MEXICO CITY, April 23, 2024 /PRNewswire/ — Grupo Comercial Chedraui, S.A.B. de C.V. reports its 2024 first quarter results. All figures are shown in nominal terms and reported under International Financial Reporting Standards (IFRS).
1Q’24 Highlights:
- Growth of 9.4% in Same-Store Sales (SSS) in Mexico, exceeding the 7.6% recorded by ANTAD.
- 5.7% growth in consolidated EBITDA
- Consolidated EBITDA margin increase: +43 bps to 8.8%
- +45 bps in Retail Mexico to 8.7%
- +38 bps in Retail US to 8.4%
- 23.8% increase in consolidated Net Income
- ROE of 18.8%, an 88-bps improvement compared to 1Q’23
- Net debt (cash) to EBITDA at -0.10x
Antonio Chedraui, Grupo Comercial Chedraui’s CEO, remarked:
We are pleased to announce to our investor community and stakeholders that our first-quarter results maintained a positive trend, which reflect our employees’ ongoing dedication to providing our customers the products they desire at the best possible prices and with exceptional service.
In Mexico, we continue to gain market share. For the fifteenth consecutive quarter, Chedraui outperformed ANTAD, with an average positive spread of 176 bps for the first quarter.
A significant driver of our positive results in Mexico is our popular and successful “Mi Chedraui” loyalty program, which has seen significant growth to 12.6 million registered customers, marking a 20% increase from 2023. The program allows us to identify more than 70% of the sales made in our stores in Mexico.
I am also pleased to announce that in January we were recognized by PROFECO, the Mexican Federal Consumer Protection Agency, for having the lowest average price for the basic products basket in Q4 of 2023, which confirms that we have the best prices in the market.
At Chedraui USA, we saw better-than-expected results at El Super and Fiesta. Our continued focus of offering a broad assortment of perishable products at very competitive prices, as well as our successful store remodeling programs, has allowed us to increase the number of customers who shop with us. At Smart & Final, we continue to work on strategies that position us as a primary store for our customers, which will allow us to strengthen our results in the following quarters.
Consolidated EBITDA for the first quarter rose by 5.7%, despite increased labor costs in Mexico and the U.S. This impact was offset by improved operating leverage and the continued realization of operational efficiencies. As a result, the margin on sales reached 8.8% in the quarter, representing a 43 basis point expansion compared to Q1 of 2023.
The company’s cash flow generation led us to close the first quarter of 2024 with net cash of 2,424 million pesos and a net debt (cash) to EBITDA ratio of -0.10x. Similarly, our profitability continued to improve with an ROE of 18.8%, 88 bps higher than in Q1 of 2023.
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Conference Call Information
Date
Wednesday, April 24th, 2024
11:00 am (EST)
9:00 am (Mexico City CT)
Conference Call
Operator-assisted US toll-free dial-in number: +1 877 407 3982
Operator-assisted Mexico toll-free dial-in number: 01 800 522 0034
Operator-assisted international toll free: +1 201 493 6780
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Webcast
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SOURCE Grupo Comercial Chedraui, S.A.B. de C.V.
