Organización Soriana (SORIANA) Q1 2025 earnings summary

Executive summary

• Total revenues for Q1 2025 decreased by 1.1% year-over-year to MXN 41.4 billion, mainly due to a 3.9% decline in same-store sales and the absence of a one-time land sale profit from the prior year.

• Net income for the quarter was MXN 699 million, down 11.4% from the prior year.

• EBITDA reached MXN 2.8 billion, a margin of 6.8%, down 4.5% year-over-year.

• Operating expenses decreased by 6.5% year-over-year due to austerity measures.

• Hypermarket and supermarket formats in northern states outperformed, while formats targeting lower-income segments underperformed.

Financial highlights

• Gross profit was MXN 9.3 billion, with a gross margin of 22.5%, down 4.2% year-over-year due to aggressive pricing and the absence of non-recurring income.

• Operating income was MXN 1.7 billion, a 15.2% decrease from the prior year.

• Net financial cost was MXN 665 million, down 10.4% due to higher cash balances and improved debt rates.

• CAPEX for the quarter was MXN 613 million, focused on maintenance, IT, new store construction, and equipment upgrades.

• Real estate business occupancy rose to 89%, up 80 basis points year-over-year, generating MXN 766 million in income.

Outlook and guidance

• Continued focus on cost control and efficiency measures, with the austerity program expected to persist throughout 2025.

• Ongoing investment in digital, private label, and loyalty programs to drive growth.

• Expectation of a highly competitive pricing environment for the remainder of the year, especially during the summer campaign.