GRUPO ELEKTRA ANNOUNCES 45% GROWTH IN EBITDA TO Ps.4,727 MILLION IN THE FOURTH QUARTER OF 2023

GRUPO ELEKTRA ANNOUNCES 45% GROWTH IN EBITDA TO Ps.4,727 MILLION IN THE FOURTH QUARTER OF 2023

—Consolidated revenue increased 9%, to Ps.52,654 million, driven by firm dynamism in financial income—

—As a result of strategies that generate strong operational efficiencies, sales, administration and promotion expenses decreased 3%—

—Capitalization index of 15.01% and liquidity coverage ratio of 1,055%, confirm notable financial performance of Banco Azteca México—

MEXICO CITY, Feb. 20, 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 four quarter 2023 and 2023 results.

Fourth quarter results

Consolidated revenue grew 9%, to Ps.52,654 million in the period, compared to Ps.48,297 million in the same quarter of the previous year. Operating costs and expenses increased 6%, to Ps.47,927 million, from Ps.45,031 million in 2022.

As a result, EBITDA was Ps.4,727 million, 45% higher compared to Ps.3,266 million a year ago. Operating income was Ps.1,032 million, from Ps.897 million in the same period of 2022.

The company reported net income of Ps.773 million, compared to net income of Ps.1,411 million a year ago.

   4Q 2022

   4Q 2023

   Change

Ps.

%

Consolidated revenue

$48,297

$52,654

$4,358

9 %

EBITDA      

$3,266

$4,727

$1,461

45 %

Operating profit

$897

$1,032

$135

15 %

Net result 

$1,411

$773

$(639)

(45) %

Net result per-share

$6.36

$3.50

$(2.86)

(45) %

Figures in millions of pesos
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.           
As of December 31, 2022, Elektra* outstanding shares were 221.7 million and as of December 31, 2023, were 220.9 million.

Revenue

Consolidated revenue increased 9% in the period, as a result of 11% growth in financial income and a 6% increase in commercial sales.

The increase in financial income — to Ps.29,480 million, from Ps.26,456 million the previous year — reflects, to a large extent, a 15% growth in Banco Azteca México’s income — which additionally strengthens its solid financial margin — in the framework of continuous growth of the gross credit portfolio, which promotes the well-being of millions of families and the development of businesses.

The increase in income from the commercial business — to Ps.23,174 million, from Ps.21,841 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 — that boost the quality of life of a growing number of families.

Costs and expenses

Consolidated costs for the quarter were Ps.29,567 million, compared to Ps.26,197 million the previous year. The growth is explained by a 40% increase in the financial cost — derived from greater creation of credit reserves, as well as higher interest paid, in line with increased market rates — partially offset by a 1% reduction in the commercial cost, as a result of lower costs related to the supply chain.

Sales, administration and promotion expenses decreased 3%, to Ps.18,360 million, from Ps.18,834 million a year ago, as a result of lower personnel and operating expenses, partially offset by an increase in advertising expenses.

The reduction in expenses in 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.4,727 million, from Ps.3,266 million the previous year. The company reported operating income of Ps.1,032 million, compared to Ps.897 million in the same quarter of 2022.

Relevant variations below EBITDA were the following:

Increase of Ps.1,378 million in other expenses, mainly due to impairment of intangible assets of Purpose Financial this period, consistent with the performance and financial perspectives of the company.

Negative variation of Ps.1,145 million in other financial results, which reflects a 2% capital gain 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 capital gain of 7% a year ago.

Grupo Elektra reported net income of Ps.773 million, from a net income of Ps.1,411 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 December 31, 2023, was Ps.39,016 million, 4% lower compared to Ps.40,759 million of the previous year, mainly as a result of international bond amortizations, partially offset by issuance of Cebures and a bank loan.

The balance of cash and cash equivalents was Ps.9,507 million, from Ps.9,808 million the previous year. Net debt was Ps.29,509 million, 5% below Ps.30,951 million a year ago.

As of December 31, 2023, the company’s stockholders’ equity was Ps.91,053 million, and the stockholders’ equity to total liabilities ratio was 1.1 times.

As of
December 31   
2022

As of
December 31   
2023

Change

Ps.

%

Cash and cash equivalents

$9,808

$9,507

(301)

(3 %)

Marketable financial instruments

30,244

26,953

(3,291)

(11 %)

Inventories

18,244

16,703

(1,541)

(8 %)

Accounts receivables

45,387

50,540

5,153

11 %

Other current assets

6,034

4,651

(1,384)

(23 %)

Investments in shares

38,389

42,315

3,927

10 %

Fixed assets

10,189

9,224

(966)

(9 %)

Right of use assets

12,810

12,004

(806)

(6 %)

Other assets

2,402

3,115

713

30 %

Total assets

$1,73,507

$1,75,011

$1,505

1 %

Short-term debt

$7,736

$5,648

(2,088)

(27 %)

Suppliers

6,551

9,374

2,822

43 %

Other short-term liabilities

19,693

17,857

(1,836)

(9 %)

Long-term debt

33,023

33,368

345

1 %

Differed taxes

975

2,903

1,929

198 %

Other long-term debt

15,076

14,809

(267)

(2 %)

Total liabilities

$83,053

$83,958

$905

1 %

Stakeholder´s equity

$90,453

$91,053

$599

1 %

Liabilities and equity

$1,73,507

$1,75,011

$1,505

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 Latinoamérica, as of December 31, 2023, grew 6%, to Ps.176,587 million, from Ps.166,944 million the previous year. The consolidated delinquency rate was 5.6% at the end of the period, compared to 4.6% the previous year.

Banco Azteca México’s gross portfolio balance increased 6% to Ps.171,248 million, from Ps.161,307 million a year ago. The Bank’s delinquency rate at the end of the period was 5.1%, compared to 4.0% the previous year.

Grupo Elektra’s consolidated deposits were Ps.216,880 million, from Ps.215,747 million a year ago. Banco Azteca México’s traditional deposits were Ps.214,536 million, compared to Ps.215,137 million the previous year.

The ratio of deposits to gross portfolio of Banco Azteca México was 1.25 times, which allows solid growth of the Bank, with optimal funding costs.

The Bank’s estimated liquidity coverage ratio — countable liquid assets / total net cash outflow — was 1,055%, an outstanding figure in the Mexican banking sector.

The capitalization index of Banco Azteca México was 15.01%.

Infrastructure 

Grupo Elektra currently has 6,174 contact points, compared to 6,346 units the previous year; the decrease results from strategies that focus on maximizing the profitability of the company’s contact points. In the United States, 107 Purpose Financial units closed, while in Mexico the net closure was 70 contact points. The above was partially offset by the opening of 5 units in Central America.

The number of Grupo Elektra contact points in the country, at the end of the period, was 4,920, in the USA 843 and in Central America 411. The important distribution network provides the company with proximity to the customer and close attention and generates superior market positioning in the countries in which it operates.

Twelve-month consolidated results

Consolidated revenue for 2023 grew 12%, to Ps.184,151 million, from Ps.164,691 million recorded in 2022, driven by 18% growth in revenues from the financial business and a 3% increase in sales from the commercial business.

EBITDA was Ps.21,361 million, 18% higher compared to Ps.18,139 million the previous year. The company reported operating income of Ps.9,288 million, 16% above Ps.7,976 million a year ago.

The company recorded net income of Ps.5,993 million, compared to a net loss of Ps.7,353 million a year ago. The change reflects superior operating results this year, as well as a capital gain in the market value of the underlying financial instruments that the company owns — and which does not imply cash flow — compared to a capital loss the previous year.

2022

2023

   Change

Ps.

%

Consolidated revenue

$164,691

$184,151

$19,460

12 %

EBITDA      

$18,139

$21,361

$3,222

18 %

Operating profit

Net result     

$7,976

$(7,353)

$9,288

$5,993

$1,312

$13,345

16%

—-

Net result per-share

$(33.17)

$27.13

$60.30

—-

Figures in millions of pesos
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.          
As of December 31, 2022, Elektra* outstanding shares were 221.7 million and as of December 31, 2023, were 220.9 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), Total Play (irtotalplay.mx; www.totalplay.com.mx) and Total Play 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

4Q22

4Q23

Change

Financial income

26,456

55 %

29,480

56 %

3,025

11 %

Commercial income

21,841

45 %

23,174

44 %

1,333

6 %

Income

48,297

100 %

52,654

100 %

4,358

9 %

Financial cost

9,045

19 %

12,629

24 %

3,584

40 %

Commercial cost

17,151

36 %

16,938

32 %

(213)

-1 %

Costs

26,197

54 %

29,567

56 %

3,371

13 %

Gross income

22,100

46 %

23,087

44 %

987

4 %

Sales, administration and promotion expenses

18,834

39 %

18,360

35 %

(474)

-3 %

EBITDA 

3,266

7 %

4,727

9 %

1,461

45 %

Depreciation and amortization

2,501

5 %

2,450

5 %

(52)

-2 %

Other (income) expense, net

(132)

0 %

1,246

2 %

1,378

—-

Operating income

897

2 %

1,032

2 %

135

—-

Comprehensive financial result:

     Interest income

332

1 %

516

1 %

184

56 %

     Interest expense

(1,351)

-3 %

(1,480)

-3 %

(129)

-10 %

     Foreign exchange loss, net

164

0 %

361

1 %

197

—-

     Other financial results, net

1,983

4 %

838

2 %

(1,145)

-58 %

1,128

2 %

236

0 %

(892)

-79 %

Participation  in  the  net  income of

CASA and other associated companies

86

0 %

117

0 %

32

37 %

Income before income tax

2,111

4 %

1,385

3 %

(726)

-34 %

Income tax

(700)

-1 %

(603)

-1 %

96

14 %

Income before discontinued operations

1,411

3 %

782

1 %

(629)

-45 %

Result from discontinued operations 

0

0 %

(9)

0 %

(9)

-100 %

Consolidated net income 

1,411

3 %

773

1 %

(639)

-45 %

 

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

CONSOLIDATED INCOME STATEMENTS

MILLIONS OF MEXICAN PESOS

12M22

12M23

Change

Financial income

94,291

57 %

1,11,292

60 %

17,001

18 %

Commercial income

70,400

43 %

72,858

40 %

2,459

3 %

Income

164,691

100 %

184,151

100 %

19,460

12 %

Financial cost

27,260

17 %

40,852

22 %

13,591

50 %

Commercial cost

52,181

32 %

53,621

29 %

1,439

3 %

Costs

79,441

48 %

94,472

51 %

15,031

19 %

Gross income

85,249

52 %

89,679

49 %

4,429

5 %

Sales, administration and promotion expenses

67,110

41 %

68,317

37 %

1,208

2 %

EBITDA 

18,139

11 %

21,361

12 %

3,222

18 %

Depreciation and amortization

9,258

6 %

9,657

5 %

399

4 %

Other expense, net

905

1 %

2,416

1 %

1,511

—-

Operating income

7,976

5 %

9,288

5 %

1,312

16 %

Comprehensive financial result:

     Interest income

996

1 %

1,818

1 %

822

82 %

     Interest expense

(4,538)

-3 %

(5,840)

-3 %

(1,302)

-29 %

     Foreign exchange gain, net

142

0 %

711

0 %

569

—-

     Other financial results, net

(15,132)

-9 %

2,301

1 %

17,433

—-

(18,532)

-11 %

(1,009)

-1 %

17,522

95 %

Participation  in  the  net  income of

CASA and other associated companies

279

0 %

507

0 %

229

82 %

(Loss) income before income tax

(10,277)

-6 %

8,786

5 %

19,063

—-

Income tax

2,925

2 %

(2,788)

-2 %

(5,713)

—-

(Loss) income before discontinued operations

(7,352)

-4 %

5,998

3 %

13,350

—-

Result from discontinued operations 

(1)

0 %

(5)

0 %

(4)

—-

Consolidated net (loss) income 

(7,353)

-4 %

5,993

3 %

13,345

—-

 

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 December 31, 2022

At December 31, 2023

Cash and cash equivalents

9,808

30,281

40,089

9,507

33,474

42,981

2,892

7 %

Marketable financial instruments

6,176

85,728

91,904

5,031

89,115

94,145

2,241

2 %

Performing loan portfolio

88,492

88,492

90,803

90,803

2,312

3 %

Total past-due loans

5,730

5,730

7,610

7,610

1,880

33 %

Gross loan portfolio

94,221

94,221

98,413

98,413

4,192

4 %

Allowance for credit risks

13,150

13,150

15,307

15,307

2,157

16 %

Loan portfolio, net

81,071

81,071

83,106

83,106

2,035

3 %

Inventories

18,244

18,244

16,703

0

16,703

(1,541)

-8 %

Other current assets 

19,906

12,825

32,731

21,216

13,184

34,400

1,669

5 %

Total current assets

54,134

209,906

264,039

52,457

218,879

271,336

7,297

3 %

Financial instruments

24,068

3

24,072

21,922

2

21,924

(2,148)

-9 %

Performing loan portfolio

70,815

70,815

75,961

75,961

5,146

7 %

Total past-due loans

1,908

1,908

2,213

2,213

305

16 %

Gross loan portfolio

72,723

72,723

78,174

78,174

5,452

7 %

Allowance for credit risks

4,908

4,908

5,700

5,700

793

16 %

Loan portfolio

67,815

67,815

72,474

72,474

4,659

7 %

Other non-current assets 

18,348

438

18,785

21,942

697

22,639

3,854

21 %

Investment in shares

2,171

2,171

2,670

2,670

500

23 %

Property, furniture, equipment and

  investment in stores, net

10,189

11,418

21,607

9,224

10,566

19,789

(1,818)

-8 %

Intangible assets

777

8,536

9,313

685

7,224

7,909

(1,404)

-15 %

Right of use asset

12,633

2,327

14,960

11,841

1,938

13,779

(1,181)

-8 %

Other assets

1,624

523

2,148

2,429

8,049

10,479

8,331

—-

TOTAL ASSETS

123,944

300,966

424,909

123,171

319,828

442,999

18,089

4 %

Demand and term deposits

215,747

215,747

216,880

216,880

1,133

1 %

Creditors from repurchase agreements

18,031

18,031

34,311

34,311

16,281

90 %

Short-term debt

7,631

142

7,773

5,127

34

5,160

(2,613)

-34 %

Leasing

1,945

965

2,911

1,959

819

2,778

(133)

-5 %

Short-term liabilities with cost

9,576

234,885

244,461

7,086

252,044

259,129

14,668

6 %

Suppliers and other short-term liabilities

24,073

16,785

40,858

25,054

17,417

42,470

1,612

4 %

Short-term liabilities without cost

24,073

16,785

40,858

25,054

17,417

42,470

1,612

4 %

Total short-term liabilities

33,649

251,670

285,319

32,139

269,461

301,600

16,281

6 %

Long-term debt

30,353

0

30,353

30,512

1

30,513

160

1 %

Leasing

11,767

1,502

13,269

11,026

1,207

12,233

(1,036)

-8 %

Long-term liabilities with cost

42,120

1,502

43,622

41,538

1,208

42,746

(876)

-2 %

Long-term liabilities without cost

4,283

1,232

5,515

6,687

913

7,600

2,085

38 %

Total long-term liabilities

46,403

2,733

49,137

48,225

2,121

50,346

1,209

2 %

TOTAL LIABILITIES

80,053

254,403

334,456

80,364

271,582

351,946

17,490

5 %

TOTAL STOCKHOLDERS’ EQUITY

43,891

46,562

90,453

42,807

48,246

91,053

599

1 %

LIABILITIES + EQUITY

123,944

300,966

424,909

123,171

319,828

442,999

18,089

4 %

 

INFRASTRUCTURE

4Q22

4Q23

Change

Points of sale in Mexico

Elektra 

1,220

19 %

1,226

20 %

6

0 %

Salinas y Rocha 

33

1 %

33

1 %

0 %

Banco Azteca

1,932

30 %

1,928

31 %

(4)

0 %

Freestanding branches

1,805

28 %

1,739

28 %

(66)

-4 %

Total

4,990

79 %

4,926

79 %

(64)

-1 %

Points of sale in Central America

Elektra 

117

2 %

122

2 %

5

4 %

Banco Azteca

224

4 %

230

4 %

6

3 %

Freestanding branches

65

1 %

67

1 %

2

3 %

Total

406

6 %

419

7 %

13

3 %

Points of sale in North America

Purpose Financial

950

15 %

873

14 %

(77)

-8 %

Total

950

15 %

873

14 %

(77)

-8 %

TOTAL

6,346

100 %

6,218

100 %

(128)

-2 %

Floor space (m²)

1,523

100 %

1,532

100 %

9

1 %

Employees

Mexico

64,301

88 %

62,975

88 %

(1,326)

-2 %

Central and South America

5,949

8 %

5,977

8 %

28

0 %

North America

2,718

4 %

2,629

4 %

(89)

-3 %

Total employees

72,968

100 %

71,581

100 %

(1,387)

-2 %

 

 

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