La Comer (LACOMER UBC) Q1 2023 earnings summary

Executive summary

• Q1 net sales rose 14.5% YoY to MXN 8,716 million; same-store sales grew 11.6%.

• Operating profit increased 31.5% to MXN 726 million; net income rose 28.3% to MXN 618 million.

• Sales growth exceeded the market for a second consecutive quarter, with positive growth across formats, regions and categories.

Financial highlights

• Gross profit increased 16.7% YoY to MXN 2,528 million; selling expenses rose 11.7% to MXN 1,802 million.

• EBITDA grew 22.4% YoY to MXN 1,047 million; depreciation and amortization rose 5.8% to MXN 321 million.

• Financial income was MXN 76 million, up 67.5%; financial expenses were MXN 61 million, up 21.1%.

• Income tax expense was MXN 121 million, up 89.3% YoY.

Outlook and guidance

• 2023 expansion plan calls for 5–6 new stores, including a remodeled-store reopening; two openings are expected in Q2 and the remainder in H2.

• More than 100 locations are targeted by year-end 2026, compared with 80 currently.

• Three major remodelings are planned for 2023, including store remodelings and expansions.

• E-commerce priorities include service improvements, platform development and home delivery through La Comer en tu Casa; management aims to scale capacity as demand grows.