Envigado, Colombia, May 8, 2024 - Almacenes Éxito S.A. (´Grupo Éxito´ or ´the Company´) (BVC: ÉXITO / ADR: EXTO / BDR: EXCO32) announced its results for the first quarter ended March 31, 2024 (1Q24). All figures expressed in millions (M) or billion (B) of Colombian Pesos (COP) unless otherwise stated and expressed in long scale (COP B represent 1,000,000,000,000). Consolidated data include results from Colombia, Uruguay and Argentina, and eliminations.

Positive sales performance in local currencies in all countries, despite consumption slowdown and macro headwinds

Key Business Highlights

Financial Highlights

●

Consolidated Net Revenue reached COP $5.3 B during 1Q24 and reflected the positive sales performance in local currency in all our operations in Latam (Col +2.0%; Uru +7.6%; Arg +228.1%) and the solid evolution of other revenue driven by complementary businesses (+14.5% Col, +9.2% consol). Net Revenue decreased -3.3% in COP due to negative FX effects on results (+7.9% when excluded).

●

Gross Profit reached COP $1.32 B during 1Q24 (-7.7% in COP, +6.7% excluding the FX effect) to a margin of 25.1% (-120 bps), and reflected lower consumption trends, price investment and a higher real estate base.

●

Recurring EBITDA¹ reached COP $302,113 M in 1Q24 and a 5.7% margin (-137 bps) driven by gross margin gains from Uruguay offset by the mix effect and higher expenses from international operations.

●

Net Loss of COP $37,863 M from an income of COP $45,118 M during 1Q23, related to operating performance affected by lagged consumption and inflationary pressures on SG&A, higher financial expenses mainly from the negative FX effect and higher non-recurring expenses in Colombia.

●

EPS² of COP -$29.2 per common share in the quarter compared to COP $34.8 y/y.

●

Dividend of COP $50,49 per share, 52% pay-out-ratio.

●

All proposal approved at the GSM held on March 21, including the appointment of the new Board of Directors.

Operating Highlights

●

Consolidated CAPEX during 1Q24 reached COP $109,485 M, 81% focussed on expansion (retail and real estate), innovation, omni-channel, and digital transformation activities.

●

LTM store expansion³: 41 stores (Col 33, Uru 5, Arg 3) to a total of 642 stores, 1.04 M sqm. Expansion strategy in Colombia focused on store conversions to Éxito and Carulla banners.

●

Omni-channel sales grew 8.7% at consolidated level and reached a 11.2% share on total sales (Col 14.6%, Uru 2.5%, Arg 2.6%) during the quarter.

Note: Consolidated data include results from Colombia, Uruguay and Argentina, eliminations, and the FX effect of -10.4% at Net Revenue and -9.1% at recurring EBITDA during 1Q24. Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense). Adjusted EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization plus Associates & Joint Ventures results. EPS considers the weighted average number of outstanding shares (IFRS 33), corresponding to 1,297,864,359 shares.

Consolidated Net Revenue decreased 3.3% (+7.9% when excluding FX effect) to COP $ 5.3 B during 1Q24.

Consolidated Retail Sales decreased by 3.8% (+7.5% excluding FX effect) and totalled COP $5.0 B during 1Q24, SSS grew by +5.7%. Performance reflected positive sales performance in local currency in all the countries where the Company operates with a trend affected by slow-down in consumption and a higher non-recurring base from property sale in Colombia.

Total sales results in local currencies reflected the evolution of food sales trend in Colombia (+5.8%, above the 1.7% food inflation index) and the solid sales growth in Uruguay (+7.6% and above the 3.8% total inflation index) boosted by macro tailwinds. Argentina showed a resilient sales performance (+228.1% vs 287.7% inflation reported) impacted by and inflationary effects on consumption.

Omni-channel continued contributing to sales performance and grew 8.7% during the quarter. Omni-channel share on sales was 11.2% (+20 bps y/y) during 1Q24. The LTM store expansion¹ of 41 stores (Col 33, Uru 5, Arg 3) also drove the quarterly Retail Sales growth.

Consolidated Other Revenue increased by 9.2% (+17.1% excluding FX) during the 1Q24, driven by the solid growth in Colombia (+14.5%) driven by complementary businesses performance and in Argentina (+193% in local currency), from solid real estate occupancy levels of 94.4%.

Note: Consolidated results from Colombia, Uruguay and Argentina, eliminations, and the FX effect of -10.4% at Net Revenue in 1Q24. Data in COP includes a -17% FX effect in Uruguay and -79.8% in Argentina during 1Q24, calculated with the closing exchange rate. (1) Expansion from openings, reforms, conversions, and refurbishments.

Colombia: During the first quarter of 2024, Net Revenue grew 2.6%; Net sales totalled COP $3.7 billion (+2.0%) and SSS (+1.2%), boosted omni-channel (+7.9%, 14.6% share), volume growth (+3.1%) and food sales performance (+5.8%) above food inflation (1.7%). The Colombia operation represented near 73% of consolidated Net Sales in 1Q24.

Performance was resilient considering that unemployment rose to 11.9% during 1Q24, as well as consumption in Colombia continued decelerating mainly due to reduced household expenditure in the country; the Consumer Confidence Index decreased to -13% in March and for the third consecutive month. Inflation reduced to 7.36% from 13.34% y/y, food inflation dropped to 1.73% (vs 21.81% y/y), the lowest level since 2018. A higher non-recurring base from real estate property sale also affected top line performance.

Note: SSS in local currency, include the effect of conversions and exclude the calendar effect of -0.1% in Colombia during 1Q24 (-0.5% in Éxito, +1.4% in Carulla and +1.3% in LC segments). (1) Segment includes sales from Surtimax, Super Inter and Surtimayorista brands, allies, institutional and third-party sellers, and the sale of property development projects (inventory) of COP $2.8K M in 1Q24 and COP $29.2K M in 1Q23.

Other Revenue grew 14.5% during 1Q24 and reflected higher income from complementary business.

The Éxito segment represented approximately 68% of the sales mix in Colombia during 1Q24. The segment´s results reflected the good performance of the FMCG category (+5.9%), the Fresh (+4.7%) and the contribution of commercial events such as Éxito Anniversary. The 32 Éxito WOW stores also contributed to results and represented a 36.2% share on the segment´s sales. From the downside, the low consumption context continued affecting the electro (-4.8%) and apparel (-1.1%) categories.

The Carulla segment represented approximately 16% of the sales mix in Colombia during 1Q24. The segment benefited from the solid performance of omni-channel sales (+27.5%, 27.3% share), the food category growth (+7.2%) boosted by FMCG (+8.1%), and the double-digit growth in the Atlantic coast and the Coffee region and the performance of the 31 Fresh Market stores (63.2% share on the segment´s sales).

The low-cost & other segment which includes Super Inter, Surtimax and Surtimayorista banners, allies, institutional, third-party sellers, the sale of property development projects (inventory) and other, represented approximately 16% of the sales mix in Colombia during 1Q24. The segment´s performance was favoured by the 4.9% growth of the food category but offset by the effect of a higher base from the sale of real estate property (+4.2% growth when excluded).

Omni-channel sales in Colombia (including websites, marketplace, home delivery, Shop&Go, Click&Collect, digital catalogues and B2B virtual, plus new channels ISOC and Midescuento), grew 7.9% versus 1Q23 and reached COP $549,775 M; share on Retail Sales rose to 14.6% (vs 13.9% in 1Q23), the highest level ever reached in Colombia.

The double-digit growth of the food category (+21%,13.3% on food sales) boosted omni-channel sales. Macro headwinds such as higher interest rates and lower disposable income, led to a decrease of the non-food category of 9.6% (17.8% share on non-food sales).

Main KPI´s outcome during 1Q24 when compared to the same period of last year, were as follows:

The operation reported market share gains of 0.5 p.p. to 48.9%, according to Scentia as of March, driven by: (i) the solid sales performance of all banners and (ii) the contribution of the 32 Fresh Market stores.

Note: SSS in local currency, include the effect of conversions and the calendar effect of 2.9% during 1Q24.

The operation in Argentina contributed near to 6% on Consolidated Retail Sales and results in Colombian Pesos included a -79.8% FX effect during 1Q24.

Net Revenue in Argentina was COP $305,526 M (+226.8% in local currency) and Retail Sales were COP $295,716 M (+228.1% in local currency and +199% in SSS) during 1Q24. Last-12-month inflation as of March was of 287.7% according to Ecolatina (an Argentinian consultancy company) which compares to the 107.5% level reported during the same period last year. Retail sales grew below inflation due to lagged consumption affected by high devaluation specially since the end of 2023.

To highlight during 1Q24: (i) the performance of the Cash and Carry format (12 MiniMayorista stores, 18.5% share on sales), (ii) omni-channel performance (+142.8%, 2.6% share), and (iii) higher income of real estate (+193% in local currency) from improved commercial trends and strong occupancy levels (94.5%).

Note: SSS in local currency, include the effect of conversions and the calendar effect of 9.8% during 1Q24.

Note: Consolidated data include results from Colombia, Uruguay and Argentina, eliminations, and the FX effect of -10.4% Net Revenue in 1Q24 and -9.1% at recurring EBITDA. Data in COP includes a -17% FX effect in Uruguay at Net Revenue and at Recurring EBITDA in 1Q24 and -79.8% in Argentina, calculated with the closing exchange rate. (1) Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense). (2) The sale of property development projects (inventory) of COP $2.8K during 1Q24 vs COP $29.2K in 1Q23.

Consolidated Gross Profit decreased 7.7% (+6.7% excluding FX) during 1Q24 and margin reached 25.1% (-120 bps) as percentage of Net Revenue, compared to the same period last year, mainly affected by lower consumption trends, price investment, a higher real estate base² and FX effects.

Consolidated Recurring EBITDA¹ reached COP $302,113 M during 1Q24 (-22.0%; -14.2% when excluding FX) compared to the same period last year and margin was 5.7% (-137 bps) as percentage of Net Revenue. Performance during the quarter reflected the consumption deceleration in the region, higher expenses from international operations impacted by inflationary pressures, a higher non- recurring base real estate base in Colombia (COP $32,842 M) and negative FX impacts (-17% in Uruguay and -79.8% in Argentina) that offset gross margin gains from Uruguay.

Note: Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense).

Colombia: Recurring EBITDA reduced 24.2% during 1Q24 compared to the same period last year and margin was 4.5% (-159 bps) as percentage of Net Revenue. SG&A grew below inflation and the double-digit minimum wage increase, from internal efficiency plans and despite a higher base of real estate (COP $32,842 M, 81 bps).

Note: Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense).

Uruguay: Recurring EBITDA decreased 12.3% (+5.7% in local currency) during 1Q24 compared to the same period last year, to a 11.7% margin (-21 bps) as percentage of Net Revenue, mainly impacted by a one-time payment of lease contract fees (+11%, margin 12.1% when fees excluded); the Uruguay operation continued as the most profitable business unit of the group.

Argentina: Recurring EBITDA decreased by 81.7% during 1Q24 (-9.5% in local currency). Recurring EBITDA margin was 0.9% (-222 bps) during 1Q24 as percentage of Net Revenue. Performance reflected Net Revenues affected by lower consumption that led to price investment, inflationary pressures on cost and expenses mainly labour cost and the FX effect.

Note: Consolidated data include results from Colombia, Uruguay and Argentina, eliminations, and the FX effect -10.4% at Net Revenue in 1Q24, and -9.1% at recurring EBITDA.

Note: Numbers expressed in long scale, COP billion represent 1,000,000,000,000. (1) Holding: Almacenes Éxito S.A results without Colombia or international subsidiaries. (2) Free cash flow (FCF) = Net cash flows used in operating activities + Net cash flows used in investing activities + Variation of collections on behalf of third parties + Lease liabilities paid + Interest on lease liabilities paid (using variations for the last 12 M for each line); cash flow re-expressed in line with the financial statements. (3) Central Bank repo rate reduced 75 bps to 12.25% during 1Q24 in Colombia, (vs.13% in 1Q23 and 4Q23).

Note: Consolidated data include results from Colombia, Uruguay and Argentina, eliminations, and the FX effect of -10.4% at Net Revenue in 1Q24, and -9.1% at recurring EBITDA. Colombia perimeter includes Almacenes Éxito S.A. and its subsidiaries. (1) The sale of property development projects (inventory) in Colombia was of COP $2.8K during 1Q24 vs COP $29.2K in 1Q23. (5) LTM expansion from openings, reforms, conversions and remodellings.

Will host a conference and cordially invites you to discuss the Company´s First Quarter 2024 Results Conference Call

Almacenes Éxito S.A. will report its First Quarter 2024 Earnings on Wednesday, May 8, 2024, after the market closes.

1Q24 results will be accompanied by a presentation that will be available on the company’s website at ww.grupoexito.com.co under “Shareholders and Investors” on the following link: https://www.grupoexito.com.co/en/financial-information

Notes: Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect of -10.4% at Net Revenue and -9.1% at recurring EBITDA in 1Q24. Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense). Adjusted EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization plus Associates & Joint Ventures results. EPS considers the weighted average number of outstanding shares (IFRS 33), corresponding to 1,297,864,359 shares.

Notes: Consolidated results from Colombia, Uruguay and Argentina, eliminations and the FX effect of -10.4% at Net Revenue and -9.1% at recurring EBITDA in 1Q24. Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense). The Colombia perimeter includes the consolidation of Almacenes Éxito S.A. and its subsidiaries in the country. Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense). Data in COP includes a -17% FX effect in Uruguay at Net Revenue and at Recurring EBITDA in 1Q24 and -79.8% in Argentina, respectively, calculated with the closing exchange rate.

Holding: Almacenes Éxito results without Colombian subsidiaries. Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense).

Note: The Colombia perimeter includes the consolidation of Almacenes Éxito S.A. and its subsidiaries in the country. 1) Debt without contingent warranties and letters of credit. (2) Holding gross debt issued 100% in Colombian Pesos with an interest rate below IBR3M + 2.0%, debt at the nominal amount. IBR 3M (Indicador Bancario de Referencia) – Market Reference Rate: 11.18%; other collections included, and positive hedging valuation not included. (3) Debt at the nominal amount.

Note: Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense). Data in COP includes a -17% FX effect in Uruguay at Net Revenue and at Recurring EBITDA in 1Q24 and -79.8% in Argentina, calculated with the closing exchange rate. FX impacts are calculated as a devaluation between currencies resulting in a percentage. Percentages represent relative proportions, and as such they cannot be directly added or subtracted from each other because they are not absolute numeric values.

Note: Recurring EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted by other non-recurring operational income (expense. Adjusted EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization plus Associates & Joint Ventures results.

This document contains certain forward-looking statements based on data, assumptions, and estimates, that the Company believes are reasonable; however, it is not historical data and should not be interpreted as guarantees of its future occurrence. The words “anticipates”, “believes”, “plans”, and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations, expectations in connection with the company’s ESG plans, initiatives, projections, goals, commitments, expectations or prospects, including ESG-related targets and goals, are examples of forward-looking statements. Although the Company’s management believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements.

Grupo Éxito operates in a competitive and rapidly changing environment; therefore, it is not able to predict all the risks, uncertainties or other factors that may affect its business, their potential impact on its business, or the extent to which the occurrence of a risk or a combination of risks could have results that are significantly different from those included in any forward-looking statement. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements, or that could contribute to such differences, include, without limitation, the risks and uncertainties set forth under the section “Item 3. Key Information – D. Risk Factors” in the Company’s registration statement on Form 20-F filed with the Securities and Exchange Commission on July 20, 2023.

The forward-looking statements contained in this document are made only as of the date hereof. Except as required by any applicable law, rules or regulations, Grupo Éxito expressly disclaims any obligation or undertaking to publicly release any updates of any forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which any forward-looking statement contained in this document is based.

Reconciliations of the non-IFRS financial measures webcast are included at the appendices.

Grupo Éxito is the leading food retail platform in Colombia and in Uruguay and has a relevant presence in the north-east of Argentina. The Company´s great capacity to innovate, has allowed it to transform and adapt quickly to new consumer trends and increased its competitive advantages supported by the quality of its human talent.

Grupo Éxito leads omni-channel in the region and has developed a comprehensive ecosystem focused on the omni-client, to whom it offers the strength of its brands, multiple formats and a wide range of channels and services to facilitate their shopping experience.

The diversification of its retail revenue through traffic and asset monetization strategies, has allowed Grupo Éxito to be a pioneer in offering a profitable portfolio of complementary businesses, such as, its real estate with shopping centers in Colombia and Argentina and financial services such as credit card, virtual wallet, and payment networking. The Company also offer other businesses in Colombia, such as travel, insurance, mobile and money transfers.

In 2019, Grupo Éxito publicly launched its Digital Transformation strategy and has consolidated a powerful platform with well-recognized websites exito.com and carulla.com in Colombia, devoto.com and geant.com in Uruguay, and hiperlibertad.com in Argentina. Moreover, the Company offers click and collect services, digital catalogues, home delivery and growing channels such as Apps and Marketplace, through which Grupo Éxito has achieved an impressive digital coverage in the countries where it operates.

In 2023, consolidated Net Revenue reached COP $21.1 billion driven by strong retail execution, successful omni-channel strategy in the region and innovation in retail models. The Company operated 649 stores through multi-formats and multi-brands: hypermarkets under Éxito, Geant and Libertad brands; premium supermarkets with Carulla, Disco and Devoto; proximity under Carulla and Éxito, Devoto and Libertad Express brands. In low-cost formats, the Company operates banners Surtimax, Super Inter and Surtimayorista in Colombia and Mini Mayorista in Argentina.