Grupo Gigante (GIGANTE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 6.2% YoY to $9,764.6 million; EBITDA fell 9.7% to $1,330.1 million and consolidated net income declined 25.5% to $644.7 million.

• 9M revenue increased 3.2% to $26,413.8 million, while net income decreased 22.4% to $1,095.5 million, weighed by business performance and higher financial costs.

Financial highlights

• Q3 gross profit increased 6.0% YoY to $3,935.3 million; gross margin was 40.3% vs. 40.4%.

• 9M gross profit grew 5.4% to $10,944.3 million; gross margin improved to 41.4% from 40.6%.

• 9M operating income was $2,656.8 million vs. $2,968.5 million; net finance costs rose 21.5% to $1,339.9 million, mainly on FX and derivative valuation losses.

• 9M EPS was $1.05 vs. $1.32; Q3 EPS was $0.65 vs. $0.84.

Outlook and guidance

• Priorities include disciplined debt management, profitable organic growth, e-commerce, technology and logistics synergies, digital transformation, efficiency, and selective expansion and consolidation.

• Growth through acquisitions, mergers, joint ventures, or co-investments remains under consideration, with potential new opportunities.