Organización Soriana (SORIANA) Q4 2023 earnings summary

Executive summary

• 4Q23 total income rose 9% YoY to MXN 49.407B; FY23 revenue increased 6% to MXN 176.120B.

• FY23 net income was nearly flat at MXN 5.046B, while cash net profit rose 9.3% to MXN 8.111B.

Financial highlights

• 4Q23 gross profit rose 9.3% YoY to MXN 11.434B; 23.1% margin was supported partly by extraordinary income recorded in the quarter.

• FY23 gross profit increased 9% to MXN 40.134B; gross margin expanded 60 bps to 22.8%.

• 4Q23 EBITDA rose 4.6% to MXN 4.240B; FY23 EBITDA rose 2.2% to MXN 12.905B.

• 4Q23 net income increased 11% to MXN 2.185B; FY23 net income declined 0.1% to MXN 5.046B.

Segment performance

• 4Q23 same-store sales increased 5.9%, or 6.7% across all stores; FY23 growth was 4.5% and 5.4%, respectively.

• Mercado and Express formats contributed to quarterly sales growth; 4Q23 total income also benefited from four unit openings and 11% growth in real estate revenue.

• Year-end portfolio totaled 805 stores, up from 801 a year earlier; Sodimac units increased to 13 from 12.