Grupo Pochteca (POCHTEC B ) Q1 2024 earnings summary

Executive summary

• Q1 2024 sales fell 17.4% YoY to MXN 1,969 million, while gross margin rose 330 bps to 21.1% and EBITDA increased 3.3% to MXN 56 million.

• Net loss widened to MXN 69 million from MXN 3 million in Q1 2023, reflecting lower sales and sharply higher net financial expenses.

Financial highlights

• Revenue was MXN 1,968.8 million, down 17.4% YoY; gross profit declined 1.9% to MXN 415.1 million.

• Operating loss was MXN 3.4 million versus MXN 0.4 million in Q1 2023; operating expenses excluding depreciation fell 2.7% to MXN 359.1 million.

• EBITDA rose 3.3% to MXN 56.0 million; EBITDA margin expanded 50 bps to 2.8%.

• Net financial expenses increased to MXN 97.9 million from MXN 11.3 million; net loss was MXN 68.9 million versus MXN 3.3 million.

Outlook and guidance

• Management expects improvement in the following quarter after Easter timing weighed on Q1 results.

• As older, high-cost inventory clears and product prices stabilize, margins are expected to recover toward historical levels; additional operating expense adjustments are expected to show in Q2.

• Continued customer growth and higher unit volumes are priorities to support sales recovery.