Annual Report 2013- Financial
highlights - Letter from
the Chairman - Letter from
the CEO - The Board of
Directors Report - Board of
Directors - Financial
Section- Independent auditor’s report
- Report of the audit and societary practices committee
- Consolidated balance sheets
- Consolidated statements of comprehensive income, expenses by function
- Consolidated statements of changes in stockholders’ equity
- Consolidated cash flow statements
- Notes to the consolidated financial statements
Letter from the Chairman of the Board
The 2013 business environment recorded significant challenges arising from the slowdown of economic activity in Mexico which weakened consumer spending and increased competition.
Liverpool responded to these challenges by making significant capital investment that amounted to $5,667million pesos. Our expansion plans will continue throughout 2014. We are building department stores in the cities of Queretaro, Puebla and Toluca, as well as shopping malls in the two latter cities. Additionally, we will start operations of three Fabricas de Francia stores and 50 boutiques under the banner of several brands.
Besides expanding our retail outlets, we continued ndeveloping the virtual sales channel for online shopping, which brings us closer to our customer base by offering it a more accessible shopping experience. Consequently, in 2013 we invested $878 million pesos on our technological platforms as well as in our supply chain with the objective of fostering the further development and growth of our current businesses. We are committed to continue this steady effort in the future.
Our net income grew by 11.9% in 2013, at the same time our net profit grew by 7.0% reaching figures of $74,105 million pesos and $7,702 million pesos respectively. As a result, we sustained a healthy financial position with low leverage levels and high capitalization; a fact that enables us to guarantee the continuity of our operations with a promising future.
We are well aware that human capital is fundamental for our growth. Therefore, our search for the bond with our associates is continuously intensified and tightened. This in itself encourages the personal and professional skill development that translates into excellence standards of service and a stronger organization facing new challenges.
We acknowledge and are deeply grateful for the trust and assistance conferred to our corporation by our shareholders, board members, suppliers, tenants, financial institutions, business partners, associates and customers.
Sincerely,
Max David
Chairman of the Board of Directors
Mexico City, March 6, 2014