Ara

Sales

€2,850 M

(+17%)

# Stores

1,438

LFL

+0.2%

EBITDA

€96 M

(+113.1%)

CAPEX

€171 M

Highlights of the Year

• Opening of 150 stores, increasing the visibility of the brand, to more than 360 municipalities
• Launch of weekly promotions and low prices every day – “En Ara SÍ te alcanza para TODO”
• Social investment of one million euros in the social programme “One Million Reasons”

More information on Ara’s sustainability initiatives can be found in the “Sustainability” section of this Annual Report.

Performance

Despite the slowdown in inflation, prices, including food prices, have remained high as a result of the surge in inflation in the past three years, putting pressure on household income throughout 2024. This steady loss of purchasing power among Colombian consumers has negatively impacted volume growth and led to trading down in the market.

Ara remained focused on implementing its commercial strategy, guaranteeing the best value proposition for consumers and strengthening its market position. With its strong promotional dynamics and consistently low prices, the Company continued to create significant savings opportunities for Colombian families, in particularly difficult circumstances.

Throughout the year, the banner remained committed to gaining consumer recognition and increasing its market share in the regions where it is present. Ara stood by Colombian families, offering quality and innovation in its offer, and increasing the weight of promotions in total sales.

Sales, in local currency, grew 11.1%, including an LFL of 0.2%. In euros, sales amounted to 2.9 billion euros, up 17% from 2023.

Net Sales

(€ Million)

In 2024, the Company implemented strong in-store promotional campaigns, which have now become Ara’s brand image. One example is “En Ara SÍ te alcanza para TODO” (In Ara YES you can afford EVERYTHING), a weekly nationwide campaign offering opportunities for extra savings, enhancing general price perception. These campaigns were also promoted across social media to reach a younger and more digital consumer profile.

Another impactful campaign was “Fútbol Locura” (Football Madness), the main aim of which was to attract more customers and increase sales, boosting the counterpart of Ara’s sponsorship of the women’s football team, which reached the quarterfinals of the Paris Olympics.

Several promotions were held throughout the year, including the discount marathon and daily “Super Hits”, and implemented initiatives directly catering to consumers’ appetite for games, such as the launch of the “Aguinaldo” scratch cards awarding vouchers to spend on products in Ara stores.

The banner again leveraged its decentralised operating model to ensure local competitiveness and to carry out high-impact initiatives in surrounding neighbourhoods, taking advantage of store openings, with targeted campaigns and participation and engagement in regional festivities. These actions – store activations and regional brochures – helped increase sales in strategic categories and basket size, as well as attract new customers.

Special media mix strategies were also executed, including regional radio and segmented digital campaigns to increase differentiation.

The Private Brands strengthened their importance in an environment characterised by trading down, where quality options combined with low prices were instrumental. The Company thus continued to invest in the differentiation and innovation of its assortment, having launched 146 new Private Brand products and carried out 11 relaunches. Examples include the development and launch of the “BEM” (GOOD) brand, under which a range of healthy products that included several varieties of tea and wholemeal biscuits.

Several special campaigns were also held in the year focusing on Private Brand categories, particularly dairy, home cleaning and personal care products.

Ara maintained its organic growth strategy as a priority, investing 171 million euros in the opening of 150 new stores, including 10 Bodegas del Canasto, and the refurbishment of 15 locations. The Company also opened a new distribution centre at the beginning of the year to increase supply efficiency for its stores, delivering productivity gains, especially in terms of transportation costs.

Also, with regard to efficiency and reinforcing its commitment to sustainability, Ara installed solar panels at six distribution centres and more than 226 stores in the year, thereby increasing the use of photovoltaic energy and contributing to the Group’s commitment to decarbonisation.

In 2024, the Company allocated one million euros to the “One Million Reasons” social investment programme, with two primary objectives: to promote health through food, focusing in particular on fighting child malnutrition, and to support local communities by creating social empowerment projects, in which education plays a key role in bringing change.

Also of note, in terms of social sustainability, is the agreement between Ara and the Colombian Family Welfare Institute (ICBF – Instituto Colombiano de Bienestar Familiar), aimed at fighting child malnutrition through the offer of food support to thousands of Colombian families.

EBITDA totalled 96 million euros, 113.1% up on the previous year (102.3% more in local currency), with the respective margin standing at 3.4% (1.9% in 2023). The rise in the EBITDA margin reflects the change in commercial dynamics and the ongoing efforts to cut costs, helping to mitigate the effects of a weak consumption environment.