Chedraui (CHDRAUI) Q2 2026 earnings summary

Executive summary

• Consolidated EBITDA margin increased by 15 basis points to 9.0% despite a weaker consumer environment and sales decline, driven by operational execution and expense control.

• Same-store sales in Mexico grew 1.3% year-over-year, outperforming the ANTAD self-service segment for the 24th consecutive quarter.

• U.S. operations faced headwinds from stricter immigration enforcement, reduced SNAP benefits, and higher fuel prices, but EBITDA margin improved to 8.5%.

• Organic growth included opening one Tienda Chedraui, 27 Supercitos in Mexico, and one El Super in California during the quarter.

• Net income fell 11.5% to MXN 1,825 million.

Financial highlights

• Consolidated sales declined 3.9% year-over-year, mainly due to a 9.7% appreciation of the Mexican peso against the U.S. dollar and lower U.S. sales.

• Consolidated EBITDA declined 2.2% year-over-year, but margin improved to 9.0%.

• Gross margin expanded by 70 basis points to 24.8%.

• Operating income was MXN 4,017 million, down 5.4% year-over-year.

• CapEx for the first half of 2026 was MXN 4,699 million, up 31.5% year-over-year, representing 3.3% of sales.

Outlook and guidance

• Management remains confident in achieving margin, expansion, CapEx, and financial position guidance, but acknowledges challenges in meeting same-store sales guidance in both Mexico and the U.S.

• Expansion plans for Supercito format remain on track, with over 130 openings targeted for the year and further growth planned for 2027.

• Long-term growth strategy focuses on consistent net income CAGR, supported by M&A and organic growth.

• Continued investment planned in both Mexico and the U.S. for 2026, with new store openings and e-commerce expansion.