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2021 ANNUAL REPORT
$2,683
million pesos the operating income, attributable to multi-channel sales in 2021.
2021 was a year that saw a recovery in sales for Grupo Sanborns, a year highlighted by a better performance in our various commercial formats. Consolidated sales increased by 35.0%, reaching a total of $52,939 million pesos, $13,735 million pesos more than in the previous year.
In addition to the recovery of sales in the physical stores, during 2021 we continued our progress in the technology and logistics projects to improve the service to our e-commerce customers, a venue that increased as a percentage of total sales. As a result of the change in dynamics after the pandemic, the sale of take-out food in the restaurants increased, and we observed an improvement in the mix of products, mainly in fashion and footwear as well as in the restaurants, which faced a challenge during the first half of the year due to the limitations on the admission of diners.
The credit portfolio totaled $11,032 million pesos, increasing by 7.9%. Credit was closely monitored during the pandemic and a close communication was maintained with our card holders. Revenues from credit decreased, and therefore an increase is expected during the coming months as a result of promotions and a preference towards portfolios that produce interest. A healthy portfolio on a consolidated level was maintained during 2021, in which the level of default decreased significantly from 5.2% to 2.9%.
Operating profit increased by 59.6%, reaching a total of $2,683 million pesos. This was attributable to multi-channel sales (e-commerce and physical stores), in which a greater share of technology and electronics items was observed in the mix of products. Operating expenses increased by 12.0%, but they were reduced from 34.7% to 33.1% as a percentage of sales. More support was carried out in relation to advertising and other administrative and sales expenses, such as wages and maintenance of the stores.
EBITDA improved by $2,684 million pesos in 2021, a significant growth of 131.5%, going from $2,041 to $4,724 million pesos. EBITDA margin rose from 5.2% to 8.9% due to the good result of operations in all our formats.
As for financial results, these produced an expense of $212 million pesos, decreasing by 55.1% due to lesser net interest paid, compared to $472 million paid in 2020.
Capital investments by the Company were for a total of $467 million pesos and included the maintenance of stores and restaurants and the opening of the iShop units. On December 31 of 2021 we had 433 units with a commercial area of 1,191,000 square meters.
During the year, and as the conclusion of the consolidation-of-stores strategy under the criterion of profitability and improved operation, 6 Sanborns, one Dax and one iShop stores were closed. The opening-of-stores program was halted for Sears and Sanborns, but iShop continued to expand, with the opening of three stores: the Encuentro Oceania store and the Patio Tlalpan store, both in Mexico City, and the La Perla store in Guadalajara, Jalisco.
Grupo Sanborns had no debt on 31 December 2021. Cash on hand was $7,305 million pesos, compared to $3,991 million at the end of December, 2020. This increase of $3,314 million pesos was attributable to the better operating results, the recovery of the portfolio, and the financial revenue.
Sincerely,
Director General of Grupo Sanborns, S.A.B. de C.V.
In terms of capital expenditures, this totals $467 million pesos and includes the maintenance of stores and restaurants and the opening of three iShop units, two in Mexico City and one in Guadalajara.