Q4 2024 Grupo Comercial Chedraui SAB de CV Earnings Call Transcript

Feb 19, 2025 / 03:00PM GMT

Release Date Price: $5.86

Transcript

Key Points

Positve

Grupo Comercial Chedraui SAB de CV (GCHEF) achieved double-digit consolidated sales growth of 11.2% in Mexican pesos for the fourth quarter of 2024.
The company outperformed ANTAD for the 18th consecutive quarter with a 2.9% same-store sales growth in Mexico.
Chedraui USA saw a 0.8% increase in same-store sales in dollar terms, supported by a 2.2% increase in total sales.
The company maintained a strong financial position with a net cash position of MXN4,330 million and a net debt cash to EBITDA ratio of minus 0.18 times.
Grupo Comercial Chedraui SAB de CV (GCHEF) plans to consider an extraordinary dividend for the second consecutive year, reflecting strong cash generation.

Negative

The transition costs related to the new distribution center in Rancho Cucamonga, California, impacted consolidated EBITDA, which declined by 7.2%.
Smart and Final's aggressive perishables pricing strategy led to internal deflation and impacted gross margins.
Operating expenses increased by 16.2% due to higher labor costs and accelerated store openings.
The company's EBITDA margin decreased to 7.6% of sales, with a further decline when adjusted for transition costs.
Smart and Final experienced a decrease in same-store sales, partially offsetting growth in other areas.

Operator

Good morning to all participants, and welcome to Grupo Commercial Chedraui Fourth Quarter 2024 Conference Call.

Participating in the conference call today is Mr. Jose Antonio Chedraui, CEO of Grupo Commercial Chedraui; Mr. Carlos Smith, CEO of the company; Humberto Tafolla, CFO; and Arturo Velazquez, IRO for the company.

We will begin the call with initial comments on Grupo Commercial Chedraui fourth quarter financial results by the company's CEO, Mr. Jose Antonio Chedraui. Thank you. You may begin.

Jose Antonio Chedraui Eguia

Grupo Comercial Chedraui SAB de CV - Chief Executive Officer, Proprietary Director

Good morning to all and welcome to our presentation of Grupo Commercial Chedraui's Fourth Quarter 2024 Results. I will begin by proudly thanking all of our employees for their exceptional work, unwavering dedication and passion for successfully driving our three core strategic pillars, lowest price, best assortment by store and best customer experience.

Their relentless commitment has been instrumental in continuing to grow

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