Organización Soriana (SORIANA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached MXN 43.1 billion, up 0.6% year-over-year, with positive customer reactions to competitiveness and price perception initiatives in several states.

• Net income for Q3 was MXN 538 million, representing 1.3% of sales, down 45.2% year-over-year.

• Soriana Híper and Súper formats led sales growth, especially in basic food basket and fresh goods, while same-store sales declined 1.5%.

• Digital business and e-commerce saw strong double-digit growth, with City Club e-commerce sales up 221%.

• Five new stores opened in Q3, bringing the total to 814 units, with CAPEX of MXN 1,547 million focused on expansion and modernization.

Financial highlights

• Gross profit for Q3 was MXN 10.5 billion, up 9.5% year-over-year, with a margin of 24.4%.

• EBITDA for Q3 was MXN 2.7 billion, up 1.6%, with a margin of 6.3%.

• Operating expenses increased 12.8% to MXN 7.8 billion, representing 18.1% of revenues, mainly from higher personnel and advertising costs.

• Net financial costs rose 26.6% year-over-year, impacted by higher debt for CAPEX projects.

• Year-to-date net income was MXN 2.05 billion, down 28.3% from the prior year.

Outlook and guidance

• Plans to maintain and accelerate CapEx for expansion and remodeling, with remodeled stores seeing 25%-40% sales increases and new stores more than doubling sales per square meter.

• Continued investment in store expansion and modernization, with a focus on sustainability and operational efficiency, including transition from LP gas to natural gas.