Organización Soriana (SORIANA) Q1 2025 earnings summary

Executive summary

• First quarter 2025 revenues decreased by 1.1% year-over-year to MXN 41.4 billion, mainly due to a 3.9% decline in same-store sales and absence of prior year land sale gains.

• Net income for the quarter was MXN 699 million, down 11.4% from 1Q24, with EBITDA at MXN 2,823 million (6.8% margin), a 4.5% decrease year-over-year.

• Operating expenses fell 6.5% to MXN 6.5 billion, aided by austerity and efficiency measures despite double-digit salary increases.

• Digital sales grew 18% with a 64% increase in order volume, and private label sales rose by double digits, now representing over 13% of total sales.

• Loyalty program "Soriana Ya" now covers 47% of transactions, with members spending 43% more per ticket.

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 absence of land sale income.

• Operating income was MXN 1,688 million, a 15.2% decrease from 1Q24.

• Net financial cost decreased 10.4% to MXN 665 million, driven by higher cash balances and better debt rates.

• CAPEX for the quarter was MXN 613 million, including new store construction and equipment upgrades.

• Total debt at quarter-end was MXN 18,360 million.

Outlook and guidance

• Continued focus on cost control and efficiency, with the austerity program expected to further reduce expenses throughout 2025.

• Private label and digital channels expected to drive growth in coming months.

• Anticipates a highly competitive pricing environment for the remainder of the year, especially during the summer campaign and due to government price controls.