Organización Soriana (SORIANA) Q4 2022 earnings summary

Executive summary

• FY22 total income reached $166.013bn pesos, up 6.9% YoY; Q4 income was $45.289bn, up 5.8%.

• FY22 net income rose 16.1% to $5.050bn pesos; cash net profit increased 6.4% to $7.422bn.

• Net debt declined 55.9% YoY; total debt fell 18.6% to $12.904bn pesos at year-end.

Financial highlights

• Q4 gross profit increased 6.5% to $10.433bn pesos; gross margin expanded 10 bps to 23.0%.

• FY22 gross profit rose 8.0% to $36.682bn pesos; gross margin expanded 20 bps to 22.1%.

• Q4 EBITDA increased 2.7% to $4.055bn pesos; margin contracted 20 bps to 9.0%.

• FY22 EBITDA grew 3.1% to $12.629bn pesos; margin was 7.6% vs. 7.9% in 2021.

• FY22 operating income rose 2.8% to $9.389bn pesos; net income increased 16.1% to $5.050bn.

Segment performance

• Same-store sales increased 5.0% in Q4 and 6.3% for FY22; Q4 strength included the Soriana Super format.

• FY22 store network ended at 801 units vs. 798 in 2021; City Club expanded to 37 from 35 units.

• Four Soriana stores and three Sodimac stores opened during 2022; Q4 income also benefited from two unit openings.

• Real estate revenue recovered in Q4, supported by higher occupancy.