El Puerto de Liverpool (LIVEPOLC) Q3 2024 earnings summary

Executive summary

• Consolidated revenue for Q3 2024 reached MXN 46.055 billion, up 10.4% year-over-year, with strong performance in retail, financial services, and real estate.

• Net profit increased 11.3% year-over-year to MXN 4.415 billion, aided by favorable exchange rates and robust operating performance.

• All business segments maintained positive trends, with digital and financial businesses showing robust growth.

• Same-store sales for Liverpool and Suburbia grew 7.6%, the highest since Q2 2023.

• Inventory increased 20% year-over-year due to early winter merchandise deliveries, with normalization expected by November.

Financial highlights

• Retail revenue grew 9.7% year-over-year; financial services and real estate revenues increased 16.3% and 11.9%, respectively.

• Gross margin was 41.8%, slightly above last year, driven by a favorable business segment mix.

• Operating income reached MXN 6 billion, up 7% year-over-year.

• Q3 EBITDA was MXN 7.493 billion, up 7.3% year-over-year, with an EBITDA margin of 16.3%, 50 bps below last year.

• Bad debt provision for Q3 was MXN 1 billion, a 57% increase year-over-year, with full-year provision expected to align with MXN 4 billion guidance.

Outlook and guidance

• Anticipates strong holiday season sales in the low to lower two-digit range, supported by high inventory levels.

• Marketplace GMV expected to grow around 40% for the full year.

• No 2025 guidance issued yet; expects CapEx reduction of about MXN 2 billion next year, but not full normalization.

• Continued focus on digital expansion, logistics, and new store formats, with significant investments in IT and logistics projects.

• Ongoing prudent cash management and hedging strategies for debt.