Chedraui (CHDRAUI) Q3 2025 earnings summary

Executive summary

• Net income rose 13.3% to MXN 1,646 million, driven by higher EBITDA and lower financial costs.

• Consolidated EBITDA increased 3.2% year-over-year, with margin up 28 bps to 8.5%.

• Opened 32 new stores in Mexico, reaching the milestone of 1,000 stores across Mexico and the U.S.

• Despite challenging conditions in both Mexico and the U.S., solid results were achieved through operational discipline and customer loyalty.

• Severe flooding in Veracruz temporarily disrupted three stores, but all employees are safe and community support was provided.

Financial highlights

• Consolidated net sales were flat at MXN 71,768 million, mainly due to peso appreciation affecting U.S. sales.

• Gross profit increased 4.8% to MXN 17,646 million, with gross margin up to 24.6%.

• Operating income grew 3.9% to MXN 3,745 million, with operating margin up 21 bps to 5.2%.

• Net cash position at MXN 743 million; net cash to EBITDA ratio improved to -0.03x.

• EPS increased 11.4% year-over-year.

Outlook and guidance

• Confident in meeting sales guidance at the low end and exceeding EBITDA margin guidance in Mexico.

• U.S. comps expected to be flat for the rest of 2025, slightly below guidance due to immigration enforcement headwinds.

• Continued focus on organic growth, with 77 new stores in Mexico and one in the U.S. in the first nine months of 2025.

• Ongoing investment in infrastructure and sustainability initiatives.

• Long-term net income CAGR over the last four years reached 15.0%, supported by M&A and organic growth.