Q3 2025 Grupo Comercial Chedraui SAB de CV Earnings Call Transcript
Key Points
- Grupo Comercial Chedraui SAB de CV (GCHEF) reported a 13.3% increase in consolidated net income to MXN1,646 million for the third quarter.
- The company achieved a milestone by opening its 1,000th store during the quarter, reflecting its continued expansion.
- Chedraui Mexico's same-store sales grew by 2.8%, outperforming the ANTAD self-service segment by 183 basis points.
- EBITDA margin improved in both Mexico and the US, with Chedraui Mexico's margin rising to 9.9% and Chedraui USA's margin increasing to 7.3%.
- The company maintained a strong cash position with a net cash-to-EBITDA ratio of minus 0.03 times, indicating effective financial management.
- Operations in the US were negatively impacted by stricter immigration enforcement, leading to a decline in transactions at El Super and Fiesta stores.
- Consolidated sales were flat compared to the previous year, primarily due to the currency translation effect from the appreciation of the Mexican peso against the US dollar.
- Higher labor costs in both Mexico and the US contributed to a 5.6% increase in consolidated operating expenses.
- Chedraui USA's same-store sales declined by 1.9% in dollar terms, reflecting challenges in maintaining sales growth.
- The company faced operational disruptions in Mexico due to severe flooding in the Veracruz region, affecting three stores temporarily.
Good morning to all participants, and welcome to Grupo Comercial Chedraui third-quarter 2025 conference call. Participating in 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 Velazquez, IRO for the company.
We will begin the call with initial comments on Grupo Comercial Chedraui's third-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 third-quarter 2025 results. I would like to start by acknowledging the recent severe flooding in the Veracruz region, particularly in the cities of Alamo and Poza Rica, which temporarily disrupted operations in three of our stores. Most importantly, we are pleased to report that all our employees and their families are safe.
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