Alsea (ALSEA) Q2 2024 earnings summary

Executive summary

• Net sales grew 2.3% year-over-year to $19,052 million pesos, with digital sales accounting for 33.9% of total sales and digital orders reaching 32.9 million.

• Adjusted EBITDA post-IFRS 16 was $3.8 billion pesos, up $305 million pesos from 2Q23, with a 20.3% margin; EBITDA increased 7.6% to $2,739 million pesos, margin 14.4%.

• Net income increased to $475 million pesos in 2Q24, with EPS at $1.90, but for H1 2024 net income declined 66.9% to $157 million pesos due to higher financing costs and FX losses.

• Loyalty programs reached 8.1 million active users, with loyalty sales at $4.4 billion pesos, up 37.6% year-over-year.

• Digital and loyalty channels continue to drive sales growth and customer engagement.

Financial highlights

• Same-store sales rose 9.0% year-over-year, led by Mexico and digital channels.

• Gross profit increased 4.4% to $12,995 million pesos; operating income grew 14.1% to $1,750 million pesos.

• Cost of sales improved by 140 basis points, reaching 31.8% in 2Q24.

• EPS (last 12 months) increased 11.7% to $3.06 (pre-IFRS 16); ROIC improved to 21.2% (pre-IFRS 16), up 240 bps year-over-year.

• ROE (pre-IFRS 16) at 31.0%, up 600 bps year-over-year.

Outlook and guidance

• Management remains focused on operational excellence, digital growth, and product innovation to drive future results.

• Continued investment in new formats, technology, and store openings, with 2.4 billion pesos in capex year-to-date.