El Puerto de Liverpool (LIVEPOLC) Q2 2024 earnings summary

Executive summary

• Consolidated revenue reached MXN 52.2 billion in Q2 2024, up 9.8% year-over-year, with significant margin improvements and net profit up 32.2%, aided by strong operations and favorable exchange rates.

• Retail revenue rose 9.5% year-over-year, and financial services achieved 18.4% growth.

• Digital and marketplace channels saw robust growth, with Liverpool's digital share at 28.9%, Suburbia at 6.6%, and digital GMV up 17.4%.

• Excluding the Galerias Villahermosa insurance recovery, revenue and EBITDA growth were 10.3% and 9.0%, respectively.

Financial highlights

• Consolidated revenue: MXN 52.2 billion, +9.8% year-over-year; EBITDA: MXN 9.3 billion, +6.7% year-over-year, margin 17.8%.

• Net profit: MXN 6.2 billion, +32.2% year-over-year, including a one-time MXN 1.4 billion FX benefit.

• Gross margin: 40.6%, up 1.1 percentage points year-over-year.

• Cash and short-term investments totaled MXN 22.2 billion, up 40.7% year-over-year.

• Operating expenses rose 18% due to higher sales, wage increases, and digital investments.

Outlook and guidance

• Expectation of continued strong margins despite slightly lower sales in the second half.

• NPL ratio guidance revised to 3.3% for year-end, up from 3%, due to broader market credit expansion.

• Continued focus on digital expansion, logistics, omnichannel strategies, and new store investments.

• Ongoing monitoring of credit risk and proactive portfolio management.