GRUPO ELEKTRA ANNOUNCES 44% GROWTH IN EBITDA, TO Ps.5,939 MILLION IN THE FOURTH QUARTER OF 2021
—Solid performance of both commercial and financial businesses generates a 28% increase in consolidated revenues, to Ps.43,062 million—
—Strong growth in the loan portfolio of Banco Azteca México; increases 19%, to Ps.123,198 million—
MEXICO CITY, Feb. 22, 2022 /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 fourth quarter 2021 and full year 2021 financial results.
Fourth quarter results
Consolidated revenue grew 28% to Ps.43,062 million in the period, compared to Ps.33,663 million in the same quarter of the previous year. Operating costs and expenses were Ps.37,123 million, from Ps.29,537 million in the same period of 2020.
As a result, EBITDA was Ps.5,939 million, 44% higher than Ps.4,125 million a year ago. Operating income was Ps.3,680 million this quarter, from Ps.2,338 million in the same period of 2020.
The company reported net income of Ps.1,948 million, compared to Ps.3,118 million a year ago.
4Q 2020 | 4Q 2021 | Change | ||
Ps. | % | |||
Consolidated revenue | $33,663 | $43,062 | $9,399 | 28% |
EBITDA | $4,125 | $5,939 | $1,814 | 44% |
Operating profit | $2,338 | $3,680 | $1,341 | 57% |
Net result | $3,118 | $1,948 | $(1,170) | -38% |
Net result per share | $13.71 | $8.61 | $(5.10) | -37% |
Figures in millions of pesos | ||||
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization. | ||||
As of December 31, 2020, Elektra* outstanding shares were 227.4 million and as of December 31, 2021, were 226.3 million. | ||||
Revenue
Consolidated revenues increased 28% in the period, as a result of a 36% growth in financial income and a 20% increase in commercial sales.
The increase in financial income — to Ps.22,272 million, from Ps.16,403 million in the previous year — reflects a 44% increase in revenue from Banco Azteca México, in the context of strong growth in the gross loan portfolio in the period, which boosts the well-being of millions of families and the progress of thousands of businesses.
The increase in sales of the commercial business — to Ps.20,790 million, from Ps.17,260 million a year ago — reflects solid growth in sales of Italika motorcycles — which strengthen the productivity of businesses and the mobility of families — and home appliances — which promotes well-being in a growing number of households — that are commercialized with optimal customer service, in the most competitive market conditions.
Costs and expenses
Consolidated costs for the quarter grew 29%, to Ps.20,970 million, from Ps.16,212 million in the previous year, as a result of a 27% increase in commercial costs — consistent with higher revenue from the sale of merchandise — and an increase in 37% in the cost of the financial business, derived from the increase in loan loss reserves, in line with the growth of the gross loan portfolio in the period.
Selling, administrative and promotional expenses were Ps.16,153 million, from Ps.13,325 million a year ago, as a result of higher operating and advertising expenses, offset by reductions in personnel expenses.
EBITDA and net result
EBITDA was Ps.5,939 million, from Ps.4,125 million the previous year. The company reported operating income of Ps.3,680 million, compared to Ps.2,338 million in the same quarter of 2020.
The main variations below EBITDA were as follows:
Ps.775 million reduction in foreign exchange loss, due to a lower appreciation of the peso against the dollar this quarter compared to the previous year, in the context of a net long dollar position at the company.
Ps.3,828 million decrease in other financial results, which reflects a 1% loss this quarter in the market value of the underlying financial instruments that the company owns — and that does not imply cash flow — compared to a 10% gain a year ago.
Grupo Elektra reported a net income of Ps.1,948 million, from a net income of Ps.3,118 million a year ago.
Unconsolidated Balance Sheet
A pro forma exercise of the balance sheet of Grupo Elektra is presented, excluding the net assets of the financial business, whose investment is valued under the equity method, in this case.
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. The pro forma balance sheet also does not include the bank's gross loan portfolio.
This pro forma exercise provides greater clarity regarding the businesses that make up the company and allows financial market participants to estimate the value of the company, considering only the relevant debt for such calculations.
Consistent with this, the debt with cost was Ps.34,467 million as of December 31, 2021, compared to Ps.25,150 million of the previous year. The balance of cash and cash equivalents was Ps.5,748 million, from Ps.7,915 million in the previous year. As a result, net debt as of December 31, 2021 was Ps.28,719 million, compared to Ps.17,235 million a year ago.
As previously announced, during the first quarter, Grupo Elektra's subsidiary, Nueva Elektra del Milenio, S.A. de C.V., as originator, placed through a special purpose vehicle established under Luxembourg law, Senior Notes for US$500 million, for seven years, at a 4.875% rate, in international markets.
On the other hand, during the second quarter, Certificados Bursátiles Fiduciarios for Ps.2,030 million were early amortized. The amount corresponds to the outstanding balance of the DINEXCB 16 issues — for Ps.1,350 million due 2023 with a rate of TIIE + 2.8% — and DINEXCB 16-2 for Ps.680 million, due 2026 and a fixed rate of 8.8%.
As of December 31, 2021, the company's stockholders' equity was Ps.105,454 million, and the ratio of stockholders' equity to total liabilities was 1.3 times.
As of | As of | Change | ||||||
Ps. | % | |||||||
Cash and cash equivalents | $7,915 | $5,748 | (2,168) | (27%) | ||||
Marketable financial instruments | 32,134 | 38,181 | 6,047 | 19% | ||||
Inventories | 14,324 | 18,369 | 4,045 | 28% | ||||
Accounts receivables | 48,333 | 57,647 | 9,314 | 19% | ||||
Other current assets | 3,119 | 6,207 | 3,088 | 99% | ||||
Investments in shares | 36,489 | 39,846 | 3,357 | 9% | ||||
Fixed assets | 7,422 | 7,826 | 404 | 5% | ||||
Right of use assets | 8,358 | 9,013 | 655 | 8% | ||||
Other assets | 1,614 | 1,693 | 80 | 5% | ||||
Total assets | $159,707 | $184,529 | $24,822 | 16% | ||||
Short-term debt | $10,853 | $14,862 | 4,010 | 37% | ||||
Suppliers | 6,071 | 6,692 | 621 | 10% | ||||
Other short-term liabilities | 14,598 | 14,264 | (334) | (2%) | ||||
Long-term debt | 14,297 | 19,605 | 5,308 | 37% | ||||
Differed taxes | 9,515 | 12,442 | 2,927 | 31% | ||||
Other long-term debt | 10,729 | 11,209 | 479 | 4% | ||||
Total liabilities | $66,062 | $79,075 | $13,012 | 20% | ||||
Stakeholder´s equity | $93,645 | $105,454 | $11,810 | 13% | ||||
Liabilities and equity | $159,707 | $184,529 | $24,822 | 16% | ||||
Figures in millions of pesos. | ||||||||
Consolidated Balance Sheet
Loan Portfolio and Deposits
Banco Azteca Mexico, Purpose Financial and Banco Azteca Latin America's consolidated gross portfolio as of December 31, 2021, grew 18%, to Ps.140,706 million, from Ps.119,106 million the previous year. The consolidated delinquency rate was 4.8% at the end of this period, compared to 4.7% the previous year.
Banco Azteca México's gross portfolio balance increased 19% to Ps.123,198 million, from Ps.103,529 million a year ago. The Bank's delinquency rate at the end of the quarter was 4.7%, unchanged from the previous year.
The average term of the credit portfolio for principal credit lines — consumer, personal loans, and Tarjeta Azteca — was 64 weeks at the end of the fourth quarter.
Grupo Elektra's consolidated deposits grew 7%, to Ps.184,898 million, compared to Ps.172,627 million a year ago. Banco Azteca México's traditional deposits were Ps.183,726 million, from Ps.172,059 million from the previous year.
The ratio of deposits to gross portfolio of Banco Azteca Mexico was 1.5 times, which allows solid growth of the Bank, with optimal funding cost.
The capitalization ratio of Banco Azteca México was 14.18%.
Infrastructure
Grupo Elektra currently has 6,279 points of contact, compared to 6,601 units the previous year. The decrease results mainly from the closure of 196 Purpose Financial points of contact in the United States — in the context of strategies aimed at boosting online credit operations and strengthening the company's operational efficiency.
The company has 4,680 storefronts in Mexico at the end of the quarter, 1,233 in the United States, and 366 in Central America. The important distribution network allows the company to maintain close contact with customers and grants a superior market positioning in the countries where it operates.
Twelve-month consolidated results
Consolidated revenue for 2021 grew 21%, to Ps.146,019 million, from Ps.120,507 million registered in 2020, driven by a 25% increase in sales from the commercial business and an 18% increase in revenue from the financial business.
EBITDA was Ps.22,015 million, compared to Ps.9,812 million in the previous year. The company reported operating income of Ps.13,668 million, from Ps.2,057 million a year ago.
In 2021, a net income of Ps.12,944 million was recorded, compared to a net loss of Ps.1,914 million a year ago. The change reflects superior operating results this period, as well as a gain in the market value of the underlying financial instruments held by the company — and which does not imply cash flow— compared to a loss in the previous year.
2020 | 2021 | Change | ||
Ps. | % | |||
Consolidated revenue | $120,507 | $146,019 | $25,512 | 21% |
EBITDA | $9,812 | $22,015 | $12,203 | ---- |
Operating profit | $2,057 | $13,668 | $11,611 | ---- |
Net result | $(1,914) | $12,944 | $14,858 | ---- |
Net result per share | $(8.41) | $57.20 | $65.61 | ---- |
Figures in millions of pesos | ||||
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization. | ||||
As of December 31, 2020, Elektra* outstanding shares were 227.4 million and as of December 31, 2021, were 226.3 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 6,600 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 wellbeing; 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 Spains' 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 | Rolando Villarreal | |
Press Relations: | ||
GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES | ||||||||
4Q20 | 4Q21 | Change | ||||||
Financial income | 16,403 | 49% | 22,272 | 52% | 5,869 | 36% | ||
Commercial income | 17,260 | 51% | 20,790 | 48% | 3,530 | 20% | ||
Income | 33,663 | 100% | 43,062 | 100% | 9,399 | 28% | ||
Financial cost | 4,370 | 13% | 5,979 | 14% | 1,609 | 37% | ||
Commercial cost | 11,843 | 35% | 14,991 | 35% | 3,148 | 27% | ||
Costs | 16,212 | 48% | 20,970 | 49% | 4,758 | 29% | ||
Gross income | 17,450 | 52% | 22,092 | 51% | 4,642 | 27% | ||
Sales, administration and promotion expenses | 13,325 | 40% | 16,153 | 38% | 2,828 | 21% | ||
EBITDA | 4,125 | 12% | 5,939 | 14% | 1,814 | 44% | ||
Depreciation and amortization | 2,150 | 6% | 2,252 | 5% | 102 | 5% | ||
Other (income) loss, net | (363) | -1% | 8 | 0% | 370 | 100% | ||
Operating income | 2,338 | 7% | 3,680 | 9% | 1,341 | 57% | ||
Comprehensive financial result: | ||||||||
Interest income | 236 | 1% | 245 | 1% | 9 | 4% | ||
Interest expense | (827) | -2% | (943) | -2% | (116) | -14% | ||
Foreign exchange loss, net | (792) | -2% | (17) | 0% | 775 | 98% | ||
Other financial results, net | 3,393 | 10% | (435) | -1% | (3,828) | ---- | ||
2,010 | 6% | (1,150) | -3% | (3,160) | ---- | |||
Participation in the net income of | ||||||||
CASA and other associated companies | 401 | 1% | 259 | 1% | (142) | -35% | ||
Income before income tax | 4,749 | 14% | 2,788 | 6% | (1,961) | -41% | ||
Income tax | (973) | -3% | (839) | -2% | 134 | 14% | ||
Income before discontinued operations | 3,776 | 11% | 1,949 | 5% | (1,827) | -48% | ||
Result from discontinued operations | (658) | -2% | (1) | 0% | 657 | 100% | ||
Consolidated net income | 3,118 | 9% | 1,948 | 5% | (1,170) | -38% | ||
GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES | ||||||||
12M20 | 12M21 | Change | ||||||
Financial income | 68,253 | 57% | 80,489 | 55% | 12,236 | 18% | ||
Commercial income | 52,254 | 43% | 65,530 | 45% | 13,276 | 25% | ||
Income | 120,507 | 100% | 146,019 | 100% | 25,512 | 21% | ||
Financial cost | 24,778 | 21% | 22,303 | 15% | (2,475) | -10% | ||
Commercial cost | 34,970 | 29% | 46,875 | 32% | 11,905 | 34% | ||
Costs | 59,749 | 50% | 69,179 | 47% | 9,430 | 16% | ||
Gross income | 60,759 | 50% | 76,840 | 53% | 16,082 | 26% | ||
Sales, administration and promotion expenses | 50,946 | 42% | 54,825 | 38% | 3,879 | 8% | ||
EBITDA | 9,812 | 8% | 22,015 | 15% | 12,203 | 100% | ||
Depreciation and amortization | 8,187 | 7% | 8,446 | 6% | 259 | 3% | ||
Other income, net | (432) | 0% | (99) | 0% | 333 | 77% | ||
Operating income | 2,057 | 2% | 13,668 | 9% | 11,611 | 100% | ||
Comprehensive financial result: | ||||||||
Interest income | 975 | 1% | 865 | 1% | (110) | -11% | ||
Interest expense | (3,559) | -3% | (3,725) | -3% | (166) | -5% | ||
Foreign exchange gain, net | 1,696 | 1% | 292 | 0% | (1,404) | -83% | ||
Other financial results, net | (2,646) | -2% | 7,183 | 5% | 9,829 | ---- | ||
(3,534) | -3% | 4,615 | 3% | 8,149 | ---- | |||
Participation in the net income of | ||||||||
CASA and other associated companies | (296) | 0% | 304 | 0% | 600 | ---- | ||
(Loss) income before income tax | (1,772) | -1% | 18,588 | 13% | 20,360 | ---- | ||
Income tax | 1,071 | 1% | (5,513) | -4% | (6,583) | ---- | ||
(loss) income before discontinued operations | (702) | -1% | 13,075 | 9% | 13,777 | ---- | ||
Result from discontinued operations | (1,212) | -1% | (132) | 0% | 1,081 | 89% | ||
Consolidated net (loss) income | (1,914) | -2% | 12,944 | 9% | 14,858 | ---- | ||
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, 2020 | At December 31, 2021 | |||||||||
Cash and cash equivalents | 7,915 | 29,744 | 37,659 | 5,748 | 32,815 | 38,563 | 904 | 2% | ||
Marketable financial instruments | 5,244 | 84,797 | 90,041 | 10,793 | 95,264 | 106,057 | 16,016 | 18% | ||
Performing loan portfolio | - | 67,966 | 67,966 | - | 84,368 | 84,368 | 16,402 | 24% | ||
Total past-due loans | - | 4,688 | 4,688 | - | 5,663 | 5,663 | 975 | 21% | ||
Gross loan portfolio | - | 72,654 | 72,654 | - | 90,031 | 90,031 | 17,377 | 24% | ||
Allowance for credit risks | - | 9,070 | 9,070 | - | 12,978 | 12,978 | 3,908 | 43% | ||
Loan portfolio, net | - | 63,584 | 63,584 | - | 77,053 | 77,053 | 13,469 | 21% | ||
Inventories | 14,324 | - | 14,324 | 18,369 | - | 18,369 | 4,045 | 28% | ||
Other current assets | 14,076 | 10,035 | 24,111 | 18,486 | 9,644 | 28,131 | 4,019 | 17% | ||
Total current assets | 41,559 | 188,161 | 229,720 | 53,396 | 214,777 | 268,172 | 38,452 | 17% | ||
Financial instruments | 26,890 | 99 | 26,988 | 27,388 | 44 | 27,432 | 443 | 2% | ||
Performing loan portfolio | - | 45,593 | 45,593 | - | 49,607 | 49,607 | 4,014 | 9% | ||
Total past-due loans | - | 859 | 859 | - | 1,068 | 1,068 | 209 | 24% | ||
Gross loan portfolio | - | 46,452 | 46,452 | - | 50,675 | 50,675 | 4,223 | 9% | ||
Allowance for credit risks | - | 1,627 | 1,627 | - | 2,143 | 2,143 | 516 | 32% | ||
Loan portfolio | - | 44,825 | 44,825 | - | 48,532 | 48,532 | 3,707 | 8% | ||
Other non-current assets | 24,888 | 191 | 25,079 | 32,069 | 327 | 32,396 | 7,317 | 29% | ||
Investment in shares | 1,706 | - | 1,706 | 2,257 | - | 2,257 | 550 | 32% | ||
Property, furniture, equipment and | ||||||||||
investment in stores, net | 7,422 | 7,938 | 15,360 | 7,826 | 7,352 | 15,178 | (182) | -1% | ||
Intangible assets | 520 | 7,067 | 7,587 | 542 | 9,100 | 9,642 | 2,055 | 27% | ||
Right of use asset | 8,154 | 2,045 | 10,199 | 8,822 | 2,398 | 11,220 | 1,022 | 10% | ||
Other assets | 1,094 | 8,165 | 9,259 | 1,151 | 7,905 | 9,057 | (202) | -2% | ||
TOTAL ASSETS | 112,232 | 258,491 | 370,724 | 133,451 | 290,435 | 423,886 | 53,162 | 14% | ||
Demand and term deposits | - | 172,627 | 172,627 | - | 184,898 | 184,898 | 12,271 | 7% | ||
Creditors from repurchase agreements | - | 21,814 | 21,814 | - | 36,271 | 36,271 | 14,457 | 66% | ||
Short-term debt | 10,637 | 203 | 10,840 | 14,362 | 102 | 14,464 | 3,624 | 33% | ||
Leasing | 1,134 | 883 | 2,018 | 1,437 | 1,037 | 2,474 | 457 | 23% | ||
Short-term liabilities with cost | 11,771 | 195,527 | 207,298 | 15,799 | 222,308 | 238,107 | 30,809 | 15% | ||
Suppliers and other short-term liabilities | 19,283 | 13,172 | 32,455 | 19,287 | 16,149 | 35,436 | 2,981 | 9% | ||
Short-term liabilities without cost | 19,283 | 13,172 | 32,455 | 19,287 | 16,149 | 35,436 | 2,981 | 9% | ||
Total short-term liabilities | 31,054 | 208,699 | 239,753 | 35,087 | 238,457 | 273,543 | 33,790 | 14% | ||
Long-term debt | 14,259 | 16 | 14,275 | 18,105 | 24 | 18,129 | 3,854 | 27% | ||
Leasing | 7,788 | 1,294 | 9,081 | 8,314 | 1,496 | 9,810 | 728 | 8% | ||
Long-term liabilities with cost | 22,047 | 1,310 | 23,357 | 26,419 | 1,519 | 27,938 | 4,582 | 20% | ||
Long-term liabilities without cost | 12,457 | 1,512 | 13,969 | 15,337 | 1,612 | 16,950 | 2,981 | 21% | ||
Total long-term liabilities | 34,503 | 2,822 | 37,325 | 41,756 | 3,132 | 44,888 | 7,563 | 20% | ||
TOTAL LIABILITIES | 65,557 | 211,522 | 277,079 | 76,843 | 241,588 | 318,431 | 41,353 | 15% | ||
TOTAL STOCKHOLDERS' EQUITY | 46,676 | 46,969 | 93,645 | 56,608 | 48,847 | 105,454 | 11,810 | 13% | ||
LIABILITIES + EQUITY | 112,232 | 258,491 | 370,724 | 133,451 | 290,435 | 423,886 | 53,162 | 14% | ||
INFRASTRUCTURE | ||||||||
4Q20 | 4Q21 | Change | ||||||
Points of sale in Mexico | ||||||||
Elektra | 1,143 | 17% | 1,159 | 18% | 16 | 1% | ||
Salinas y Rocha | 36 | 1% | 36 | 1% | - | 0% | ||
Banco Azteca | 1,853 | 28% | 1,871 | 30% | 18 | 1% | ||
Freestanding branches | 1,771 | 27% | 1,614 | 26% | (157) | -9% | ||
Total | 4,803 | 73% | 4,680 | 75% | (123) | -3% | ||
Points of sale in Central America | ||||||||
Elektra | 108 | 2% | 106 | 2% | (2) | -2% | ||
Banco Azteca | 213 | 3% | 205 | 3% | (8) | -4% | ||
Freestanding branches | 48 | 1% | 55 | 1% | 7 | 15% | ||
Total | 369 | 6% | 366 | 6% | (3) | -1% | ||
Points of sale in North America | ||||||||
Purpose Financial | 1,429 | 22% | 1,233 | 20% | (196) | -14% | ||
Total | 1,429 | 22% | 1,233 | 20% | (196) | -14% | ||
TOTAL | 6,601 | 100% | 6,279 | 100% | (322) | -5% | ||
Floor space (m²) | 1,542 | 100% | 1,482 | 100% | (60) | -4% | ||
Employees | ||||||||
Mexico | 62,994 | 88% | 59,556 | 88% | (3,438) | -5% | ||
Central and South America | 4,965 | 7% | 5,339 | 8% | 374 | 8% | ||
North America | 3,319 | 5% | 2,953 | 4% | (366) | -11% | ||
Total employees | 71,278 | 100% | 67,848 | 100% | (3,430) | -5% | ||
SOURCE Grupo Elektra, S.A.B. de C.V.
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