Organización Soriana (SORIANA) Q1 2025 earnings summary

Executive summary

• Total income was MXN 41.430 billion, down 1.1% YoY, with same-store sales declining 3.9%; revenue was also affected by the absence of a prior-year one-time land sale gain.

• Net income fell 11.4% to MXN 699 million; EBITDA declined 4.5% to MXN 2.823 billion.

• Digital sales grew 18% YoY and order volume rose 64%; private-label sales grew double digits, exceeded 13% of sales and gained 1% market share.

• Real estate occupancy increased 80 bps to 89%, generating MXN 766 million in income.

Financial highlights

• Gross profit declined 4.2% to MXN 9.328 billion; gross margin fell to 22.5% from 23.3% amid aggressive pricing and the absence of non-recurring income.

• Operating expenses decreased 6.5% to MXN 6.510 billion, or 15.7% of sales, a 90 bps YoY improvement attributed to austerity measures.

• Operating income fell 15.2% to MXN 1.688 billion; depreciation and amortization increased 17.6% to MXN 1.136 billion.

• Comprehensive financing cost decreased 10.4% to MXN 665 million; cash net profit was MXN 1.673 billion, down 3.0%.

• EBITDA margin declined to 6.8% from 7.1%; operating margin was 4.1% versus 4.8%, and net income margin was 1.7% versus 1.9%.

Outlook and guidance

• Cost control and efficiency efforts, including the austerity program, are expected to continue through 2025.

• Investment in digital channels, private labels and loyalty programs remains a focus; programs must deliver positive cash flow within 12 months or be postponed.

• Pricing competition is expected to remain intense through the rest of the year, particularly during the summer campaign.