Grupo Gigante (GIGANTE) Q1 2025 earnings summary

Executive summary

• Q1 revenue rose 7.1% YoY to MXN 8,920.4m; gross profit increased 11.0% to MXN 3,884.0m and consolidated net income rose 36.5% to MXN 390.7m.

• Same-store sales grew 4.9% to MXN 8,367.0m; management emphasized selective expansion, cash generation, efficiency and careful debt management.

Financial highlights

• Revenue was MXN 8,920.4m versus MXN 8,329.3m; cost of sales rose 4.3% to MXN 5,036.4m, equal to 56.5% of revenue versus 58.0% a year earlier.

• Gross profit reached MXN 3,884.0m, up 11.0% YoY; gross margin was 43.5% versus 42.0%.

• Operating income was MXN 919.2m versus MXN 754.9m; EBITDA, management-defined and adjusted for depreciation, asset disposals and investment-property fair value changes, rose 6.8% to MXN 1,248.3m.

• Net income was MXN 390.7m versus MXN 286.1m; net income attributable to parent shareholders was MXN 364.4m, and basic EPS was MXN 0.37 versus MXN 0.25.

• Share of profit from joint ventures and associates rose 50.6% to MXN 134.7m; investment-property fair value gain was MXN 135.6m versus MXN 62.8m.

Outlook and guidance

• Priorities include organic growth focused on cash generation and profitability, e-commerce, technology and logistics synergies, digital transformation, efficiency and selective expansion in and outside Mexico.

• Debt management remains focused on improving maturities and terms; management also cited talent development, sustainability and identifying potential inorganic growth opportunities.