Q1 2025 Grupo Comercial Chedraui SAB de CV Earnings Call Transcript
Key Points
- Grupo Comercial Chedraui SAB de CV (GCHEF) reported a 14.8% increase in consolidated sales year-over-year, driven by positive sales trends in both Mexico and the US.
- The company achieved a 2.8% increase in same-store sales in dollar terms in the US, marking the fourth consecutive quarter of growth.
- Chedraui Mexico's EBITDA margin improved by 19 basis points to 9.5% due to better inventory and promotion management.
- The transition of legacy distribution centers in California to the new RCDC is nearing completion, expected to be fully operational in the second quarter of 2025.
- The Mi Chedraui loyalty program continues to grow, with customer participation increasing by 5.6% over the last 12 months, now representing 75% of sales.
- The RCDC transition costs and Smart & Final's pricing strategy impacted the consolidated EBITDA margin, which stood at 8.4%.
- Higher labor costs in both Mexico and the US contributed to a 19.3% increase in consolidated operating expenses.
- The depreciation of the Mexican peso against the US dollar by 20.3% affected financial results, despite favorable currency translation effects.
- Smart & Final's EBITDA margin was impacted by transition supply chain costs, standing at 6.5% for the quarter.
- The company is experiencing a slowdown in consumption in Mexico, particularly in the southern region, affecting same-store sales growth.
Good morning to all participants, and welcome to Grupo Comercial Chedraui's first quarter 2025 conference call. Participating on the conference call today will be Mr. Jose Antonio Chedraui, CEO of Grupo Comercial Chedraui; Mr. Carlos Smith, CEO of Chedraui USA; Humberto Tafolla, CFO; and [ Arturo Alaska], IRO for the company. We will begin the call with the initial comments on Grupo Comercial Chedraui fourth quarter financial results by the company's CEO, Mr. Jose Antonio Chedraui and Chedraui's USA CEO, Carlos Smith.
Good morning to all, and welcome to our presentation of Grupo Comercial Chedraui first quarter 2025 results. I want to express sincere appreciation for the dedication of our employees, whose commitment to our strategy of offering the lowest price, the best assortment by store and delivering an outstanding customer experience is key to driving our continued growth in market share.
I am excited to share that in Mexico, our same
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