Grupo Elektra Announces 50% EBITDA Growth to Historical Maximum of Ps.2,556 Million in 4Q11
—EBITDA margin grows two percentage points, to 16% in the quarter—
—Remarkable growth in operating income, increases 82% to Ps.2,089 million—
—Consolidated revenue grows 35% during 4Q11, to Ps.16,238 million, supported by 58% growth in financial revenue—
—Consolidated gross portfolio shows solid growth of 50% to Ps.43,375 million—
MEXICO CITY, Feb. 16, 2012 /PRNewswire/ -- Grupo Elektra, S.A.B. de C.V. (BMV: ELEKTRA*; Latibex: XEKT), Latin America's leading financial services company and specialty retailer, reported today its financial results for the fourth quarter, and full year 2011.
"The remarkable consolidated revenue expansion, together with our solid operating efficiency, translated into an 82% growth in operating income, and the maximum EBITDA level registered by the company during a fourth quarter", commented Grupo Elektra and Banco Azteca CEO Carlos Septien.
"The higher consolidated revenue results from an outstanding 58% growth in financial revenue —in the context of remarkable dynamism in the credit portfolio— as well as in the products sales, that boost the quality of life of a growing number of families in Mexico, and Central and South America. The strength of the financial business translated into a financial income, superior than the commercial income, with a remarkable solid trend during this year", added Mr. Septien.
Consolidated fourth quarter results
Consolidated revenue was Ps.16,238 million, up 35% from Ps.12,003 million for the same quarter last year. Costs and operating expenses were Ps.13,682 million, compared to Ps.10,300 million in the same period of 2010.
Grupo Elektra reported EBITDA of Ps.2,556 million, a historical maximum for a fourth quarter, and 50% higher than the Ps.1,703 million for the same period of last year. The EBITDA margin was 16% this quarter, two percentage points above of last year's. The company registered net income of Ps.11,073 million, compared to Ps.2,397 million a year ago.
4Q 2010 |
4Q 2011 |
Change |
|||
Ps. |
% |
||||
Consolidated revenue |
$12,003 |
$16,238 |
$4,235 |
35% |
|
EBITDA |
$1,703 |
$2,556 |
$852 |
50% |
|
Net result |
$2,397 |
$11,073 |
$8,676 |
----- |
|
Net result per share |
$9.87 |
$45.72 |
$35.85 |
----- |
|
Figures in millions of pesos. As of December 31, 2010, Elektra* outstanding shares were 242.8 million and the number of shares as of December 31, 2011, was 242.2 million. |
|||||
Consolidated revenue
Consolidated revenue grew 35%, to Ps.16,238 million, as a result of a remarkable 58% growth in the financial business and a 17% growth in commercial sales.
Costs and expenses
Consolidated costs were Ps.7,953 million, compared to Ps.5,480 million from a year ago.
Consolidated costs include financial cost —which represents the creation of loan-loss reserves and interest paid to depositors on savings— as well as sales cost, which mainly represents the cost of goods sold.
Operating expenses were Ps.5,729 million, compared to Ps.4,820 million for the same period a year ago; the change is mainly explained by increases in personnel expenses, in the context of growing operations of the company.
EBITDA and net result
Consolidated EBITDA was Ps.2,556 million, 50% higher than the Ps.1,703 million reported a year ago; the EBITDA margin for the quarter was 16%, compared to 14% for the same period in 2010.
The most significant change below EBITDA was a positive variation of Ps.14,742 million in other financial income, as a result of a more favorable valuation this quarter of financial instruments owned by the company —which does not imply cash flow. That change was partially offset by a Ps.5,775 increase in tax provision.
Grupo Elektra reported net income of Ps.11,073 million, compared to the Ps.2,397 million a year ago.
Cash and cash equivalents
As of December 31, 2011, total cash and cash equivalents were Ps.52,288 million, compared to Ps.47,936 million for the prior year, resulting mainly from a higher level of investments in securities from the commercial business. At the end of the quarter, the cash and investments balance for the financial business was Ps.30,604 million, and for the commercial business was Ps.21,683 million.
Consolidated loan portfolio and deposits
Banco Azteca Mexico and Banco Azteca and Elektrafin Latin America's consolidated gross portfolio as of December 31, 2011, was Ps.43,375 million, 50% higher than Ps.28,855 million a year ago. The consolidated past due loans were Ps.2,395 million, from Ps.1,490 million a year ago. The consolidated delinquency rate was 5.5% at the end of the period.
As of December 31, 2011, consolidated deposits were Ps.54,815 million, compared to Ps.54,902 million a year ago.
Financial business
Banco Azteca Mexico
The gross portfolio was Ps.39,896 million, 53% higher than the Ps.26,001 million a year ago. The non-performing loan portfolio was Ps.1,850 million at the end of the period, from Ps.1,195 million from last year.
The bank's delinquency rate as of December 31, 2011 was 4.6%, without changes compared to the previous year. The non-performing loan portfolio is reserved 1.6 times, above the 1.4 times from the previous year.
The company does effective risk analysis, and has thorough knowledge of its target market and the payment capability of its customers, which translates into strength in the quality of its assets.
At the end of the quarter, the bank had a total of 12.5 million active credit accounts, 45% above the 8.6 million from the previous year. The large customer base is an important strength of the bank that further reduces credit risk. The average term of the credit portfolio for principal credit lines —consumer, personal loans and Tarjeta Azteca— was 58 weeks at the end of the fourth quarter.
Deposits from clients of Banco Azteca Mexico were Ps.59,354 million at the end of the quarter, 10% above of Ps.54,110 million of the previous year. At the end of the period, the bank had a total of 13.7 million active savings and deposit accounts, an 26% increase from the 10.9 million accounts at the end of the same period a year ago.
As of December 31, 2011, the estimated capitalization index of Banco Azteca was 12.3%. The company considers the index to be at a level that optimizes equity profitability.
During the fourth quarter, revenue from Banco Azteca Mexico was Ps.7,345 million, 67% higher than the Ps.4,406 million reported a year ago. The financial cost for the bank during the quarter was Ps.2,424 million.
Seguros Azteca
Grupo Elektra's insurance companies —Seguros Azteca and Seguros Azteca Danos— reported combined revenue of Ps.401 million in the quarter, 9% above of Ps.368 million from the previous year. The EBITDA was Ps.137 million, almost the double, compared to Ps.69 million, from the same period in 2010.
Afore Azteca
As of December 31, 2011, Siefore Azteca's assets under management were Ps.11,574 million. Total revenue was Ps.36 million, and EBITDA was Ps.10 million.
Commercial business
Revenue from the commercial business in the quarter was Ps.7,663 million, 17% above the Ps.6,572 million reported a year ago.
As of December 31, 2011, total debt with cost of the commercial business was Ps.13,404 million. Net cash for the commercial business —excluding debt with cost— was a positive Ps.8,279 million, compared to a positive balance of Ps.2,637 million as of December 31, 2010.
Expansion
Grupo Elektra currently has 2,878 points of sale, compared to 2,253 a year ago. This change is mainly due to the increase in the number of Financial Services Stores, as part of the company's strategy to strengthen this business segment. There are 2,371 points of sale in Mexico, and 507 in Central and South America. The company's large distribution network allows us to stay close to customers and provides superior market positioning in Mexico and Latin America.
Twelve months consolidated results
Total consolidated revenue in 2011 was Ps.52,019 million, 19% higher than the Ps.43,690 million a year ago. The company reported EBITDA of Ps.8,285 million, 22% above the Ps.6,776 million in 2010; the EBITDA margin in 2011 was 16%, with no changes compared to the previous year. The company registered consolidated net income of Ps.29,956 million, compared to Ps.493 million in 2010, mainly due to an appreciation this period in the market value of underlying financial instruments that the company holds, which doesn't imply cash flow, compared to depreciation in the prior year.
2010 |
2011 |
Change |
|||
Ps. |
% |
||||
Consolidated revenue |
$43,690 |
$52,019 |
$8,329 |
19% |
|
EBITDA |
$6,776 |
$8,285 |
$1,509 |
22% |
|
Net result |
$493 |
$29,956 |
$29,463 |
---- |
|
Net result per share |
$2.03 |
$123.68 |
$121.65 |
---- |
|
Figures in million of pesos. As of December 31, 2010, Elektra* outstanding shares were 242.8 million and the number of shares as of December 31, 2011, was 242.2 million. |
|||||
Company Profile:
Grupo Elektra (www.grupoelektra.com.mx) is Latin America's leading financial services company focused on the mass market. The Group operates over 2,800 points of sale in Mexico, Brazil, Guatemala, Honduras, Peru, Panama, El Salvador and Argentina. Grupo Elektra also sells and markets its consumer finance, banking and financial products and services through Banco Azteca branches located in Mexico, Brazil, Panama, Guatemala, Honduras, Peru and El Salvador.
Grupo Elektra is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast-growing, and technologically advanced companies focused on creating shareholder value, contributing to build the middle class of the countries in which they operate and improving society through excellence. 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. The companies include Azteca (www.irtvazteca.com), Azteca America (www.aztecaamerica.com), Grupo Elektra (www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx) and Grupo Iusacell (www.iusacell.com.mx). Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. However, the member companies share 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 forward-looking statements and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Other risks that may affect Grupo Elektra and its subsidiaries are identified in documents sent to securities authorities.
Investor Relations |
|||
Bruno Rangel Grupo Salinas Tel. +52 (55) 1720 9167 |
Carlos Casillas Grupo Salinas Tel. +52 (55) 1720 0041 |
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Press Relations |
|||
Tristan Canales Grupo Salinas Tel. +52 (55) 1720-1441 |
Daniel McCosh Grupo Salinas Tel. +52 (55) 1720-0059 |
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GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES |
|||||||||
4Q10 |
4Q11 |
Change |
|||||||
Financial income |
5,431 |
45% |
8,575 |
53% |
3,143 |
58% |
|||
Commercial income |
6,572 |
55% |
7,663 |
47% |
1,092 |
17% |
|||
Income |
12,003 |
100% |
16,238 |
100% |
4,235 |
35% |
|||
Financial cost |
1,123 |
9% |
2,612 |
16% |
1,489 |
---- |
|||
Commercial cost |
4,357 |
36% |
5,341 |
33% |
985 |
23% |
|||
Costs |
5,480 |
46% |
7,953 |
49% |
2,474 |
45% |
|||
Gross income |
6,523 |
54% |
8,284 |
51% |
1,761 |
27% |
|||
Sales, administration and promotion expenses |
4,820 |
40% |
5,729 |
35% |
909 |
19% |
|||
Depreciation and amortization |
558 |
5% |
467 |
3% |
(91) |
-16% |
|||
Operating expenses |
5,378 |
45% |
6,196 |
38% |
818 |
15% |
|||
Operating income |
1,145 |
10% |
2,089 |
13% |
944 |
82% |
|||
EBITDA |
1,703 |
14% |
2,556 |
16% |
852 |
50% |
|||
Comprehensive financial result: |
|||||||||
Interest income |
198 |
2% |
183 |
1% |
(16) |
-8% |
|||
Interest expense |
(300) |
-2% |
(397) |
-2% |
(97) |
-32% |
|||
Foreign exchange loss, net |
(79) |
-1% |
(137) |
-1% |
(57) |
-72% |
|||
Other financial income, net |
817 |
7% |
15,560 |
96% |
14,742 |
---- |
|||
636 |
5% |
15,208 |
94% |
14,572 |
---- |
||||
Other income (expense), net |
436 |
4% |
(337) |
-2% |
(773) |
---- |
|||
Participation in the net income of |
|||||||||
CASA and other associated companies |
424 |
4% |
133 |
1% |
(291) |
-69% |
|||
Income before income tax |
2,641 |
22% |
17,093 |
105% |
14,452 |
---- |
|||
Income tax |
(244) |
-2% |
(6,020) |
-37% |
(5,775) |
---- |
|||
Consolidated net income |
2,397 |
20% |
11,073 |
68% |
8,676 |
---- |
|||
GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES |
|||||||||
12M10 |
12M11 |
Change |
|||||||
Financial income |
21,251 |
49% |
26,745 |
51% |
5,494 |
26% |
|||
Commercial income |
22,439 |
51% |
25,274 |
49% |
2,836 |
13% |
|||
Income |
43,690 |
100% |
52,019 |
100% |
8,329 |
19% |
|||
Financial cost |
5,347 |
12% |
6,753 |
13% |
1,405 |
26% |
|||
Commercial cost |
15,265 |
35% |
17,545 |
34% |
2,280 |
15% |
|||
Costs |
20,612 |
47% |
24,297 |
47% |
3,685 |
18% |
|||
Gross income |
23,077 |
53% |
27,722 |
53% |
4,644 |
20% |
|||
Sales, administration and promotion expenses |
16,301 |
37% |
19,436 |
37% |
3,136 |
19% |
|||
Depreciation and amortization |
2,054 |
5% |
1,760 |
3% |
(294) |
-14% |
|||
Operating expenses |
18,354 |
42% |
21,197 |
41% |
2,842 |
15% |
|||
Operating Income |
4,723 |
11% |
6,525 |
13% |
1,802 |
38% |
|||
EBITDA |
6,776 |
16% |
8,285 |
16% |
1,509 |
22% |
|||
Comprehensive financial result: |
|||||||||
Interest income |
635 |
1% |
758 |
1% |
123 |
19% |
|||
Interest expense |
(1,122) |
-3% |
(1,325) |
-3% |
(203) |
-18% |
|||
Foreign exchange (loss) gain, net |
(247) |
-1% |
367 |
1% |
614 |
---- |
|||
Other financial (expense) income, net |
(4,796) |
-11% |
37,429 |
72% |
42,226 |
---- |
|||
(5,530) |
-13% |
37,229 |
72% |
42,759 |
---- |
||||
Other income (expense), net |
395 |
1% |
(368) |
-1% |
(763) |
---- |
|||
Participation in the net income (expense) of |
|||||||||
CASA and other associated companies |
539 |
1% |
(67) |
0% |
(606) |
---- |
|||
Income before income tax |
127 |
0% |
43,319 |
83% |
43,192 |
---- |
|||
Income tax |
366 |
1% |
(13,363) |
-26% |
(13,729) |
---- |
|||
Consolidated net income |
493 |
1% |
29,956 |
58% |
29,463 |
---- |
|||
GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES |
|||||||||||
Commercial Business |
Financial Business |
Grupo Elektra |
Commercial Business |
Financial Business |
Grupo Elektra |
Change |
|||||
As of December 31, 2010 |
As of December 31, 2011 |
||||||||||
Cash and cash equivalents |
1,047 |
14,404 |
15,451 |
1,880 |
15,151 |
17,032 |
1,581 |
10% |
|||
Marketable financial instruments |
9,885 |
22,600 |
32,485 |
19,803 |
15,453 |
35,256 |
2,771 |
9% |
|||
Commercial Loans |
- |
- |
- |
n.a. |
|||||||
Consumer Loans |
- |
- |
- |
n.a. |
|||||||
Mortgage Loans |
- |
- |
- |
n.a. |
|||||||
Performing loan portfolio |
275 |
17,066 |
17,341 |
341 |
27,983 |
28,324 |
10,983 |
63% |
|||
Past due Commercial Loans |
- |
- |
- |
n.a. |
|||||||
Past due Consumer Loans |
- |
- |
- |
n.a. |
|||||||
Past due Mortgage Loans |
- |
- |
- |
n.a. |
|||||||
Total past-due loans |
93 |
1,206 |
1,300 |
224 |
2,028 |
2,252 |
953 |
73% |
|||
Gross loan portfolio |
368 |
18,272 |
18,640 |
565 |
30,012 |
30,576 |
11,936 |
64% |
|||
Allowance for credit risks |
96 |
1,267 |
1,363 |
226 |
2,512 |
2,738 |
1,375 |
101% |
|||
Loan portfolio, net |
272 |
17,005 |
17,277 |
339 |
27,500 |
27,839 |
10,561 |
61% |
|||
Inventories |
5,143 |
5,143 |
7,608 |
7,608 |
2,465 |
48% |
|||||
Other current assets |
972 |
5,178 |
6,150 |
4,228 |
7,038 |
11,266 |
5,116 |
83% |
|||
Total current assets |
17,319 |
59,187 |
76,506 |
33,858 |
65,142 |
99,001 |
22,495 |
29% |
|||
Financial instruments |
14,133 |
14,133 |
13,871 |
13,871 |
(262) |
-2% |
|||||
Performing loan portfolio |
10,024 |
10,024 |
12,656 |
12,656 |
2,632 |
26% |
|||||
Total past-due loans |
190 |
190 |
142 |
142 |
(48) |
-25% |
|||||
Gross loan portfolio |
- |
10,215 |
10,215 |
- |
12,799 |
12,799 |
2,584 |
25% |
|||
Allowance for credit risks |
652 |
652 |
956 |
956 |
304 |
47% |
|||||
Loan portfolio, net |
- |
9,563 |
9,563 |
- |
11,843 |
11,843 |
2,280 |
24% |
|||
Other non-current assets |
9,684 |
9,684 |
41,807 |
41,807 |
32,123 |
---- |
|||||
Investment in shares |
2,574 |
18 |
2,592 |
2,480 |
8 |
2,488 |
(103) |
-4% |
|||
Property, furniture, equipment and |
|||||||||||
investment in stores, net |
4,543 |
1,399 |
5,941 |
4,218 |
1,717 |
5,935 |
(7) |
0% |
|||
Other Assets |
1,519 |
7 |
1,525 |
1,707 |
2 |
1,709 |
183 |
12% |
|||
TOTAL ASSETS |
49,771 |
70,173 |
119,944 |
97,940 |
78,713 |
176,653 |
56,709 |
47% |
|||
Demand and term deposits |
54,902 |
54,902 |
54,815 |
54,815 |
(86) |
0% |
|||||
Creditors from repurchase agreements |
3,226 |
3,226 |
9,218 |
9,218 |
5,991 |
---- |
|||||
Short-term debt |
5,632 |
5,632 |
3,337 |
350 |
3,687 |
(1,945) |
-35% |
||||
Financial leasing |
18 |
18 |
21 |
21 |
3 |
18% |
|||||
Short-term liabilities with cost |
5,650 |
58,128 |
63,778 |
3,358 |
64,383 |
67,741 |
3,963 |
6% |
|||
Suppliers and other short-term liabilities |
6,500 |
3,503 |
10,003 |
8,471 |
4,235 |
12,706 |
2,702 |
27% |
|||
Short-term liabilities without cost |
6,500 |
3,503 |
10,003 |
8,471 |
4,235 |
12,706 |
2,702 |
27% |
|||
Total short-term liabilities |
12,150 |
61,631 |
73,781 |
11,828 |
68,618 |
80,447 |
6,666 |
9% |
|||
Long-term debt |
2,629 |
1,125 |
3,754 |
10,017 |
1,099 |
11,116 |
7,362 |
---- |
|||
Financial leasing |
15 |
15 |
29 |
29 |
14 |
92% |
|||||
Long-term liabilities with cost |
2,645 |
1,125 |
3,769 |
10,046 |
1,099 |
11,145 |
7,376 |
---- |
|||
Long-term liabilities without cost |
6,021 |
(209) |
5,811 |
18,470 |
(266) |
18,204 |
12,393 |
---- |
|||
Total long-term liabilities |
8,665 |
916 |
9,581 |
28,517 |
833 |
29,349 |
19,769 |
---- |
|||
TOTAL LIABILITIES |
20,815 |
62,547 |
83,362 |
40,345 |
69,451 |
109,796 |
26,434 |
32% |
|||
TOTAL STOCKHOLDERS' EQUITY |
28,956 |
7,627 |
36,582 |
57,595 |
9,262 |
66,857 |
30,274 |
83% |
|||
LIABILITIES + EQUITY |
49,771 |
70,173 |
119,944 |
97,940 |
78,713 |
176,653 |
56,709 |
47% |
|||
INFRASTRUCTURE |
|||||||||
4Q10 |
4Q11 |
Change |
|||||||
Points of sale in Mexico |
|||||||||
Elektra (1) |
923 |
41% |
945 |
33% |
22 |
2% |
|||
Salinas y Rocha (1) |
55 |
2% |
55 |
2% |
- |
0% |
|||
Freestanding branches (2) |
852 |
38% |
1,371 |
48% |
519 |
61% |
|||
Total |
1,830 |
81% |
2,371 |
82% |
541 |
30% |
|||
Points of sale in Latin America |
|||||||||
Elektra (3) |
186 |
8% |
228 |
8% |
42 |
23% |
|||
Freestanding branches |
237 |
11% |
279 |
10% |
42 |
18% |
|||
Total |
423 |
19% |
507 |
18% |
84 |
20% |
|||
TOTAL |
2,253 |
100% |
2,878 |
100% |
625 |
28% |
|||
(1) Each store has a Banco Azteca branch. |
|||||||||
(2) In 4Q11, includes 47 Bodegas de Remate that continues operating only financial services. |
|||||||||
(3) In 4Q11, only 201 Latin America Elektra's store have a Banco Azteca branch. |
|||||||||
Floor space (m²) |
|||||||||
Elektra Mexico |
814,460 |
72% |
820,958 |
69% |
6,498 |
1% |
|||
Mini Elektra |
0% |
0% |
- |
n.a. |
|||||
Elektra Latin America |
149,669 |
13% |
162,882 |
14% |
13,213 |
9% |
|||
Salinas y Rocha |
59,614 |
5% |
58,995 |
5% |
(619) |
-1% |
|||
Freestanding branches |
99,773 |
9% |
151,463 |
13% |
51,690 |
52% |
|||
TOTAL |
1,123,516 |
100% |
1,194,298 |
100% |
70,782 |
6% |
|||
Employees |
|||||||||
Mexico |
32,800 |
83% |
44,130 |
85% |
11,330 |
35% |
|||
Latin America |
6,629 |
17% |
7,934 |
15% |
1,305 |
20% |
|||
Total employees |
39,429 |
100% |
52,064 |
100% |
12,635 |
32% |
|||
SOURCE Grupo Elektra, S.A.B. de C.V.
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