Q2 2025 Grupo Comercial Chedraui SAB de CV Earnings Call Transcript
Key Points
- Grupo Comercial Chedraui SAB de CV (GCHEF) reported a strong second quarter with consolidated sales growing by 9.5% year-over-year, driven by positive performance in both Mexico and the US.
- Chedraui Mexico achieved a same-store sales growth of 3.7%, outperforming the self-service sales growth for the 20th consecutive quarter.
- The company successfully completed the transition of five legacy distribution centers to the new Rancho Cucamonga Distribution Center (RCDC), which is expected to improve productivity and support long-term growth.
- Chedraui USA's Fiesta Mart delivered a solid performance with continued same-store sales growth, and Smart & Final saw a 1.5% year-over-year increase in transactions.
- The company accelerated its organic growth by opening 30 new stores in Mexico and 1 store in the US during the second quarter of 2025.
- Chedraui USA's same-store sales in dollar terms declined by 0.3% compared to the same quarter last year, with El Super and Fiesta facing high same-store sales comparisons.
- Smart & Final's same-store sales decreased by 0.6% in dollar terms, primarily due to a lower average ticket from business customers and ongoing pricing strategy.
- The EBITDA margin in the US was impacted by RCDC transition costs and Smart & Final's pricing strategy, resulting in a 4.3% EBITDA decline in dollar terms.
- The company faced higher labor costs in both Mexico and the US, which increased operating expenses by 12.4% compared to the second quarter of 2024.
- The consumer environment in Mexico showed signs of weakening, particularly in the Southeast region, which could impact future sales growth.
Good morning to all participants, and welcome to the Grupo Comercial Chedraui second quarter 2025 conference call. Participating in the conference call, we will be -- we will have Mr. Jose Antonio Chedraui, CEO of Grupo Commercial Chedraui; Mr. Carlos Smith, CEO of Chedraui USA; Humberto Tafolla, CFO; and Artur Velasquez, IRO for the company.
We will begin the call with initial comments on Grupo Commercial Chedraui second quarter financial results by the company's CEO, Mr. Jose Antonio Chedraui; and Chedraui USA's CEO, Carlos Smith. Please go ahead.
Good morning to all, and welcome to our presentation of Grupo Comercia Chedraui second quarter 2025 results. Our favorable second quarter results were driven by continued focus on our strategies, three main pillars of offering; customers the lowest price possible, providing the best product assortment for each store and delivering a unique customer experience.
These efforts to fulfill our mission of improving
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