Chedraui (CHDRAUI) investor relations material

Executive summary

• Consolidated sales grew 9.5% year-over-year, driven by strong performance in both Mexico and the U.S., with Mexico outpacing industry benchmarks for the twentieth consecutive quarter.

• EBITDA increased 6.3% (8% excluding RCDC transition costs), and net income rose 2.4% year-over-year; organic growth was supported by 30 new stores in Mexico and one in the U.S.

• Strategic focus on lowest prices, product assortment, and customer experience supported results despite a softer consumer environment.

• Completed transition of five legacy U.S. distribution centers to the new Rancho Cucamonga Distribution Center (RCDC), expected to drive future productivity.

• E-commerce penetration in Mexico increased to 3.9%, with online orders up 63% and digital sales share rising.

Financial highlights

• Gross profit increased 10.1% year-over-year to $17,834 million MXN, with gross margin up to 24.1% of sales.

• Consolidated EBITDA grew 6.3% to $6,552 million MXN (8.9% margin); excluding RCDC transition costs, EBITDA margin reached 9%.

• Net income increased 2.4% to $2,062 million MXN (2.8% of sales); excluding RCDC costs, net income was $2,135 million MXN (2.9% of sales).

• Net cash position at quarter-end was $1,128 million MXN; net cash to EBITDA ratio improved to -0.05x.

• ROE increased 280 bps over four years to 13.2%.

Outlook and guidance

• Confident in achieving full-year guidance, with expectations for slightly better EBITDA margin than initially projected.

• Margin expansion in Mexico expected to be sustained through the second half of the year, supported by efficient inventory and promotional management.

• U.S. operations anticipate margin recovery as RCDC efficiencies materialize and pricing strategies continue.

• Transition costs from the new RCDC are expected to decrease following the completed migration.

• Continued focus on organic growth, e-commerce expansion, and productivity improvements at the new U.S. distribution center.