Alsea (ALSEA) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales grew 11.1% to MXN 21.7 billion, with same-store sales up 7.2%; full-year sales rose 6.3% to $77,841 million, led by Mexico and digital channels.

• EBITDA increased 13% in Q4 to MXN 3.6 billion (16.4% margin); full-year EBITDA up 8.5% to $11,658 million, with margin expansion.

• Net income for Q4 fell 45.3% to MXN 575 million; full-year net income dropped 53.3% to $1,358 million, mainly due to FX and higher financing costs.

• Opened 275 new stores in 2024, focusing on high-traffic areas and portfolio simplification.

• Digital sales accounted for 33.5% of total sales in 2024, with 8.2 million active loyalty users and strong ESG progress.

Financial highlights

• Full-year sales increased 6.3%, with FX-adjusted growth of 10.9%; Q4 sales up 11.1%.

• Adjusted EBITDA margin expanded to 15.0% in 2024 and 16.4% in Q4.

• EPS for 2024 was MXN 1.68 (pre-IFRS 16), MXN 0.94 (post-IFRS 16); book value per share $11.61, up 10.2%.

• CapEx for 2024 totaled MXN 6.5 billion, mainly for new units and a new distribution center.

• Cash position at year-end was MXN 6.5 billion; free cash flow positive at $703 million.

Outlook and guidance

• 2025 guidance: mid-single-digit same-store sales growth, low teens top-line growth, 180–220 new stores, CapEx around MXN 6 billion.

• Pre-IFRS 16 EBITDA growth expected at mid-single digits; net debt/EBITDA targeted at 2.6–2.8x.

• Digital and loyalty programs remain strategic priorities; leadership transition planned for July 2025.

• Margin pressure expected in Mexico due to FX; improvement anticipated in Europe and South America.