Q4 2025 Grupo Comercial Chedraui SAB de CV Earnings Call Transcript
Key Points
- Grupo Comercial Chedraui SAB de CV (GCHEF) achieved a 22nd consecutive quarter of outperforming the self-service segment in Mexico with same store sales growth exceeding competitors by 164 basis points.
- The company completed its most aggressive store opening year, surpassing its target by opening 142 stores in 2025, with plans to continue expansion in 2026.
- EBITDA margin for Chedraui USA improved by 178 basis points to 8.6%, supported by rigorous expense management and efficiencies from the Rancho Cucamonga distribution center.
- Consolidated EBITDA increased by 9.7%, with a margin improvement of 101 basis points to 8.6%, reflecting effective inventory and promotional management.
- The company has a strong focus on enhancing its e-commerce strategy, with a 70 basis point increase in e-commerce sales penetration in Mexico during the fourth quarter of 2025.
- Consolidated sales declined by 3% compared to the fourth quarter of 2024, primarily due to the currency translation effect from a 10% appreciation of the Mexican peso against the US dollar.
- Chedraui USA's same store sales declined by 2.8% in US dollar terms, impacted by stricter immigration enforcement and the US government shutdown.
- Operating expenses were affected by additional non-cash accruals for general liability and workers' compensation claims, impacting EBITDA margin by 171 basis points.
- Despite improvements, the number of transactions at Chedraui USA stores was negatively impacted, bringing same store sales negative for the quarter.
- The company incurred an extraordinary one-time payment to tax authorities in Mexico, impacting EBITDA margin by 20 basis points.
Good morning to all participants and welcome to Grupo Commercial Chorawi's 4th quarter 2025 commercial conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.
Participating in the conference call today will be Mr. Jose Antonio Chadrawis, CEO of Grupo Commercial Chadrai, Mr. Carlos Smith, CEO of Charawi USA.
Humberto Tafoya, CFO, and Arturo Velasquez, IRO for the company. We will begin the call with the initial comments on Rupocommercial Chadrai's 4th quarter financial results by the company's CEO Mr. Jose Antonio Chadrawi and Chadrawi USA CEO Carlos Smith.
Thank you. You may begin.
Good morning to all and welcome to a presentation of Grupocommercial Chadrawi's 4th quarter 2025 results. I want to begin by sincerely thanking our valued customers for choosing to shop at our stores, especially during this challenging economic environment,
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