MIRA INFORM REPORT

 

 

Report No. :

344847

Report Date :

17.10.2015

 

IDENTIFICATION DETAILS

 

Name :

HIPERMERCADOS TOTTUS SA

 

 

Registered Office :

Nataniel Cox 620, Santiago Santiago Región Metropolitana-6

 

 

Country :

Chile

 

 

Date of Incorporation :

20.03.1995

 

 

Legal Form :

Joint stock company

 

 

Line of Business :

Subject operates hypermarkets and supermarkets.

 

 

No. of Employee :

9 500

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Chile

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

CHILE ECONOMIC OVERVIEW

 

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2013, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. Growth slowed to 4.2% in 2014. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and 10 other countries in negotiating the Trans-Pacific Partnership trade agreement. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD. In 2014, President Michelle BACHELET introduced tax reforms aimed at delivering her campaign promise to fight inequality and to provide access to education and health care. The reforms are expected to generate additional tax revenues equal to 3% of Chile’s GDP, mostly by increasing corporate tax rates to OECD averages.

 

Source : CIA

 


 

STATUTORY INFORMATION

 

Legal Name:

HIPERMERCADOS TOTTUS SA

Trade Name:

TOTTUS CHILE

RUT:

78.627.210-6

Date Created:

1995

Date Incorporated:

20/03/1995

Legal Address:

Nataniel Cox 620, Santiago
Santiago Región Metropolitana-6
Chile

Operative Address:

Nataniel Cox 620, Santiago
Santiago Región Metropolitana-6
Chile

Telephone:

(56-2) 2387 8500 (56-2) 2387 8506

Fax:

(56-2) 2387 8505

Legal Form:

Joint stock company

Email:

info@tottus.com

Registered in:

Chile

Website:

www.tottus.cl

Contact:

Cristobal Irarrazaval Philippi, General Manager

Staff:

9 500

Activity:

Grocery Stores & Supermarkets Industry

 

 

BANKS

 

 

The company does not disclose its banking details

 

 

History

 

It was founded in Peru in 2002. The idea started as a way to break into the market of supermarkets in Chile, when in 2004, Falabella bought the supermarket chain San Francisco in 62.5 million dollars, the growth forecastIt was to capture 10 percent market share in the medium term, from a base of around 3%. The first hypermarket in Chile Tottus opened in Puente Alto, Chile in December 2005, following the supermarket model that the Solari family and Del Rio held in Peru since 2002, after opening the first hypermarket Tottus in Mega Plaza in Independence, Peru in the same year.

 

 

PRINCIPAL ACTIVITY

 

 

Hipermercados Tottus S.A. operates hypermarkets and supermarkets.

Products/Services description:

The company offers drinks and juices, wines and spirits, cocktail and snacks, dairy and cheese products, biscuits and treats, baby products, ice creams, grooming and cleaning products, and fruits and vegetables; and personal care, deli, frozen, carnage, bakery, confectionery, pet, home, and book store products.

Brands:

Tottus, Precio uno, Casa Joven, La Panadería, Cherokee, All Basics, Recco.

Sales are:

Retail

Clients:

General clients

Suppliers:

NA

Operations area:

National

The company imports from

Denmark

The company exports to

No exports

The subject employs

9,500 employees

Payments:

Regular

 

 

LOCATION

 

Headquarters :

Nataniel Cox 620, Santiago
Santiago Región Metropolitana-6
Chile

Branches:

The company has 37 shops in Chile.

 

 

GROUP STRUCTURE AND SUBSIDIARY COMPANIES

 

Listed at the stock exchange:

NO

Capital:

NA

Shareholders:

The company is part of:

FALLABELLA GROUP
S.A.C.I. Falabella
Chile

S.A.C.I. Falabella is considered one of the largest companies in Chile, as well as one of the largest operator of retail chains in Latin America, with approximately 55 department stores, 70 Sodimac hardware and do-it-yourself stores, and 20 Tottus supermarkets.

Management:

Pedro Manuel Colombo Maciel, Legal Representative
Juan Carlos Cortes Solar, President
Cristobal Irarrazaval Philippi, General Manager
Francisco Victor Leyton Francione, Vicepresident

 

 

FINANCIAL INFORMATION

 

 

This is a private company which does not make its financials public.

 

 

USD 2014

 

Revenue

US$ 768 000 000

 

 

Imports en US$

Year

Total

2013

US$ 38,415,723

2012

US$ 29,117,181

2011

US$ 36,780,851

2010

US$ 13,116,098

2008

US$ 18,619

2007

US$ 682,582

 

 

 

For the following years the company has an aggressive investment plan of US $ 600 million for the period 2012 to 2015. whose focus is to achieve 10% market share in Chile and 20% in Peru. To this end, in 2012 it open ed eight stores in Chile, 3 spread between Santiago and the regions of Biobío and Valparaiso.

 

 

LEGAL FILINGS

 

 

There are no legal connected to the subject

 

 

SUMMARY

 

 

Tottus is the supermarket chain Falabella Chilean capital group, with operations in Chile and Peru with 50 local 34 local.

 

The company is part of S.A.C.I. Falabella, which is considered one of the largest companies in Chile.

 

For the following years the company has an aggressive investment plan of US $ 600 million for the period to 2015.

 

 

RISK INFORMATION

 

DEBTS

Controlled

PAYMENTS

Regular

CASH FLOW

Normal

STATUS

Active

 

 

INTERVIEW

 

NAME

Sofía 

POSITION

Administrative 

COMMENTS

She confirmed address, ownership, manager, staff and brands. 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.97

UK Pound

1

Rs.100.55

Euro

1

Rs.73.99

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ANK

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.