | ||||||||
(Loss) profit for the period | (7,980 | ) | 79,063 | |||||||
Other comprehensive income | ||||||||||
Components of other comprehensive income that will not be reclassified to profit and loss, net of taxes | ||||||||||
(Loss) from financial instruments designated at fair value through other comprehensive income | 27 | (396 | ) | (287 | ) | |||||
Total other comprehensive income that will not be reclassified to period results, net of taxes | (396 | ) | (287 | ) | ||||||
Components of other comprehensive income that may be reclassified to profit and loss, net of taxes | ||||||||||
Gain (loss) from translation exchange differences (1) | 27 | 67,872 | (243,689 | ) | ||||||
(Loss) gain from translation exchange differences to the put option (2) | (19,779 | ) | 9,095 | |||||||
Gain (loss) from cash flow hedge | 27 | 2,897 | (5,446 | ) | ||||||
Total other comprehensive income that may be reclassified to profit or loss, net of taxes | 50,990 | (240,040 | ) | |||||||
Total other comprehensive income | 50,594 | (240,327 | ) | |||||||
Total comprehensive income | 42,614 | (161,264 | ) | |||||||
Comprehensive income attributable to: | ||||||||||
Equity holders of the Parent | 7,451 | (195,090 | ) | |||||||
Non-controlling interests | 35,163 | 33,826 |
(1) | Represents exchange differences arising from the translation of assets, liabilities, equity and results of foreign operations into the reporting currency. |
(2) | Represent exchange differences arising from the translation of put option on the subsidiary Grupo Disco Uruguay S.A. into the reporting currency. |
The accompanying notes are an integral part of the interim consolidated financial statements.
4
Almacenes Éxito S.A.
Interim consolidated statement of changes in equity
At March 31, 2024 and 2023
(Amounts expressed in millions of Colombian pesos)
Attributable to the equity holders of the parent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issued share capital |
Premium on the issue of shares |
Treasury shares |
Legal reserve |
Occasional reserve |
Reserves for acquisition of treasury shares |
Reserve for future dividends distribution |
Other reserves |
Total reserves |
Other comprehensive income |
Retained earnings |
Hyperinflation and other equity components | Total |
Non-controlling interests |
Total shareholders' equity | ||||||||||||||||||||||||||||||||||||||||||||||
Note 27 | Note 27 | Note 27 | Note 27 | Note 27 | Note 27 | Note 27 | Note 27 | Note 27 | Note 27 | Note 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 4,482 | 4,843,466 | (319,490 | ) | 7,857 | 630,346 | 418,442 | 155,412 | 329,529 | 1,541,586 | (966,902 | ) | 515,564 | 1,520,282 | 7,138,988 | 1,295,458 | 8,434,446 | |||||||||||||||||||||||||||||||||||||||||||
Declared dividend (Note 37) | - | - | - | - | (217,392 | ) | - | - | - | (217,392 | ) | - | - | - | (217,392 | ) | (21,860 | ) | (239,252 | ) | ||||||||||||||||||||||||||||||||||||||||
Profit for the period | - | - | - | - | - | - | - | - | - | - | 45,118 | - | 45,118 | 33,945 | 79,063 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), excluding translation adjustments to the put option | - | - | - | - | - | - | - | - | - | (249,303 | ) | - | - | (249,303 | ) | (119 | ) | (249,422 | ) | |||||||||||||||||||||||||||||||||||||||||
Appropriation to reserves | - | - | - | - | 99,072 | - | - | - | 99,072 | - | (99,072 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Changes in interest in the ownership of subsidiaries that do not result in change of control | - | - | - | - | - | - | - | - | - | - | - | 4 | 4 | (441 | ) | (437 | ) | |||||||||||||||||||||||||||||||||||||||||||
Equity impact on the inflationary effect of subsidiary Libertad S.A. | - | - | - | - | - | - | - | - | - | - | - | 195,225 | 195,225 | - | 195,225 | |||||||||||||||||||||||||||||||||||||||||||||
Changes in the financial liability of the put option on non-controlling interests, and related translation adjustments (Note 20) | - | - | - | - | - | - | - | - | - | 9,095 | - | 16,480 | 25,575 | (16,480 | ) | 9,095 | ||||||||||||||||||||||||||||||||||||||||||||
Other movements | - | - | - | - | (2,108 | ) | - | - | - | (2,108 | ) | - | (508 | ) | - | (2,616 | ) | - | (2,616 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 4,482 | 4,843,466 | (319,490 | ) | 7,857 | 509,918 | 418,442 | 155,412 | 329,529 | 1,421,158 | (1,207,110 | ) | 461,102 | 1,731,991 | 6,935,599 | 1,290,503 | 8,226,102 | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | 4,482 | 4,843,466 | (319,490 | ) | 7,857 | 509,918 | 418,442 | 155,412 | 339,496 | 1,431,125 | (2,304,046 | ) | 534,333 | 1,910,807 | 6,100,677 | 1,321,132 | 7,421,809 | |||||||||||||||||||||||||||||||||||||||||||
Declared dividend (Note 37) | - | - | - | - | (65,529 | ) | - | - | - | (65,529 | ) | - | - | - | (65,529 | ) | (28,593 | ) | (94,122 | ) | ||||||||||||||||||||||||||||||||||||||||
Profit for the period | - | - | - | - | - | - | - | - | - | - | (37,863 | ) | - | (37,863 | ) | 29,883 | (7,980 | ) | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), excluding translation adjustments to the put option | - | - | - | - | - | - | - | - | - | 65,093 | - | - | 65,093 | 5,280 | 70,373 | |||||||||||||||||||||||||||||||||||||||||||||
Appropriation to reserves | - | - | - | - | 125,998 | - | - | - | 125,998 | - | (125,998 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Changes in interest in the ownership of subsidiaries that do not result in change of control | - | - | - | - | - | - | - | - | - | - | - | 4 | 4 | (2,798 | ) | (2,794 | ) | |||||||||||||||||||||||||||||||||||||||||||
Equity impact on the inflationary effect of subsidiary Libertad S.A. | - | - | - | - | - | - | - | - | - | - | - | 324,817 | 324,817 | - | 324,817 | |||||||||||||||||||||||||||||||||||||||||||||
Changes in the financial liability of the put option on non-controlling interests, and related translation adjustments (Note 20) | - | - | - | - | - | - | - | - | - | (19,779 | ) | - | 7,675 | (12,104 | ) | (6,096 | ) | (18,200 | ) | |||||||||||||||||||||||||||||||||||||||||
Other movements | - | - | - | - | - | - | - | 15,722 | 15,722 | - | (15,610 | ) | - | 112 | - | 112 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | 4,482 | 4,843,466 | (319,490 | ) | 7,857 | 570,387 | 418,442 | 155,412 | 355,218 | 1,507,316 | (2,258,732 | ) | 354,862 | 2,243,303 | 6,375,207 | 1,318,808 | 7,694,015 |
The accompanying notes are an integral part of the interim consolidated financial statements.
5
Almacenes Éxito S.A.
Interim consolidated statement of cash flows
For the quarters ended March 31, 2024 and 2023
(Amounts expressed in millions of Colombian pesos)
Quarters ended March 31, | ||||||||||
Notes | 2024 | 2023 | ||||||||
Operating activities | ||||||||||
(Loss) profit for the period | (7,980 | ) | 79,063 | |||||||
Adjustments to reconcile (loss) profit for the period | ||||||||||
Current income tax | 24 | 32,575 | 34,833 | |||||||
Deferred income tax | 24 | (34,137 | ) | 5,875 | ||||||
Interest, loans and lease expenses | 32 | 88,184 | 68,546 | |||||||
(Gain) loss from changes in fair value of derivative financial instruments | 32 | (576 | ) | 29,158 | ||||||
Expected credit loss (gain), net | 8.1 | 3,184 | (780 | ) | ||||||
Impairment of inventories, net | 11.1 | 3,217 | 1,462 | |||||||
Employee benefit provisions | 21 | 561 | 565 | |||||||
Provisions and reversals | 22 | 19,392 | (1,492 | ) | ||||||
Depreciation of property, plant and equipment, right of use asset and investment property | 13; 14; 15 | 158,767 | 151,207 | |||||||
Amortization of other intangible assets | 16 | 8,091 | 7,769 | |||||||
Share of profit in associates and joint ventures accounted for using the equity method | 22,060 | 26,792 | ||||||||
Gain from the disposal of non-current assets | 3,916 | 2,530 | ||||||||
Interest income | 32 | (11,917 | ) | (16,112 | ) | |||||
Other adjustments from items other than cash | 1,638 | (5,156 | ) | |||||||
Operating income before changes in working capital | 286,975 | 384,260 | ||||||||
Decrease in trade receivables and other receivables | 98,450 | 64,465 | ||||||||
Decrease in prepayments | 8,568 | 6,528 | ||||||||
(Increase) decrease in receivables from related parties | (13,881 | ) | 2,862 | |||||||
(Increase) in inventories | (174,592 | ) | (149,520 | ) | ||||||
Decrease in tax assets | 13,994 | 24,165 | ||||||||
(Decrease) in employee benefits | (259 | ) | (142 | ) | ||||||
Payments and decease in other provisions | 22 | (5,774 | ) | (9,851 | ) | |||||
(Decrease) in trade payables and other accounts payable | (793,783 | ) | (1,010,844 | ) | ||||||
Increase (decrease) increase in accounts payable to related parties | 9,527 | (18,745 | ) | |||||||
(Decrease) in tax liabilities | (7,818 | ) | (1,312 | ) | ||||||
(Decrease) in other liabilities | (82,417 | ) | (60,446 | ) | ||||||
Income tax, net | (88,869 | ) | (75,892 | ) | ||||||
Net cash flows (used in) operating activities | (749,879 | ) | (844,472 | ) | ||||||
Investing activities | ||||||||||
Advances to joint ventures | (38,750 | ) | - | |||||||
Acquisition of property, plant and equipment | 13.1 | (97,224 | ) | (150,041 | ) | |||||
Acquisition of investment property | 14 | (5,908 | ) | (7,026 | ) | |||||
Acquisition of other intangible assets | 16 | (6,353 | ) | (9,534 | ) | |||||
Proceeds of the sale of property, plant and equipment | 1,343 | 487 | ||||||||
Net cash flows (used in) investing activities | (146,892 | ) | (166,114 | ) | ||||||
Financing activities | ||||||||||
Proceeds from financial assets | 551 | 1 | ||||||||
Payments from collections on behalf of third parties | (2,031 | ) | (57,276 | ) | ||||||
Proceeds from loans and borrowings | 20 | 1,034,777 | 727,266 | |||||||
Repayment of loans and borrowings | 20 | (80,981 | ) | (46,118 | ) | |||||
Payments of interest of loans and borrowings | 20 | (27,119 | ) | (24,668 | ) | |||||
Lease liabilities paid | 15.2 | (77,404 | ) | (68,913 | ) | |||||
Interest on lease liabilities paid | 15.2 | (37,693 | ) | (29,514 | ) | |||||
Dividends paid | 37 | (28,956 | ) | (238,441 | ) | |||||
Interest received | 32 | 11,917 | 16,112 | |||||||
Payment to non-controlling interest | (2,794 | ) | (437 | ) | ||||||
Net cash flows provided by financing activities | 790,267 | 278,012 | ||||||||
Net (decrease) in cash and cash equivalents | (106,504 | ) | (732,574 | ) | ||||||
Effects of the variation in exchange rates | 9,041 | (18,548 | ) | |||||||
Cash and cash equivalents at the beginning of period | 7 | 1,508,205 | 1,733,673 | |||||||
Cash and cash equivalents at the end of period | 7 | 1,410,742 | 982,551 |
The accompanying notes are an integral part of the interim consolidated financial statements.
6
Note 1. General information
Almacenes Éxito S.A. was incorporated pursuant to Colombian laws on March 24, 1950; its headquarter is located Carrera 48 No. 32B Sur - 139, Envigado, Colombia. The life span of the Company goes to December 31, 2150. Here and after Almacenes Éxito S.A. and its subsidiaries are referred to as the "Exito Group".
Almacenes Éxito S.A. is listed on the Colombia Stock Exchange (BVC) since 1994 and is under the supervision of the Financial Superintendence of Colombia; is a foreign issuer with the Brazilian Securities and Exchange Commission (CVM) and a foreign issuer with the U.S. Securities and Exchange Commission (SEC).
Interim consolidated financial statements as of March 31, 2024, were authorized for issue in accordance with resolution of directors of Almacenes Éxito S.A. on May 8, 2024.
Exito Group´s corporate purpose is to:
- | Acquire, store, transform and, in general, distribute and sell under any trading figure, including funding thereof, all kinds of goods and products, produced either locally or abroad, on a wholesale or retail basis, physically or online. |
- | Provide ancillary services, namely grant credit facilities for the acquisition of goods, grant insurance coverage, carry out money transfers and remittances, provide mobile phone services, trade tourist package trips and tickets, repair and maintain furnishings, complete paperwork and energy trade. |
- | Give or receive in lease trade premises, receive or give, in lease or under occupancy, spaces or points of sale or commerce within its trade establishments intended for the exploitation of businesses of distribution of goods or products, and the provision of ancillary services. |
- | Incorporate, fund or promote with other individuals or legal entities, enterprises or businesses intended for the manufacturing of objects, goods, articles or the provision of services related with the exploitation of trade establishments. |
- | Acquire property, build commercial premises intended for establishing stores, malls or other locations suitable for the distribution of goods, without prejudice to the possibility of disposing of entire floors or commercial premises, give them in lease or use them in any convenient manner with a rational exploitation of land approach, as well as invest in property, promote and develop all kinds of real estate projects. |
- | Invest resources to acquire shares, bonds, trade papers and other securities of free movement in the market to take advantage of tax incentives established by law, as well as make temporary investments in highly liquid securities with a purpose of short-term productive exploitation; enter into firm factoring agreements using its own resources; encumber its chattels or property and enter into financial transactions that enable it to acquire funds or other assets. |
- | In the capacity as wholesaler and retailer, distribute oil-based liquid fuels through service stations, alcohols, biofuels, natural gas for vehicles and any other fuels used in the automotive, industrial, fluvial, maritime and air transport sectors, of all kinds. |
At December 31, 2023, the immediate holding company, or controlling entity of Almacenes Éxito S.A. was Casino Guichard-Perrachon S.A., which owned 47.29% (directly and indirectly) of its ordinary shares and control of its board of directors. Casino, Guichard-Perrachon S.A., is ultimately controlled by Mr. Jean-Charles Henri Naouri.
At March 31, 2024 and as a consequence of mentioned in Note 6, the immediate holding company, or controlling entity of the Almacenes Éxito S.A. is Cama Commercial Group Corp., which owns 86.84% (directly and indirectly) of its ordinary shares. Cama Commercial Group Corp. is controlled by Clarendon Worldwide S.A., controlled by Fundación El Salvador del mundo, which is ultimately controlled by Mr. Francisco Javier Calleja Malaina.
A business group situation is registered in the Camara de Comercio de Aburrá Sur, by Almacenes Éxito S.A.
7
Note 1.1. Stock ownership in subsidiaries included in the consolidated financial statements
Below is a detail of the stock ownership in subsidiaries included in the consolidated financial statements at March 31, 2024, which are the same at December 31, 2023:
Name | Direct controlling entity | Segment | Country |
Stock ownership of direct controlling entity 2023 |
Stock ownership in the direct parent |
Total direct and indirect ownership |
Total Non-controlling interest | |||||||||||||||
Directly owned entities | ||||||||||||||||||||||
Almacenes Éxito Inversiones S.A.S. | Almacenes Éxito S.A. | Colombia | Colombia | 100.00 | % | n/a | 100.00 | % | 0.00 | % | ||||||||||||
Logística, Transporte y Servicios Asociados S.A.S. | Almacenes Éxito S.A. | Colombia | Colombia | 100.00 | % | n/a | 100.00 | % | 0.00 | % | ||||||||||||
Marketplace Internacional Éxito y Servicios S.A.S. | Almacenes Éxito S.A. | Colombia | Colombia | 100.00 | % | n/a | 100.00 | % | 0.00 | % | ||||||||||||
Depósitos y Soluciones Logísticas S.A.S. | Almacenes Éxito S.A. | Colombia | Colombia | 100.00 | % | n/a | 100.00 | % | 0.00 | % | ||||||||||||
Fideicomiso Lote Girardot | Almacenes Éxito S.A. | Colombia | Colombia | 100.00 | % | n/a | 100.00 | % | 0.00 | % | ||||||||||||
Transacciones Energéticas S.A.S. E.S.P. | Almacenes Éxito S.A. | Colombia | Colombia | 100.00 | % | n/a | 100.00 | % | 0.00 | % | ||||||||||||
Éxito Industrias S.A.S. | Almacenes Éxito S.A. | Colombia | Colombia | 97.95 | % | n/a | 97.95 | % | 2.05 | % | ||||||||||||
Éxito Viajes y Turismo S.A.S. | Almacenes Éxito S.A. | Colombia | Colombia | 51.00 | % | n/a | 51.00 | % | 49.00 | % | ||||||||||||
Gestión Logística S.A. | Almacenes Éxito S.A. | Colombia | Panama | 100.00 | % | n/a | 100.00 | % | 0.00 | % | ||||||||||||
Patrimonio Autónomo Viva Malls | Almacenes Éxito S.A. | Colombia | Colombia | 51.00 | % | n/a | 51.00 | % | 49.00 | % | ||||||||||||
Spice Investment Mercosur S.A. | Almacenes Éxito S.A. | Uruguay | Uruguay | 100.00 | % | n/a | 100.00 | % | 0.00 | % | ||||||||||||
Onper Investment 2015 S.L. | Almacenes Éxito S.A. | Argentina | Spain | 100.00 | % | n/a | 100.00 | % | 0.00 | % | ||||||||||||
Patrimonio Autónomo Iwana | Almacenes Éxito S.A. | Colombia | Colombia | 51.00 | % | n/a | 51.00 | % | 49.00 | % | ||||||||||||
Indirectly owned entities | ||||||||||||||||||||||
Patrimonio Autónomo Centro Comercial Viva Barranquilla | Patrimonio Autónomo Viva Malls | Colombia | Colombia | 90.00 | % | 51.00 | % | 45.90 | % | 54.10 | % | |||||||||||
Patrimonio Autónomo Viva Laureles | Patrimonio Autónomo Viva Malls | Colombia | Colombia | 80.00 | % | 51.00 | % | 40.80 | % | 59.20 | % | |||||||||||
Patrimonio Autónomo Viva Sincelejo | Patrimonio Autónomo Viva Malls | Colombia | Colombia | 51.00 | % | 51.00 | % | 26.01 | % | 73.99 | % | |||||||||||
Patrimonio Autónomo Viva Villavicencio | Patrimonio Autónomo Viva Malls | Colombia | Colombia | 51.00 | % | 51.00 | % | 26.01 | % | 73.99 | % | |||||||||||
Patrimonio Autónomo San Pedro Etapa I | Patrimonio Autónomo Viva Malls | Colombia | Colombia | 51.00 | % | 51.00 | % | 26.01 | % | 73.99 | % | |||||||||||
Patrimonio Autónomo Centro Comercial | Patrimonio Autónomo Viva Malls | Colombia | Colombia | 51.00 | % | 51.00 | % | 26.01 | % | 73.99 | % | |||||||||||
Patrimonio Autónomo Viva Palmas | Patrimonio Autónomo Viva Malls | Colombia | Colombia | 51.00 | % | 51.00 | % | 26.01 | % | 73.99 | % | |||||||||||
Geant Inversiones S.A. | Spice Investment Mercosur S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Larenco S.A. | Spice Investment Mercosur S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Lanin S.A. | Spice Investment Mercosur S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Grupo Disco Uruguay S.A. | Spice Investment Mercosur S.A. | Uruguay | Uruguay | 69.15 | % | 100.00 | % | 69.15 | % | 30.85 | % | |||||||||||
Devoto Hermanos S.A. | Lanin S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Mercados Devoto S.A. | Lanin S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Costa y Costa S.A. | Lanin S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Modasian S.R.L. | Lanin S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
5 Hermanos Ltda. | Mercados Devoto S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Sumelar S.A. | Mercados Devoto S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Tipsel S.A. | Mercados Devoto S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Tedocan S.A. | Mercados Devoto S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Ardal S.A. | Mercados Devoto S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Hipervital S.A.S. | Devoto Hermanos S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Lublo | Devoto Hermanos S.A. | Uruguay | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Supermercados Disco del Uruguay S.A. | Grupo Disco Uruguay S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
Ameluz S.A. | Grupo Disco Uruguay S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
Fandale S.A. | Grupo Disco Uruguay S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
Odaler S.A. | Grupo Disco Uruguay S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
La Cabaña S.R.L. | Grupo Disco Uruguay S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
Ludi S.A. | Grupo Disco Uruguay S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
Hiper Ahorro S.R.L. | Grupo Disco Uruguay S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
Maostar S.A. | Grupo Disco Uruguay S.A. | Uruguay | Uruguay | 50.01 | % | 69.15 | % | 34.58 | % | 65.42 | % | |||||||||||
Semin S.A. | Supermercados Disco del Uruguay S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
Randicor S.A. | Supermercados Disco del Uruguay S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
Ciudad del Ferrol S.C. | Supermercados Disco del Uruguay S.A. | Uruguay | Uruguay | 98.00 | % | 69.15 | % | 67.77 | % | 32.23 | % | |||||||||||
Setara S.A. | Odaler S.A. | Uruguay | Uruguay | 100.00 | % | 69.15 | % | 69.15 | % | 30.85 | % | |||||||||||
Mablicor S.A. | Fandale S.A. | Uruguay | Uruguay | 51.00 | % | 69.15 | % | 35.27 | % | 64.73 | % | |||||||||||
Vía Artika S. A. | Onper Investment 2015 S.L. | Argentina | Uruguay | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Gelase S. A. | Onper Investment 2015 S.L. | Argentina | Belgium | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Libertad S.A. | Onper Investment 2015 S.L. | Argentina | Argentina | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||
Spice España de Valores Americanos S.L. | Vía Artika S.A. | Argentina | Spain | 100.00 | % | 100.00 | % | 100.00 | % | 0.00 | % |
8
Note 1.2. Subsidiaries with material non-controlling interests
At March 31, 2024 and at December 31, 2023 the following subsidiaries have material non-controlling interests:
Percentage of equity interest held by non-controlling interests | ||||||||||
Country |
March 31, 2024 |
December 31, 2023 | ||||||||
Patrimonio Autónomo Viva Palmas | Colombia | 73.99 | % | 73.99 | % | |||||
Patrimonio Autónomo Viva Sincelejo | Colombia | 73.99 | % | 73.99 | % | |||||
Patrimonio Autónomo Viva Villavicencio | Colombia | 73.99 | % | 73.99 | % | |||||
Patrimonio Autónomo San Pedro Etapa I | Colombia | 73.99 | % | 73.99 | % | |||||
Patrimonio Autónomo Centro Comercial | Colombia | 73.99 | % | 73.99 | % | |||||
Patrimonio Autónomo Viva Laureles | Colombia | 59.20 | % | 59.20 | % | |||||
Patrimonio Autónomo Centro Comercial Viva Barranquilla | Colombia | 54.10 | % | 54.10 | % | |||||
Patrimonio Autónomo Iwana | Colombia | 49.00 | % | 49.00 | % | |||||
Éxito Viajes y Turismo S.A.S. | Colombia | 49.00 | % | 49.00 | % | |||||
Patrimonio Autónomo Viva Malls | Colombia | 49.00 | % | 49.00 | % | |||||
Grupo Disco Uruguay S.A. | Uruguay | 30.85 | % | 30.85 | % |
Note 2. Basis of preparation and other significant accounting policies
The consolidated financial statements as of December 31, 2023, and the interim consolidated financial statements as of March 31, 2024, and for the quarters ended March 31, 2024, and 2023 have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
The interim consolidated financial statements are disclosure in accordance with IAS 34 and should be read in conjunction with the consolidated financial statements as of December 31, 2023, and do not include all the information required for a consolidated financial statement disclosure in accordance with IAS 1. However, some notes have been included to explain events and transactions that are relevant to understanding the changes in Exito Group's financial situation, as well as the operating performance since December 31, 2023.
The financial statements have been prepared on a historical cost basis, except for derivative financial instruments, financial instruments and customer loyalty programs measured at fair value.
Exito Group has prepared the financial statements on the basis that it will continue to operate as a going concern.
Note 3. Basis for consolidation
All significant transactions and material balances among subsidiaries have been eliminated upon consolidation; non-controlling interests represented by third parties' ownership interests in subsidiaries have been recognized and separately included in the consolidated shareholders' equity.
These consolidated financial statements include the financial statements of Almacenes Éxito S.A. and all of its subsidiaries. Subsidiaries (including special-purpose vehicles) are entities over which Almacenes Éxito S.A. has direct or indirect control. Special-purpose vehicles are stand-alone trust funds (Patrimonios Autónomos, in Spanish) established with a defined purpose or limited term. A listing of subsidiaries is included in Note 1.
"Control" is the power to govern relevant activities, such as the financial and operating policies of a controlled company (subsidiary). Control is when Almacenes Éxito S.A. has power over an investee, is exposed to variable returns from its involvement and has the ability to use its power over the investee to affect its returns. Generally, there is a presumption that most voting rights results in control. To support this presumption and when the Almacenes Éxito S.A. has less than a majority of the voting or similar rights of an investee, Almacenes Éxito S.A. considers all relevant facts and circumstances in assessing whether it has power over an investee.
At the time of assessing whether Almacenes Éxito has control over a subsidiary, analysis is made of the existence and effect of currently exercisable potential voting rights. Subsidiaries are consolidated as of the date on which control is gained until Éxito ceases to control the subsidiary.
9
Transactions involving a change in ownership percentage without loss of control are recognized in shareholders' equity. Cash flows provided or paid to non-controlling interests which represent a change in ownership interests not resulting in a loss of control are classified as financing activities in the statement of cash flows.
In transactions involving a loss of control, the entire ownership interest in the subsidiary is derecognized, including the relevant items of the other comprehensive income, and the retained interest is recognized at fair value. Any gain or loss arising from the transaction is recognized in profit or loss. Cash flows from the acquisition or loss of control over a subsidiary are classified as investing activities in the statement of cash flows.
Whenever a subsidiary is made available for sale or its operation is discontinued, but control over it is still maintained, its assets and liabilities are classified as assets held for sale and presented in a single line item in the statement of financial position. Results from discontinued operations are presented separately in the consolidated statement of profit or loss.
Income for the period and each component in other comprehensive income are attributed to the owners of the parent and to non-controlling interests.
In consolidating the financial statements, all subsidiaries apply the same policies and accounting principles implemented by Almacenes Éxito S.A.
Subsidiaries' assets and liabilities, revenue and expenses, as well as Almacenes Éxito S.A 's. revenue and expenses in foreign currency have been translated into Colombian pesos at observable market exchange rates on each reporting date and at period average, as follows:
Closing rates (*) | Average rates (*) | |||||||||||||||
March 31, 2024 |
December 31, 2023 |
March 31, 2024 |
December 31, 2023 | |||||||||||||
US Dollar | 3,842.30 | 3,822.05 | 3,914.97 | 4,325.05 | ||||||||||||
Uruguayan peso | 102.28 | 97.90 | 100.67 | 111.36 | ||||||||||||
Argentine peso | 4.48 | 4.73 | 4.69 | 16.82 | ||||||||||||
Euro | 4,149.71 | 4,222.05 | 4,250.46 | 4,675.64 |
(*) | Expressed in Colombian pesos. |
Note 4. Accounting policies
The accompanying interim consolidated financial statements at March 31, 2024 have been prepared using the same accounting policies, measurements and bases used to present the consolidated financial statements for the year ended December 31, 2023, except for new and modified standards and interpretations applied starting January 1, 2024 and for mentioned in Note 4.1.
The adoption of the new standards in force as of January 1, 2024, mentioned in Note 5.1., did not result in significant changes in these accounting policies as compared to those applied in preparing the consolidated financial statements at December 31, 2023 and no significant effect resulted from adoption thereof.
Nota 4.1. Voluntary changes in accounting policies
Starting on January 1, 2024, Exito Group made a voluntary change in its inventory valuation policy by changing from the first-in, first-out (FIFO) method to the Average Cost method.
The Average Cost valuation method is practical, concise, and aligns with assertions of integrity and accuracy in inventory valuation balances. The voluntary change is supported by the belief that the Average Cost method provides a more consistent and stable valuation, offering a clearer economic understanding of profitability in current circumstances, this facilitates more informed decisions regarding pricing, purchase volumes, and inventory management. The method promises a more accurate description of the actual cost of goods sold during the period by considering (a) inflation effects on inventory costs, (b) the impact of inventory turnover on the cost of sales, (d) uniform distribution of inventory cost fluctuations over the period, and (d) avoidance of volatile outcomes inherent in the FIFO method during periods of price fluctuations (year-end or anniversary promotional events).
10
The minor impact of this change on (loss) earnings per share and net (loss) income for the quarters ended March 31, 2024, and 2023 and on the inventory and cost of sales accounts at December 31, 2023, is as follows:
Quarters ended March 31, | ||||||||||||||||||||||||
2024 | 2023 | December 31, 2023 | ||||||||||||||||||||||
(Loss) per |
Net |
Earnings |
Net | Inventories |
Cost of | |||||||||||||||||||
Adjustment | (0,53 | ) | (693 | ) | 1,72 | 2,233 | 13,568 | (2,668 | ) | |||||||||||||||
Percentage | 1.83 | % | 1.83 | % | 4.94 | % | 4.94 | % | 0.57 | % | 0.66 | % |
Note 5. Adoption of new standards, amendments to and interpretations of existing standards issued by the IASB.
Note 5.1. New and amended standards and interpretations.
Éxito Group applied amendments and new interpretations to IFRS as issued by IASB, which were effective for accounting periods beginning on or after January 1, 2024. The new standards adopted are as follows:
Statement | Description | Applicable periods / impact | ||
Amendment to IAS 1 - Non-current Liabilities with Covenants | This amendment, which amends IAS 1- Presentation of Financial Statements, aims to improve the information companies provide on long-term covenanted debt by enabling investors to understand the risk of early repayment of debt. IAS 1 requires a company to classify debt as non-current only if the company can avoid settling the debt within 12 months of the reporting date. However, a company's ability to do so is often contingent on compliance with covenants. For example, a business might have long-term debt that could be repayable within 12 months if the business defaults in that 12-month period. The amendment requires a company to disclose information about these covenants in the notes to the financial statements. | These changes did not have any impact in the financial statements. Before the issuance of this Amendment, Éxito Group reviewed non-financial covenants to disclosure its compliance. | ||
Amendment to IFRS 16 - Lease Liability in a Sale and Leaseback. | This Amendment, which amends IFRS 16 - Leases, guides at the subsequent measurement that a company must apply when it sells an asset and subsequently leases the same asset to the new owner for a period. IFRS 16 includes requirements on how to account for a sale with leaseback on the date the transaction takes place. However, this standard had not specified how to measure the transaction after that date. These amendments will not change the accounting for leases other than those arising in a sale-leaseback transaction. | These changes did not have any impact in the financial statements. | ||
Amendment to IAS 7 and IFRS 17 - Supplier finance arrangements. | This Amendment, which amends IAS 7 - Statement of Cash Flows and IFRS 7 - Financial Instruments: Disclosures, aims to enhance the disclosure requirements regarding supplier financing agreements. It enables users of financial statements to assess the effects of such agreements on the entity's liabilities and cash flows, as well as the entity's exposure to liquidity risk. The Amendment requires the disclosure of the amount of liabilities that are part of the agreements, disaggregating the amounts for which financing providers have already received payments from the suppliers, and indicating where the liabilities are presented in the balance sheet. Additionally, it mandates the disclosure of terms and conditions, payment maturity date ranges, and liquidity risk information. Supplier financing agreements are characterized by one or more financing providers offering to pay amounts owed by an entity to its suppliers, according to the terms and conditions agreed upon between the entity and its supplier. | These changes did not have any impact in the financial statements. Before the issuance of this Amendment, Exito Group disclosed these liabilities. |
11
Statement | Description | Applicable periods / impact | ||
IFRS S1 - General Requirements for Disclosure of Sustainability-related Financial Information. | The objective of IFRS S1 - General Requirements for the Disclosure of Sustainability-related Financial Information, is to require an entity to disclose information about all risks and opportunities related to sustainability that could reasonably be expected to affect the entity's cash flows, its access to financing, or the cost of capital in the short, medium, or long term. These risks and opportunities are collectively referred to as "sustainability-related risks and opportunities that could reasonably be expected to affect the entity's prospects." The information is expected to be useful for the primary users of general-purpose financial reports when making decisions related to providing resources to the entity. | In the financial statements at December 31, 2024, should be presented the disclosures related of this IFRS S1 | ||
IFRS 2 - Climate-related Disclosures | The objective of IFRS S2 - Climate-related Disclosures, is to require an entity to disclose information about all risks and opportunities related to climate that could reasonably be expected to affect the entity's cash flows, its access to financing, or the cost of capital in the short, medium, or long term (collectively referred to as "climate information"). The information is expected to be useful for the primary users of general-purpose financial reports when making decisions related to providing resources to the entity. | In the financial statements at December 31, 2024, should be presented the disclosures related of this IFRS S2. |
Note 5.2. New and revised standards and interpretations issued and not yet effective
Exito Group has not early adopted the following new and revised IFRSs, which have already been issued but not yet in effect up to the date of the issuance of the consolidated financial statements:
Statement | Description | Applicable periods | ||
Amendment to IAS 21 - Lack of Exchangeability | This Amendment, which amends IAS 21 - The Effects of Changes in Foreign Exchange Rates, aims to establish the accounting requirements for when one currency is not exchangeable for another currency, specifying the exchange rate to be used and the information that should be disclosed in the financial statements. The Amendment will allow companies to provide more useful information in their financial statements and will assist investors in addressing an issue not previously covered in the accounting requirements for the effects of exchange rate variations. | January 1, 2025, with early adoption permitted. No material effects are expected from the application of this Amendment. |
Note 6. Relevant facts
Change in controlling entity
On January 22, 2024, 86.84% of the common shares of Almacenes Éxito S.A. were awarded to Cama Commercial Group Corp. as a result of the completion of the tender offer that this company had signed with Grupo Casino and Companhia Brasileira de Distribuição S.A. - CBD at October 13, 2023. With this award, Cama Commercial Group Corp. became the immediate holding of Almacenes Éxito S.A.
Note 7. Cash and cash equivalents
The balance of cash and cash equivalents is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Cash at banks and on hand | 1,371,157 | 1,477,368 | ||||||
Term deposit certificates | 20,415 | 7,244 | ||||||
Fiduciary rights - money market like (1) | 17,813 | 22,266 | ||||||
Funds | 1,354 | 1,318 | ||||||
Other cash equivalents | 3 | 9 | ||||||
Total cash and cash equivalents | 1,410,742 | 1,508,205 |
12
(1) | The balance is as follows: |
March 31, 2024 |
December 31, 2023 | |||||||
Fiducolombia S.A. | 15,448 | 18,549 | ||||||
Fiduciaria Bogota S.A. | 1,725 | 2,600 | ||||||
BBVA Asset S.A. | 272 | 165 | ||||||
Fondo de Inversión Colectiva Abierta Occirenta | 218 | 167 | ||||||
Credicorp Capital | 80 | 613 | ||||||
Corredores Davivienda S.A. | 70 | 172 | ||||||
Total fiduciary rights | 17,813 | 22,266 |
The decrease is due to transfers of fiduciary rights to cash on hand and banks to be used in the operation.
At March 31, 2024, Exito Group recognized interest income from cash at banks and cash equivalents in the amount of $11,917 (March 31, 2023 - $16,112), which were recognized as financial income as detailed in Note 32.
At Mach 31, 2024 and at December 31, 2023, cash and cash equivalents were not restricted or levied in any way as to limit availability thereof.
Note 8. Trade receivables and other account receivables
The balance of trade receivables and other account receivables is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Trade receivables (Note 8.1.) | 411,068 | 466,087 | ||||||
Other account receivables (Note 8.2.) | 215,145 | 251,182 | ||||||
Total trade receivables and other account receivables | 626,213 | 717,269 | ||||||
Current | 614,940 | 704,931 | ||||||
Non-Current | 11,273 | 12,338 |
Note 8.1. Trade receivables
The balance of trade receivables is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Trade accounts | 342,444 | 391,552 | ||||||
Sale of real-estate project inventories | 39,586 | 39,277 | ||||||
Rentals and dealers | 36,747 | 41,122 | ||||||
Employee funds and lending | 3,820 | 3,799 | ||||||
Allowance for expected credit loss | (11,529 | ) | (9,663 | ) | ||||
Trade receivables | 411,068 | 466,087 |
An analysis is performed at each reporting date to estimate expected credit losses. The allowance rates are based on days past due for groupings of various customer segments with similar loss patterns (i.e., product type and customer rating). The calculation reflects the probability-weighted outcome and reasonable and supportable information that is available at the reporting date about past events and current conditions. Generally, trade receivables and other accounts receivables are written-off if past due for more than one year.
The allowance for expected credit loss is recognized as expense in profit or loss. During the quarter ended March 31, 2024, the net effect of the allowance for expected credit loss on the statement of profit or loss represents expense of $3,184 ($780 - income for the quarter ended for March 31, 2023).
The movement in the allowance for expected credit losses during the periods was as follows:
Balance at December 31, 2022 | 22,882 | |||
Additions (Note 29) | 4,352 | |||
Reversal of allowance for expected credit losses (Note 31) | (5,132 | ) | ||
Write-off of receivables | (1,402 | ) | ||
Effect of exchange difference from translation into presentation currency | (1,391 | ) | ||
Balance at March 31, 2023 | 19,309 |
Balance at December 31, 2023 | 9,663 | |||
Additions (Note 29) | 6,379 | |||
Reversal of allowance for expected credit losses (Note 31) | (3,195 | ) | ||
Write-off of receivables | (1,229 | ) | ||
Effect of exchange difference from translation into presentation currency | (89 | ) | ||
Balance at March 31, 2024 | 11,529 |
13
Note 8.2. Other receivables
March 31, 2024 |
December 31, 2023 | |||||||
Business agreements | 96,655 | 123,932 | ||||||
Recoverable taxes (1) | 46,131 | 51,340 | ||||||
Loans or advances to employees | 32,464 | 33,142 | ||||||
Money remittances | 15,214 | 18,892 | ||||||
Maintenance fees | 4,023 | 2,649 | ||||||
Long-term receivable | 3,135 | 3,598 | ||||||
Money transfer services | 611 | 653 | ||||||
Sale of fixed assets, intangible assets and other assets | 142 | 141 | ||||||
Other (2) | 16,770 | 16,835 | ||||||
Total other account receivables | 215,145 | 251,182 |
(1) | The decrease corresponds mainly to compensation of a favorable balance in VAT. |
(2) | Corresponds to: |
March 31, 2024 |
December 31, 2023 | |||||||
Accounts receivable from non-controlling interests | 6,078 | 5,655 | ||||||
Administrative fees of shopping malls | 4,023 | 2,649 | ||||||
Airline pre-purchases and commissions | 2,288 | 3,813 | ||||||
Receivable of seizures | 1,149 | 974 | ||||||
Employee's cash imbalances | 1,069 | 958 | ||||||
Deposits in guarantees | 965 | 925 | ||||||
Indemnification of lease contracts | - | 812 | ||||||
Loans to third parties | - | 17 | ||||||
Others minor | 1,198 | 1,032 | ||||||
Total | 16,770 | 16,835 |
Note 9. Prepayments
March 31, 2024 |
December 31, 2023 | |||||||
Insurance | 15,819 | 23,457 | ||||||
Lease payments | 5,841 | 6,705 | ||||||
Advertising | 5,682 | 5,770 | ||||||
Maintenance | 5,104 | 2,739 | ||||||
Other prepayments | 5,450 | 7,660 | ||||||
Total prepayments | 37,896 | 46,331 | ||||||
Current | 33,236 | 41,515 | ||||||
Non-Current | 4,660 | 4,816 |
Note 10. Related parties
As mentioned in the control´s change in Note65, the next companies are considered as related parties, which ones, at the date of this financial statements there were not transactions:
- | Fundación Salvador del mundo; |
- | N1 Investments, Inc.; |
- | Clarendon Wolrwide S.A.; |
- | Avelan Enterprise, Ltd.; |
- | Foresdale Assets, Ltd.; |
- | Invenergy FSRU Development Spain S.L.; |
- | Talgarth Trading Inc.; |
- | Calleja S. A. de C.V. |
- | Camma Comercial Group. Corp. |
14
Note 10.1. Significant agreements
Transactions with related parties refer mainly to transactions between Exito Group and its associates, joint ventures and other related entities and were substantially accounted for in accordance with the prices, terms and conditions agreed upon between the parties. The agreements are detailed as follows:
- | Puntos Colombia S.A.S.: Agreement providing for the terms and conditions for the redemption of points collected under their loyalty program, among other services. |
- | Compañía de Financiamiento Tuya S.A.: Partnership agreements to promote (i) the sale of products and services offered by Exito Group through credit cards, (ii) the use of these credit cards in and out of Exito Group stores and (iii) the use of other financial services agreed between the parties inside Exito Group stores. |
- | Sara ANV S.A.: Agreement providing for the terms and conditions for the sale of services. |
Note 10.2. Transactions with related parties
Transactions with related parties relate to revenue from retail sales and other services, as well as to costs and expenses related to purchase of goods and services received.
As mentioned in Note 1, at March 31, 2024, the controlling entity of Almacenes Éxito S.A. is Cama Commercial Group Corp. At December 31, 2023, the controlling entity of Almacenes Éxito S.A. was Casino Guichard-Perrachon S.A.
The amount of revenue arising from transactions with related parties is as follows:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Joint ventures (1) | 15,937 | 17,609 | ||||||
Casino Group Companies | - | 665 | ||||||
Total | 15,937 | 18,274 |
(1) | The amount of revenue with each joint venture is as follows: |
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Compañía de Financiamiento Tuya S.A. | ||||||||
Commercial activation recovery | 12,576 | 14,515 | ||||||
Yield on bonus, coupons and energy | 1,341 | 1,486 | ||||||
Lease of real estate | 1,083 | 996 | ||||||
Services | 296 | 294 | ||||||
Total | 15,296 | 17,291 | ||||||
Puntos Colombia S.A.S. | ||||||||
Services | 406 | 318 | ||||||
Sara ANV S.A. | ||||||||
Services | 235 | - | ||||||
Total | 15,937 | 17,609 |
The amount of costs and expenses arising from transactions with related parties is as follows:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Key management personnel (1) | 43,672 | 31,387 | ||||||
Joint ventures (2) | 28,799 | 28,406 | ||||||
Members of the Board | 403 | 725 | ||||||
Casino Group Companies (3) | - | 7,098 | ||||||
Controlling entity | - | 5 | ||||||
Total cost and expenses | 72,874 | 67,621 |
(1) | Transactions between Exito Group and key management personnel, including legal representatives and/or administrators, mainly relate to labor agreements executed by and between the parties. |
15
Compensation of key management personnel is as follows:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Short-term employee benefits | 43,365 | 30,779 | ||||||
Post-employment benefits | 307 | 608 | ||||||
Total key management personnel compensation | 43,672 | 31,387 |
(2) The amount of costs and expenses with each joint venture is as follows:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Compañía de Financiamiento Tuya S.A. | ||||||||
Commissions on means of payment | 3,257 | 3,622 | ||||||
Puntos Colombia S.A.S. | ||||||||
Cost of customer loyalty program | 25,542 | 24,784 | ||||||
Total | 28,799 | 28,406 |
(3) | Costs and expenses accrued mainly arise from energy optimization services received and intermediation in the import of goods, purchase of goods and consultancy services. |
Costs and expenses by each company are as follows:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Casino Guichard Perrachon S.A. | - | 4,053 | ||||||
Distribution Casino France | - | 1,753 | ||||||
Euris | - | 501 | ||||||
International Retail and Trade Services IG. | - | 599 | ||||||
Relevan C Colombia S.A.S. | - | 115 | ||||||
Casino Services | - | 77 | ||||||
Total | - | 7,098 |
Note 10.3. Receivable and Other non-financial assets from related parties
Receivable | Other non-financial assets | |||||||||||||||
March 31, 2024 |
December 31, 2023 |
March 31, 2024 |
December 31, 2023 | |||||||||||||
Joint ventures (1) | 59,348 | 44,634 | 38,750 | 52,500 | ||||||||||||
Casino Group companies (2) | - | 5,945 | - | - | ||||||||||||
Controlling entity | - | 1,566 | - | - | ||||||||||||
Current | 59,348 | 52,145 | - | - | ||||||||||||
Non-Current | - | - | 38,750 | 52,500 |
(1) | Balances relate to the following joint ventures and the following detail: |
- | Receivables: |
March 31, 2024 |
December 31, 2023 | |||||||
Compañía de Financiamiento Tuya S.A. | ||||||||
Reimbursement of shared expenses, collection of coupons and other | 5,846 | 4,697 | ||||||
Other services | 9,341 | 1,784 | ||||||
Total | 15,187 | 6,481 | ||||||
Puntos Colombia S.A.S. | ||||||||
Redemption of points | 44,059 | 37,926 | ||||||
Sara ANV S.A. | ||||||||
Other services | 102 | 227 | ||||||
Total receivables | 59,348 | 44,634 |
- | Other non-financial assets: |
The amount of $38,750 as of March 31, 2024, corresponds to payments made to Compañía de Financiamiento Tuya S.A. for the subscription of shares that have not been recognized in its equity because authorization has not been obtained from the Superintendencia Financiera de Colombia. The amount of $52,500 as of December 31, 2023, corresponded to payments made to Compañía de Financiamiento Tuya S.A. for the subscription of shares that have not been recognized in its equity because authorization had not been obtained from the Superintendencia Financiera de Colombia; during 2024, authorization was obtained to register the equity increase.
16
(2) | Receivable from Casino Group companies represents reimbursement for payments to expats, supplier agreements and energy efficiency solutions. |
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Casino International | - | 3,224 | ||||||
Relevanc Colombia S.A.S. | - | 1,082 | ||||||
Companhia Brasileira de Distribuição S.A. - CBD | - | 822 | ||||||
International Retail and Trade Services | - | 810 | ||||||
Casino Services | - | 7 | ||||||
Total | - | 5,945 |
Note 10.4. Payables to related parties
The balance of payables to related parties is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Joint ventures (1) | 60,168 | 44,032 | ||||||
Controlling entity (2) | - | 10,581 | ||||||
Casino Group companies | - | 1,004 | ||||||
Total | 60,168 | 55,617 |
(1) | The balance of payables by each joint venture is as follows: |
March 31, 2024 |
December 31, 2023 | |||||||
Puntos Colombia S.A.S (a) | 53,587 | 43,986 | ||||||
Compañía de Financiamiento Tuya S.A. | 6,581 | 44 | ||||||
Sara ANV S.A. | - | 2 | ||||||
Total accounts payable to joint ventures | 60,168 | 44,032 |
(a) | Represents the balance arising from points (accumulations) issued. |
(2) | Represents the balance for consulting services from Casino Guichard Perrachon S.A. |
Note 10.5. Collections on behalf of third parties with related parties
March 31, 2024 |
December 31, 2023 | |||||||
Joint ventures (1) | 20,290 | 26,515 |
(1) | Mainly represents collections received from customers related to the Tarjeta Éxito cards owned by Compañía de Financiamiento Tuya S.A. (Note 25). |
Note 11. Inventories, net and Cost of sales
Note 11.1. Inventories, net
The balance of inventories is as follows:
March 31, 2024 |
December 31, 2023 | |||||||
Inventories (1) | 2,524,429 | 2,352,735 | ||||||
Inventories in transit | 52,736 | 22,312 | ||||||
Raw materials | 29,808 | 28,367 | ||||||
Materials, spares, accessories and consumable packaging | 16,302 | 15,884 | ||||||
Real estate project inventories (2) | 15,585 | 18,003 | ||||||
Production in process | 102 | 102 | ||||||
Total inventories | 2,638,962 | 2,437,403 |
(1) | The movement of the losses on inventory obsolescence and damages, included as lower value in inventories, during the reporting periods is shown below: |
Balance at December 31, 2022 | 13,150 | |||
Loss recognized during the period (Note 11.2.) | 1,482 | |||
Loss reversal (Note 11.2.) | (19 | ) | ||
Effect of exchange difference from translation into presentation currency | (556 | ) | ||
Balance at March 31, 2023 | 14,057 |
17
Balance at December 31, 2023 | 19,583 | |||
Loss recognized during the period (Note 11.2.) | 3,217 | |||
Effect of exchange difference from translation into presentation currency | (66 | ) | ||
Balance at March 31, 2024 | 22,734 |
(2) | For 2024, represents López de Galarza real estate project for $776 (December 31, 2023 - $776) and Éxito Occidente real estate project for $14,809 (December 31, 2023 - $17,227). |
At March 21, 2024, and at December 31, 2023, there are no restrictions or liens on the sale of inventories.
Note 11.2. Cost of sales
The following is the information related with the cost of sales, allowance for losses on inventory obsolescence and damages, and allowance reversal on inventories:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Cost of goods sold (1) | 4,424,523 | 4,494,218 | ||||||
Trade discounts and purchase rebates | (706,281 | ) | (697,811 | ) | ||||
Logistics costs (2) | 173,514 | 159,394 | ||||||
Damage and loss | 58,213 | 65,971 | ||||||
Loss recognized during the period (Note 11.1) | 3,217 | 1,463 | ||||||
Total cost of sales | 3,953,186 | 4,023,235 |
(1) | For the quarter ended March 31, 2024, includes $7,091 of depreciation and amortization cost (March 31, 2023 - $7,484). |
(2) | The detail is shown below: |
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Employee benefits | 91,699 | 85,502 | ||||||
Services | 55,778 | 47,564 | ||||||
Depreciations and amortizations | 18,745 | 19,015 | ||||||
Upload and download operators | 1,477 | 1,398 | ||||||
Repairs and maintenance | 1,379 | 2,060 | ||||||
Packaging and marking materials | 1,335 | 1,311 | ||||||
Leases | 1,296 | 931 | ||||||
Fuels | 445 | 457 | ||||||
Insurance | 171 | 185 | ||||||
Other | 1,189 | 971 | ||||||
Total logistics costs | 173,514 | 159,394 |
Note 12. Financial assets
The balance of financial assets is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Financial assets measured at fair value through other comprehensive income (1) | 23,649 | 23,964 | ||||||
Derivative financial instruments designated as hedge instruments (2) | 1,474 | 2,378 | ||||||
Financial assets measured at amortized cost | 579 | 578 | ||||||
Financial assets measured at fair value through profit or loss | 518 | 546 | ||||||
Derivative financial instruments | 74 | - | ||||||
Total financial assets | 26,294 | 27,466 | ||||||
Current | 1,596 | 2,452 | ||||||
Non-Current | 24,698 | 25,014 |
18
(1) | Financial assets measured at fair value through other comprehensive income are equity investments not held for sale. The detail of these investments is as follows: |
March 31, 2024 |
December 31, 2023 | |||||||
Investments in bonds | 12,973 | 13,288 | ||||||
Cnova N.V. | 9,222 | 9,222 | ||||||
Fideicomiso El Tesoro etapa 4A y 4C 448 | 1,206 | 1,206 | ||||||
Associated Grocers of Florida, Inc. | 113 | 113 | ||||||
Central de abastos del Caribe S.A. | 71 | 71 | ||||||
La Promotora S.A. | 50 | 50 | ||||||
Sociedad de acueducto, alcantarillado y aseo de Barranquilla S.A. E.S.P. | 14 | 14 | ||||||
Total financial assets measured at fair value through other comprehensive income | 23,649 | 23,964 |
(2) | Derivative instruments designated as hedging instrument relates to swap of interest rates. The fair value of these instruments is determined based on valuation models. |
At March 31, 2024, relates to the following transactions:
Nature of risk hedged | Hedged item |
Range of rates for hedged item |
Range of rates for hedge instruments | Fair value | ||||||||||
Swap | Interest rate | Loans and borrowings | IBR 3M | 9.0120 | % | 1,474 |
The detail of maturities of these hedge instruments at March 31, 2024, is shown below:
Less than 1 month | From 1 to 3 months | From 3 to 6 months | From 6 to 12 months | More than 12 months | Total | |||||||||||||||||||
Swap | - | 897 | 577 | - | - | 1,474 |
At December 31, 2023, relates to the following transactions:
Nature of risk hedged | Hedged item |
Range of rates for hedged item |
Range of rates for hedge instruments | Fair value | ||||||||||
Swap | Interest rate | Loans and borrowings | IBR 3M | 9.0120 | % | 2,378 |
The detail of maturities of these hedge instruments at December 31, 2023, is shown below:
Less than 1 month | From 1 to 3 months | From 3 to 6 months | From 6 to 12 months | More than 12 months | Total | |||||||||||||||||||
Swap | 998 | - | 871 | 509 | - | 2,378 |
At March 31, 2024, and at December 31, 2023, there are no restrictions or liens on financial assets that restrict their sale, except for judicial deposits relevant to the subsidiary Libertad S.A of $48 (December 31, 2023- $74), included within the line item Financial assets measured at fair value through profit or loss.
None of the assets were impaired at March 31, 2024 and at December 31, 2023.
Note 13. Property, plant and equipment, net
March 31, 2024 |
December 31, 2023 | |||||||
Land | 1,229,232 | 1,145,625 | ||||||
Buildings | 2,263,644 | 2,149,905 | ||||||
Machinery and equipment | 1,227,273 | 1,204,968 | ||||||
Furniture and fixtures | 774,875 | 751,496 | ||||||
Assets under construction | 54,240 | 48,456 | ||||||
Installations | 193,403 | 183,485 | ||||||
Improvements to third-party properties | 779,544 | 768,322 | ||||||
Vehicles | 28,339 | 23,148 | ||||||
Computers | 411,701 | 389,756 | ||||||
Other property, plant and equipment | 289 | 289 | ||||||
Total property, plant and equipment, gross | 6,962,540 | 6,665,450 | ||||||
Accumulated depreciation | (2,760,301 | ) | (2,590,675 | ) | ||||
Impairment | (5,234 | ) | (5,010 | ) | ||||
Total property, plant and equipment, net | 4,197,005 | 4,069,765 |
19
The movement of the cost of property, plant and equipment, accumulated depreciation and impairment loss during the reporting periods is shown below:
Cost | Land | Buildings |
Machinery and equipment |
Furniture and fixtures |
Assets under construction | Installations |
Improvements to third party properties | Vehicles | Computers |
Other property, plant and equipment | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 1,278,822 | 2,348,627 | 1,176,246 | 789,622 | 50,305 | 197,097 | 776,293 | 28,712 | 404,938 | 16,050 | 7,066,712 | |||||||||||||||||||||||||||||||||
Additions | 20 | 6,618 | 21,481 | 11,136 | 15,901 | 960 | 8,036 | 1,354 | 4,679 | - | 70,185 | |||||||||||||||||||||||||||||||||
(Decrease) Increase from movements between property, plant and equipment accounts | - | (66 | ) | 737 | (14,731 | ) | (5,650 | ) | 2,064 | 17,381 | - | 265 | - | - | ||||||||||||||||||||||||||||||
(Decreases) by transfer (to) other balance sheet accounts - investment property. | - | - | - | - | (323 | ) | - | - | - | - | - | (323 | ) | |||||||||||||||||||||||||||||||
Disposals and derecognition | - | - | (6,473 | ) | (1,916 | ) | (328 | ) | (602 | ) | (16 | ) | - | (1,127 | ) | - | (10,462 | ) | ||||||||||||||||||||||||||
Effect of exchange differences on translation into presentation currency | (54,396 | ) | (71,494 | ) | (11,163 | ) | (10,881 | ) | (1,528 | ) | (2,790 | ) | (5,078 | ) | (2,479 | ) | (11,105 | ) | - | (170,914 | ) | |||||||||||||||||||||||
(Decrease) increase from transfers to (from) other balance sheet accounts - tax assets | (20 | ) | 15,515 | (3,025 | ) | (2,477 | ) | (1,043 | ) | - | 585 | 1,530 | (255 | ) | - | 10,810 | ||||||||||||||||||||||||||||
Increases by transfer from other balance sheet accounts - intangibles | - | - | 63 | - | - | - | - | - | 1,209 | - | 1,272 | |||||||||||||||||||||||||||||||||
Hyperinflation adjustments | 50,098 | 49,602 | 8,901 | 11,094 | 1,282 | - | - | 3,310 | 9,664 | - | 133,951 | |||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 1,274,524 | 2,348,802 | 1,186,767 | 781,847 | 58,616 | 196,729 | 797,201 | 32,427 | 408,268 | 16,050 | 7,101,231 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | 1,145,625 | 2,149,905 | 1,204,968 | 751,496 | 48,456 | 183,485 | 768,322 | 23,148 | 389,756 | 289 | 6,665,450 | |||||||||||||||||||||||||||||||||
Additions | 157 | 215 | 7,426 | 3,229 | 7,964 | 1,530 | 4,644 | 1,696 | 2,668 | - | 29,529 | |||||||||||||||||||||||||||||||||
Increase (Decrease) from movements between property, plant and equipment accounts | - | - | 354 | 2,508 | (3,408 | ) | 311 | 230 | - | 5 | - | - | ||||||||||||||||||||||||||||||||
Disposals and derecognition | - | - | (5,301 | ) | (1,884 | ) | (110 | ) | (164 | ) | (7,410 | ) | (2 | ) | (276 | ) | - | (15,147 | ) | |||||||||||||||||||||||||
Effect of exchange differences on translation into presentation currency | 3,734 | 6,028 | 4,533 | 5,296 | 1,465 | 8,241 | 13,758 | (469 | ) | 951 | - | 43,537 | ||||||||||||||||||||||||||||||||
(Decrease) increase from transfers to (from) other balance sheet accounts - tax assets | - | - | (730 | ) | (202 | ) | (127 | ) | - | - | - | (82 | ) | - | (1,141 | ) | ||||||||||||||||||||||||||||
Hyperinflation adjustments | 79,716 | 107,496 | 16,023 | 14,432 | - | - | - | 3,966 | 18,679 | - | 240,312 | |||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | 1,229,232 | 2,263,644 | 1,227,273 | 774,875 | 54,240 | 193,403 | 779,544 | 28,339 | 411,701 | 289 | 6,962,540 |
20
Accumulated depreciation | Buildings |
Machinery and equipment |
Furniture and fixtures | Installations |
Improvements to third party properties | Vehicles | Computers |
Other property, plant and equipment | Total | |||||||||||||||||||||||||||
Balance at December 31, 2022 | 604,747 | 667,593 | 541,405 | 117,623 | 362,411 | 22,794 | 265,050 | 6,373 | 2,587,996 | |||||||||||||||||||||||||||
Depreciation | 12,704 | 23,312 | 16,015 | 3,173 | 10,598 | 511 | 9,018 | 197 | 75,528 | |||||||||||||||||||||||||||
Disposals and derecognition | - | (4,998 | ) | (1,639 | ) | (380 | ) | - | - | (441 | ) | - | (7,458 | ) | ||||||||||||||||||||||
Effect of exchange differences on translation into presentation currency | (26,383 | ) | (8,754 | ) | (8,372 | ) | (1,688 | ) | (1,870 | ) | (2,124 | ) | (10,076 | ) | - | (59,267 | ) | |||||||||||||||||||
Other | 140 | - | - | - | - | 21 | 96 | - | 257 | |||||||||||||||||||||||||||
Hyperinflation adjustments | 26,145 | 7,631 | 6,423 | - | - | 2,914 | 9,361 | - | 52,474 | |||||||||||||||||||||||||||
Balance at March 31, 2023 | 617,353 | 684,784 | 553,832 | 118,728 | 371,139 | 24,116 | 273,008 | 6,570 | 2,649,530 | |||||||||||||||||||||||||||
Balance at December 31, 2023 | 575,427 | 702,416 | 552,182 | 105,595 | 372,997 | 17,920 | 264,134 | 4 | 2,590,675 | |||||||||||||||||||||||||||
Depreciation | 13,194 | 22,962 | 14,284 | 3,038 | 10,099 | 313 | 9,530 | - | 73,420 | |||||||||||||||||||||||||||
Disposals and derecognition | - | (4,815 | ) | (621 | ) | (111 | ) | (4,319 | ) | (2 | ) | (274 | ) | - | (10,142 | ) | ||||||||||||||||||||
Effect of exchange differences on translation into presentation currency | 933 | 2,932 | 4,918 | 4,774 | 5,013 | (358 | ) | 710 | - | 18,922 | ||||||||||||||||||||||||||
Other | 14 | - | - | - | - | 134 | - | - | 148 | |||||||||||||||||||||||||||
Hyperinflation adjustments | 43,625 | 12,861 | 10,760 | - | - | 4,285 | 15,747 | - | 87,278 | |||||||||||||||||||||||||||
Balance at March 31, 2024 | 633,193 | 736,356 | 581,523 | 113,296 | 383,790 | 22,292 | 289,847 | 4 | 2,760,301 |
Impairment | Land | Buildings |
Machinery and equipment |
Furniture and fixtures |
Assets under construction | Installations |
Improvements to third party properties | Vehicles | Computers |
Other property, plant and equipment | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | - | 110 | - | - | - | - | 4,326 | - | - | - | 4,436 | |||||||||||||||||||||||||||||||||
Effect of exchange differences on translation into presentation currency | - | - | - | - | - | - | (60 | ) | - | - | - | (60 | ) | |||||||||||||||||||||||||||||||
Balance at March 31, 2023 | - | 110 | - | - | - | - | 4,266 | - | - | - | 4,376 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | - | - | - | - | - | - | 5,010 | - | - | - | 5,010 | |||||||||||||||||||||||||||||||||
Effect of exchange differences on translation into presentation currency | - | - | - | - | - | - | 224 | - | - | - | 224 | |||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | - | - | - | - | - | - | 5,234 | - | - | - | 5,234 |
21
Assets under construction are represented by those assets in process of construction and process of assembly not ready for their intended use as expected by Exito Group management, and on which costs directly attributable to the construction process continue to be capitalized if they are qualifying assets.
The cost of property, plant and equipment does not include the balance of estimated dismantling and similar costs, based on the assessment and analysis made by the Exito Group which concluded that there are no contractual or legal obligations at acquisition.
At March 31, 2024 and at December 31, 2023 no restrictions or liens have been imposed on items of property, plant and equipment that limit their sale, and there are no commitments to acquire, build or develop property, plant and equipment.
At March 31, 2024 and at December 31, 2023, property, plant and equipment have no residual value that affects depreciable amount.
At March 31, 2024 and at December 31, 2023, the Exito Group has insurance for cover the loss 'risk over this property, plant and equipment.
Note 13.1 Additions to property, plant and equipment for cash flow presentation purposes.
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Additions | 29,529 | 70,185 | ||||||
Additions to trade payables for deferred purchases of property, plant and equipment | (100,396 | ) | (75,444 | ) | ||||
Payments for deferred purchases of property, plant and equipment | 168,091 | 155,300 | ||||||
Acquisition of property, plant and equipment in cash | 97,224 | 150,041 |
Note 14. Investment property, net
Exito Group's investment properties are business premises and land held to generate income from operating leases or future appreciation of their value.
The net balance of investment properties is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Land | 276,591 | 263,172 | ||||||
Buildings | 1,793,388 | 1,671,190 | ||||||
Constructions in progress | 28,829 | 22,613 | ||||||
Total cost of investment properties | 2,098,808 | 1,956,975 | ||||||
Accumulated depreciation | (344,197 | ) | (295,673 | ) | ||||
Impairment | (7,957 | ) | (7,957 | ) | ||||
Total investment properties, net | 1,746,654 | 1,653,345 |
The movement of the cost of investment properties and accumulated depreciation during the reporting periods is shown below:
Cost | Land | Buildings |
Constructions in progress | Total | ||||||||||||
Balance at December 31, 2022 | 312,399 | 1,744,190 | 109,563 | 2,166,152 | ||||||||||||
Additions | - | 199 | 6,827 | 7,026 | ||||||||||||
Increase (decrease) from transfers from property, plant and equipment | - | 715 | (392 | ) | 323 | |||||||||||
Increase (decrease) from movements between investment properties accounts | - | 11,143 | (11,143 | ) | - | |||||||||||
Effect of exchange differences on the translation into presentation currency | (8,669 | ) | (85,014 | ) | (223 | ) | (93,906 | ) | ||||||||
Hyperinflation adjustments | 7,643 | 99,289 | 249 | 107,181 | ||||||||||||
Other | (26 | ) | (15,963 | ) | (34 | ) | (16,023 | ) | ||||||||
Balance at March 31, 2023 | 311,347 | 1,754,559 | 104,847 | 2,170,753 | ||||||||||||
Balance at December 31, 2023 | 263,172 | 1,671,190 | 22,613 | 1,956,975 | ||||||||||||
Additions | - | - | 5,908 | 5,908 | ||||||||||||
Effect of exchange differences on the translation into presentation currency | 1,293 | (11,415 | ) | (34 | ) | (10,156 | ) | |||||||||
Hyperinflation adjustments | 12,126 | 133,613 | 342 | 146,081 | ||||||||||||
Balance at March 31, 2024 | 276,591 | 1,793,388 | 28,829 | 2,098,808 |
22
Accumulated depreciation | Buildings | |||
Balance at December 31, 2022 | 317,665 | |||
Depreciation expenses | 8,533 | |||
Effect of exchange differences on the translation into presentation currency | (23,511 | ) | ||
Hyperinflation adjustments | 30,894 | |||
Other | (5,006 | ) | ||
Balance at March 31, 2023 | 328,575 | |||
Balance at December 31, 2023 | 295,673 | |||
Depreciation expenses | 8,329 | |||
Effect of exchange differences on the translation into presentation currency | (3,396 | ) | ||
Hyperinflation adjustments | 43,591 | |||
Balance at March 31, 2024 | 344,197 |
At March 31, 2024, and at December 31, 2023, there are no limitations or liens imposed on investment property that restrict realization or tradability thereof.
At March 31, 2024, and at December 31, 2023, the Exito Group is not committed to acquire, build or develop new investment property.
In Note 35 discloses the fair value of investment property, based on the appraisal carried out by an independent third party.
Note 15. Leases
Note 15.1 Right of use asset, net
March 31, 2024 |
December 31, 2023 | |||||||
Right of use asset | 3,492,793 | 2,980,106 | ||||||
Accumulated depreciation | (1,696,248 | ) | (1,612,996 | ) | ||||
Impairment | (6,104 | ) | (5,857 | ) | ||||
Total right of use asset, net | 1,790,441 | 1,361,253 |
The movement of right of use asset and depreciation thereof, during the reporting periods, is shown below:
Cost | ||||
Balance at December 31, 2022 | 2,826,607 | |||
Increase from new contracts | 10,751 | |||
Remeasurements from existing contracts (1) | 89,135 | |||
Derecognition and disposal (2) | (14,716 | ) | ||
Effect of exchange differences on the translation into presentation currency | (7,638 | ) | ||
Other changes | (1,753 | ) | ||
Balance at March 31, 2023 | 2,902,386 | |||
Balance at December 31, 2023 | 2,980,106 | |||
Increase from new contracts | 61,975 | |||
Remeasurements from existing contracts (1) | 430,921 | |||
Derecognition and disposal (2) | (4,751 | ) | ||
Effect of exchange differences on the translation into presentation currency | 24,923 | |||
Other changes | (381 | ) | ||
Balance at March 31, 2024 | 3,492,793 | |||
Accumulated depreciation | ||||
Balance at December 31, 2022 | 1,377,029 | |||
Depreciation | 67,146 | |||
Derecognition and disposal (2) | (10,924 | ) | ||
Effect of exchange differences on the translation into presentation currency | (3,734 | ) | ||
Other changes | (421 | ) | ||
Balance at March 31, 2023 | 1,429,096 | |||
Balance at December 31, 2023 | 1,612,996 | |||
Depreciation | 77,018 | |||
Derecognition and disposal (2) | (3,778 | ) | ||
Effect of exchange differences on the translation into presentation currency | 10,156 | |||
Other changes | (144 | ) | ||
Balance at March 31, 2024 | 1,696,248 | |||
Impairment | ||||
Balance at December 31, 2022 | 6,109 | |||
Effect of exchange differences on the translation into presentation currency | (85 | ) | ||
Balance at March 31, 2023 | 6,024 | |||
Balance at December 31, 2023 | 5,857 | |||
Derecognition and disposal (2) | (15 | ) | ||
Effect of exchange differences on the translation into presentation currency | 262 | |||
Balance at March 31, 2024 | 6,104 |
(1) | Mainly results from the extension of contract terms, indexation or lease modifications. |
(2) | Mainly results from the early termination of lease contracts. |
23
The cost of right of use asset by class of underlying asset is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Buildings | 3,457,582 | 2,948,056 | ||||||
Vehicles | 17,525 | 18,950 | ||||||
Lands | 12,480 | 7,540 | ||||||
Equipment | 5,206 | 5,560 | ||||||
Total | 3,492,793 | 2,980,106 |
Accumulated of depreciation of right of use assets by class of underlying asset is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Buildings | 1,676,943 | 1,594,867 | ||||||
Vehicles | 9,452 | 8,845 | ||||||
Equipment | 4,970 | 4,796 | ||||||
Lands | 4,883 | 4,488 | ||||||
Total | 1,696,248 | 1,612,996 |
Depreciation expense by class of underlying asset is shown below:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Buildings | 75,449 | 65,272 | ||||||
Vehicles | 1,073 | 1,261 | ||||||
Equipment | 305 | 420 | ||||||
Lands | 191 | 193 | ||||||
Total depreciation | 77,018 | 67,146 |
Exito Group is not exposed to the future cash outflows for extension options and termination options. Additionally, there are no residual value guarantees, restrictions nor covenants imposed by leases.
At March 31, 2024, the average remaining term of lease contracts is 11.6 years (11.7 years as at December 31, 2023), which is also the average remaining period over which the right of use asset is depreciated.
Note 15.2 Lease liabilities
March 31, 2024 |
December 31, 2023 | |||||||
Lease liabilities | 1,998,863 | 1,567,959 | ||||||
Current | 281,436 | 282,180 | ||||||
Non-Current | 1,717,427 | 1,285,779 |
24
The movement in lease liabilities is as shown:
Balance at December 31, 2022 | 1,655,955 | |||
Additions | 10,751 | |||
Accrued interest | 29,815 | |||
Remeasurements | 89,135 | |||
Terminations | (3,781 | ) | ||
Payments of lease liabilities including interests | (98,427 | ) | ||
Effect of exchange differences on the translation into presentation currency | (4,248 | ) | ||
Balance at March 31, 2023 | 1,679,200 | |||
Balance at December 31, 2023 | 1,567,959 | |||
Additions | 61,975 | |||
Accrued interest | 36,964 | |||
Remeasurements | 430,921 | |||
Terminations | (1,089 | ) | ||
Payments of lease liabilities including interests | (115,097 | ) | ||
Effect of exchange differences on the translation into presentation currency | 17,230 | |||
Balance at March 31, 2024 | 1,998,863 |
Below are the future lease liability payments at March 31, 2023:
Up to one year | 382,912 | |||
From 1 to 5 years | 1,001,869 | |||
More than 5 years | 1,154,250 | |||
Minimum lease liability payments | 2,539,031 | |||
Future financing (expenses) | (540,168 | ) | ||
Total minimum net lease liability payments | 1,998,863 |
Note 16. Other intangible assets, net
The net balance of other intangible assets, net is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Trademarks | 279,726 | 250,879 | ||||||
Computer software | 280,612 | 278,893 | ||||||
Rights | 24,772 | 23,385 | ||||||
Other | 123 | 90 | ||||||
Total cost of other intangible assets | 585,233 | 553,247 | ||||||
Accumulated amortization | (191,312 | ) | (186,878 | ) | ||||
Total other intangible assets, net | 393,921 | 366,369 |
The movement of the cost of other intangible assets and of accumulated depreciation is shown below:
Cost | Trademarks (1) |
Computer software | Rights | Other | Total | |||||||||||||||
Balance at December 31, 2022 | 299,688 | 274,480 | 24,703 | 147 | 599,018 | |||||||||||||||
Additions | 5,296 | 4,238 | - | - | 9,534 | |||||||||||||||
Transfers to other balance sheet accounts - Property, plant, and equipment | - | (1,272 | ) | - | - | (1,272 | ) | |||||||||||||
Effect of exchange differences on the translation into presentation currency | (18,499 | ) | (483 | ) | (779 | ) | (23 | ) | (19,784 | ) | ||||||||||
Hyperinflation adjustments | 16,504 | - | 1,159 | 23 | 17,686 | |||||||||||||||
Other minor movements | - | 84 | - | - | 84 | |||||||||||||||
Balance at March 31, 2023 | 302,989 | 277,047 | 25,083 | 147 | 605,266 | |||||||||||||||
Balance at December 31, 2023 | 250,879 | 278,893 | 23,385 | 90 | 553,247 | |||||||||||||||
Additions | 4 | 6,349 | - | - | 6,353 | |||||||||||||||
Disposals and derecognition | - | (6,055 | ) | - | - | (6,055 | ) | |||||||||||||
Effect of exchange differences on the translation into presentation currency | 2,571 | 1,425 | (151 | ) | (4 | ) | 3,841 | |||||||||||||
Hyperinflation adjustments | 26,272 | - | 1,538 | 37 | 27,847 | |||||||||||||||
Balance at March 31, 2024 | 279,726 | 280,612 | 24,772 | 123 | 585,233 |
25
Accumulated amortization |
Computer software | Rights | Other | Total | ||||||||||||
Balance at December 31, 2022 | 172,630 | 1,582 | 126 | 174,338 | ||||||||||||
Amortization | 7,673 | 96 | - | 7,769 | ||||||||||||
Effect of exchange differences on the translation into presentation currency | (391 | ) | (292 | ) | (23 | ) | (706 | ) | ||||||||
Hyperinflation adjustments | - | 492 | 23 | 515 | ||||||||||||
Other minor movements | - | (96 | ) | - | (96 | ) | ||||||||||
Balance at March 31, 2023 | 179,912 | 1,782 | 126 | 181,820 | ||||||||||||
Balance at December 31, 2023 | 185,455 | 1,354 | 69 | 186,878 | ||||||||||||
Amortization | 8,091 | - | - | 8,091 | ||||||||||||
Effect of exchange differences on the translation into presentation currency | 1,133 | (68 | ) | (4 | ) | 1,061 | ||||||||||
Hyperinflation adjustments | - | 920 | 36 | 956 | ||||||||||||
Disposals and derecognition | (5,674 | ) | - | - | (5,674 | ) | ||||||||||
Balance at March 31, 2024 | 189,005 | 2,206 | 101 | 191,312 |
(1) | The balance of trademarks, is shown below: |
Operating segment | Brand | Useful life |
March 31, 2024 | December 31, 2023 | ||||||||
Uruguay | Miscellaneous | Indefinite | 120,170 | 115,020 | ||||||||
Argentina | Libertad | Indefinite | 73,125 | 49,432 | ||||||||
Low cost and other (Colombia) | Súper Ínter | Indefinite | 63,704 | 63,704 | ||||||||
Low cost and other (Colombia) | Surtimax | Indefinite | 17,427 | 17,427 | ||||||||
Colombia | Taeq | Indefinite | 5,296 | 5,296 | ||||||||
Colombia | Finlandek | Indefinite | 4 | - | ||||||||
279,726 | 250,879 |
The trademarks have an indefinite useful life. Exito Group estimates that there is no foreseeable time limit over which these assets are expected to generate net cash inflows, and consequently they are not amortized.
The rights have an indefinite useful life. Exito Group estimates that there is no foreseeable time limit over which these assets are expected to generate net cash inflows, and consequently these are not amortized.
At March 31, 2024 and at December 31, 2023, other intangible assets are not limited or subject to lien that would restrict their sale. In addition, there are no commitments to acquire or develop other intangible assets.
Note 17. Goodwill
The balance of goodwill is as follows:
March 31, 2024 |
December 31, 2023 | |||||||
Spice Investment Mercosur S.A. | 1,492,896 | 1,441,256 | ||||||
Carulla Vivero S.A. | 827,420 | 827,420 | ||||||
Súper Ínter | 453,649 | 453,649 | ||||||
Libertad S.A. | 275,582 | 186,289 | ||||||
Cafam | 122,219 | 122,219 | ||||||
Other | 50,806 | 50,806 | ||||||
Total goodwill | 3,222,572 | 3,081,639 | ||||||
Impairment loss | (1,017 | ) | (1,017 | ) | ||||
Total goodwill, net | 3,221,555 | 3,080,622 |
The movement in goodwill are shown below:
Cost | Impairment | Net | ||||||||||
Balance at December 31, 2022 | 3,485,320 | (1,017 | ) | 3,484,303 | ||||||||
Effect of exchange differences on the translation into presentation currency | (82,549 | ) | - | (82,549 | ) | |||||||
Hyperinflation adjustments | 62,199 | - | 62,199 | |||||||||
Balance at March 31, 2023 | 3,464,970 | (1,017 | ) | 3,463,953 | ||||||||
Balance at December 31, 2023 | 3,081,639 | (1,017 | ) | 3,080,622 | ||||||||
Effect of exchange differences on the translation into presentation currency | 41,923 | - | 41,923 | |||||||||
Hyperinflation adjustments | 99,010 | - | 99,010 | |||||||||
Balance at March 31, 2024 | 3,222,572 | (1,017 | ) | 3,221,555 |
Goodwill has indefinite useful life on the grounds of the Exito Group's considerations thereon, and consequently it is not amortized.
26
17.1. Business combinations
Related to business combinations from 2023, at March 31, 2024, Exito Group is currently advancing the allocation of the purchase price. The consideration transferred, the fair values of identifiable assets and liabilities from the business acquired at acquisition date and the adjustments of measurement at closing period are as follows:
Book values at the date of acquisition |
Measurement period adjustments |
Fair values at the date of acquisition | ||||||||||||||||||||||||||||||||||
Hipervital | Costa y | Modasian | Hipervital | Costa y | Modasian | Hipervital | Costa y | Modasian | ||||||||||||||||||||||||||||
S.A.S. | Costa S.A. | S.R.L. | S.A.S. | Costa S.A. | S.R.L. | S.A.S. | Costa S.A. | S.R.L. | ||||||||||||||||||||||||||||
Cash | - | - | - | - | 411 | - | - | 411 | - | |||||||||||||||||||||||||||
Trade receivables | - | - | - | - | 1,309 | - | - | 1,309 | - | |||||||||||||||||||||||||||
Inventories | 680 | - | - | (17 | ) | 1,230 | - | 663 | 1,230 | - | ||||||||||||||||||||||||||
Tax assets | - | - | - | - | 334 | - | - | 334 | - | |||||||||||||||||||||||||||
Property, plant and equipment, net | 2,614 | 92 | 1,758 | (66 | ) | 314 | - | 2,548 | 406 | 1,758 | ||||||||||||||||||||||||||
Rights of use | - | 7,543 | - | - | (7,543 | ) | - | - | - | - | ||||||||||||||||||||||||||
Brands | - | - | - | 12,904 | - | - | 12,904 | - | - | |||||||||||||||||||||||||||
Total identifiable assets | 3,294 | 7,635 | 1,758 | 12,821 | (3,945 | ) | - | 16,115 | 3,690 | 1,758 | ||||||||||||||||||||||||||
Financial liabilities | - | - | 235 | - | - | - | - | - | 235 | |||||||||||||||||||||||||||
Trade payables | 689 | 110 | 846 | (18 | ) | 2,099 | - | 671 | 2,209 | 846 | ||||||||||||||||||||||||||
Leases liabilities | - | 7,525 | - | - | (7,525 | ) | - | - | - | - | ||||||||||||||||||||||||||
Total liabilities take on | 689 | 7,635 | 1,081 | (18 | ) | (5,426 | ) | - | 671 | 2,209 | 1,081 | |||||||||||||||||||||||||
Net assets and liabilities measured at fair value | 2,605 | - | 677 | 12,839 | 1,481 | - | 15,444 | 1,481 | 677 | |||||||||||||||||||||||||||
Consideration transferred | 20,126 | 17,032 | 1,558 | (865 | ) | 606 | - | 19,261 | 17,638 | 1,558 | ||||||||||||||||||||||||||
Goodwill from the acquisition | 17,521 | 17,032 | 881 | (13,704 | ) | (875 | ) | - | 3,817 | 16,157 | 881 |
The goodwill and variations from the time of acquisition at March 31, 2024, shown the following:
Hipervital | Costa y | Modasian | ||||||||||||||
S.A.S. | Costa S.A. | S.R.L. | Total | |||||||||||||
Goodwill from the acquisition | 3,817 | 16,157 | 881 | 20,855 | ||||||||||||
Effect of exchange difference | (462 | ) | (1,953 | ) | (106 | ) | (2,521 | ) | ||||||||
Saldo al 31 de diciembre de 2023 | 3,355 | 14,204 | 775 | 18,334 | ||||||||||||
Effect of exchange difference | 150 | 636 | 35 | 821 | ||||||||||||
Saldo al 31 de marzo de 2024 | 3,505 | 14,840 | 810 | 19,155 |
27
The revenues and profit or loss of this business acquired, corresponding to the quarter ended at March 31, 2024, included in the consolidated statements of profit or loss at March 31, 2024, shown the following:
Hipervital | Costa y | Modasian | ||||||||||
S.A.S. | Costa S.A. | S.R.L. | ||||||||||
Revenues | 8,286 | 5,895 | - | |||||||||
Profit (loss) for the period | 21 | (155 | ) | 13 |
This companies acquired are ongoing business that are consider attractive, located in strategic places coinciding with the expansion plan of the Exito Group.
Goodwill was fully allocated to the Uruguay segment and is attributable to the synergies expected from the integration of the operation of stores acquired in this country.
Note 18. Investments accounted for using the equity method
The balance of investments accounted for using the equity method includes:
Company | Classification |
March 31, 2024 |
December 31, 2023 | |||||||
Compañía de Financiamiento Tuya S.A. | Joint venture | 248,860 | 220,134 | |||||||
Puntos Colombia S.A.S. | Joint venture | 12,082 | 9,986 | |||||||
Sara ANV S.A. | Joint venture | 2,056 | 2,438 | |||||||
Total investments accounted for using the equity method | 262,998 | 232,558 |
There are no restrictions on the capability of joint ventures to transfer funds in the form of cash dividends, or loan repayments or advance payments.
There are not contingent liabilities incurred related to its participation therein.
Exito Group has no constructive obligations acquired on behalf of investments accounted for using the equity method arising from losses exceeding the interest held in them.
These investments have no restrictions or liens that affect the interest held in them.
Nota 18.1. Participation of the profits from investments accounted for using the equity method
The result for the participation of the profits from investments accounted for using the equity method is as follows:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Compañía de Financiamiento Tuya S.A. | (23,774 | ) | (27,793 | ) | ||||
Sara ANV S.A. | (381 | ) | (2 | ) | ||||
Puntos Colombia S.A.S. | 2,095 | 1,003 | ||||||
Total | (22,060 | ) | (26,792 | ) |
Note 19. Non-cash transactions
During the quarters ended March 31, 2024, and March 31, 2023, Exito Group had non-cash additions to property, plant and equipment, and to right of use assets, that were not included in the statement of cash flow, presented in Note 13 and 15, respectively.
28
Note 20. Loans, borrowing and other financial liabilities
The balance of loans, borrowing and other financial liability is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Bank loans | 1,793,666 | 815,674 | ||||||
Put option on non-controlling interests (1) | 460,542 | 442,342 | ||||||
Letters of credit | 8,463 | 8,189 | ||||||
Total loans, borrowing and other financial liabilities | 2,262,671 | 1,266,205 | ||||||
Current | 2,056,303 | 1,029,394 | ||||||
Non-Current | 206,368 | 236,811 |
(1) | Represents the put option liability on part of the non-controlling interest in Grupo Disco Uruguay S.A. Exito Group has a non-controlling interest in Grupo Disco Uruguay S.A. of 30.85%, (December 31, 2023 - 30.85%) of which 23.16% (December 31, 2023 - 23.16%) is subject to a put option held by non-controlling shareholders. Such put option is exercisable by the holders at any time until expiry on June 30, 2025. The put option exercise price is the greater of following three measures: (i) a fixed price per share of $0.30 in US dollars as stated in the put option contract adjusted at a rate of 5% per year, (ii) a multiple of 6 times the average EBITDA of the last two years minus the net debt of Grupo Disco Uruguay S.A. as of the exercise date, or (iii) a multiple of 12 times the average net income of the past two years of the Grupo Disco Uruguay S.A. On March 31, 2024, the greater of these three measures was the multiple of 12 times the average net income of the past two years. |
During 2023, Grupo Casino negotiated with the non-controlling interest of Grupo Disco Uruguay S.A. the assignment of this put option to Exito Group. Once this assignment was completed, making Exito Group the direct holder of the put option liability, the put-call contract between Exito Group and Grupo Casino was finished.
To guarantee compliance with the obligation assumed by Exito Group in this assignment, a non-possessory pledge was constituted over the series B shares in Grupo Disco Uruguay S.A., which are property of Spice Investment Mercosur S.A., which are related in the title number 1 shareholding and representing 25% of the voting capital of Grupo Disco Uruguay S.A. This guarantee does not transfer the right to vote or receive dividends that the pledged shares have, which are held by Spice Investment Mercosur S.A. This guarantee replaces the last given in previous years on the same shareholding title.
The movement in loans and borrowing during the reporting periods is shown below:
Balance at December 31, 2022 | 1,455,584 | |||
Proceeds from loans and borrowings | 727,266 | |||
Changes in the fair value of the put option recognized in equity | (9,095 | ) | ||
Interest accrued | 38,731 | |||
Translation difference | (60 | ) | ||
Repayments of loans and borrowings | (46,118 | ) | ||
Payments of interest on loans and borrowings | (24,668 | ) | ||
Balance at March 31, 2023 | 2,141,640 | |||
Balance at December 31, 2023 (1) | 1,266,205 | |||
Proceeds from loans and borrowings (2) | 1,034,777 | |||
Changes in the fair value of the put option recognized in equity | 18,200 | |||
Interest accrued | 51,220 | |||
Translation difference | 369 | |||
Repayments of loans and borrowings (3) | (80,981 | ) | ||
Payments of interest on loans and borrowings | (27,119 | ) | ||
Balance at March 31, 2024 | 2,262,671 |
(1) | At December 31, 2023, the balance included: |
$108,969 corresponding of a bilateral credit taken on March 27, 2020, $136,727 of a bilateral credit taken on June 3, 2020 and the extension of a bilateral credit with three new bilateral credits in amounts of $202,663; $126,478 y $114,053 taken on March 26, 2021 as well as $101,280 and $25,348 of anew bilateral credits taken on August 28, 2023, for the Parent Company.
The put option contract of Spice Investments Mercosur S.A. for $442,342 with the non-controlling interest owners of the subsidiary Grupo Disco Uruguay S.A.
Letters of credit from the subsidiary Spice Investments Mercosur S.A. and its subsidiaries for $8,189.
29
(2) | The Parent Company requested disbursement of $30,000; $70,000 y $230,000 against one of its outstanding bilateral revolving credits entered February 18, 2022; disbursement of $300,000 against the bilateral revolving credit entered on October 10, 2022, and disbursement of $200,000 against other bilateral revolving credit entered on April 4, 2022. |
In February 2024, the Parent Company requested disbursements for $70,000 against the bilateral revolving credit entered on February 18, 2022 and for $100,000 against the bilateral revolving credit entered on February 12, 2024.
During the quarter ended March 31, 2024, the subsidiary Spice Investments Mercosur S.A. and its subsidiaries requested letters of credit totaling $30,729.
(3) | During the quarter ended March 31, 2024, the Parent Company paid $50,000 corresponding on the renewal on the bilateral credit contract signed on March 26, 2021. |
During the quarter ended March 31, 2024, subsidiary Spice Investments Mercosur S.A. and its subsidiaries repaid letters of credit in amount of $30,819.
These loans are measured at amortized cost using the effective interest rate method; transaction costs are not included in the measurement, since they were not incurred.
Below is a detail of maturities for non-current loans and borrowings outstanding at March 31, 2024, discounted at present value (amortized cost):
Year | Total | |||
2025 | 94,185 | |||
2026 | 58,867 | |||
2027 | 27,892 | |||
>2028 | 25,424 | |||
206,368 |
As of March 31, 2024, Exito Group has no unused lines of credit.
Covenants
Under loans and borrowing contracts, Exito Group is subject to comply with the following financial covenants: as long as Almacenes Exito S.A. has payment obligations arising from the contracts executed on March 27, 2020, maintain a leverage financial ratio, defined as adjusted recurring Ebitda to gross financial liabilities of less than 2.8x. Such ratio will be measured annually on April 30 or the following business day, based on the audited separate financial statements of Almacenes Éxito S.A. for each annual period.
As of December 31, 2023, Exito Group complied with its covenants.
Additionally, from the same loans and borrowing contracts Exito Group is subject to comply with some non-financial covenant, which at December 31, 2023 were complied.
Note 21. Employee benefits
The balance of employee benefits is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Defined benefit plans | 39,179 | 38,106 | ||||||
Long-term benefit plan | 1,875 | 1,815 | ||||||
Total employee benefits | 41,054 | 39,921 | ||||||
Current | 5,074 | 4,703 | ||||||
Non-Current | 35,980 | 35,218 |
30
Note 22. Provisions
The balance of provisions is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Legal proceedings (1) | 19,472 | 19,736 | ||||||
Restructuring | 17,767 | 5,180 | ||||||
Taxes other than income tax | 294 | 297 | ||||||
Other provisions | 9,903 | 8,462 | ||||||
Total provisions | 47,436 | 33,675 | ||||||
Current | 35,823 | 22,045 | ||||||
Non-Current | 11,613 | 11,630 |
At March 31, 2024 and at December 31, 2023, there are no provisions for onerous contracts.
(1) | Provisions for legal proceedings are recognized to cover estimated probable losses arising from lawsuits brought against Exito Group, related to labor, civil, administrative and regulatory matters, which are assessed based on the best estimation of cash outflows required to settle a liability on the date of preparation of the financial statements. There is no individual material process included in these provisions. The balance is comprised of: |
March 31, 2024 |
December 31, 2023 | |||||||
Labor legal proceedings | 10,174 | 10,211 | ||||||
Civil legal proceedings | 6,873 | 7,250 | ||||||
Administrative and regulatory proceedings | 2,425 | 2,275 | ||||||
Total legal proceedings | 19,472 | 19,736 |
(2) | The balance of other provisions corresponds to: |
31 de marzo | 31 de diciembre | |||||||
de 2024 | de 2023 | |||||||
Store close | 3,496 | 61 | ||||||
Urbanistic improvements | 2,215 | 2,215 | ||||||
Reduction for merchandises VMI | 401 | 296 | ||||||
Others minor in Libertad S.A. | 154 | 163 | ||||||
Montevideo real estate project | - | 3,500 | ||||||
Others minor in Colombian subsidiaries | 3,637 | 2,227 | ||||||
Total others provisions | 9,903 | 8,462 |
31
Balances and movement of provisions during the reporting periods are as follows:
Legal |
Taxes other than | |||||||||||||||||||
proceedings | income tax | Restructuring | Other | Total | ||||||||||||||||
Balance at December 31, 2022 | 19,101 | 4,473 | 10,517 | 8,286 | 42,377 | |||||||||||||||
Increase | 1,747 | - | 297 | 1,697 | 3,741 | |||||||||||||||
Uses | - | (465 | ) | (127 | ) | - | (592 | ) | ||||||||||||
Payments | (836 | ) | - | (6,590 | ) | (1,833 | ) | (9,259 | ) | |||||||||||
Reversals (not used) | (493 | ) | (3,337 | ) | (1,039 | ) | (364 | ) | (5,233 | ) | ||||||||||
Other reclassifications | (556 | ) | - | 243 | (12 | ) | (325 | ) | ||||||||||||
Effect of exchange differences on the translation into presentation currency | (488 | ) | (165 | ) | (2 | ) | (130 | ) | (785 | ) | ||||||||||
Balance at March 31, 2023 | 18,475 | 506 | 3,299 | 7,644 | 29,924 | |||||||||||||||
Balance at December 31, 2023 | 19,736 | 297 | 5,180 | 8,462 | 33,675 | |||||||||||||||
Increase | 1,275 | - | 16,144 | 6,482 | 23,901 | |||||||||||||||
Payments | (685 | ) | - | (3,557 | ) | (1,532 | ) | (5,774 | ) | |||||||||||
Reversals (not used) | (1,009 | ) | - | - | (3,500 | ) | (4,509 | ) | ||||||||||||
Other reclassifications | (1 | ) | - | - | - | (1 | ) | |||||||||||||
Effect of exchange differences on the translation into presentation currency | 156 | (3 | ) | - | (9 | ) | 144 | |||||||||||||
Balance at March 31, 2024 | 19,472 | 294 | 17,767 | 9,903 | 47,436 |
Note 23. Trade payables and other payable
March 31, 2024 |
December 31, 2023 | |||||||
Payables to suppliers of goods | 2,829,080 | 2,725,532 | ||||||
Payables and other payable - agreements (1) | 714,678 | 1,562,246 | ||||||
Payables to other suppliers | 299,733 | 325,447 | ||||||
Employee benefits | 277,513 | 335,989 | ||||||
Withholding tax payable (2) | 160,331 | 72,146 | ||||||
Dividends payable (3) | 93,851 | 32,691 | ||||||
Purchase of assets (4) | 53,585 | 121,554 | ||||||
Tax Payable | 42,291 | 72,346 | ||||||
Other | 44,664 | 38,175 | ||||||
Total trade payables and other payable | 4,515,726 | 5,286,126 | ||||||
Current | 4,496,384 | 5,248,777 | ||||||
Non-Current | 19,342 | 37,349 |
(1) | The detail of payables and other payable - agreements is shown below: |
March 31, 2024 |
December 31, 2023 | |||||||
Payables to suppliers of goods | 661,927 | 1,429,006 | ||||||
Payables to other suppliers | 52,751 | 133,240 | ||||||
Total payables and other payable - agreements | 714,678 | 1,562,246 |
(2) | It corresponds to declarations of withholding taxes and other taxes that are pending payment, and which will be offset with the balance in favor of the income tax return for the year 2023. |
(3) | The increase corresponds to the dividends declared on 2024. |
(4) | The reduction is basically because a payment for $20,530 from Clearpath contract and $17,595 from others contracts. |
32
In Colombia, receivable anticipation transactions are initiated by suppliers who, at their sole discretion, choose the banks that will advance financial resources before invoice due dates, according to terms and conditions negotiated with Exito Group.
Exito Group cannot direct a preferred or financially related bank to the supplier or refuse to carry out transactions, as local legislation ensures the supplier's right to freely transfer the title/receivable to any bank through endorsement.
Additionally, Exito Group has entered into agreements with some financial institutions in Colombia, that provide an additional payment period for these discounted supplier invoices. The terms under such agreements are not unique to Exito Group but are based on market practices in Colombia applicable to other players in the market that legally do not change the nature of the business transaction.
Note 24. Income tax
Note 24.1. Tax regulations applicable to Almacenes Éxito S.A. and to its Colombian subsidiaries
Income tax rate applicable to Almacenes Éxito S.A. and its Colombian subsidiaries
a. | For taxable 2024 and 2023 the income tax rate for corporates is 35%. For taxable 2023 and onwards, the minimum tax rate calculated on financial profit may not be less than 15%, if so, it will increase by the percentage points required to reach the indicated effective tax rate. |
b. | The base to assess the income tax under the presumptive income model is 0% of the net equity held on the last day of the immediately preceding taxable period. |
c. | The tax on occasional payable by legal entities on total occasional gains obtained during the taxable year. For 2024 and 2023 the rate is 15%. |
d. | A tax on dividends paid to individual residents in Colombia was established at a rate of 10%, triggered when the amount distributed is higher than 300 UVT (equivalent to $14 in 2024) when such dividends have been taxed upon the distributing companies. For domestic companies, the tax rate is 7.5% when such dividends have been taxed upon the distributing companies. For individuals not residents of Colombia and for foreign companies, the tax rate is 10% when such dividends have been taxed upon the distributing companies. When the earnings that give rise to dividends have not been taxed upon the distributing company, the tax rate applicable to shareholders is 35% for 2024 and 2023. |
e. | Taxes, levies and contributions actually paid during the taxable year or period are 100% deductible as long as they are related with proceeds of company's economic activity accrued during the same taxable year or period, including affiliation fees paid to business associations. VAT on the acquisition, formation, construction or import of productive real fixed assets may be discounted from the income tax. The tax on financial transactions is a permanent tax. 50% of such tax is deductible, provided that the tax paid is duly supported. |
f. | The income withholding tax on payments abroad is 20% on consultancy services, technical services, technical assistance, professional fees, royalties, leases and compensations and 35% for management or administration services. The income tax withholding rate on payments abroad is 0% for services such as consultancy, technical services or technical assistance provided by third parties with physical residence in countries that have entered double-taxation agreements. |
g. | The annual adjustment applicable at December 31, 2023 to the cost of furniture and real estate deemed fixed assets is 12.40%. |
h. | The tax base adopted is the accounting according to the International Financial Reporting Standards (IFRS) authorized by the International Accounting Standards Board (IASB) with certain exceptions regarding the realization of revenue, recognition of costs and expenses and the merely accounting effects of the opening balance upon adoption of these standards. |
33
Tax credits of Almacenes Éxito S.A. and its Colombian subsidiaries
Pursuant to tax regulations in force, the time limit to offset tax losses is 12 years following the year in which the loss was incurred.
Excess presumptive income over ordinary income may be offset against ordinary net income assessed within the following five years.
Company losses are not transferrable to shareholders. In no event of tax losses arising from revenue other than income and occasional gains, and from costs and deductions not related with the generation of taxable income, it will be offset against the taxpayer's net income.
(a) | Tax credits of Almacenes Éxito S.A. |
At March 31, 2024 Almacenes Éxito S.A. has accrued $61,415 (at December 31, 2023 - $61,415) excess presumptive income over net income.
The movement of Almacenes Éxito S.A 's. excess presumptive income over net income during the reporting period is shown below:
Balance at December 31, 2022 | 211,190 | |||
Offsetting of presumptive income against net income for the period | (149,775 | ) | ||
Balance at December 31, 2023 | 61,415 | |||
Movements of excess presumptive income | - | |||
Balance at March 31, 2024 | 61,415 |
At March 31, 2024, Almacenes Éxito S.A. has accrued tax losses amounting to $878,457 (at December 31, 2023 - $740,337).
The movement of tax losses at Almacenes Éxito S.A. during the reporting period is shown below:
Balance at December 31, 2022 | 740,337 | |||
Tax expense during the period | - | |||
Balance at December 31, 2023 | 740,337 | |||
Tax expense during the period | 138,120 | |||
Balance at March 31, 2024 | 878,457 |
(b) | Movement of tax losses for Colombian subsidiaries for the reporting period is shown below |
Balance at December 31, 2022 | 33,562 | |||
Marketplace Internacional Éxito y Servicios S.A.S | 105 | |||
Transacciones Energéticas S.A.S. E.S.P. (i) | 126 | |||
Depósitos y Soluciones Logísticas S.A.S. | (24 | ) | ||
Balance at December 31, 2023 | 33,769 | |||
Marketplace Internacional Éxito y Servicios S.A.S | 214 | |||
Transacciones Energéticas S.A.S. E.S.P. (i) | (618 | ) | ||
Balance at March 31, 2024 | 33,365 |
(i) | No deferred tax has been calculated for these tax losses because of the uncertainty on the recoverability with future taxable income. |
Note 24.2. Tax rates applicable to foreign subsidiaries
Income tax rates applicable to foreign subsidiaries are:
- | Uruguay applies a 25% income tax rate in 2024 (25% in 2023); |
- | Argentina applies a 30% income tax rate in 2024 (35% in 2023). |
Note 24.3. Current tax assets and liabilities
The balances of current tax assets and liabilities recognized in the statement of financial position are:
Current tax assets:
March 31, 2024 |
December 31, 2023 | |||||||
Income tax credit receivable by Almacenes Éxito S.A. and its Colombian subsidiaries | 340,807 | 267,236 | ||||||
Tax discounts applied by Almacenes Éxito S.A. and its Colombian subsidiaries | 137,955 | 137,000 | ||||||
Industry and trade tax advances and withholdings of Almacenes Éxito S.A. and its Colombian subsidiaries | 56,430 | 71,450 | ||||||
Other current tax assets of subsidiary Spice Investment Mercosur S.A. | 22,286 | 20,339 | ||||||
Tax discounts of Éxito from taxes paid abroad | 17,404 | 17,258 | ||||||
Current income tax assets of subsidiary Onper Investment 2015 S.L. | 8,820 | 10,715 | ||||||
Other current tax assets of subsidiary Onper Investment 2015 S.L. | 35 | 29 | ||||||
Total current tax assets | 583,737 | 524,027 |
34
Current tax liabilities
March 31, 2024 |
December 31, 2023 | |||||||
Industry and trade tax payable of Almacenes Éxito S.A. and its Colombian subsidiaries | 70,870 | 98,391 | ||||||
Tax on real estate of Almacenes Éxito S.A. and its Colombian subsidiaries | 23,513 | 3,621 | ||||||
Income tax payable from some Colombian subsidiaries | 8,099 | - | ||||||
Current income tax liabilities of subsidiary Spice Investments Mercosur S.A. | 7,976 | 47 | ||||||
Taxes of subsidiary Onper Investment 2015 S.L. other than income tax | 4,778 | 4,979 | ||||||
Taxes of subsidiary Spice Investments Mercosur S.A. other than income tax | 54 | 293 | ||||||
Total current tax liabilities | 115,290 | 107,331 |
Note 24.4. Income tax
The reconciliation between accounting (loss) income and net income and the calculation of the tax expense are as follows:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
(Loss) gain before income tax | (9,542 | ) | 119,771 | |||||
Add | ||||||||
Non-deductible expenses | 11,565 | 7,424 | ||||||
Tax on financial transactions | 3,616 | 3,376 | ||||||
Reversal of expected credit losses | 2,010 | - | ||||||
Fines, penalties and litigation | 233 | 161 | ||||||
Taxes taken on and revaluation | 69 | 250 | ||||||
Reimbursement of deduction for income-generating assets arising from the sale of assets | 50 | |||||||
Selling price of fixed assets held less than two years | - | 2 | ||||||
Less | ||||||||
IFRS adjustments with no tax effects (1) | (72,019 | ) | (133,255 | ) | ||||
Effect of accounting results of foreign subsidiaries | (51,837 | ) | (69,789 | ) | ||||
Tax-exempt dividends received from subsidiaries | (4,242 | ) | (2,620 | ) | ||||
Recovery of costs and expenses | (2,543 | ) | (2,238 | ) | ||||
Deduction from hiring of handicapped employees | (637 | ) | (619 | ) | ||||
Non-deductible taxes | (270 | ) | (344 | ) | ||||
Derecognition of gain from the sale of assets reported as occasional gain | (50 | ) | (4,958 | ) | ||||
Receivables written-off | - | (1,033 | ) | |||||
30% additional deduction on salaries paid to apprentices | - | (18 | ) | |||||
Net (loss) before offsetting | (123,597 | ) | (83,890 | ) | ||||
Offsetting | (618 | ) | (24 | ) | ||||
Net (loss) after offsetting | (124,215 | ) | (83,914 | ) | ||||
Net (loss) of the Parent and its Colombian subsidiaries | (138,334 | ) | (96,242 | ) | ||||
Net income of certain Colombian subsidiaries | 14,737 | 12,352 | ||||||
Total net taxable income | 14,119 | 12,352 | ||||||
Income tax rate | 35 | % | 35 | % | ||||
Subtotal tax (expense) | (4,941 | ) | (4,323 | ) | ||||
Adjustment in respect of current income tax of prior periods | (578 | ) | 110 | |||||
Other minor adjustments | (4 | ) | - | |||||
(Expense) tax paid abroad | - | (700 | ) | |||||
Total tax (expense) of the Parent and its Colombian subsidiaries | (5,523 | ) | (4,913 | ) | ||||
Total current tax (expense) of foreign subsidiaries | (27,051 | ) | (29,919 | ) | ||||
Total current tax (expense) | (32,574 | ) | (34,832 | ) |
35
(1) | IFRS adjustments with no tax effects are: |
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Other accounting expenses with no tax effects | 119,018 | 1,610 | ||||||
Accounting provisions | 17,682 | 4,724 | ||||||
Untaxed dividends of subsidiaries | 4,242 | 2,620 | ||||||
Exchange difference, net | 379 | (50,993 | ) | |||||
Taxed actuarial estimation | 215 | 548 | ||||||
Taxed leases | (69,090 | ) | 30,964 | |||||
Net results using the equity method | (60,017 | ) | (50,432 | ) | ||||
Non-accounting costs for tax purposes | (34,370 | ) | (15,959 | ) | ||||
Excess personnel expenses for tax purposes over accounting personnel expenses | (29,015 | ) | (8,793 | ) | ||||
Excess tax depreciation over accounting depreciation | (11,558 | ) | (12,358 | ) | ||||
Recovery of provisions | (5,722 | ) | (13,352 | ) | ||||
Other accounting not for tax purposes (revenue), net | (3,783 | ) | (21,830 | ) | ||||
Non-deductible taxes | - | (4 | ) | |||||
Total | (72,019 | ) | (133,255 | ) |
The components of the income tax income (expense) recognized in the statement of profit or loss were:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Current income tax (expense) | (31,996 | ) | (34,943 | ) | ||||
Adjustment in respect of current income tax of prior periods | (578 | ) | 110 | |||||
Deferred income tax gain income (expense) (Note 24.6) | 34,136 | (5,875 | ) | |||||
Total income tax income (expense) | 1,562 | (40,708 | ) |
Note 24.5. Deferred tax
March 31, 2024 | December 31, 2023 | |||||||||||||||
Deferred tax | Deferred tax | Deferred tax | Deferred tax | |||||||||||||
assets | liabilities | assets | liabilities | |||||||||||||
Tax losses | 307,460 | - | 259,118 | - | ||||||||||||
Tax credits | 61,449 | - | 61,449 | - | ||||||||||||
Excess presumptive income | 21,496 | - | 21,495 | - | ||||||||||||
Other provisions | 14,826 | - | 9,926 | - | ||||||||||||
Investment property | - | (62,111 | ) | - | (120,144 | ) | ||||||||||
Property, plant, and equipment | 47,324 | (139,387 | ) | 93,660 | (221,364 | ) | ||||||||||
Goodwill | - | (217,694 | ) | - | (217,687 | ) | ||||||||||
Leases | 642,803 | (559,777 | ) | 634,180 | (545,661 | ) | ||||||||||
Other | 143,071 | (258,649 | ) | 100,045 | (33,423 | ) | ||||||||||
Total | 1,238,429 | (1,237,618 | ) | 1,179,873 | (1,138,279 | ) |
The breakdown of deferred tax assets and liabilities for the three jurisdictions in which Exito Group operates are grouped as follows:
March 31, 2024 | December 31, 2023 | |||||||||||||||
Deferred tax | Deferred tax | Deferred tax | Deferred tax | |||||||||||||
assets | liabilities | assets | liabilities | |||||||||||||
Colombia | 151,145 | - | 113,373 | - | ||||||||||||
Uruguay | 88,087 | - | 84,319 | - | ||||||||||||
Argentina | - | (238,421 | ) | - | (156,098 | ) | ||||||||||
Total | 239,232 | (238,421 | ) | 197,692 | (156,098 | ) |
36
The reconciliation of the movement of net deferred tax to the statement of profit or loss and the statement of comprehensive income is shown below:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Profit (expense) benefit from deferred tax recognized in income | 34,136 | (5,875 | ) | |||||
Adjustment related current income tax previous periods | (578 | ) | 110 | |||||
(Expense) profit from deferred tax recognized in other comprehensive income | (1,559 | ) | 2,958 | |||||
Effect of the translation of the deferred tax recognized in other comprehensive income (1) | (72,782 | ) | 463 | |||||
Total movement of net deferred tax | (40,783 | ) | (2,344 | ) |
(1) | Such effect resulting from the translation at the closing rate of deferred tax assets and liabilities of foreign subsidiaries is included in the line item "Exchange difference from translation" in Other comprehensive income (Note 27). |
Temporary differences related to investments in associates and joint ventures, for which no deferred tax liabilities have been recognized at March 31, 2024 amounted to $103,833 (at December 31, 2022 - $81,773).
Note 24.6. Effects of the distribution of dividends on the income tax
There are no income tax consequences attached to the payment of dividends in either 2024 or 2023 by Exito Group to its shareholders.
Note 24.7. Non-Current tax liabilities
The $7,670 balance at March 31, 2024 (at December 31, 2023 - $8,091) relates to taxes payable of subsidiary Libertad S.A. for federal taxes and incentive program by instalments.
Note 25. Derivative instruments and collections on behalf of third parties
The balance of derivative instruments and collections on behalf of third parties is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Collections on behalf of third parties (1) | 121,100 | 123,023 | ||||||
Derivative financial instruments (2) | 10,696 | 11,299 | ||||||
Derivative financial instruments designated as hedge instruments (3) | 1,392 | 5,488 | ||||||
Total derivative instruments and collections on behalf of third parties | 117,095 | 139,810 |
(1) | Collections on behalf of third parties includes amounts received for services where Exito Group acts as an agent, such as travel agency sales, and payments and banking services provided to customers. Include $20,290 (December 31, 2023 - $26,515) with third parties (Note 10.5). |
(2) | The detail of maturities of these instruments at March 31, 2024 is shown below: |
Derivative |
Less than 3 months |
From 3 to 6 months |
From 6 to 12 months |
More than 12 months | Total | |||||||||||||||
Forward | 9,536 | 1,160 | - | - | 10,696 |
The detail of maturities of these instruments at December 31, 2023 is shown below:
Derivative |
Less than 3 months |
From 3 to 6 months |
From 6 to 12 months |
More than 12 months | Total | |||||||||||||||
Forward | 6,938 | 4,361 | - | - | 11,299 |
37
(3) | Derivative instruments designated as hedging instrument are related to forward. The fair value of these instruments is determined based on valuation models. |
At March 31, 2024, relates to the following transactions:
Nature of risk hedged | Hedged item | Rate of hedged item |
Average rates for hedge instruments | Fair value | ||||||||
Forward | Exchange rate | Trade payables | USD/COP | 1 USD / $$3,991.19 | 1,392 |
The detail of maturities of these hedge instruments at March 31, 2024 is shown below:
Less than 1 month |
From 1 to 3 months |
From 3 to 6 months |
From 6 to 12 months |
More than 12 months | Total | |||||||||||||||||||
Forward | 817 | 575 | - | - | - | 1,392 |
At December 31, 2023, relates to the following transactions:
Nature of risk hedged | Hedged item | Rate of hedged item |
Average rates for hedge instruments | Fair value | ||||||||
Forward | Exchange rate | Trade payables | USD/COP | 1 USD / $4,204.54 | 5,488 |
The detail of maturities of these hedge instruments at December 31, 2023 is shown below:
Less than 1 month |
From 1 to 3 months |
From 3 to 6 months |
From 6 to 12 months |
More than 12 months | Total | |||||||||||||||||||
Forward | 2,621 | 2,867 | - | - | - | 5,488 |
Note 26. Other liabilities
The balance of other liabilities is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Deferred revenues (1) | 124,546 | 208,126 | ||||||
Customer loyalty programs | 46,898 | 43,990 | ||||||
Advance payments under lease agreements and other projects | 4,939 | 4,604 | ||||||
Repurchase coupon | 196 | 239 | ||||||
Instalments received under "plan resérvalo" | 160 | 160 | ||||||
Total other liabilities | 176,739 | 257,119 | ||||||
Current | 174,401 | 254,766 | ||||||
Non-Current | 2,338 | 2,353 |
(1) | Mainly relates to payments received for the future sale of products through means of payment, property leases and strategic alliances. |
Exito Group considers Customer Loyalty Programs and deferred revenues as contractual liabilities. The movement of deferred revenue and customer loyalty programs, and the related revenue recognized during the reporting periods, is shown below:
Deferred |
Customer loyalty | |||||||
revenue | programs | |||||||
Balance at December 31, 2022 | 154,265 | 56,165 | ||||||
Additions | 374,871 | 4,925 | ||||||
Revenue recognized | (421,248 | ) | (4,155 | ) | ||||
Effect of exchange difference from translation into presentation currency | (1,225 | ) | (1,040 | ) | ||||
Balance at March 31, 2023 | 106,663 | 55,895 | ||||||
Balance at December 31, 2023 | 208,126 | 43,990 | ||||||
Additions | 1,248 | 4,317 | ||||||
Revenue recognized | (84,932 | ) | (3,345 | ) | ||||
Effect of exchange difference from translation into presentation currency | 104 | 1,936 | ||||||
Balance at March 31, 2024 | 124,546 | 46,898 |
38
Note 27. Shareholders' equity
Capital and premium on placement of shares
At March 31, 2024, and at December 31, 2023, Almacenes Exito's authorized capital is represented by 1.590,000,000 common shares with a nominal value of $3.3333 Colombian pesos.
At March 31, 2024, and at December 31, 2023 the number of subscribed shares is 1.344.720.453 and the number of treasury shares is 46.856.094.
The rights granted on the shares correspond to voice and vote for each share. No privileges have been granted on the shares, nor are the shares restricted in any way. Further, there are no option contracts on Almacenes Exito's shares.
The premium on the issue of shares represents the surplus paid over the par value of the shares. Pursuant to Colombian legal regulations, this balance may be distributed upon liquidation of the company or capitalized. Capitalization means the transfer of a portion of such premium to a capital account as the result of a distribution of dividends paid in shares of Almacenes Exito.
Reserves
Reserves are appropriations made by Almacenes Éxito's S.A. General Meeting of Shareholders on the results of prior periods. In addition to the legal reserve, there is an occasional reserve, a reserve for acquisition of treasury shares and a reserve for payment future dividend.
Other comprehensive income
The tax effect on the components of other comprehensive income is shown below:
March 31, 2024 | March 31, 2023 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
Gross | Tax | Gross | Tax | Gross | Tax | |||||||||||||||||||||||||||||||
value | effect | Net value | value | effect | Net value | Value | effect | Net value | ||||||||||||||||||||||||||||
Measurement from financial instruments designated at fair value through other comprehensive income | (16,829 | ) | - | (16,829 | ) | (16,489 | ) | - | (16,489 | ) | (16,433 | ) | - | (16,433 | ) | |||||||||||||||||||||
Remeasurement loss on defined benefit plans | (5,052 | ) | 1,844 | (3,208 | ) | (536 | ) | 334 | (202 | ) | (5,052 | ) | 1,844 | (3,208 | ) | |||||||||||||||||||||
Translation exchange differences | (2,275,290 | ) | - | (2,275,290 | ) | (1,232,039 | ) | - | (1,232,039 | ) | (2,323,383 | ) | - | (2,323,383 | ) | |||||||||||||||||||||
Gain from cash-flow hedge | 13,213 | 1,051 | 14,264 | 4,535 | (1,571 | ) | 2,964 | 8,757 | 2,610 | 11,367 | ||||||||||||||||||||||||||
(Loss) on hedge of net investment in foreign operations | (18,977 | ) | - | (18,977 | ) | (18,977 | ) | - | (18,977 | ) | (18,977 | ) | - | (18,977 | ) | |||||||||||||||||||||
Total other comprehensive income | (2,302,935 | ) | 2,895 | (2,300,040 | ) | (1,263,506 | ) | (1,237 | ) | (1,264,743 | ) | (2,355,088 | ) | 4,454 | (2,350,634 | ) | ||||||||||||||||||||
Other comprehensive income of non - controlling interests | (41,308 | ) | 57,633 | (46,588 | ) | |||||||||||||||||||||||||||||||
Other comprehensive income of the parent | (2,258,732 | ) | (1,207,110 | ) | (2,304,046 | ) |
39
Note 28. Revenue from contracts with customers
The amount of revenue from contracts with customers is as shown:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Retail sales (1) (Note 39) | 5,036,104 | 5,237,232 | ||||||
Service revenue (2) (Note 39) | 206,181 | 201,084 | ||||||
Other revenue (3) (Note 39) | 32,854 | 17,838 | ||||||
Total revenue from contracts with customers | 5,275,139 | 5,456,154 |
(1) | Retail sales represent the sale of goods and real estate projects net of returns and sales rebates. |
This amount includes the following items:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Retail sales, net of sales returns and rebates | 5,033,254 | 5,208,024 | ||||||
Sale of real estate project inventories (a) | 2,850 | 29,208 | ||||||
Total retail sales | 5,036,104 | 5,237,232 |
(a) | As of March 31, 2024, it corresponds to the sale of 14.04% of Exito Occidente real estate project. As of March 31, 2023, it corresponds to the sale of the Galería La 33 real estate project. |
(2) | Revenues from services and rental income comprise: |
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Leases and real estate related income | 76,414 | 76,710 | ||||||
Distributors | 23,054 | 26,987 | ||||||
Lease of physical space | 21,703 | 24,987 | ||||||
Commissions | 19,608 | 8,448 | ||||||
Advertising | 18,237 | 19,721 | ||||||
Administration of real estate | 14,862 | 12,619 | ||||||
Telephone | 11,322 | 9,477 | ||||||
Transport | 9,576 | 8,219 | ||||||
Banking services | 5,047 | 5,104 | ||||||
Money transfers | 2,519 | 2,263 | ||||||
Other | 3,839 | 7,180 | ||||||
Total service revenue | 206,181 | 201,084 |
(3) | Other revenue relates to: |
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Recovery employee liabilities | 7,498 | - | ||||||
Leverages of assets | 6,274 | 2,982 | ||||||
Marketing events | 4,028 | 5,380 | ||||||
Collaboration agreements (a) | 3,744 | 1,683 | ||||||
Recovery of provisions | 3,500 | - | ||||||
Recovery of other liabilities | 1,778 | - | ||||||
Royalty revenue | 1,158 | 229 | ||||||
Financial services | 1,099 | 1,042 | ||||||
Use of parking spaces | 155 | 468 | ||||||
Technical assistance | 27 | 17 | ||||||
Other | 3,593 | 6,037 | ||||||
Total other revenue | 32,854 | 17,838 |
(a) | Represents revenue from the following collaboration agreements: |
40
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Redeban S.A. | 1,448 | 884 | ||||||
Renting Colombia S.A. | 1,400 | - | ||||||
Éxito Media | 590 | 767 | ||||||
Alianza Sura | 292 | - | ||||||
Moviired S.A.S. | 14 | 32 | ||||||
Total collaboration agreement | 3,744 | 1,683 |
Note 29. Distribution, administrative and selling expenses.
The amount of distribution, administrative and selling expenses by nature is:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Employee benefits (Note 30) | 429,461 | 431,301 | ||||||
Depreciation and amortization | 147,795 | 142,192 | ||||||
Taxes other than income tax | 145,097 | 156,183 | ||||||
Services | 85,047 | 87,634 | ||||||
Fuels and power | 70,519 | 71,404 | ||||||
Repairs and maintenance | 65,641 | 63,729 | ||||||
Commissions on debit and credit cards | 38,863 | 42,966 | ||||||
Advertising | 35,119 | 41,308 | ||||||
Professional fees | 20,458 | 23,339 | ||||||
Leases | 18,617 | 18,144 | ||||||
Insurance | 13,489 | 12,581 | ||||||
Packaging and marking materials | 12,698 | 11,975 | ||||||
Administration of trade premises | 12,419 | 14,843 | ||||||
Outsourced employees | 9,774 | 13,363 | ||||||
Transport | 9,726 | 11,618 | ||||||
Credit loss expense (a) | 6,484 | 6,296 | ||||||
Commissions | 3,858 | 4,225 | ||||||
Other commissions | 2,672 | 2,586 | ||||||
Cleaning and cafeteria | 2,597 | 2,785 | ||||||
Legal expenses | 2,279 | 2,843 | ||||||
Other provision expenses | 2,093 | 3,419 | ||||||
Travel expenses | 2,037 | 4,971 | ||||||
Stationery, supplies and forms | 1,529 | 1,379 | ||||||
Ground transportation | 1,177 | 1,253 | ||||||
Seguros Éxito collaboration agreement | 758 | 481 | ||||||
Autos Éxito collaboration agreement | 166 | 503 | ||||||
Other | 64,766 | 52,328 | ||||||
Total distribution, administrative and selling expenses | 1,205,139 | 1,225,649 | ||||||
Distribution expenses | 653,667 | 667,870 | ||||||
Administrative and selling expenses | 122,011 | 126,478 | ||||||
Employee benefit expenses | 429,461 | 431,301 |
(a) | This amount includes the following items: |
41
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Allowance for expected credit losses (Note 8.1) | 6,379 | 4,352 | ||||||
Hyperinflationary adjustments | 60 | 98 | ||||||
Write-off of receivables | 45 | 1,846 | ||||||
Total | 6,484 | 6,296 |
Note 30. Employee benefit expenses
The amount of employee benefit expenses incurred by each significant category is as follows:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Wages and salaries | 353,717 | 355,472 | ||||||
Contributions to the social security system | 13,362 | 13,672 | ||||||
Other short-term employee benefits | 15,462 | 13,814 | ||||||
Total short-term employee benefit expenses | 382,541 | 382,958 | ||||||
Post-employment benefit expenses, defined contribution plans | 35,719 | 35,851 | ||||||
Post-employment benefit expenses, defined benefit plans | 614 | 570 | ||||||
Total post-employment benefit expenses | 36,333 | 36,421 | ||||||
Termination benefit expenses | 3,809 | 4,941 | ||||||
Other personnel expenses | 6,750 | 6,947 | ||||||
Other long-term employee benefits | 28 | 34 | ||||||
Total employee benefit expenses | 429,461 | 431,301 |
The cost of employee benefit include in cost of sales is shown in Note 11.2.
Note 31. Other operating (expenses) revenue, net
Other operating revenue
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Recovery of liabilities | 6,266 | - | ||||||
Reversal of allowance for expected credit losses (Note 8.1) | 3,195 | 5,132 | ||||||
Other indemnification | 812 | 1,252 | ||||||
Recovery of other provisions | 511 | 576 | ||||||
Insurance indemnification | 424 | 185 | ||||||
Recovery of costs and expenses from taxes other than income tax | 371 | 589 | ||||||
Recovery of other provisions for civil proceedings | 89 | 254 | ||||||
Reimbursement of tax-related costs and expenses | - | 3,337 | ||||||
Recovery of restructuring expenses | - | 1,366 | ||||||
Total other operating revenue | 11,668 | 12,691 |
42
Other operating expenses
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Restructuring expenses | (16,144 | ) | (623 | ) | ||||
Other (1) | (15,196 | ) | (4,261 | ) | ||||
Total other operating expenses | (31,340 | ) | (4,884 | ) |
(1) | Corresponds: |
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Fees for the registration process in the New York and Sao Paulo stock exchanges | (8,842 | ) | (3,077 | ) | ||||
Store and shops close plan | (5,195 | ) | - | |||||
Fees for the projects for the implementation of norms and laws | (1,135 | ) | (1,184 | ) | ||||
Others | (24 | ) | - | |||||
Total others | (15,196 | ) | (4,261 | ) |
Other net income (losses)
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Write-off of property, plant and equipment | (4,010 | ) | (1,656 | ) | ||||
Gain from the sale of assets | 1,930 | - | ||||||
Gain (loss) from the early termination of lease contracts | 130 | (11 | ) | |||||
Gain (loss) from sale of property, plant and equipment | 36 | (25 | ) | |||||
Total other net (loss) | (1,914 | ) | (1,692 | ) |
Note 32. Financial income and cost
The amount of financial income and cost is as follows:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Gain from foreign exchange differences | 46,180 | 91,028 | ||||||
Net monetary position results, effect of the statement of profit or loss (1) | 26,414 | 31,550 | ||||||
Interest income on cash and cash equivalents (Note 7) | 11,917 | 16,112 | ||||||
Gains from valuation of derivative financial instruments | 11,272 | - | ||||||
Gain from liquidated derivative financial instruments | 1,053 | 25,572 | ||||||
Other financial income | 5,941 | 6,216 | ||||||
Total financial income | 102,777 | 170,478 | ||||||
Interest expense on loan and borrowings | (51,220 | ) | (38,731 | ) | ||||
Interest expense on lease liabilities | (36,964 | ) | (29,815 | ) | ||||
Factoring expenses | (28,926 | ) | (41,667 | ) | ||||
(Loss) gain from foreign exchange differences | (35,988 | ) | (72,089 | ) | ||||
Loss from liquidated derivative financial instruments | (8,979 | ) | (8,622 | ) | ||||
Loss from fair value changes in derivative financial instruments | (10,696 | ) | (29,158 | ) | ||||
Net monetary position expense, effect of the statement of financial position | (6,713 | ) | (10,198 | ) | ||||
Commission expenses | (2,369 | ) | (2,925 | ) | ||||
Other financial expenses | (3,633 | ) | (4,095 | ) | ||||
Total financial cost | (185,488 | ) | (237,300 | ) | ||||
Net financial result | (82,711 | ) | (66,822 | ) |
(1) | The indicator used to adjust for inflation in the financial statements of Libertad S.A. is the Internal Wholesales Price Index (IPIM) published by the Instituto Nacional de Estadística y Censos de la República Argentina (INDEC). The price index and corresponding changes are presented below: |
43
Price index | Change during the year | |||||||
December 31, 2015 | 100.00 | - | ||||||
January 1, 2020 | 446.28 | - | ||||||
December 31, 2020 | 595.19 | 33.4 | % | |||||
December 31, 2021 | 900.78 | 51.3 | % | |||||
December 31, 2022 | 1,754.58 | 94.8 | % | |||||
March 31, 2023 | 2,099.58 | 19.7 | % | |||||
December 31, 2023 | 6,603.36 | 276.4 | % | |||||
March 31, 2024 | 9,044.90 | 37 | % |
Note 33. Earnings per share
Basic earnings per share are calculated based on the weighted average number of outstanding shares of each category during the period.
There were no dilutive potential ordinary shares outstanding at the quarters ended March 31, 2024 and 2023.
The calculation of basic and diluted earnings per share for all periods presented is as follows:
In profit for the period:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Net (loss) profit attributable to equity holders of the parent (basic) | (37,863 | ) | 45,118 | |||||
Weighted average of the number of ordinary shares attributable to earnings per share (basic) | 1.297.864.359 | 1.297.864.359 | ||||||
Basic (losses) earnings per share to equity holders of the parent (in Colombian pesos) | (29.17 | ) | 34.76 |
In continuing operations:
Quarters ended March 31, | ||||||||
2024 | 2023 | |||||||
Net (loss) profit from continuing operations (basic) | (7,980 | ) | 79,063 | |||||
Less: net income from continuing operations attributable to non-controlling interests | 29,883 | 33,945 | ||||||
Net (loss) profit from continuing operations attributable to the equity holders of the parent (basic) | (37,863 | ) | 45,118 | |||||
Weighted average of the number of ordinary shares attributable to earnings per share (basic) | 1.297.864.359 | 1.297.864.359 | ||||||
Basic (losses) earnings per share from continuing operations attributable to the equity holders of the parent (in Colombian pesos) | (29.17 | ) | 34.76 |
44
Note 34. Impairment of assets
No impairment on financial assets were identified at March 31, 2024 and at December 31, 2023, except on trade receivables and other account receivables (Note 8).
Note 35. Fair value measurement
Below is a comparison, by class, of the carrying amounts and fair values of investment property, property, plant and equipment and financial instruments, other than those with carrying amounts that are a reasonable approximation of fair values.
March 31, 2024 | December 31, 2023 | |||||||||||||||
Carrying amount | Fair value |
Carrying amount | Fair value | |||||||||||||
Financial assets | ||||||||||||||||
Investments in private equity funds | 470 | 470 | 472 | 472 | ||||||||||||
Forward contracts measured at fair value through income (Note 12) | 74 | 74 | - | - | ||||||||||||
Derivative swap contracts denominated as hedge instruments (Note 12) | 1,474 | 1,474 | 2,378 | 2,378 | ||||||||||||
Investment in bonds (Note 12) | 579 | 579 | 578 | 578 | ||||||||||||
Investment in bonds through other comprehensive income (Note 12) | 12,973 | 12,973 | 13,288 | 13,288 | ||||||||||||
Equity investments (Note 12) | 10,676 | 10,676 | 10,676 | 10,676 | ||||||||||||
Non-financial assets | ||||||||||||||||
Investment property (Note 14) | 1,746,654 | 4,190,493 | 1,653,345 | 4,174,798 | ||||||||||||
Property, plant and equipment, and investment property held for sale (Note 40) | 17,095 | 22,564 | 12,413 | 22,469 | ||||||||||||
Financial liabilities | ||||||||||||||||
Loans and borrowings (Note 20) | 1,802,129 | 1,798,146 | 823,863 | 824,054 | ||||||||||||
Put option (Note 20) | 460,542 | 460,542 | 442,342 | 442,342 | ||||||||||||
Forwards contracts denominated as hedge instruments (Note 25) | 1,392 | 1,392 | 5,488 | 5,488 | ||||||||||||
Forward contracts measured at fair value through income (Note 25) | 10,696 | 10,696 | 11,299 | 11,299 | ||||||||||||
Non-financial liabilities | ||||||||||||||||
Customer loyalty liability (Note 26) | 46,898 | 46,898 | 43,990 | 43,990 |
45
The following methods and assumptions were used to estimate the fair values:
Hierarchy level | Valuation | Description of the valuation technique | Significant input data | |||||
Assets | ||||||||
Loans at amortized cost | Level 2 | Discounted cash flows method | Future cash flows are discounted at present value using the market rate for loans under similar conditions on the date of measurement in accordance with maturity days. | Commercial rate of banking institutions for consumption receivables without credit card for similar term horizons. Commercial rate for housing loans for similar term horizons. | ||||
Investments in private equity funds | Level 2 | Unit value | The value of the fund unit is given by the preclosing value for the day, divided by the total number of fund units at the closing of operations for the day. The fund administrator appraises the assets daily. | N/A | ||||
Forward contracts measured at fair value through income | Level 2 | Colombian Peso-US Dollar forward | The difference is measured between the forward agreed- upon rate and the forward rate on the date of valuation relevant to the remaining term of the derivative financial instrument and discounted at present value using a zero-coupon interest rate. The forward rate is based on the average price quoted for the two-way closing price ("bid" and "ask"). | Peso/US Dollar exchange rate set out in the forward contract. Market representative exchange rate on the date of valuation. Forward points of the Peso-US Dollar forward market on the date of valuation. Number of days between valuation date and maturity date. Zero-coupon interest rate. | ||||
Swap contracts measured at fair value through income | Level 2 | Operating cash flows forecast model | The method uses swap cash flows, forecasted using treasury security curves of the State that issues the currency in which each flow has been expressed, for further discount at present value, using swap market rates disclosed by the relevant authorities of each country. The difference between cash inflows and cash outflows represents the swap net value at the closing under analysis. | Reference Banking Index Curve (RBI) 3 months. Zero-coupon curve. Swap LIBOR curve. Treasury Bond curve. 12-month CPI | ||||
Derivative swap contracts denominated as hedge instruments | Level 2 | Operating cash flows forecast model | The method uses swap cash flows, forecasted using treasury security curves of the State that issues the currency in which each flow has been expressed, for further discount at present value, using swap market rates disclosed by the relevant authorities of each country. The difference between cash inflows and cash outflows represents the swap net value at the closing under analysis. | Reference Banking Index Curve (RBI) 3 months. Zero-coupon curve. Swap LIBOR curve. Treasury Bond curve. 12-month CPI | ||||
Investment in bonds | Level 2 | Discounted cash flows method | Future cash flows are discounted at present value using the market rate for investments under similar conditions on the date of measurement in accordance with maturity days. | CPI 12 months + Basis points negotiated | ||||
Investment property | Level 3 | Comparison or market method | This technique involves establishing the fair value of goods from a survey of recent offers or transactions for goods that are similar and comparable to those being appraised. | N/A |
46
Hierarchy level | Valuation | Description of the valuation technique | Significant input data | |||||
Assets | ||||||||
Investment property | Level 3 | Discounted cash flows method | This technique provides the opportunity to identify the increase in revenue over a previously defined period of the investment. Property value is equivalent to the discounted value of future benefits. Such benefits represent annual cash flows (both, positive and negative) over a period, plus the net gain arising from the hypothetical sale of the property at the end of the investment period. | Discount rate (12-17%) Vacancy rate (0% - 58,94%) Terminal capitalization rate (8,25% - 9,50%) | ||||
Investment property | Level 3 | Realizable-value method | This technique is used whenever the property is suitable for urban movement, applied from an estimation of total sales of a project under construction, pursuant to urban legal regulations in force and in accordance with the final saleable asset market. | Realizable value | ||||
Investment property | Level 3 | Replacement cost method | The valuation method consists in calculating the value of a brand-new property, built at the date of the report, having the same quality and comforts as that under evaluation. Such value is called replacement value; then an analysis is made of property impairment arising from the passing of time and the careful or careless maintenance the property has received, which is called depreciation. | Physical value of building and land. | ||||
Non-current assets classified as held for trading | Level 2 | Realizable-value method | This technique is used whenever the property is suitable for urban development, applied from an estimation of total sales of a project under construction, pursuant to urban legal regulations in force and in accordance with the final saleable asset market. | Realizable Value |
47
Hierarchy level | Valuation | Description of the valuation technique | Significant input data | |||||
Liabilities | ||||||||
Financial liabilities measured at amortized cost | Level 2 | Discounted cash flows method | Future cash flows are discounted at present value using the market rate for loans under similar conditions on the date of measurement in accordance with maturity days. | Reference Banking Index (RBI) + Negotiated basis points. LIBOR rate + Negotiated basis points. | ||||
Swap contracts measured at fair value through income | Level 2 | Operating cash flows forecast model | The method uses swap cash flows, forecasted using treasury security curves of the State that issues the currency in which each flow has been expressed, for further discount at present value, using swap market rates disclosed by the relevant authorities of each country. The difference between cash inflows and cash outflows represents the swap net value at the closing under analysis. | Reference Banking Index Curve (RBI) 3 months. Zero-coupon curve. Swap LIBOR curve. Treasury Bond curve. 12-month CPI | ||||
Derivative instruments measured at fair value through income | Level 2 | Colombian Peso-US Dollar forward | The difference is measured between the forward agreed upon rate and the forward rate on the date of valuation relevant to the remaining term of the derivative financial instrument and discounted at present value using a zero-coupon interest rate. The forward rate is based on the average price quoted for the two-way closing price ("bid" and "ask"). | Peso/US Dollar exchange rate set out in the forward contract. Market representative exchange rate on the date of valuation. Forward points of the Peso-US Dollar forward market on the date of valuation. Number of days between valuation date and maturity date. Zero-coupon interest rate. | ||||
Derivative swap contracts denominated as hedge instruments | Level 2 | Discounted cash flows method | The fair value is calculated based on forecasted future cash flows provided by the operation upon market curves and discounting them at present value, using swap market rates. | Swap curves calculated by Forex Finance Market Representative Exchange Rate (TRM) | ||||
Customer loyalty liability (refer to footnote 26) | Level 3 | Market value | The customer loyalty liability is updated in accordance with the point average market value for the last 12 months and the effect of the expected redemption rate, determined on each customer transaction. | Number of points redeemed, expired and issued. Point value. Expected redemption rate. | ||||
Bonds issued | Level 2 | Discounted cash flows method | Future cash flows are discounted at present value using the market rate for bonds in similar conditions on the date of measurement in accordance with maturity days. | 12-month CPI | ||||
Lease liabilities | Level 2 | Discounted cash flows method | Future cash flows of lease contracts are discounted using the market rate for loans in similar conditions on contract start date in accordance with the non-cancellable minimum term. | Reference Banking Index (RBI) + basis points in accordance with risk profile. | ||||
Put option (refer to footnote 20) | Level 3 | Given formula | Measured at fair value using a given formula under an agreement executed with non-controlling interests of Grupo Disco, using level 3 input data. | Net income of Supermercados Disco del Uruguay S.A. since April 2022 to March 2023 and since April 2023 to March 2024. US Dollar-Uruguayan peso exchange rate on the date of valuation US Dollar-Colombian peso exchange rate on the date of valuation Total shares Supermercados Disco del Uruguay S.A. |
48
Material non-observable input data and a valuation sensitivity analysis on the valuation of the "put option contract" refer to:
Material non-observable input data | Range (weighted average) | Sensitivity of the input data on the estimation of the fair value | |||||
Put option | Net income of Supermercados Disco del Uruguay S.A. since April 2023 to March 2024. | $ | 175,875 | The Put option value is defined as the greater of (i) the fixed price of the contract in US dollars updated at 5% per year, (ii) a multiple of EBITDA minus the net debt of Grupo Disco Uruguay S.A., or (iii) a multiple of the net income of Grupo Disco Uruguay S.A. | |||
Ebitda of Supermercados Disco del Uruguay S.A., consolidated Over 12 months | $ | 250,300 | |||||
Net financial debt of Supermercados Disco del Uruguay S.A., consolidated over 6 months | $ | (156,640) | |||||
Multiple of the net income | $ | 460,542 | |||||
US Dollar-Uruguayan peso exchange rate on the date of valuation | $ | 37.57 | |||||
US Dollar-Colombian peso exchange rate on the date of valuation | $ | 3,842.30 | |||||
Total shares Supermercados Disco del Uruguay S.A. | 344,166,018 | On March 31, 2024, the value of the put option is recognized based on multiple of the net income. | |||||
Grupo Disco Uruguay S.A.'s Ebitda should increase by approx. 23.32% to arrive at a value greater than the recognized value. | |||||||
The Fixed contract price should increase by approx. 58.71% to reach a value greater than the recognized value. | |||||||
An exchange rate appreciation of 15% would increase the value of the put option by $69,081. |
49
Changes in hierarchies may occur if new information is available, certain information used for valuation is no longer available, there are changes resulting in the improvement of valuation techniques or changes in market conditions.
There were no transfers between level 1, level 2 and level 3 hierarchies during the quarter ended March 31, 2024.
Note 36. Contingencies
Contingent assets
Éxito Grupo has not material contingent assets to disclose at March 31, 2024 and at December 31, 2023.
Contingent liabilities
Contingent liabilities at March 31, 2024 and at December 31, 2023 are:
(a) | The following proceedings are underway, seeking that Exito Group be exempted from paying the amounts claimed by the complainant entity: |
- | Administrative discussion with DIAN (Colombia National Directorate of Customs) amounting $42,210 (December 31, 2023 - $40,780) relating to 2015 income tax return of Almacenes Éxito S.A. |
- | Resolutions issued by the District Tax Direction of Bogotá, relating to industry and trade tax for the bimesters 4, 5 and 6 of 2011 for alleged inaccuracy in payments, in the amount of $11,830 (December 31, 2023 - $11,830). |
- | Nullity of resolution-fine dated September 2020 ordering reimbursement of the balance receivable assessed in the income tax for taxable 2015 in amount of $2,734 (December 31, 2023 - $2,211). |
- | Administrative discussion with the Cali Municipality regarding the notice of special requirement 4279 of April 8, 2021 whereby the Almacenes Éxito S.A. is invited to correct the codes and rates reported in the Industry and Trade Tax for 2018 in amount of $2,130 (December 31, 2023 - $2,130). |
- | Nullity of the Official Assessment Settlement 00019-TS-0019-2021 of February 24, 2021, whereby the Department of Atlántico settles the Security and Citizen Coexistence Tax for the taxable period of February 2015 to November 2019, and the nullity of Resolution 5-3041-TS0019-2021 of November 10, 2021, whereby an appeal for reconsideration is resolved for $1,226 (December 31, 2023 - $1,226). |
- | Labor liability process for $80 (December 31, 2023 - $80) in the subsidiary Exito Industrias S.A.S. |
(b) | Guarantees: |
- | Almacenes Éxito S.A. granted a collateral on behalf its subsidiary Almacenes Éxito Inversiones S.A.S. to cover a potential default of its obligations. At March 31, 2024, the balance es $3,967 (December 31, 2023 $3,967). |
- | Subsidiary Éxito Viajes y Turismo S.A.S. granted a collateral in favor of Aerovías de Integración Regional Aires S.A in the amount of $284 (December 31, 2023 - $284) to ensure compliance with the payments associated with the contract for the sale of airline tickets. |
- | Subsidiary Éxito Viajes y Turismo S.A.S. is defendant in a consumer protection action under Section 4 of Decree 557 of the Ministry of Commerce, Industry and Tourism, with scope from the state of sanitary emergency declared on March 12,2020 in the amount of $1,303 (December 31, 2023- $1,228) covering 275 proceedings. |
- | Almacenes Éxito S.A. granted its subsidiary Transacciones Energéticas S.A.S. E.S.P. a financial guarantee for $3,000 (December 31, 2023 - $3,000) to cover possible defaults of its obligations for the charges for the use of local distribution and regional transmission systems before the market and before the agents where the service is rendered. |
50
- | As required by some insurance companies and as a requirement for the issuance of compliance bonds, during 2024 some subsidiaries and Almacenes Éxito S.A., as joint and several debtors of some of its subsidiaries, have granted certain guarantees to these third parties. Below a detail of guarantees granted: |
Type of guarantee | Description and detail of the guarantee | Insurance company | ||
Unlimited promissory note | Compliance bond Éxito acts as joint and several debtors of Patrimonio Autónomo Viva Barranquilla | Seguros Generales Suramericana S.A. | ||
Unlimited promissory note | Compliance bond granted by Éxito Industrias S.A.S. | Seguros Generales Suramericana S.A. | ||
Unlimited promissory note | Compliance bond granted by Éxito Viajes y Turismo S.A. | Berkley International Seguros Colombia S.A. | ||
Unlimited promissory note | Compliance bond granted by Éxito Viajes y Turismo S.A. | Seguros Generales Suramericana S.A. | ||
Unlimited promissory note | Compliance bond granted by Transacciones Energéticas S.A.S. E.S.P. | Seguros Generales Suramericana S.A. | ||
Unlimited promissory note | Compliance bond granted by Logística, Transporte y Servicios Asociados S.A.S. | Seguros Generales Suramericana S.A. |
These contingent liabilities, whose nature is that of potential liabilities, are not recognized in the statement of financial position; instead, they are disclosed in the notes to the financial statements.
Note 37. Dividends declared and paid.
Almacenes Éxito S.A.'s General Meeting of Shareholders held on March 21, 2024, declared a dividend of $65,529, equivalent to an annual dividend of $50.49 Colombian pesos per share. During the quarter ended March 31, 2024, there is no paid for dividends.
Dividends declared and paid to the owners of non-controlling interests in subsidiaries during the quarter ended March 31, 2024 are as follows:
Dividends | Dividends | |||||||
declared | paid | |||||||
Patrimonio Autónomo Viva Malls | 20,020 | 23,002 | ||||||
Éxito Viajes y Turismo S.A.S. | 4,075 | - | ||||||
Patrimonio Autónomo Viva Villavicencio | 1,945 | 2,266 | ||||||
Patrimonio Autónomo Centro Comercial | 1,067 | 1,547 | ||||||
Grupo Disco Uruguay S.A. | 581 | 572 | ||||||
Patrimonio Autónomo Viva Laureles | 539 | 624 | ||||||
Patrimonio Autónomo San Pedro Etapa I | 306 | 291 | ||||||
Patrimonio Autónomo Viva Sincelejo | 60 | 342 | ||||||
Patrimonio Autónomo Centro Comercial Viva Barranquilla | - | 212 | ||||||
Patrimonio Autónomo Viva Palmas | - | 100 | ||||||
Total | 28,593 | 28,956 |
Almacenes Éxito S.A.'s General Meeting of Shareholders held on March 23, 2023, declared a dividend of $217,392, equivalent to an annual dividend of $167.50 Colombian pesos per share. During the year ended at December 31, 2023 the amount paid was $217,293.
51
Dividends declared and paid to the owners of non-controlling interests in subsidiaries during the year ended December 31, 2023 are as follows:
Dividends | Dividends | |||||||
declared | paid | |||||||
Patrimonio Autónomo Viva Malls | 104,623 | 81,621 | ||||||
Grupo Disco Uruguay S.A. | 27,544 | 31,108 | ||||||
Patrimonio Autónomo Viva Villavicencio | 10,131 | 9,334 | ||||||
Patrimonio Autónomo Centro Comercial | 4,906 | 4,827 | ||||||
Patrimonio Autónomo Centro Comercial Viva Barranquilla | 2,830 | 2,684 | ||||||
Patrimonio Autónomo Viva Laureles | 2,687 | 2,611 | ||||||
Éxito Viajes y Turismo S.A.S. | 2,517 | 2,517 | ||||||
Patrimonio Autónomo San Pedro Etapa I | 1,796 | 1,837 | ||||||
Patrimonio Autónomo Viva Sincelejo | 1,476 | 2,081 | ||||||
Patrimonio Autónomo Viva Palmas | 768 | 1,115 | ||||||
Total | 159,278 | 139,735 |
Note 38. Seasonality of transactions
Exito Group's operation and cash flow cycles indicate certain seasonality in operating and financial results, as well as financial indicators associated with liquidity and working capital, once there is a concentration during the first and the last quarter of the year, mainly because of Christmas and "Special Price Days", which is the second most important promotional event of the year. The administration manages these indicators in order to control that risks do not materialize and for those that could materialize it implements action plans in timely; additionally, it monitors the same indicators in order to keep them within industry standards.
Note 39. Operating segments
Exito Group's three reportable segments all meet the definition of operating segments, are as follows:
Colombia:
- | Éxito: Revenues from retailing activities, with stores under the banner Éxito. |
- | Carulla: Revenues from retailing activities, with stores under the banner Carulla. |
- | Low cost and other: Revenues from retailing and other activities, with stores under the banners Surtimax, Súper Inter, Surti Mayorista and B2B format. |
Argentina:
- | Revenues and services from retailing activities in Argentina, with stores under the banners Libertad and Mini Libertad. |
Uruguay:
- | Revenues and services from retailing activities in Uruguay, with stores under the banners Disco, Devoto and Géant. |
Exito Group discloses information by segment pursuant to IFRS 8 - Operating segments, which are defined as a component of an entity whose operating results are regularly reviewed by the chief operating decision maker (Board of Directors) for decision making purposes about resources to be allocated.
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Retail sales by each of the segments are as follows:
Quarter ended March 31, | ||||||||||
Operating segment | Banner | 2024 | 2023 (a) | |||||||
Colombia | Éxito | 2,520,385 | 2,482,685 | |||||||
Carulla | 606,986 | 568,511 | ||||||||
Low cost and other | 575,974 | 579,147 | ||||||||
Argentina | 295,716 | 445,420 | ||||||||
Uruguay | 1,037,043 | 1,161,469 | ||||||||
Total consolidated | 5,036,104 | 5,237,232 |
(a) | As a consequence of the store conversions carried out during 2024, the sales of the brands of the Colombian operating segment for the quarter ended March 31, 2023, have been reclassified for comparative purposes using the same store allocation presented during the quarter ended March 31, 2024. |
Below is additional information by operating segment:
For the quarter ended March 31, 2024 | ||||||||||||||||||||||||
Colombia | Argentina (1) | Uruguay (1) | Total | Eliminations (2) | Total | |||||||||||||||||||
Retail sales | 3,703,345 | 295,716 | 1,037,043 | 5,036,104 | - | 5,036,104 | ||||||||||||||||||
Service revenue | 189,458 | 9,809 | 6,914 | 206,181 | - | 206,181 | ||||||||||||||||||
Other revenue | 31,255 | 1 | 1,598 | 32,854 | - | 32,854 | ||||||||||||||||||
Gross profit | 843,260 | 100,301 | 378,392 | 1,321,953 | - | 1,321,953 | ||||||||||||||||||
Operating profit | (1,048 | ) | (2,850 | ) | 99,126 | 95,228 | - | 95,228 | ||||||||||||||||
Depreciation and amortization | 143,066 | 7,378 | 23,187 | 173,631 | - | 173,631 | ||||||||||||||||||
Net finance expenses | (94,714 | ) | 14,576 | (2,572 | ) | (82,710 | ) | - | (82,710 | ) | ||||||||||||||
Profit before income tax | (117,822 | ) | 11,726 | 96,554 | (9,542 | ) | - | (9,542 | ) | |||||||||||||||
Income tax | 33,809 | (10,613 | ) | (21,634 | ) | 1,562 | - | 1,562 |
For the quarter ended March 31, 2023 | ||||||||||||||||||||||||
Colombia | Argentina (1) | Uruguay (1) | Total | Eliminations (2) | Total | |||||||||||||||||||
Retail sales | 3,630,343 | 445,420 | 1,161,469 | 5,237,232 | - | 5,237,232 | ||||||||||||||||||
Service revenue | 177,207 | 16,538 | 7,339 | 201,084 | - | 201,084 | ||||||||||||||||||
Other revenue | 15,599 | 6 | 2,316 | 17,921 | (83 | ) | 17,838 | |||||||||||||||||
Gross profit | 862,503 | 154,457 | 415,959 | 1,432,919 | - | 1,432,919 | ||||||||||||||||||
Operating profit | 93,015 | 3,365 | 117,005 | 213,385 | - | 213,385 | ||||||||||||||||||
Depreciation and amortization | 135,324 | 11,075 | 22,292 | 168,691 | - | 168,691 | ||||||||||||||||||
Net finance expenses | (72,336 | ) | 7,860 | (2,346 | ) | (66,822 | ) | - | (66,822 | ) | ||||||||||||||
Profit before income taxc | (6,113 | ) | 11,225 | 114,659 | 119,771 | - | 119,771 | |||||||||||||||||
Income tax | 3,622 | (17,419 | ) | (26,911 | ) | (40,708 | ) | - | (40,708 | ) |
(1) | Non-operating companies (holding companies that hold interests in the operating companies) are allocated by segments to the geographic area to which the operating companies belong. Should the holding company hold interests in various operating companies, it is allocated to the most significant operating company. |
(2) | Relates to the balances of transactions carried out between segments, which are eliminated in the process of consolidation of financial statements. |
Total assets and liabilities by segment are not reported internally for management purposes and consequently they are not disclosed.
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Note 40. Assets held for sale
Assets held for sale
Exito Group management started a plan to sell certain property seeking to structure projects that allow using such real estate property, increase the potential future selling price and generate resources to Exito Group. Consequently, certain property, plant and equipment and certain investment property were classified as assets held for sale.
The balance of assets held for sale, included in the statement of financial position, is shown below:
March 31, 2024 |
December 31, 2023 | |||||||
Property, plant, and equipment (1) | 14,450 | 9,768 | ||||||
Investment property (2) | 2,645 | 2,645 | ||||||
Total | 17,095 | 12,413 |
(1) | Corresponds to the Local Paraná of the Argentinian subsidiary. As of March 31, 2024, the increase corresponds to the conversion effect. |
(2) | It corresponds to the La Secreta land negotiated with the buyer during 2019. As of March 31, 2024, 57.93% of the payment for the property has been delivered and received. The rest of the asset will be delivered coincidentally with the asset payments that will be received with the following scheme: 1.19% in 2024 and 40.88% in 2025. The deed of contribution to the trust was signed on December 1, 2020 and was registered on December 30, 2020. |
No accrued income or expenses have been recognized in profit or loss or other comprehensive income in relation to the use of these assets.
Note 41. Subsequent Events
No events have occurred subsequent to the date of the reporting period that represent significant changes in the financial position and the operations of the Company due to their relevance are required to be disclosed in the financial statements.
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Almacenes Éxito S.A.
Certification by the Parent Companie's Legal Representative and Head Accountant
Envigado, May 8, 2024
We, the undersigned Legal Representative and Head Accountant of Almacenes Éxito S.A. Parent Company, each of us duly empowered and under whose responsibility the accompanying financial statements have been prepared, do hereby certify that regarding the interim consolidated financial statements, the following assertions therein contained have been verified prior to making them available to you and to third parties:
1. | All assets and liabilities included in the interim consolidated financial statements, exist, and all transactions included in said interim consolidated financial statements have been carried out during the quarter ended March 31, 2024 and March 31, 2023. |
2. | All economic events achieved by the Company during the quarter ended March 31, 2024 and march 31, 2023, have been recognized in the interim consolidated financial statements. |
3. | Assets represent likely future economic benefits (rights), and liabilities represent likely future economic sacrifice (obligations) obtained by or in charge of the Company at March 31, 2021 and at December 31, 2023. |
4. | All items have been recognized at proper values. |
5. | All economic events affecting the Company have been properly classified, described and disclosed in the interim consolidated financial statements. |
We do certify the above assertions pursuant to section 37 of Law 222 of 1995.
Further, the undersigned legal representative of Almacenes Éxito S.A., Parent Company, does hereby certify that the interim consolidated financial statements and the operations of the Company and its subsidiaries at March 31, 2024 and at December 31, 2023, are free of fault, inaccuracy or misstatement that prevent users from having a true view of its financial position.
This certification is issued pursuant to section 46 of Law 964 of 2005.
Finally, we inform that these accompanying consolidated financial statements for the quarters ended March 31, 2024 and March 31, 2023 were subjected to a limited review under the International Standard for Review Engagements NITR 2410 (ISRE 2410) - Review of interim financial information, carried out by the Parent Company's statutory auditor. The report of the statutory auditor for the quarter ended March 31, 2024 is an integral part of these financial statements.
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Almacenes Éxito SA published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 10:19:42 UTC.