Q4 2024 El Puerto de Liverpool SAB de CV Earnings Call Transcript
Key Points
- El Puerto de Liverpool SAB de CV (ELPQF) reported a 9% year-over-year increase in Q4 consolidated revenue, reaching MXN75.3 billion.
- The company achieved double-digit growth in both financial services and real estate business units, with increases of 17.4% and 15.1% respectively.
- Digital channel performance was strong, with total GMV growing 16.1% year-over-year and Liverpool's digital share reaching 28.7%.
- The marketplace segment showed robust growth, with Q4 GMV increasing 29.2% year-over-year.
- El Puerto de Liverpool SAB de CV (ELPQF) maintained a strong balance sheet, with cash on hand of MXN24.7 billion and a net debt EBITDA ratio close to zero.
- The company's consolidated gross margin contracted by 1.1 percentage points due to margin pressure in the retail business.
- Operating expenses increased by 2.4% for the quarter, influenced by non-recurring items such as weather-related expenses and warehouse relocation costs.
- A provision for bad debt of MXN1.5 billion was recorded, driven by overall portfolio growth and conservative credit management.
- NPLs increased by 50 basis points to 3.2%, reflecting a more conservative approach to credit risk.
- The company anticipates an EBITDA margin adjustment to 16% to 16.5% in 2025 due to extraordinary logistics expenses and a challenging macroeconomic environment.
Good morning. My name is Sofia, and I will be your conference operator. (Operator Instructions) This is Liverpool's fourth quarter 2024 earnings call. (Operator Instructions) Today we have with us Mr. Gonzalo Gallegos, Chief Financial Officer; Mr. Jose Antonio Diego, Treasury and Investor Relations Director, Mr. Enrique Griñan, Investor Relations Officer; and Ms. Nidia Garrido, Investor Relations.
They will be discussing the company's performance as per the earnings release for the fourth quarter 2024, issued last Thursday, February 27. If you did not receive the report, please contact Liverpool's IR department and they will email it to you, or you can download it at its IR website. Please note that this call is for investor and analyst only, and questions from the media will not be taken nor should the call be reported on.
Any forward-looking statements made during this earnings call are based on information that is currently available. They are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions discussed today.
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