Alsea (ALSEA) Q3 2025 earnings summary

Executive summary

• Net sales rose 5.7% year-over-year to MXN 21.1 billion, with same-store sales up 4.1% and digital sales accounting for 37.4% of total sales, growing 10.8% year-over-year.

• EBITDA increased 1.8% to MXN 2.9 billion, with margin contracting by 50 basis points to 13.7%.

• Net income surged 559% year-over-year to MXN 512 million, driven by a positive non-cash FX effect on USD-denominated debt.

• 46 new stores were opened in Q3, with digital engagement and loyalty programs expanding to 8 million users.

• Strategic priorities include disciplined organic growth, brand portfolio optimization, profitability enhancement, and disciplined capital allocation.

Financial highlights

• Sales in Mexico grew 7.5% to MXN 11.5 billion; Europe up 8.2% to MXN 6.5 billion; South America down 4.7% to MXN 3.1 billion.

• Adjusted EBITDA in Mexico was flat; Europe up 6.2%; South America down 14.2%.

• Gross profit rose 4.7% to MXN 14.1 billion; EPS for the quarter was MXN 0.64, up 177% year-over-year.

• Free cash flow for the first nine months was negative MXN 2,937 million, mainly due to higher interest expenses and business seasonality.

• Cash position at quarter-end was MXN 4.7 billion.

Outlook and guidance

• 2025 guidance revised: now expecting high single-digit top line growth and low single-digit EBITDA growth due to weaker consumption and peso appreciation.

• 180–220 new store openings and approximately MXN 6 billion in CAPEX planned for 2025.

• Leverage ratio guidance maintained at 2.6–2.8x pre-IFRS16 and 3.0–3.2x post-IFRS16.

• Q4 expected to see continued softness, but strong commercial and innovation campaigns are in place to support traffic.