Digital Sales Boom
Grupo Palacio de Hierro (GPH) has experienced notable revenue growth during the third quarter of 2023, reaching an increase of 12.1%. This translates to a sum equivalent to 33,182 million pesos, approximately 1,840 million dollars at the current exchange rate.
The company's most recent financial report reveals that much of this success is due to the acceleration of its revenue generation through its distance sales channels. These digital channels have registered growth of 28% at the close of the third quarter compared to the same period of the previous year. It is important to note that, in addition to e-commerce, the company's alternative sales channels include personal shopping, its personalized service for the most important clients, and sales through WhatsApp.
Positive Financial Results
GPH not only saw an increase in its overall revenue. The company also increased its billing by 14% in comparable stores during the same period. Additionally, operating cash flow, known as Ebitda, rose 13.8%, reaching 4,459 million pesos, which is approximately 246 million dollars. Net profit also showed significant progress, advancing 17.1% and closing at 1,531 million pesos, approximately 84.6 million dollars.
The company emphasizes that it has a robust financial structure that will allow it to face the current situation and future challenges, guaranteeing greater profitability. With department stores operating in various key cities in Mexico, Grupo Palacio de Hierro also generates revenue through real estate activities and services related to the closed-loop card it operates. They are currently in the process of preparing for the reopening of their Satélite store, scheduled for November.
With information from Fashion Network