Grupo Gigante (GIGANTE) Q2 2025 earnings summary

Executive summary

• Q2 revenue rose 1.4% YoY to MXN 8,436m; gross margin expanded to 43.0%, while EBITDA fell 15.2% to MXN 948m. Net income increased 150.3% to MXN 412m, mainly on lower net financing expense.

• H1 revenue grew 3.1% to MXN 17,165m and net income rose 78.1% to MXN 803m; EBITDA declined 4.0% to MXN 2,196m.

Financial highlights

• Q2 gross profit was MXN 3,625m, up 3.3% YoY; gross margin was 43.0% versus 42.2%. H1 gross profit was MXN 7,317m, up 4.4%, with 42.6% margin versus 42.1%.

• H1 operating income was MXN 1,633m versus MXN 1,447m; consolidated net income was MXN 803m versus MXN 451m.

• Q2 net financial cost was MXN 212m, 60.3% lower YoY; H1 was MXN 658m, 30.2% lower, primarily due to FX gains and derivative valuation benefits.

• Basic and diluted EPS were MXN 0.39 in Q2 versus MXN 0.14; H1 EPS was MXN 0.76 versus MXN 0.40.

• H1 administrative and distribution expenses, excluding investment-property fair value movements, totaled MXN 5,974m, up 5.4%; the Q2 increase was 7.1% to MXN 3,066m.

Outlook and guidance

• Strategy emphasizes organic growth focused on cash generation and returns, selective expansion and consolidation in Mexico and abroad, e-commerce, and efficiency through digital transformation.

• Priorities include managing debt terms and maturities, strengthening technology, logistics and distribution capabilities, and pursuing social responsibility with a sustainability emphasis.

• Management expects possible inorganic growth opportunities through acquisitions, mergers, joint ventures or co-investments; no numerical financial guidance is stated.