El Puerto de Liverpool (LIVEPOLC) Q4 2024 earnings summary

Executive summary

• Q4 2024 consolidated revenue reached MXN 75.3 billion, up 9% year-over-year, with all business lines contributing and surpassing preliminary estimates.

• Full-year 2024 revenue was MXN 215 billion, a 9.6% increase, reflecting balanced growth across business segments.

• Net profit after tax for Q4 rose 11.4% year-over-year to MXN 9.7 billion, supported by strong retail and financial segment performance.

• Q4 EBITDA was MXN 14.9 billion, up 5.3%, with a margin of 19.7%.

• Announced a definitive agreement to acquire up to 49.9% of Nordstrom Inc. in partnership with the Nordstrom family, with closing expected in H1 2025, pending regulatory and shareholder approvals.

Financial highlights

• Retail revenue grew 8.2% year-over-year in Q4, driven by strong commercial execution and promotional events.

• Financial services revenue increased 17.4% in Q4 and 18.4% for the full year, supported by a 12.9% expansion in the credit portfolio.

• Real estate revenue rose 15.1% in Q4, aided by the Altama Shopping Mall acquisition and higher occupancy rates.

• Gross margin contracted by 1.1 percentage points to 39% in Q4, mainly due to retail margin pressure.

• Operating expenses increased 2.4% in Q4, with one-time items related to weather events and warehouse relocation.

• Inventory increased 24.1% year-over-year due to delayed and early merchandise arrivals.

Outlook and guidance

• Plans to open two Liverpool stores (one reopening, one conversion), 20-25 Liverpool Express units, and three Suburbia stores in 2025.

• Anticipates same-store sales growth of 5%-6% for Liverpool and 7%-8% for Suburbia.

• Digital GMV expected to grow 15%-17%; marketplace GMV to rise 19%-21%.

• Net loan portfolio projected to grow 8%-9%; NPLs expected at 3.8%-4.1% with provision growth of 21%-24%.

• EBITDA margin guidance for 2025 is 16%-16.5%, reflecting one-time logistics expenses and macroeconomic headwinds.

• Capital expenditures planned at MXN 10-11 billion, mainly for logistics and technology investments.

• Proceeds from a recent US$1 billion bond issuance will help finance the Nordstrom acquisition and future investments.

• Focus remains on digital expansion, logistics, and customer experience improvements.