GRUPO ELEKTRA ANNOUNCES 17% GROWTH IN EBITDA TO Ps.4,840 MILLION IN THE THIRD QUARTER OF 2023

—Consolidated revenue increased 12%, to Ps.45,003 million, derived from firm dynamism in financial income—

—As a result of strategies that drive strong operational efficiencies, sales, administration, and promotion expenses remain constant—

—Continuous increase in the gross portfolio of Banco Azteca México, grows 9%, to Ps.162,843 million—

MEXICO CITY, Oct. 24, 2023 /PRNewswire/ — Grupo Elektra, S.A.B. de C.V. (BMV: ELEKTRA* Latibex: XEKT), Latin America’s leading specialty retailer and financial services company, and the largest non-bank provider of cash advance services in the United States, today announced third quarter 2023 results.

Third quarter results

Consolidated revenue grew 12%, to Ps.45,003 million in the period, compared to Ps.40,045 million in the same quarter of the previous year. Operating costs and expenses were Ps.40,163 million, from Ps.35,926 million in 2022.

As a result, EBITDA was Ps.4,840 million, 17% higher compared to Ps.4,119 million a year ago. Operating income was Ps.1,252 million, from Ps.1,802 million in the same period of 2022.

The company reported a net loss of Ps.183 million, compared to a loss of Ps.2,384 million a year ago.

 

   3Q 2022

   3Q 2023

   Change

Ps

%

Consolidated revenue

$40,045

$45,003

$4,958

12 %

EBITDA

$4,119

$4,840

$721

17 %

Operating profit

 

Net result

$1,802

 

$(2,384)

$1,252

 

$(183)

$(550)

 

$2,201

-31%

 

92%

Net result per share

$(10.55)

$(0.83)

$9.72

92 %

Figures in millions of pesos
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.     
As of September 30, 2022, Elektra* outstanding shares were 225.9 million and as of September 30, 2023, were 221.0 million.

Revenue

Consolidated revenue increased 12% in the period, as a result of 18% growth in financial income and a 4% increase in commercial sales.

The increase in financial income — to Ps.28,306 million, from Ps.23,949 million the previous year — reflects, to a large extent, a 25% growth in Banco Azteca México’s income — which additionally strengthens its solid financial margin — in the framework of dynamic growth of the gross credit portfolio in the period, which promotes the well-being of millions of families and the development of businesses.

The increase in income from the commercial business — to Ps.16,696 million, from Ps.16,095 million a year ago — results largely from growth in sales of Italika motorcycles — which strengthen business productivity and the mobility of millions of people — as well as household items — which boost the quality of life of a growing number of families.

Costs and expenses

Consolidated costs for the quarter were Ps.22,920 million, compared to Ps.18,653 million the previous year. The growth is explained by a 44% increase in the financial cost — derived from greater creation of preventive credit reserves, as well as higher interest paid, in line with higher market rates — and a 10% increase in the commercial cost in the period.

Sales, administrative and promotion expenses were Ps.17,243 million, practically unchanged compared to Ps.17,273 million a year ago, as a result of higher operating expenses, offset by a reduction in personnel expenses.

The stability of expenses in the period results from solid strategies that drive Grupo Elektra’s operational efficiency, in conjunction with strict budgets throughout the organization — in the context of measures to rationalize structures and optimize processes.

EBITDA and net result

EBITDA was Ps.4,840 million, from Ps.4,119 million the previous year. The company reported operating income of Ps.1,252 million, compared to Ps.1,802 million in the same quarter of 2022.

Relevant variations below EBITDA were the following:

Increase of Ps.1,166 million in other expenses, due to net loss from the sale of commercial credit in the quarter.

Positive variation of Ps.3,996 million in other financial results, which reflects a 1% decrease this quarter in the market value of the underlying financial instruments that the company owns — and which does not imply cash flow — in comparison with a decrease of 11% a year ago.

Consistent with the results of the period, a positive balance of Ps.76 million in income taxes was recorded, compared to a positive balance of Ps.1,130 million a year ago.

Grupo Elektra reported a net loss of Ps.183 million, from a loss of Ps.2,384 million a year ago.

Unconsolidated Balance Sheet

A proforma balance sheet exercise of Grupo Elektra is presented, which allows knowing the non-consolidated financial situation, excluding the net assets of the financial business, whose investment is valued in this case under the participation method.

This presentation shows the debt of the company without considering Banco Azteca’s immediate and term deposits, which do not constitute debt with cost for Grupo Elektra. Also, the pro forma balance sheet does not include the bank’s gross loan portfolio.

This provides greater clarity about the different businesses that make up the company and allows financial market participants to make estimates of the value of the company, considering only the relevant debt for said calculations.

Consistent with this, the debt with cost as of September 30, 2023, was Ps.38,630 million, 5% lower compared to Ps.40,609 million of the previous year, mainly as a result of payments of international bonds and amortization of bank loans.

The balance of cash and cash equivalents was Ps.10,438 million, from Ps.9,480 million the previous year. Net debt was Ps.28,192 million, 9% below Ps.31,129 million a year ago.

As of September 30, 2023, the company’s stockholders’ equity was Ps.91,455 million, and the stockholders’ equity to total liabilities ratio was 1.1 times.

As of

September 30
2022

 As of

September 30

2023

 Change

Ps

%

Cash and cash equivalents

$9,480

 

$10,438

 

958

 

10 %

Marketable financial instruments

34,411

 

27,688

 

(6,723)

(20 %)

Inventories

24,204

 

19,426

 

(4,778)

(20 %)

Accounts receivables

43,287

 

48,548

 

5,260

 

12 %

Other current assets

5,226

 

3,296

 

(1,930)

 

(37 %)

Investments in shares

37,238

 

42,447

 

5,209

 

14 %

Fixed assets

9,704

 

9,788

 

84

 

1 %

Right of use assets

10,413

 

12,173

 

1,760

 

17 %

Other assets

1,674

 

3,042

 

1,368

 

82 %

 

Total assets

$175,636

 

$176,844

 

$1,208

 

1 %

Short-term debt

$13,643

 

$8,349

 

(5,294)

 

(39 %)

Suppliers

7,041

 

10,881

 

3,840

 

55 %

Other short-term liabilities

19,395

 

19,034

 

(361)

 

(2 %)

Long-term debt

26,966

 

30,281

 

3,315

 

12 %

Differed taxes

1,800

 

2,157

 

357

 

20 %

Other long-term debt

12,387

 

14,688

 

2,302

 

19 %

 

Total liabilities

$81,230

 

$85,390

 

$4,160

 

5 %

 

Stakeholder´s equity

$94,406

 

$91,455

 

($2,951)

 

(3 %)

 

Liabilities and equity

$175,636

 

$176,844

 

$1,208

 

1 %

   Figures in millions of pesos.

Consolidated Balance Sheet

Loan Portfolio and Deposits

The consolidated gross portfolio of Banco Azteca México, Purpose Financial and Banco Azteca Latin America as of September 30, 2023, grew 8%, to Ps.168,968 million, from Ps.155,737 million the previous year. The consolidated delinquency rate was 5.7% at the end of the period, compared to 3.9% the previous year.

Banco Azteca México’s gross portfolio balance increased 9% to Ps.162,843 million, from Ps.149,849 million a year ago. The Bank’s non-performing loan ratio at the end of the quarter was 5.3%, compared to 3.2% a year earlier.

Grupo Elektra’s consolidated deposits grew 7%, to Ps.221,545 million, from Ps.208,014 million a year ago. Banco Azteca México’s traditional deposits were Ps.219,639 million, 6% above the Ps.207,233 million of the previous year.

The ratio of traditional deposits to gross portfolio of Banco Azteca México was 1.3 times, which allows solid growth of the Bank, with optimal funding costs.

The Bank’s liquidity coverage ratio — computable liquid assets / total net cash outflow — was 945%, an outstanding figure in the Mexican banking sector.

The capitalization ratio of Banco Azteca México was 14.57%.

Infrastructure 

Grupo Elektra currently has 6,218 contact points, compared to 6,207 units the previous year. The increase results from the net opening of 83 contact points in Mexico and 33 in Central America, partially offset by the closure of 105 Purpose Financial units in the United States — in the context of strategies aimed at boosting online credit operations and strengthening the operational efficiency of this company.

The number of Grupo Elektra contact points in Mexico, at the end of the quarter, is 4,926, in the USA 873 and in Central America 419. The important distribution network provides the company with proximity to the customer and close service, and generates superior market positioning in the countries in which it operates.

Nine-month consolidated results

Consolidated revenue in the first nine months of the year grew 13%, to Ps.131,496 million, from Ps.116,394 million recorded in the same period of 2022, driven by a 21% growth in financial business revenue and 2 % in sales of the commercial business.

EBITDA was Ps.16,634 million, 12% higher compared to Ps.14,873 million the previous year. The company reported operating income of Ps.8,256 million, 17% above Ps.7,080 million a year ago.

In the first nine months of 2023, a net profit of Ps.5,220 million was recorded, compared to a loss of Ps.8,764 million a year ago. The change reflects superior operating results this period, as well as capital gain in the market value of the underlying financial instruments that the company owns — and which does not imply cash flow — compared to capital loss the previous year.

   9M 2022

   9M 2023

   Change

Ps

%

Consolidated revenue

$116,394

$131,496

$15,102

13 %

EBITDA

$14,873

$16,634

$1,761

12 %

Operating profit

 

Net result

$7,080

 

$(8,764)

$8,256

 

$5,220

$1,177

 

$13,984

17%

 

—-

Net result per share

$(38.80)

$23.62

$62.42

—-

Figures in millions of pesos
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.       
As of September 30, 2022, Elektra* outstanding shares were 225.9 million and as of September 30, 2023, were 221.0 million.

Company Profile:

Grupo Elektra is Latin America’s leading financial services company and specialty retailer and the largest non-bank provider of cash advance services in the United States.  The group operates more than 6,000 points of contact in Mexico, the United States, Guatemala, Honduras, and Panama.

Grupo Elektra is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast-growing, and technologically advanced companies focused on creating economic value through market innovation and goods and services that improve standards of living; social value to improve community well-being; and environmental value by reducing the negative impact of its business activities. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. These companies include TV Azteca (www.TVazteca.com; www.irtvazteca.com), Grupo Elektra (www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Purpose Financial (havepurpose.com), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx), Punto Casa de Bolsa (www.puntocasadebolsa.mx), Totalplay (irtotalplay.mx; www.totalplay.com.mx) and Totalplay Empresarial (totalplayempresarial.com.mx). TV Azteca and Grupo Elektra trade shares on the Mexican Stock Market and in Spain’s‘ Latibex market. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. The group of companies shares a common vision, values, and strategies for achieving rapid growth, superior results, and world-class performance.

Except for historical information, the matters discussed in this press release are concepts about the future that involve risks and uncertainty that may cause actual results to differ materially from those projected. Other risks that may affect Grupo Elektra and its subsidiaries are presented in documents sent to the securities authorities.

Investor Relations:

Bruno Rangel
Grupo Salinas
Tel. +52 (55) 1720-9167
[email protected]

Rolando Villarreal
Grupo Elektra, S.A.B. de C.V.
Tel. +52 (55) 1720-9167
[email protected]

Press Relations:
Luciano Pascoe
Tel. +52 (55) 1720 1313 ext. 36553
[email protected]

 

 GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES

 CONSOLIDATED INCOME STATEMENTS

 MILLIONS OF MEXICAN PESOS

 

3Q22

 

3Q23

 

Change

Financial income

23,949

60 %

28,306

63 %

4,357

18 %

Commercial income

16,095

40 %

16,696

37 %

601

4 %

 

Income

 

40,045

 

100 %

 

45,003

 

100 %

4,958

12 %

Financial cost

7,103

18 %

10,224

23 %

3,121

44 %

Commercial cost

11,549

29 %

12,696

28 %

1,147

10 %

 

Costs

 

18,653

 

47 %

 

22,920

 

51 %

4,268

23 %

 

Gross income

 

21,392

 

53 %

 

22,082

 

49 %

690

3 %

 

Sales, administration and promotion expenses

 

17,273

 

43 %

 

17,243

 

38 %

(30)

0 %

 

EBITDA

 

4,119

 

10 %

 

4,840

 

11 %

721

17 %

Depreciation and amortization

2,318

6 %

2,423

5 %

105

5 %

Other (income) expense, net

(1)

0 %

1,165

3 %

1,166

100 %

 

Operating income

 

1,802

 

4 %

 

1,252

 

3 %

 

(550)

-31 %

Comprehensive financial result:

     Interest income

268

1 %

410

1 %

142

53 %

     Interest expense

(1,241)

-3 %

(1,447)

-3 %

(206)

-17 %

     Foreign exchange loss, net

(27)

0 %

(158)

0 %

(131)

-100 %

     Other financial results, net

(4,297)

-11 %

(301)

-1 %

3,996

93 %

 

(5,296)

 

-13 %

 

(1,496)

 

-3 %

3,801

72 %

Participation  in  the  net  income of

CASA and other associated companies

(19)

0 %

(14)

0 %

5

26 %

 

Loss before income tax

 

(3,514)

 

-9 %

 

(258)

 

-1 %

3,256

93 %

Income tax

1,130

3 %

76

0 %

(1,054)

-93 %

 

Loss before discontinued operations

 

(2,383)

 

-6 %

 

(182)

 

0 %

2,201

92 %

Result from discontinued operations

(1)

0 %

(1)

0 %

(0)

-5 %

 

Consolidated net loss

 

(2,384)

 

-6 %

 

(183)

 

0 %

2,201

92 %

 

 

GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES

 

CONSOLIDATED INCOME STATEMENTS

 

MILLIONS OF MEXICAN PESOS

 

9M22

 

9M23

 

Change

Financial income

67,835

58 %

81,812

62 %

13,977

21 %

Commercial income

48,559

42 %

49,685

38 %

1,126

2 %

 

Income

 

116,394

 

100 %

 

131,496

 

100 %

15,102

13 %

Financial cost

18,215

16 %

28,222

21 %

10,007

55 %

Commercial cost

35,030

30 %

36,682

28 %

1,652

5 %

 

Costs

 

53,245

 

46 %

 

64,905

 

49 %

11,660

22 %

 

Gross income

 

63,149

 

54 %

 

66,592

 

51 %

3,442

5 %

 

Sales, administration and promotion expenses

 

48,276

 

41 %

 

49,957

 

38 %

1,682

3 %

 

EBITDA

 

14,873

 

13 %

 

16,634

 

13 %

1,761

12 %

Depreciation and amortization

6,757

6 %

7,208

5 %

451

7 %

Other expense, net

1,037

1 %

1,170

1 %

134

13 %

 

Operating income

 

7,080

 

6 %

 

8,256

 

6 %

1,177

17 %

Comprehensive financial result:

     Interest income

664

1 %

1,301

1 %

637

96 %

     Interest expense

(3,187)

-3 %

(4,360)

-3 %

(1,173)

-37 %

     Foreign exchange (loss) gain, net

(22)

0 %

350

0 %

372

—-

     Other financial results, net

(17,115)

-15 %

1,463

1 %

18,578

—-

 

(19,660)

 

-17 %

 

(1,245)

 

-1 %

18,415

94 %

Participation  in  the  net  income of

CASA and other associated companies

193

0 %

390

0 %

197

100 %

 

(Loss) income before income tax

 

(12,387)

 

-11 %

 

7,401

 

6 %

19,788

—-

Income tax

3,624

3 %

(2,185)

-2 %

(5,809)

—-

 

(Loss) income before discontinued operations

 

(8,763)

 

-8 %

 

5,216

 

4 %

13,979

—-

Result from discontinued operations

(1)

0 %

4

0 %

5

—-

 

Consolidated net (loss) income

 

(8,764)

 

-8 %

 

5,220

 

4 %

13,984

—-

 

 

GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEET

 

MILLIONS OF MEXICAN PESOS

Commercial Business

 

Financial Business

 

Grupo Elektra

 

Commercial Business

 

Financial Business

 

Grupo Elektra

 

Change

 

At September 30, 2022

 

At September 30, 2023

Cash and cash equivalents

9,480

30,904

40,384

10,438

27,439

37,876

(2,507)

-6 %

Marketable financial instruments

7,162

88,226

95,388

5,131

93,085

98,215

2,828

3 %

Performing loan portfolio

83,091

83,091

87,909

87,909

4,818

6 %

Total past-due loans

4,620

4,620

7,449

7,449

2,829

61 %

Gross loan portfolio

87,711

87,711

95,359

95,359

7,647

9 %

Allowance for credit risks

11,040

11,040

12,524

12,524

1,483

13 %

Loan portfolio, net

76,671

76,671

82,835

82,835

6,164

8 %

Inventories

24,204

24,204

19,426

19,426

(4,778)

-20 %

Other current assets

19,587

16,875

36,462

19,045

14,251

33,297

(3,165)

-9 %

 

Total current assets

 

60,432

 

212,676

 

273,108

 

54,040

 

217,610

 

271,649

(1,459)

-1 %

Financial instruments

27,249

32

27,281

22,557

3

22,560

(4,721)

-17 %

Performing loan portfolio

66,506

66,506

71,385

71,385

4,879

7 %

Total past-due loans

1,520

1,520

2,224

2,224

704

46 %

Gross loan portfolio

68,026

68,026

73,609

73,609

5,583

8 %

Allowance for credit risks

4,336

4,336

5,489

5,489

1,154

27 %

Loan portfolio

63,691

63,691

68,120

68,120

4,429

7 %

Other non-current assets

15,694

204

15,897

20,858

370

21,228

5,331

34 %

Investment in shares

2,275

2,275

2,667

2,667

392

17 %

Property, furniture, equipment and

  investment in stores, net

9,704

10,118

19,821

9,788

10,613

20,401

580

3 %

Intangible assets

542

7,574

8,116

780

8,233

9,013

897

11 %

Right of use asset

10,233

2,384

12,616

12,007

1,959

13,966

1,350

11 %

Other assets

1,132

2,594

3,726

2,262

6,680

8,941

5,216

140 %

 

TOTAL ASSETS

 

127,260

 

299,270

 

426,531

 

124,958

 

313,588

 

438,546

12,016

3 %

Demand and term deposits

208,014

208,014

221,545

221,545

13,532

7 %

Creditors from repurchase agreements

19,040

19,040

19,915

19,915

875

5 %

Short-term debt

13,323

445

13,768

8,244

17

8,261

(5,507)

-40 %

Leasing

2,042

944

2,986

2,186

814

3,000

14

0 %

 

Short-term liabilities with cost

15,365

228,442

243,807

10,430

242,291

252,721

8,914

4 %

Suppliers and other short-term liabilities

24,185

21,589

45,775

27,509

19,497

47,007

1,232

3 %

 

Short-term liabilities without cost

24,185

21,589

45,775

27,509

19,497

47,007

1,232

3 %

 

Total short-term liabilities

 

39,550

 

250,032

 

289,582

 

37,939

 

261,788

 

299,728

10,146

4 %

Long-term debt

25,111

11

25,122

28,110

1

28,111

2,989

12 %

Leasing

9,283

1,555

10,837

11,064

1,235

12,299

1,461

13 %

 

Long-term liabilities with cost

34,394

1,565

35,959

39,174

1,236

40,410

4,451

12 %

 

Long-term liabilities without cost

4,904

1,680

6,584

5,782

1,173

6,954

370

6 %

 

Total long-term liabilities

 

39,298

 

3,246

 

42,543

 

44,956

 

2,408

 

47,364

4,821

11 %

 

TOTAL LIABILITIES

 

78,848

 

253,277

 

332,125

 

82,895

 

264,197

 

347,092

14,967

5 %

 

TOTAL STOCKHOLDERS’ EQUITY

 

48,413

 

45,993

 

94,406

 

42,063

 

49,392

 

91,455

(2,951)

-3 %

 

LIABILITIES + EQUITY

 

127,260

 

299,270

 

426,531

 

124,958

 

313,588

 

438,546

12,016

3 %

 

 

INFRASTRUCTURE

 

3Q22

 

3Q23

 

Change

 

Points of sale in Mexico

Elektra

1,173

19 %

1,226

20 %

53

5 %

Salinas y Rocha

33

1 %

33

1 %

0 %

Banco Azteca

1,885

30 %

1,928

31 %

43

2 %

Freestanding branches

1,752

28 %

1,739

28 %

(13)

-1 %

 

Total

 

4,843

 

78 %

 

4,926

 

79 %

83

2 %

 

Points of sale in Central America

Elektra

111

2 %

122

2 %

11

10 %

Banco Azteca

215

3 %

230

4 %

15

7 %

Freestanding branches

60

1 %

67

1 %

7

12 %

 

Total

 

386

 

6 %

 

419

 

7 %

33

9 %

 

Points of sale in North America

Purpose Financial

978

16 %

873

14 %

(105)

-11 %

 

Total

 

978

 

16 %

 

873

 

14 %

(105)

-11 %

 

TOTAL

 

6,207

 

100 %

 

6,218

 

100 %

11

0 %

 

Floor space (m²)

 

1,484

 

100 %

 

1,532

 

100 %

48

3 %

 

Employees

Mexico

63,559

88 %

62,975

88 %

(584)

-1 %

Central and South America

5,624

8 %

5,977

8 %

353

6 %

North America

2,707

4 %

2,629

4 %

(78)

-3 %

 

Total employees

 

71,890

 

100 %

 

71,581

 

100 %

(309)

0 %

 

 

Cision View original content:https://www.prnewswire.com/news-releases/grupo-elektra-announces-17-growth-in-ebitda-to-ps4-840-million-in-the-third-quarter-of-2023–301966573.html

SOURCE Grupo Elektra, S.A.B. de C.V.

GRUPO ELEKTRA ANNOUNCES 17% GROWTH IN EBITDA TO Ps.4,840 MILLION IN THE THIRD QUARTER OF 2023 WeeklyReviewer

PR Newswire Business News

World Reviewer Staff
World Reviewer Staffhttps://weeklyreviewer.com/
The first logical thought has to be "no way". I'm the World Observer! Ill find and share important news all day.

Latest articles

Earnings Disclosure

WeeklyReviewer earns primarily through affiliates and ads. We don’t encourage anyone to click on ads for any other purpose but your own. We recommend products and services often for our readers, and through many we will earn commissions through affiliate programs.

Related articles