El Puerto de Liverpool (LIVEPOLC) Q3 2025 earnings summary

Executive summary

• Consolidated revenue reached MXN 48.1 billion, up 4.4% year-over-year, led by financial services and real estate segments.

• Net income declined 10.5% year-over-year to $3,953 million, while EBITDA was MXN 6.4 billion, down 14.8% with a margin of 13.3%.

• Retail margin excluding logistics improved, but consolidated margin contracted due to logistics transition costs.

• Inventory levels increased 15.8% year-over-year, now better aligned with sales and positioned for peak season.

• Digital channels saw strong growth, with Liverpool's digital share at 28% and Suburbia's GMV up 35%.

Financial highlights

• Financial services revenue grew 15.7% year-over-year, driven by a 13.3% credit portfolio expansion and higher card utilization.

• Retail revenue grew 2.9%, with Liverpool same-store sales up 1.9% and Suburbia up 4%.

• Real estate revenue increased 7.3%, supported by improved lease spreads and new openings.

• Gross margin contracted 110 basis points, mainly due to retail margin pressure and one-time logistics expenses.

• Operating expenses rose 11.5% year-over-year, impacted by wage adjustments and higher bad debt provisions.

Outlook and guidance

• Expect to close the gap in retail margin by year-end, but full recovery to pre-move logistics margin levels anticipated in 2026.

• EBITDA margin guidance for 2025 revised down to 15.5%-16%.

• Credit loss provisions for 2025 expected at the high end of the 30%-35% range, with revenue growth offsetting higher reserves.

• Continued focus on inventory management and digital ecosystem expansion.

• Ongoing capital investments and store expansions are expected to support future growth.