La Comer (LACOMER UBC) Q4 2023 earnings summary

Executive summary

• Q4 net sales rose 16.0% to MXN 10,396 million and same-store sales increased 9.3%.

• FY2023 net sales increased 15.0% to MXN 38,465 million; net income rose 7.6% to MXN 2,108 million.

Financial highlights

• Q4 gross profit grew 18.7% to MXN 3,045 million; gross margin expanded 67 bps YoY to 29.3%.

• Q4 operating profit fell 23.5% to MXN 500 million, EBITDA declined 11.9% to MXN 845 million and net income fell 28.1% to MXN 403 million.

• FY gross profit grew 17.6% to MXN 11,041 million; operating profit rose 14.8% to MXN 2,579 million and EBITDA grew 12.5% to MXN 3,926 million.

• FY gross margin reached 28.7%, while EBITDA margin was 10.2%, slightly below the prior year.

Outlook and guidance

• 2024 plan: open five to six stores, mostly in H2; longer-term aim is to maintain or accelerate openings.

• Operating and EBITDA margins are expected to maintain or improve marginally, supported by scale, operating leverage and gross-margin growth.

• Cash generation is expected to fund planned openings; financing may be considered for an exceptional year with 10–15 openings.