Grupo Gigante (GIGANTE) investor relations material

Executive summary

• Q2 revenue declined 0.8% YoY, while same-store sales rose 1.2%; gross margin and EBITDA improved, but consolidated net income fell 18.9%.

• H1 revenue declined 0.3% YoY and net income fell 6.8%; EBITDA increased 2.1%, supported by improved gross margin.

• Operations spanned 667 units at June 30, including 159 Petco and 11 Casaideas stores operated under joint ventures.

Financial highlights

• Q2 revenue was MXN 8,367.3m (-0.8% YoY); same-store sales were MXN 8,010.9m (+1.2%). H1 revenue was MXN 17,110.6m (-0.3%); same-store sales rose 1.6%.

• Q2 gross profit was MXN 3,669.5m (+1.2%); gross margin reached 43.9%, up from 43.0%. H1 gross profit was MXN 7,462.4m (+2.0%); margin rose to 43.6% from 42.6%.

• Adjusted for the stated non-cash items in its definition, operating cash flow/EBITDA was MXN 1,173m in Q2 (+2.9%) and MXN 2,439m H1 (+2.1%).

• Consolidated net income was MXN 370.8m in Q2 (-18.9% YoY) and MXN 748.4m H1 (-6.8%); basic EPS was MXN 0.36 and MXN 0.72, respectively.

• Operating income was MXN 763.5m in Q2 versus MXN 713.8m; H1 operating income was MXN 1,512.1m versus MXN 1,633.0m. Net finance cost rose 57.7% in Q2 and 5.6% H1.

Outlook and guidance

• Strategy prioritizes disciplined debt management, organic growth focused on cash generation and profitability, selective expansion, e-commerce, and stronger technology, logistics and distribution capabilities.

• Efficiency and returns remain priorities through technology optimization, digital transformation, organizational development and talent initiatives; growth opportunities may also include acquisitions, mergers or joint ventures.