GRUPO ELEKTRA ANNOUNCES REVENUE OF Ps.44,562 MILLION AND EBITDA OF Ps.6,363 MILLION IN THE FIRST QUARTER OF 2024


(MENAFN- PR Newswire) - Firm dynamism in merchandise sales
generates a 10% increase in commercial revenue, to Ps.17,036 million -
- Operating profit grows 8% in the period, to
Ps.4,067 million -
- Increasing quality of
Banco Azteca México's portfolio;
delinquency rate drops to 3.7%, from 4.9% a year ago -

MEXICO CITY, April 23, 2024 /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 first quarter 2024 results.

First quarter results

Consolidated revenue grew 6%, to Ps.44,562 million in the period, compared to Ps.42,219 million in the same quarter of the previous year. Operating costs and expenses increased 6%, to Ps.38,199 million, from Ps.36,062 million in 2023.

As a result, EBITDA was Ps.6,363 million, 3% higher compared to Ps.6,158 million a year ago. Operating income was Ps.4,067 million, 8% above Ps.3,767 million in the same period of 2023.

The company reported net income of Ps.1,721 million, compared to net income of Ps.459 million a year ago.



1Q 2023


1Q 2024


Change




Ps.

%






Consolidated revenue

$42,219

$44,562

$2,343

6
%






EBITDA

$6,158

$6,363

$205

3
%






Operating result

$3,767

$4,067

$300

8
%






Net result

$459

$1,721

$1,262

-----






Net result per share

$2.07

$7.80

$5.73

-----






Figures in millions of pesos
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
As of March 31, 2024, Elektra* outstanding shares were 220.7 million and as of March 31, 2023, were 221.4 million.

Revenue

Consolidated revenue increased 6% during the period, attributable to a 10% growth in commercial sales and a 3% increase in financial income.

The increase in financial income - to Ps.27,526 million, from Ps.26,699 million the previous year - reflects a 3% growth in Banco Azteca México's income. This growth aligns with the ongoing expansion of the gross credit portfolio, contributing to the wellbeing of millions of families and fostering business development.

The increase in income from the commercial business, to Ps.17,036 million, from Ps.15,520 million a year ago, results largely from growth in motorcycle sales - which strengthen business productivity and the mobility of millions of people - telephony - which facilitates efficient connectivity for more and more users - and household appliances, which boost the quality of life of a growing number of families.

Costs and expenses

Consolidated costs for the quarter were Ps.21,534 million, compared to Ps.19,904 million the previous year. This growth is attributed to a 6% increase in the financial cost, resulting from higher interest paid, as well as a 10% rise in the commercial cost, in line with the increase in revenue from the commercial business.

Sales, administration, and promotion expenses grew 3%, to Ps.16,665 million, from Ps.16,158 million a year ago, largely as a result of higher advertising expenses.

The lower growth in expenses in relation to income for the period results from solid strategies that drive Grupo Elektra's operational efficiency, together with strict budgets and optimization of processes throughout the organization.

EBITDA and net result

EBITDA was Ps.6,363 million, from Ps.6,158 million the previous year. The company reported operating income of Ps.4,067 million, compared to Ps.3,767 million in the same quarter of 2023.

Below EBITDA, a positive variation of Ps.1,867 million was recorded in other financial results, which reflects a 2% loss this quarter in the market value of the underlying financial instruments that the company owns - and which does not imply cash flow - compared to a 7% loss a year ago.

Grupo Elektra reported net income of Ps.1,721 million, from a net income of Ps.459 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, debt with cost as of March 31, 2024, was Ps.38,568 million, compared to Ps.39,026 million the previous year. The reduction is primarily attributed to international bond amortizations, partially offset by issuance of Cebures and a bank loan.

The balance of cash and cash equivalents was Ps.12,267 million, from Ps.10,078 million the previous year. Net debt was Ps.26,301 million, 9% below Ps.28,948 million a year ago.

As of March 31, 2024, the company's equity was Ps.92,214 million, and the equity to total liabilities ratio was 1.07 times.


As of March 31
2023

As of March 31
2024

Change

Ps.

%











Cash and cash equivalents

$10,078

$12,267

2,189

22
%

Marketable financial instruments

28,059

25,717

(2,342)

(8
%)

Inventories

17,663

17,470

(194)

(1
%)

Accounts receivables

43,350

52,012

8,661

20
%

Other current assets

5,083

3,857

(1,227)

(24
%)

Investments in shares

39,692

41,575

1,883

5
%

Fixed assets

10,037

8,801

(1,236)

(12
%)

Right of use assets

12,848

12,056

(792)

(6
%)

Other assets

3,619

4,545

926

26
%






Total assets

$170,429

$178,299

$7,870

5
%






Short-term debt

$9,386

$10,354

967

10
%

Suppliers

8,016

11,340

3,325

41
%

Other short-term liabilities

17,934

20,235

2,301

13
%

Long-term debt

29,640

28,214

(1,426)

(5
%)

Differed taxes

1,756

935

(821)

(47
%)

Other long-term debt

14,662

15,007

345

2
%






Total liabilities

$81,393

$86,085

$4,692

6
%






Stakeholder ́s equity

$89,036

$92,214

$3,178

4
%






Liabilities and equity

$170,429

$178,299

$7,870

5
%

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 Latinoamérica as of March 31, 2024, grew 5%, to Ps.174,484 million, from Ps.165,666 million the previous year. The consolidated delinquency rate was 4.2% at the end of the period, compared to 5.7% the previous year.

Banco Azteca México's gross portfolio balance increased 5% to Ps.169,099 million, from Ps.160,451 million a year ago. The Bank's delinquency rate at the end of the period was 3.7%, compared to 4.9% the previous year.

Grupo Elektra's consolidated deposits were Ps.216,897 million, from Ps.216,631 million a year ago. Banco Azteca México's traditional deposits were Ps.214,793 million, compared to Ps.215,332 million the previous year.

The ratio of traditional deposits to gross portfolio of Banco Azteca México was 1.27 times, which allows solid growth of the Bank, with optimal funding costs.

The Bank's estimated liquidity coverage ratio at the end of the quarter - countable liquid assets / total net cash outflow - was 902%, an outstanding figure in the Mexican banking sector.

The capitalization ratio of Banco Azteca México was 14.94%.

Infrastructure

Grupo Elektra presently operates 6,170 contact points, a decrease from 6,307 units the previous year. This reduction is the result of strategies aimed at maximizing the profitability of the company's contact points. In the United States, 83 Purpose Financial units were closed, and in Mexico, the net closure was 69 contact points. However, this decrease was partially offset by the opening of 15 units in Central America.

At the end of the period, Grupo Elektra had 4,912 contact points in Mexico, 834 in the US, and 424 in Central America. This extensive distribution network ensures proximity to customers and fosters close attention, contributing to the company's superior market positioning in the countries it operates in.

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 ( ), 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 ( ), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. These companies include TV Azteca ( ; ), Grupo Elektra ( ), Banco Azteca ( ), Purpose Financial (havepurpose), Afore Azteca ( ), Seguros Azteca ( ), Punto Casa de Bolsa ( ), Total Play (irtotalplay; ) and Total Play Empresarial com). 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

























1Q23


1Q24


Change














Financial income

26,699

63
%


27,526

62
%


827

3
%



Commercial income

15,520

37
%


17,036

38
%


1,516

10
%



Income

42,219

100
%


44,562

100
%


2,343

6
%














Financial cost

8,808

21
%


9,380

21
%


572

6
%



Commercial cost

11,095

26
%


12,154

27
%


1,059

10
%



Costs

19,904

47
%


21,534

48
%


1,631

8
%














Gross income

22,316

53
%


23,028

52
%


712

3
%














Sales, administration and promotion expenses

16,158

38
%


16,665

37
%


507

3
%














EBITDA

6,158

15
%


6,363

14
%


205

3
%














Depreciation and amortization

2,390

6
%


2,308

5
%


(82)

-3
%














Other expense (income), net

1

0
%


(12)

0
%


(12)

----














Operating income

3,767

9
%


4,067

9
%


300

8
%














Comprehensive financial result:












Interest income

377

1
%


445

1
%


69

18
%




Interest expense

(1,470)

-3
%


(1,461)

-3
%


10

1
%




Foreign exchange gain, net

436

1
%


30

0
%


(406)

-93
%




Other financial results, net

(2,538)

-6
%


(671)

-2
%


1,867

74
%




(3,195)

-8
%


(1,656)

-4
%


1,539

48
%














Participation
in
the
net
income of











CASA and other associated companies

56

0
%


80

0
%


23

42
%














Income before income tax

628

1
%


2,491

6
%


1,862

----














Income tax

(169)

0
%


(770)

-2
%


(600)

----














Income before discontinued operations

459

1
%


1,721

4
%


1,262

----














Result from discontinued operations

(0)

0
%


(0)

0
%


(0)

----














Consolidated net income

459

1
%


1,721

4
%


1,262

----


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 March 31, 2023


At March 31, 2024














Cash and cash equivalents

10,078

31,216

41,294


12,267

28,408

40,675


(619)

-1
%












Marketable financial instruments

5,077

94,672

99,749


3,983

96,919

100,902


1,153

1
%












Performing loan portfolio

-

85,349

85,349


-

90,886

90,886


5,537

6
%

Total past-due loans

-

7,533

7,533


-

5,273

5,273


(2,260)

-30
%

Gross loan portfolio

-

92,882

92,882


-

96,159

96,159


3,277

4
%












Allowance for credit risks

-

14,063

14,063


-

14,467

14,467


403

3
%












Loan portfolio, net

-

78,819

78,819


-

81,692

81,692


2,873

4
%












Inventories

17,663

-

17,663


17,470

-

17,470


(194)

-1
%












Other current assets

19,676

13,699

33,376


23,024

10,835

33,859


483

1
%












Total current assets

52,495

218,407

270,901


56,744

217,854

274,598


3,697

1
%












Financial instruments

22,981

3

22,985


21,734

2

21,735


(1,249)

-5
%












Performing loan portfolio

-

70,807

70,807


-

76,352

76,352


5,545

8
%

Total past-due loans

-

1,977

1,977


-

1,973

1,973


(4)

0
%

Gross loan portfolio

-

72,784

72,784


-

78,325

78,325


5,541

8
%












Allowance for credit risks

-

4,918

4,918


-

5,408

5,408


490

10
%












Loan portfolio

-

67,865

67,865


-

72,917

72,917


5,052

7
%












Other non-current assets

16,627

331

16,958


22,500

707

23,207


6,249

37
%

Investment in shares

2,103

-

2,103


2,422

11

2,433


330

16
%

Property, furniture, equipment and












investment in stores, net

10,037

11,028

21,065


8,801

10,361

19,162


(1,903)

-9
%

Intangible assets

780

8,134

8,914


697

7,242

7,938


(976)

-11
%

Right of use asset

12,675

2,189

14,864


11,896

1,919

13,816


(1,049)

-7
%

Other assets

2,839

7,734

10,573


3,849

8,289

12,137


1,565

----

TOTAL ASSETS

120,537

315,692

436,228


128,642

319,301

447,943


11,715

3
%























Demand and term deposits

-

216,631

216,631


-

216,897

216,897


266

0
%

Creditors from repurchase agreements

-

27,753

27,753


-

33,204

33,204


5,451

20
%

Short-term debt

9,281

542

9,823


9,832

33

9,865


42

0
%

Leasing

2,317

887

3,204


2,017

772

2,789


(415)

-13
%

Short-term liabilities with cost

11,598

245,813

257,411


11,849

250,907

262,756


5,345

2
%












Suppliers and other short-term liabilities

23,409

20,183

43,592


29,343

20,071

49,415


5,822

13
%

Short-term liabilities without cost

23,409

20,183

43,592


29,343

20,071

49,415


5,822

13
%












Total short-term liabilities

35,006

265,997

301,003


41,192

270,978

312,170


11,167

4
%












Long-term debt

26,970

0

26,970


25,361

-

25,361


(1,609)

-6
%

Leasing

11,402

1,440

12,842


11,065

1,183

12,248


(594)

-5
%

Long-term liabilities with cost

38,372

1,440

39,812


36,426

1,183

37,609


(2,203)

-6
%












Long-term liabilities without cost

5,015

1,362

6,377


4,877

1,073

5,951


(427)

-7
%












Total long-term liabilities

43,387

2,802

46,190


41,303

2,257

43,559


(2,630)

-6
%












TOTAL LIABILITIES

78,394

268,799

347,193


82,495

273,235

355,730


8,537

2
%












TOTAL STOCKHOLDERS' EQUITY

42,143

46,893

89,036


46,147

46,066

92,214


3,178

4
%























LIABILITIES + EQUITY

120,537

315,692

436,228


128,642

319,301

447,943


11,715

3
%


INFRASTRUCTURE














1Q23


1Q24


Change










Points of sale in Mexico









Elektra

1,224

19
%


1,227

20
%


3

0
%

Salinas y Rocha

33

1
%


32

1
%


(1)

-3
%

Banco Azteca

1,937

31
%


1,920

31
%


(17)

-1
%

Freestanding branches

1,787

28
%


1,733

28
%


(54)

-3
%

Total

4,981

79
%


4,912

80
%


(69)

-1
%










Points of sale in Central America









Elektra

119

2
%


126

2
%


7

6
%

Banco Azteca

225

4
%


233

4
%


8

4
%

Freestanding branches

65

1
%


65

1
%


-

0
%

Total

409

6
%


424

7
%


15

4
%










Points of sale in North America









Purpose Financial

917

15
%


834

14
%


(83)

-9
%

Total

917

15
%


834

14
%


(83)

-9
%










TOTAL

6,307

100
%


6,170

100
%


(137)

-2
%





































Floor space (m2)

1,527

100
%


1,716

100
%


189

12
%




























Employees









Mexico

60,897

87
%


62,386

88
%


1,489

2
%

Central and South America

6,082

9
%


6,050

9
%


(32)

-1
%

North America

2,673

4
%


2,506

4
%


(167)

-6
%

Total employees

69,652

100
%


70,942

100
%


1,290

2
%

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

MENAFN23042024003732001241ID1108130531


PR Newswire

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