Q1 2026 Grupo Comercial Chedraui SAB de CV Earnings Call Transcript
Key Points
- Grupo Comercial Chedraui SAB de CV (GCHEF) outperformed the self-service segment in Mexico for the 23rd consecutive quarter, with same-store sales growth of 2.1%.
- Chedraui Mexico's EBITDA margin remained strong at 9.5%, supported by expense control and gross margin expansion.
- Chedraui USA improved its EBITDA margin by 21 basis points to 7.7% due to rigorous expense management and efficiencies from the Rancho Cucamonga distribution center.
- The company achieved a 22 basis point increase in consolidated EBITDA margin to 8.6%, despite a challenging environment.
- E-commerce sales penetration in Mexico increased by 76 basis points to 4.2%, driven by higher consumer satisfaction and stronger repeat purchase rates.
- Consumer spending in Mexico, particularly in the Southeast, was weaker than expected, affecting same-store sales growth.
- Chedraui USA's sales were negatively impacted by stricter immigration enforcement, leading to a decline in same-store sales by 2.8% in US dollar terms.
- Consolidated sales declined by 6.2% compared to the same quarter last year, primarily due to the currency translation effect from the appreciation of the Mexican peso.
- Consolidated EBITDA declined by 3.8%, reflecting the challenges in maintaining operating leverage.
- The company faced a strong comparative base from Q1 2025, which, coupled with reduced traffic, impacted same-store sales performance in the US.
Good morning to all participants, and welcome to the Grupo Comercial Chedraui's first quarter 2026 conference call.
Participating in the conference call today will be Mr. Jose Antonio Chedraui's -- 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 first quarter financial results by the company's CEO, Mr. Jose Antonio; and Chedraui's USA CEO, Carlos Smith. Thank you. You may begin.
Good morning to all, and welcome to our presentation of Grupo Comercial Chedraui first quarter 2026 results.
I want to thank all of our employees for their hard work and dedication to our mission, improving the lives of people by bringing the products they prefer at the best price to as many places as possible thereby inspiring them to grow and develop within Chedraui. Their commitment has been
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