La Comer (LACOMER UBC) Q2 2024 earnings summary

Executive summary

• Q2 net sales rose 12.8% YoY to MXN 10,989 million; same-store sales grew 7.6%.

• Q2 EBITDA increased 12.6% to MXN 1,141 million; net income rose 10.6% to MXN 610 million.

• H1 net sales increased 15.0% to MXN 21,232 million, and net income rose 16.7% to MXN 1,365 million.

• Store count reached 84, with 376,998 m² of sales area and 22.863 million Q2 client visits.

Financial highlights

• Q2 gross profit rose 15.0% to MXN 3,113 million; operating profit increased 13.0% to MXN 765 million.

• Q2 operating expenses increased 15.7% to MXN 2,348 million; net financial result was MXN 14 million versus MXN 24 million.

• H1 gross profit increased 17.7% to MXN 6,159 million; EBITDA grew 18.2% to MXN 2,435 million.

• H1 operating profit rose 20.5% to MXN 1,690 million.

Outlook and guidance

• Five new stores are planned for 2024: three City Market, one La Comer and one Fresko, with nearly all openings expected in Q4.

• Expansion targets more than 100 locations by year-end 2026, versus 54 stores when operations began in 2016.

• Sumesa is being explored as a growth format, with management expecting to begin growing it next year; no near-term opening was confirmed.

• Management observed some moderation in consumption growth versus the start of the year, but said it was not critical.