Grupo Elektra Announces Revenue Of Ps.31,385 Million And EBITDA Of Ps.5,435 Million In The First Quarter Of 2021

MEXICO CITY, April 28, 2021 /PRNewswire/ — Grupo Elektra, S.A.B. de C.V. (BMV: ELEKTRA*; Latibex: XEKT), Latin America’s leading specialty…

MEXICO CITY, April 28, 2021 /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 2021 financial results.

First Quarter Results

Consolidated revenue grew 4%, to Ps.31,385 million in the period, compared to Ps.30,282 million in the same quarter of the previous year. Costs and operating expenses were Ps.25,951 million, from Ps.29,445 million in the same period of 2020.

As a result, EBITDA was Ps.5,435 million, compared to Ps.837 million a year ago. Operating income was Ps.3,493 million this quarter, from an operating loss of Ps.1,117 million in the same period of 2020.

The company reported net income of Ps.3,048 million, compared to net income of Ps.142 million a year ago.


   1Q 2020

   1Q 2021

   Change




Ps.

%






Consolidated revenue

$30,282

$31,385

$1,103

4%






EBITDA      

$837

$5,435

$4,598

—-






Operating profit

$(1,117)

$3,493

$4,610

—-






Net result     

$142

$3,048

$2,906

—-






Net result per share

$0.62

$13.39

$12.77

—-






Figures in millions of pesos

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.         

As of March 31, 2020, Elektra* outstanding shares were 228.7 million and as of March 31, 2021, were 227.7 million.

Revenue

Consolidated revenue increased 4%, as a result of a 28% growth in commercial sales, partially offset by a 9% decrease in financial income.

The growth in sales of the commercial business — to Ps.13,383 million, from Ps.10,435 million a year ago — is largely the result of a solid increase in sales of Italika motorcycles — which boosts business productivity and the mobility of families — telephony — that strengthens the connectivity of an increasing number of users — and appliances, that are commercialized with optimal customer service, in the most competitive market conditions.

Sales from the commercial business were further boosted with the development of new stores under a format that offers an optimal mix of products and services, and allows the customer to maximize the purchase experience. Similarly, Omnichannel operations, with the online store www.elektra.com.mx, which sells thousands of products at unparalleled prices, from any device and at any time, further strengthened business performance.

The reduction in financial income — to Ps.18,002 million, from Ps.19,847 million in the previous year — reflects lower interest earned by Purpose Financial in the period, derived from the effects of the health contingency in the company’s target market in the US.

Costs and Expenses

Consolidated costs for the quarter decreased 21%, to Ps.13,601 million, from Ps.17,233 million in the previous year. The lower costs are explained, to a large extent, by a 58% reduction in the financial cost, to Ps.4,359 million, from Ps.10,361 million the previous year, which largely reflects the creation of lower loan loss reserves this period.

As previously announced, a year ago an important creditor of Banco Azteca initiated a bankruptcy process (Chapter 11) in the United States, for which the institution decided, prudently, to reserve 100% of the credit of Ps.7,243 million, in the first quarter of 2020.

Commercial business costs grew 34%, to Ps.9,242 million, from Ps.6,872 million, in line with the increase in commercial revenue.

Selling, administrative and promotional expenses grew 1% to Ps.12,350 million as a result, mainly, of higher operating and advertising expenses, partially offset by lower personnel expenses.

EBITDA and net result

EBITDA was Ps.5,435 million, from Ps.837 million in the previous year. The company reported operating income of Ps.3,493 million, compared to an operating loss of Ps.1,117 million in the same quarter of 2020.

The main variations below EBITDA were the following:

A reduction of Ps.2,213 million in foreign exchange gains, due to the company’s net asset monetary position in dollars, together with a lower depreciation of the peso this quarter compared to the previous year.

An increase of Ps.1,055 million in other financial results, which reflects a 4% gain this quarter in the market value of underlying assets of financial instruments held by the company — which does not imply cash flow — in comparison to a 1% gain a year ago.

Consistent with the results for the quarter, there was an increase of Ps.1,077 million in the provision for taxes in the period.

Grupo Elektra reported net income of Ps.3,048 million, from a net income of Ps.142 million a year ago.

Unconsolidated Balance Sheet

In order to allow the visualization of the non-consolidated financial situation, 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 proforma 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, debt with cost was Ps.34,802 million as of March 31, 2021, compared to Ps.22,632 million in the previous year. The balance of cash and cash equivalents was Ps.17,230 million, from Ps.4,789 million from the previous year. As a result, net debt as of March 31, 2021 was Ps.17,572 million, compared to Ps.17,843 million a year ago.

As previously announced, during the 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.

The Senior Notes are used to fund reserve accounts for the payment of obligations under the Senior Notes and strengthen the liquidity of the company, which allows to further boost the financial soundness of Grupo Elektra.

As of March 31, 2021, the company’s stockholders ‘equity was Ps.97,118 million, and the stockholders’ equity to total liabilities ratio was 1.2 times.


As of March 31, 2020

As of March 31, 2021

        Change

Ps.

%











Cash and cash equivalents

$      4,789

$    17,230

12,441

260%

Marketable financial instruments

38,697

32,562

(6,135)

(16%)

Inventories

13,980

17,060

3,080

22%

Accounts receivables

51,969

49,912

(2,057)

(4%)

Other current assets

3,843

2,678

(1,165)

(30%)

Investments in shares

40,010

36,848

(3,162)

(8%)

Fixed assets

8,133

7,119

(1,014)

(12%)

Right of use assets

8,807

8,550

(257)

(3%)

Other assets

1,377

3,248

1,871

136%






Total assets

$  171,606

$  175,208

$      3,602

2%






Short-term debt

$    11,516

$    18,978

7,463

65%

Suppliers

8,565

8,008

(557)

(7%)

Other short-term liabilities

14,964

14,723

(241)

(2%)

Long-term debt

11,116

15,824

4,708

42%

Differed taxes

11,658

9,777

(1,881)

(16%)

Other long-term debt

9,781

10,778

998

10%






Total liabilities

$    67,600

$    78,089

$    10,489

16%






Stakeholder´s equity

$  104,006

$    97,118

($      6,887)

(7%)






Liabilities and equity

$  171,606

$  175,208

$      3,602

2%

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 March 31, 2021, grew 5%, to Ps.122,091 million, from Ps.116,381 million the previous year. The consolidated delinquency rate was 3.4% at the end of this period, compared to 10.9% the previous year.

The gross portfolio of Banco Azteca Mexico increased 11% to Ps.105,396 million, from Ps.95,361 million a year ago.

The Bank’s delinquency rate at the end of the quarter was 3.4%, compared to 11.9% the previous year. The reduction is mainly derived from the credit of Ps.7,243 million that entered the past-due portfolio a year ago, and which at the time was fully reserved.

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 first quarter.

Grupo Elektra’s consolidated deposits were Ps.189,105 million, 17% higher than the Ps.160,959 million a year ago. Deposits of Banco Azteca Mexico were Ps.190,614 million, 23% higher than the Ps.155,443 million a year ago.

The ratio of deposits to gross portfolio of Banco Azteca Mexico of 1.8 times, consolidates the solid growth prospects of the Bank, with optimal funding cost.

The Bank’s liquidity coverage ratio — total of eligible liquid assets / total net cash out — was 626%, an outstanding figure in the Mexican banking sector.

The capitalization index of Banco Azteca Mexico was 14.25%.

Infrastructure

Grupo Elektra currently has 6,736 points of contact, compared to 7,238 units the previous year. The decrease results from the closure of 383 Purpose Financial contact points in the United States — in the context of strategies aimed at boosting online credit operations and strengthening the company’s operating efficiency — as well as the closure of 318 contact points in Latin America derived, to a large extent, from the sale of Banco Azteca del Peru in the previous quarter.

In Mexico, in the last twelve months, 32 new Elektra stores were opened in strategic locations, with a format that offers an optimal mix of products and services, and allows the customer to maximize the purchase experience.

The company has 4,960 storefronts in Mexico at the end of the quarter, 1,398 in the United States, and 378 in Central and South 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.

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, Panama and Peru.

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

Grupo Salinas


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

Tel. +52 (55) 1720-9167


Tel. +52 (55) 1720-9167

jrangelk@gruposalinas.com.mx


rvillarreal@elektra.com.mx


Press Relations:



Luciano Pascoe



Tel. +52 (55) 1720 1313 ext. 36553



lpascoe@gruposalinas.com.mx


   

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

CONSOLIDATED INCOME STATEMENTS

MILLIONS OF MEXICAN PESOS




















1Q20


1Q21


Change










Financial income

19,847

66%


18,002

57%


(1,845)

-9%

Commercial income

10,435

34%


13,383

43%


2,948

28%

Income

30,282

100%


31,385

100%


1,103

4%










Financial cost

10,361

34%


4,359

14%


(6,003)

-58%

Commercial cost

6,872

23%


9,242

29%


2,370

34%

Costs

17,233

57%


13,601

43%


(3,632)

-21%










Gross income

13,049

43%


17,784

57%


4,736

36%










Sales, administration and promotion expenses

12,212

40%


12,350

39%


138

1%










EBITDA 

837

3%


5,435

17%


4,598

100%










Depreciation and amortization

1,961

6%


2,029

6%


67

3%










Depreciation right of use asset


0%



0%


0%










Other expense (income), net

(8)

0%


(87)

0%


(79)

-100%










Operating income

(1,117)

-4%


3,493

11%


4,610

—-










Comprehensive financial result:









     Interest income

272

1%


220

1%


(52)

-19%

     Interest expense

(902)

-3%


(987)

-3%


(85)

-9%

     Foreign exchange loss, net

2,458

8%


244

1%


(2,213)

-90%

     Monetary loss

0%


0%


0%

     Other financial results, net

479

2%


1,534

5%


1,055

100%


2,307

8%


1,011

3%


(1,295)

-56%










Participation  in  the  net  income of









CASA and other associated companies

(621)

-2%


(51)

0%


570

92%










Income before income tax

569

2%


4,454

14%


3,884

100%










Income tax

(238)

-1%


(1,315)

-4%


(1,077)

-100%










Income before discontinued operations

332

1%


3,139

10%


2,807

100%










Result from discontinued operations 

(190)

-1%


(90)

0%


99

52%










Impairment of intangible assets


0%



0%


—-










Consolidated net income 

142

0%


3,048

10%


2,906

100%

 


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, 2020


At March 31, 2021














Cash and cash equivalents

4,789

41,994

46,783


17,230

32,129

49,359


2,576

6%












Marketable financial instruments

8,305

70,180

78,485


5,183

91,709

96,891


18,407

23%












Performing loan portfolio

67,611

67,611


70,809

70,809


3,198

5%

Total past-due loans

6,664

6,664


3,428

3,428


(3,235)

-49%

Gross loan portfolio

74,275

74,275


74,237

74,237


(37)

0%












Allowance for credit risks

9,316

9,316


8,577

8,577


(738)

-8%












Loan portfolio, net

64,959

64,959


65,660

65,660


701

1%












Inventories

13,980

13,980


17,060

0

17,060


3,080

22%












Other current assets 

15,619

28,053

43,672


13,342

14,064

27,407


(16,265)

-37%












Total current assets

42,692

205,186

247,878


52,815

203,562

256,377


8,499

3%












Financial instruments

30,392

313

30,706


27,379

96

27,475


(3,231)

-11%












Performing loan portfolio

36,134

36,134


47,087

47,087


10,953

30%

Total past-due loans

5,972

5,972


767

767


(5,205)

-87%

Gross loan portfolio

42,106

42,106


47,854

47,854


5,748

14%












Allowance for credit risks

6,697

6,697


1,682

1,682


(5,015)

-75%












Loan portfolio

35,409

35,409


46,172

46,172


10,763

30%












Other non-current assets 

25,781

189

25,970


26,360

358

26,719


748

3%

Investment in shares

1,429

1,429


1,629

1,629


200

14%

Property, furniture, equipment and











  investment in stores, net

8,133

7,817

15,951


7,119

7,768

14,887


(1,064)

-7%

Intangible assets

658

8,157

8,815


519

7,189

7,708


(1,107)

-13%

Right of use asset

8,807

2,262

11,069


8,349

2,470

10,820


(249)

-2%

Other assets

719

683

1,402


2,729

5,857

8,586


7,184

—-

TOTAL ASSETS

118,611

260,017

378,628


126,899

273,472

400,372


21,744

6%























Demand and term deposits

160,959

160,959


189,105

189,105


28,146

17%

Creditors from repurchase agreements

16,002

16,002


18,409

18,409


2,407

15%

Short-term debt

11,303

943

12,246


18,744

103

18,847


6,602

54%

Leasing

1,727

1,099

2,826


1,331

1,119

2,450


(375)

-13%

Short-term liabilities with cost

13,030

179,002

192,032


20,076

208,736

228,812


36,780

19%












Suppliers and other short-term liabilities

19,090

26,172

45,263


21,154

13,766

34,920


(10,342)

-23%

Short-term liabilities without cost

19,090

26,172

45,263


21,154

13,766

34,920


(10,342)

-23%












Total short-term liabilities

32,120

205,174

237,294


41,229

222,503

263,732


26,438

11%












Long-term debt

11,062

1,951

13,013


15,804

15

15,820


2,807

22%

Leasing

7,653

1,202

8,855


7,817

1,332

9,149


294

3%

Long-term liabilities with cost

18,715

3,153

21,867


23,621

1,347

24,968


3,101

14%












Long-term liabilities without cost

13,786

1,674

15,460


12,739

1,814

14,553


(908)

-6%












Total long-term liabilities

32,501

4,827

37,328


36,360

3,161

39,521


2,193

6%












TOTAL LIABILITIES

64,621

210,001

274,622


77,589

225,664

303,253


28,631

10%












TOTAL STOCKHOLDERS’ EQUITY

53,991

50,015

104,006


49,310

47,808

97,118


(6,887)

-7%























LIABILITIES + EQUITY

118,611

260,017

378,628


126,899

273,472

400,372


21,744

6%












 


INFRASTRUCTURE














1Q20


1Q21


Change










Points of sale in Mexico









Elektra 

1,135

16%


1,142

17%


7

1%

Salinas y Rocha 

38

1%


36

1%


(2)

-5%

Banco Azteca

1,834

25%


1,848

27%


14

1%

Freestanding branches

1,754

24%


1,934

29%


180

10%

Total

4,761

66%


4,960

74%


199

4%










Points of sale in Central and South America









Elektra 

198

3%


107

2%


(91)

-46%

Banco Azteca

402

6%


205

3%


(197)

-49%

Freestanding branches

96

1%


66

1%


(30)

-31%

Total

696

10%


378

6%


(318)

-46%










Points of sale in North America









Purpose Financial

1,781

25%


1,398

21%


(383)

-22%

Total

1,781

25%


1,398

21%


(383)

-22%










TOTAL

7,238

100%


6,736

100%


(502)

-7%





































Floor space (m²)

1,771

100%


1,544

100%


(227)

-13%




























Employees









Mexico

71,560

83%


61,697

88%


(9,863)

-14%

Central and South America

9,646

11%


5,090

7%


(4,556)

-47%

North America

4,812

6%


3,186

5%


(1,626)

-34%

Total employees

86,018

100%


69,973

100%


(16,045)

-19%

    

 

 

Cision View original content:http://www.prnewswire.com/news-releases/grupo-elektra-announces-revenue-of-ps31-385-million-and-ebitda-of-ps5-435-million-in-the-first-quarter-of-2021–301279710.html

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