Grupo Elektra's Impressive Growth in Q3 Financial Performance

Grupo Elektra Reports Third Quarter Financial Performance

Grupo Elektra, S.A.B. de C.V. (BMV: ELEKTRA* Latibex: XEKT), has recognized notable success with its third-quarter financial performance. The company revealed positive results that illustrate robust business growth and effective strategic planning.

Financial Highlights of the Quarter

The consolidated revenue for this quarter reached an impressive Ps.53,864 million compared to the Ps.50,761 million recorded during the same period last year. This reflects a strong upward trend in business performance.

Consolidated costs also increased to Ps.25,637 million from Ps.24,538 million, showcasing that while costs are growing, the overall revenue growth significantly outweighs it. Sales, administrative, and promotional expenses totaled Ps.21,305 million, marking an increase from Ps.19,358 million in the previous year.

Importantly, the company reported an EBITDA of Ps.6,922 million, slightly up from Ps.6,865 million a year ago, demonstrating strong operational efficiency and profitability.

Foreign Exchange and Other Financial Results

This quarter highlighted a remarkable gain in foreign exchange, registering Ps.155 million, an impressive turnaround from a loss of Ps.491 million recorded during the previous year. This positive shift is attributed to the company’s net liability monetary positioning and the peso appreciation against the dollar.

In terms of other financial results, Grupo Elektra experienced a solid positive variation of Ps.3,965 million compared to a 11% loss in the previous year, indicating improved market conditions for the financial instruments held by the company.

The tax provision for this period increased by Ps.1,299 million, aligned with the growth in profits.

Robust Balance Sheet

On the balance sheet side, Grupo Elektra reported a consolidated gross loan portfolio amounting to Ps.212,366 million, showing growth from Ps.189,537 million in the prior year. The non-performing loan ratio is currently at 5.2%, an increase from 4.2% indicated last year, reflecting the need for continued focus on credit quality.

The company’s consolidated deposits have also reflected growth, totaling Ps.248,125 million compared to Ps.227,495 million noted the previous year.

About Grupo Elektra

Grupo Elektra stands tall as Latin America’s foremost financial services provider and specialty retailer, being the largest non-bank supplier of cash advance services throughout the United States. Currently, the group operates over 6,000 contact points across multiple countries including the United States, Guatemala, Honduras, and Panama.

Established by the visionary entrepreneur Ricardo B. Salinas, Grupo Elektra is part of the dynamic Grupo Salinas, which comprises many fast-growing firms focused on innovation, economic value, and improving the quality of life in communities through sustainable practices.

With a shared mission and common values, Grupo Salinas aims to achieve high growth rates, superior outcomes, and world-class performance by fostering a collaborative environment across its companies.

Frequently Asked Questions

What are Grupo Elektra's recent financial highlights?

Grupo Elektra reported a consolidated revenue of Ps.53,864 million for the third quarter of this year, a clear increase from the previous year's revenue.

How has the foreign exchange impacted their results?

The company recognized a foreign exchange gain of Ps.155 million, reversing a significant loss from the previous year, indicating improved foreign exchange conditions.

What is the current status of their loan portfolio?

The consolidated gross loan portfolio reached Ps.212,366 million, with a non-performing loan ratio of 5.2%, reflecting ongoing management focus on credit quality.

How do Grupo Elektra's expenses compare to previous periods?

Expenses were recorded at Ps.21,305 million, which is higher than last year's amount, but they are well managed within the growing revenue framework.

What is Grupo Elektra's vision for sustainability?

The company, under the umbrella of Grupo Salinas, aims to create economic, social, and environmental value, committing to innovation and responsible growth in its operations and community involvement.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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