-Consolidated revenue increased 10% to Ps.57,790 million, driven by strong dynamism in financial income-
-Banco Azteca México's gross loan portfolio continuous growth; it increases 11% to Ps.187,645 million-
-Growing strength in Banco Azteca Mexico's asset quality; NPL ratio drops to 3.8% from 4.2% a year ago-
MÉXICO CITY, Feb. 26, 2025 /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 2024 and full year 2024 results.
Fourth quarter results
Consolidated revenue increased 10% to Ps.57,790 million in the period, compared to Ps.52,654 million in the same quarter of the previous year. Operating costs and expenses increased 5% to Ps.50,348 million, from Ps.47,927 million in the same quarter of 2023.
As a result, EBITDA was Ps.7,441 million, 57% higher compared to Ps.4,727 million a year ago. Operating income was Ps.4,954 million, more than four times higher than Ps.1,032 million in the same period of 2023.
The company reported a net loss of Ps.11,656 million, compared to net income of Ps.773 million a year ago.
4Q 2023 | 4Q 2024 | Change | ||
Ps. | % | |||
Consolidated revenue | $52,654 | $57,790 | $5,135 | 10 % |
EBITDA | $4,727 | $7,441 | $2,714 | 57 % |
Operating profit | $1,032 | $4,954 | $3,923 | 380 % |
Net result | $773 | $(11,656) | $(12,428) | ---- |
Net result per share | $3.50 | $(54.52) | $(58.02) | ---- |
Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
As of December 31, 2024, Elektra* outstanding shares were 213.8 million and as of December 31, 2023, were 220.9 million.
Revenue
Consolidated revenue increased by 10% in the period, as a result of a 13% growth in financial income and a 6% increase in commercial sales.
The increase in financial income - to Ps.33,243 million, from Ps.29,480 million in the previous year - largely reflects a 10% increase in Banco Azteca México's income, within the framework of continued growth in the gross credit portfolio, which boosts the well-being of millions of families and the development of businesses.
The increase in revenue from the commercial business, to Ps.24,547 million, from Ps.23,174 million a year ago, is largely due to growth in sales of motorcycles - which strengthens business productivity and the mobility of millions of people -, white goods - which boost the quality of life of a growing number of families - and telephony, which facilitates efficient connectivity for more and more users.
Costs and expenses
Consolidated costs for the quarter decreased 5% to Ps.28,058 million from Ps.29,567 million in the previous year. The reduction is explained by a 19% decrease in financial costs derived from a lower creation of preventive credit reserves, in the context of higher asset quality - partially offset by a 5% increase in commercial costs, in line with the growth in merchandise sold.
Consolidated cost reduction in the period, together with the higher revenue, generated a 29% increase in the company's gross profit, to Ps.29,731 million, from Ps.23,087 million a year ago. Gross margin increased seven percentage points, to 51% this quarter.
Selling, administrative and promotion expenses increased 21% to Ps.22,290 million, from Ps.18,360 million a year ago, as a result of higher operating and advertising expenses in the period.
EBITDA and net result
EBITDA grew 57% to Ps.7,441 million, from Ps.4,727 million in the previous year. EBITDA margin grew four percentage points to 13% in the period. The company reported an operating income of Ps.4,954 million, compared to Ps.1,032 million in the same quarter of 2023.
The relevant variations below EBITDA were the following:
A decrease of Ps.1,155 million in other expenses, mainly due to impairment of intangible assets of Purpose Financial a year ago.
An exchange loss of Ps.163 million this quarter, compared to an exchange gain of Ps.361 million a year ago, as a result of net liability monetary position, together with exchange depreciation this period, compared to appreciation the previous year.
A negative variation of Ps.20,210 million in other financial results, which reflects a 63% loss this quarter in the market value of the underlying financial instruments owned by the company - and which does not imply cash flow - compared to a positive 2% variation a year ago.
Consistent with the results of the quarter, a decrease of Ps.4,441 million was recorded in the tax provision for the period.
Grupo Elektra reported a net loss of Ps.11,656 million, from a net profit of Ps.773 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 various businesses that make up the company and enables financial market participants to estimate its value while considering only the relevant debt for such calculations.
Consistent with the above, debt with cost as of December 31, 2024, was Ps.39,986 million, compared to Ps.39,016 million of the previous year. The growth reflects the effect of the depreciation of the peso exchange rate against the dollar on the debt denominated in that currency, debt issuance in the period and increase in the value of the UDI in Certificados Bursatiles denominated in that unit.
The cash and cash equivalents balance was Ps.10,360 million, from Ps.9,510 million a year ago, and net debt was Ps.29,626 million, compared with Ps.29,506 million a year ago.
As of December 31, | As of December 31, | Change | ||||
Ps. | % | |||||
Cash and cash equivalents | $9,510 | $10,360 | 849 | 9 % | ||
Marketable financial instruments | 26,953 | 33,301 | 6,348 | 24 % | ||
Inventories | 16,703 | 19,123 | 2,420 | 14 % | ||
Accounts receivables | 51,033 | 32,423 | (18,609) | (36 %) | ||
Other current assets | 4,667 | 4,193 | (474) | (10 %) | ||
Investments in shares | 41,711 | 45,632 | 3,922 | 9 % | ||
Fixed assets | 9,224 | 8,515 | (709) | (8 %) | ||
Right of use assets | 12,004 | 12,594 | 590 | 5 % | ||
Other assets | 4,134 | 12,645 | 8,511 | 206 % | ||
Total assets | $175,938 | $178,787 | $2,849 | 2 % | ||
Debt with cost | $39,016 | $39,986 | 970 | 2 % | ||
Suppliers | 9,374 | 10,564 | 1,191 | 13 % | ||
Other short-term liabilities | 20,359 | 25,584 | 5,225 | 26 % | ||
Other long-term liabilities | 16,137 | 22,122 | 5,985 | 37 % | ||
Total liabilities | $84,885 | $98,256 | $13,370 | 16 % | ||
Stakeholder's equity | $91,053 | $80,531 | ($10,522) | (12 %) | ||
Liabilities and equity | $175,938 | $178,787 | $2,849 | 2 % | ||
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, 2024, grew 12% to Ps.195,314 million, from Ps.174,896 million a year ago. The consolidated non-performing loan ratio was 4.4% at the end of the period, compared to 4.7% a year ago.
Banco Azteca México's gross portfolio balance increased 11% to Ps.187,645 million, from Ps.169,557 million a year ago. The Bank's non-performing loan ratio at the end of the period was reduced to 3.8%, compared to 4.2% a year ago, in the context of robust credit origination processes and increasing collection efficiency.
Grupo Elektra's consolidated deposits were Ps.233,898 million, 8% higher than Ps.216,880 million a year ago. Banco Azteca México's traditional deposits were Ps.227,640 million, 6% higher than Ps.214,536 million a year ago.
Banco Azteca México's traditional deposits to gross portfolio ratio was 1.2 times, allowing for solid growth for the Bank, with optimal funding costs.
The Bank's estimated liquidity coverage ratio at the end of the quarter - computable liquid assets / total net cash outflow - was 1,056%, an outstanding figure in the Mexican banking sector.
Banco Azteca México's capitalization ratio was 14.67%.
Infrastructure
Grupo Elektra currently has 6,150 points of contact, compared to 6,174 in the previous year. This decrease reflects strategic efforts to maximize the profitability of the company's contact points.
At the end of the period, Grupo Elektra had 4,901 points of contact in Mexico, 815 in the USA, and 434 in Central America. This extensive distribution network enhances customer proximity, strengthens service quality, and reinforces the company's positioning in the countries where it operates
Twelve-month consolidated results
Consolidated revenue for 2024 grew 9% to Ps.201,296 million from Ps.184,151 million in 2023. This increase was driven by a 10% rise in revenue from the financial business and an 8% growth in sales from the commercial business.
EBITDA was Ps.26,995 million, 26% higher than Ps.21,361 million in the previous year. The EBITDA margin grew one percentage point to 13%. The company reported operating income of Ps.17,523 million from Ps.9,288 million a year ago.
In 2024, the company reported a net loss of Ps.11,154 million, compared to net income of Ps.5,993 million in the prior year. This change reflects, to a great extent, a loss in the market value of the company's underlying financial instruments - and which does not imply cash flow - compared to a positive variation of the previous year.
2023 | 2024 | Change | ||
Ps. | % | |||
Consolidated revenue | $184,151 | $201,296 | $17,145 | 9 % |
EBITDA | $21,361 | $26,995 | $5,634 | 26 % |
Operating profit | $9,288 | $17,523 | $8,236 | 89 % |
Net result | $5,993 | $(11,154) | $(17,147) | ---- |
Net result per share | $27.13 | $(52.17) | $(79.30) | ---- |
Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
As of December 31, 2024, Elektra* outstanding shares were 213.8 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 México, 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: | ||
GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES | ||||||||
4Q23 | 4Q24 | Change | ||||||
Financial income | 29,480 | 56 % | 33,243 | 58 % | 3,762 | 13 % | ||
Commercial income | 23,174 | 44 % | 24,547 | 42 % | 1,373 | 6 % | ||
Income | 52,654 | 100 % | 57,790 | 100 % | 5,135 | 10 % | ||
Financial cost | 12,629 | 24 % | 10,206 | 18 % | (2,423) | -19 % | ||
Commercial cost | 16,938 | 32 % | 17,852 | 31 % | 914 | 5 % | ||
Costs | 29,567 | 56 % | 28,058 | 49 % | (1,509) | -5 % | ||
Gross income | 23,087 | 44 % | 29,731 | 51 % | 6,644 | 29 % | ||
Sales, administration and promotion expenses | 18,360 | 35 % | 22,290 | 39 % | 3,931 | 21 % | ||
EBITDA | 4,727 | 9 % | 7,441 | 13 % | 2,714 | 57 % | ||
Depreciation and amortization | 2,450 | 5 % | 2,395 | 4 % | (54) | -2 % | ||
Other expense, net | 1,246 | 2 % | 91 | 0 % | (1,155) | -93 % | ||
Operating income | 1,032 | 2 % | 4,954 | 9 % | 3,923 | ---- | ||
Comprehensive financial result: | ||||||||
Interest income | 516 | 1 % | 627 | 1 % | 110 | 21 % | ||
Interest expense | (1,480) | -3 % | (1,657) | -3 % | (177) | -12 % | ||
Foreign exchange gain (loss), net | 361 | 1 % | (163) | 0 % | (524) | ---- | ||
Other financial results, net | 838 | 2 % | (19,372) | -34 % | (20,210) | ---- | ||
236 | 0 % | (20,566) | -36 % | (20,801) | ---- | |||
Participation in the net income of | ||||||||
CASA and other associated companies | 163 | 0 % | 165 | 0 % | 2 | 1 % | ||
Income (loss) before income tax | 1,431 | 3 % | (15,446) | -27 % | (16,877) | ---- | ||
Income tax | (649) | -1 % | 3,792 | 7 % | 4,441 | ---- | ||
Income (loss) before discontinued operations | 782 | 1 % | (11,654) | -20 % | (12,435) | ---- | ||
Result from discontinued operations | (9) | 0 % | (2) | 0 % | 7 | 78 % | ||
Consolidated net income (loss) | 773 | 1 % | (11,656) | -20 % | (12,428) | ---- | ||
GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED INCOME STATEMENTS | ||||||||||
MILLIONS OF MEXICAN PESOS | ||||||||||
12M23 | 12M24 | Change | ||||||||
Financial income | 111,292 | 60 % | 122,547 | 61 % | 11,255 | 10 % | ||||
Commercial income | 72,858 | 40 % | 78,749 | 39 % | 5,890 | 8 % | ||||
Income | 184,151 | 100 % | 201,296 | 100 % | 17,145 | 9 % | ||||
Financial cost | 40,852 | 22 % | 40,632 | 20 % | (220) | -1 % | ||||
Commercial cost | 53,621 | 29 % | 56,422 | 28 % | 2,801 | 5 % | ||||
Costs | 94,472 | 51 % | 97,053 | 48 % | 2,581 | 3 % | ||||
Gross income | 89,679 | 49 % | 104,243 | 52 % | 14,564 | 16 % | ||||
Sales, administration and promotion expenses | 68,317 | 37 % | 77,247 | 38 % | 8,930 | 13 % | ||||
EBITDA | 21,361 | 12 % | 26,995 | 13 % | 5,634 | 26 % | ||||
Depreciation and amortization | 9,657 | 5 % | 9,399 | 5 % | (258) | -3 % | ||||
Other expense, net | 2,416 | 1 % | 73 | 0 % | (2,343) | -97 % | ||||
Operating income | 9,288 | 5 % | 17,523 | 9 % | 8,236 | 89 % | ||||
Comprehensive financial result: | ||||||||||
Interest income | 1,818 | 1 % | 2,137 | 1 % | 319 | 18 % | ||||
Interest expense | (5,840) | -3 % | (6,030) | -3 % | (190) | -3 % | ||||
Foreign exchange gain (loss), net | 711 | 0 % | (1,287) | -1 % | (1,999) | ---- | ||||
Other financial results, net | 2,301 | 1 % | (26,849) | -13 % | (29,150) | ---- | ||||
(1,009) | -1 % | (32,029) | -16 % | (31,019) | ---- | |||||
Participation in the net income of | ||||||||||
CASA and other associated companies | 553 | 0 % | (170) | 0 % | (723) | ---- | ||||
Income (loss) before income tax | 8,832 | 5 % | (14,675) | -7 % | (23,507) | ---- | ||||
Income tax | (2,834) | -2 % | 3,526 | 2 % | 6,360 | ---- | ||||
Income (loss) before discontinued operations | 5,998 | 3 % | (11,150) | -6 % | (17,147) | ---- | ||||
Result from discontinued operations | (5) | 0 % | (4) | 0 % | 1 | 25 % | ||||
Consolidated net income (loss) | 5,993 | 3 % | (11,154) | -6 % | (17,147) | ---- | ||||
GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES | ||||||||||
Commercial | Financial | Grupo | Commercial | Financial | Grupo | Change | ||||
At December 31, 2023 | At December 31, 2024 | |||||||||
Cash and cash equivalents | 9,510 | 33,471 | 42,981 | 10,360 | 36,968 | 47,327 | 4,346 | 10 % | ||
Marketable financial instruments | 5,031 | 89,115 | 94,145 | 8,332 | 102,492 | 110,824 | 16,679 | 18 % | ||
Performing loan portfolio | - | 90,803 | 90,803 | - | 101,967 | 101,967 | 11,164 | 12 % | ||
Total past-due loans | - | 5,919 | 5,919 | - | 6,163 | 6,163 | 244 | 4 % | ||
Gross loan portfolio | - | 96,722 | 96,722 | - | 108,130 | 108,130 | 11,408 | 12 % | ||
Allowance for credit risks | - | 13,610 | 13,610 | - | 18,850 | 18,850 | 5,241 | 39 % | ||
Loan portfolio, net | - | 83,113 | 83,113 | - | 89,280 | 89,280 | 6,167 | 7 % | ||
Inventories | 16,703 | 0 | 16,703 | 19,123 | - | 19,123 | 2,420 | 14 % | ||
Other current assets | 20,753 | 13,346 | 34,099 | 21,687 | 14,729 | 36,416 | 2,317 | 7 % | ||
Total current assets | 51,997 | 219,044 | 271,041 | 59,502 | 243,468 | 302,970 | 31,929 | 12 % | ||
Financial instruments | 21,922 | 2 | 21,924 | 24,969 | 2 | 24,971 | 3,047 | 14 % | ||
Performing loan portfolio | - | 75,961 | 75,961 | - | 84,746 | 84,746 | 8,785 | 12 % | ||
Total past-due loans | - | 2,213 | 2,213 | - | 2,438 | 2,438 | 225 | 10 % | ||
Gross loan portfolio | - | 78,174 | 78,174 | - | 87,184 | 87,184 | 9,010 | 12 % | ||
Allowance for credit risks | - | 5,700 | 5,700 | - | 5,995 | 5,995 | 294 | 5 % | ||
Loan portfolio | - | 72,474 | 72,474 | - | 81,190 | 81,190 | 8,716 | 12 % | ||
Other non-current assets | 22,909 | 634 | 23,543 | 1,301 | 410 | 1,712 | (21,831) | -93 % | ||
Investment in shares | 2,357 | 10 | 2,367 | 2,194 | 14 | 2,208 | (159) | -7 % | ||
Property, furniture, equipment and | ||||||||||
investment in stores, net | 9,224 | 10,566 | 19,789 | 8,515 | 10,465 | 18,980 | (809) | -4 % | ||
Intangible assets | 685 | 7,230 | 7,915 | 587 | 9,145 | 9,732 | 1,817 | 23 % | ||
Right of use asset | 11,841 | 1,938 | 13,779 | 12,445 | 2,325 | 14,770 | 991 | 7 % | ||
Other assets | 3,449 | 7,942 | 11,391 | 12,058 | 11,622 | 23,681 | 12,289 | ---- | ||
TOTAL ASSETS | 124,384 | 319,839 | 444,223 | 121,572 | 358,642 | 480,214 | 35,991 | 8 % | ||
Demand and term deposits | - | 216,880 | 216,880 | - | 233,898 | 233,898 | 17,018 | 8 % | ||
Creditors from repurchase agreements | - | 34,311 | 34,311 | - | 42,642 | 42,642 | 8,331 | 24 % | ||
Short-term debt | 5,127 | 34 | 5,160 | 6,219 | 40 | 6,260 | 1,100 | 21 % | ||
Leasing | 1,959 | 819 | 2,778 | 2,589 | 869 | 3,459 | 680 | 24 % | ||
Short-term liabilities with cost | 7,086 | 252,044 | 259,129 | 8,809 | 277,450 | 286,259 | 27,129 | 10 % | ||
Suppliers and other short-term liabilities | 27,556 | 17,579 | 45,135 | 33,350 | 24,700 | 58,050 | 12,915 | 29 % | ||
Short-term liabilities without cost | 27,556 | 17,579 | 45,135 | 33,350 | 24,700 | 58,050 | 12,915 | 29 % | ||
Total short-term liabilities | 34,642 | 269,623 | 304,265 | 42,159 | 302,150 | 344,309 | 40,044 | 13 % | ||
Long-term debt | 30,512 | 1 | 30,513 | 28,773 | 0 | 28,773 | (1,740) | -6 % | ||
Leasing | 11,026 | 1,207 | 12,233 | 11,122 | 1,537 | 12,660 | 426 | 3 % | ||
Long-term liabilities with cost | 41,538 | 1,208 | 42,746 | 39,896 | 1,537 | 41,433 | (1,313) | -3 % | ||
Long-term liabilities without cost | 5,111 | 1,048 | 6,159 | 11,000 | 2,941 | 13,941 | 7,782 | ---- | ||
Total long-term liabilities | 46,650 | 2,256 | 48,906 | 50,895 | 4,478 | 55,374 | 6,468 | 13 % | ||
TOTAL LIABILITIES | 81,291 | 271,879 | 353,170 | 93,054 | 306,628 | 399,683 | 46,513 | 13 % | ||
TOTAL STOCKHOLDERS' EQUITY | 43,093 | 47,960 | 91,053 | 28,517 | 52,014 | 80,531 | (10,522) | -12 % | ||
LIABILITIES + EQUITY | 124,384 | 319,839 | 444,223 | 121,572 | 358,642 | 480,214 | 35,991 | 8 % | ||
INFRASTRUCTURE | ||||||||
4Q23 | 4Q24 | Change | ||||||
Points of sale in Mexico | ||||||||
Elektra | 1,225 | 20 % | 1,245 | 20 % | 20 | 2 % | ||
Salinas y Rocha | 33 | 1 % | 32 | 1 % | (1) | -3 % | ||
Banco Azteca | 1,919 | 31 % | 1,936 | 31 % | 17 | 1 % | ||
Freestanding branches | 1,743 | 28 % | 1,688 | 27 % | (55) | -3 % | ||
Total | 4,920 | 80 % | 4,901 | 80 % | (19) | 0 % | ||
Points of sale in Central America | ||||||||
Elektra | 120 | 2 % | 131 | 2 % | 11 | 9 % | ||
Banco Azteca | 227 | 4 % | 236 | 4 % | 9 | 4 % | ||
Freestanding branches | 64 | 1 % | 67 | 1 % | 3 | 5 % | ||
Total | 411 | 7 % | 434 | 7 % | 23 | 6 % | ||
Points of sale in North America | ||||||||
Purpose Financial | 843 | 14 % | 815 | 13 % | (28) | -3 % | ||
Total | 843 | 14 % | 815 | 13 % | (28) | -3 % | ||
TOTAL | 6,174 | 100 % | 6,150 | 100 % | (24) | 0 % | ||
Floor space (m²) | 1,716 | 100 % | 1,731 | 100 % | 15 | 1 % | ||
Employees | ||||||||
Mexico | 62,647 | 88 % | 61,928 | 88 % | (719) | -1 % | ||
Central and South America | 6,048 | 8 % | 6,139 | 9 % | 91 | 2 % | ||
North America | 2,583 | 4 % | 2,483 | 4 % | (100) | -4 % | ||
Total employees | 71,278 | 100 % | 70,550 | 100 % | (728) | -1 % | ||
SOURCE Grupo Elektra, S.A.B. de C.V.
