La Comer (LACOMER UBC) Q1 2024 earnings summary

Executive summary

• Q1 net sales rose 17.5% YoY to MXN 10,242.956m; same-store sales increased 10.5%.

• Operating profit grew 27.4%, net income 22.1% and EBITDA 23.6%; gross margin was 29.7% and EBITDA margin 12.6%.

Financial highlights

• Gross profit increased 20.5% to MXN 3,045.556m; operating expenses rose 17.7% to MXN 2,121m.

• Operating profit advanced 27.4% to MXN 924.726m; net income rose 22.1% to MXN 755.233m.

• EBITDA grew 23.6% to MXN 1,293.781m; depreciation and amortization increased 15.0% to MXN 369.055m.

• Extraordinary MXN 124m in federal government sales supported Hurricane Otis relief; preferential pricing left the operating-income effect near zero or slightly negative after expenses.

Outlook and guidance

• Five store openings planned for 2024—three City Market and two La Comer—revised from six due to slower government approvals; one may open in June or July.

• Expansion targets more than 100 locations by year-end 2026; two existing stores are also being remodeled.

• Healthy gross and overall margins expected through 2024, supported by product mix despite expense pressure; pre-opening costs expected to have limited impact.