Grupo Gigante (GIGANTE) Q2 2024 earnings summary

Executive summary

• Q2 revenue rose 5.5% YoY to MXN 8,319.9m; EBITDA increased 15.5% to MXN 1,120.4m, while consolidated net income fell 37.2% to MXN 164.7m.

• H1 revenue grew 1.6% YoY to MXN 16,649.2m and EBITDA rose 4.8% to MXN 2,287.4m; net income declined 17.7% to MXN 450.8m.

Financial highlights

• Q2 same-store sales increased 5.2% YoY to MXN 7,983.3m; gross profit rose 8.2% to MXN 3,510.6m.

• Q2 gross margin was 42.2%, up from 41.2% YoY; cost of sales was 57.8% of revenue versus 58.8% a year earlier.

• H1 gross profit increased 5.0% to MXN 7,009.0m; gross margin reached 42.1%, versus 40.7% in H1 2023.

• H1 net finance costs rose 31.9% to MXN 942.8m, driven mainly by foreign-exchange losses and losses on financial-instrument valuation; EPS was MXN 0.40 versus MXN 0.47.

Outlook and guidance

• Priorities include disciplined debt management, cash-generative organic growth, e-commerce, technology and logistics synergies, efficiency, selective expansion, and sustainability.

• Management expects to continue considering potential inorganic growth opportunities, including acquisitions, sales, mergers, partnerships, or co-investments.