Grupo Sanborns
Sales of the commercial and consumer division grew 7.2% to reach Ps. 47,594 million in 2016, Ps. 3,181 million more than the previous year. Without considering the adjustment in the business plan for telephony products and services, which prevailed in the first nine months of the year, annual sales would have increased 9.7% to reach Ps. 49,278 million. In particular, the Sears, Sanborns and Promotora Musical stores showed a good performance in sales, where the contribution of each format was 51.6%, 26.7% and 15.2%, respectively.
In the year, income for consumer financing was Ps. 3,183 million, an 8.6% increase if compared with Ps. 2,931 million recorded in 2015. The percentage of non-performing credits over 90 days was 2.8% at the end of the year, a rate below the market.
Grupo Sanborns’ operating income increased 34.9% to reach Ps. 6,620 million, thanks to the better profitability due to a higher gross margin. Notwithstanding the foregoing, the recording of Other Income for Ps. 1,396 million, of which Ps. 1,141 million were derived from income recorded by the 14% acquisition of Inmuebles SROM, S.A. de C.V., contributed to the operating profitability of Grupo Sanborns. Likewise, Ps. 122 million that derived from the valuation of real estate in the year, among other items, contributed to the good operating performance.
EBITDA grew 13.3% from Ps. 5,707 million in 2015 to Ps. 6,465 million in the year. Similarly, the EBITDA margin stood at 13.6%, which represented an improvement of 70 basis points when compared to the margin obtained in the previous year.
Grupo Sanborns’ net income grew 44.5% in 2016 to reach Ps. 4,466 million, compared to the net income of Ps. 3,090 million recognized in the previous year. This effect is mainly explained by the achievement of better operating results, as well as by Other Income as mentioned previously.
The expansion plan continued throughout the year. It included the opening of six Sears, seven Sanborns and four iShop stores. Particularly, seven units were remodeled (all formats) in 2016. Meanwhile, the capital investments of Grupo Sanborns totaled Ps. 2,905 million, 28.8% higher than the previous year. Capex included the opening of two new Sears stores, the expansion of the distribution center, and the start of construction of two stores to be operative in 2017.
Taking into account all commercial formats, Grupo Sanborns operated 442 units at the end of 2016, representing a 6.4% expansion in the commercial area, equivalent to one million 186 thousand square meters.
