SMU (SMU) Q2 2025 earnings summary

Executive summary

• EBITDA rose 8.0% year-over-year in 2Q25 to CLP 50,637 million, with margin expanding 70 bps to 7.5% due to a focus on profitability and efficiency initiatives.

• Revenue declined 1.9% year-over-year in 2Q25 to CLP 678,275 million, mainly from strategic reduction of low-margin sales and promotional optimization.

• Net income surged 126.2% year-over-year in 2Q25 to CLP 14,952 million, driven by gains from the sale of purchase options and stores.

• New stores opened since 2023 exceeded sales and EBITDA expectations, offsetting same-store sales declines.

• Continued execution of strategic plan, including omnichannel growth, store openings, and efficiency initiatives.

Financial highlights

• 2Q25 revenue: CLP 678,275 million (-1.9% YoY); gross profit: CLP 219,543 million (+5.5% YoY); gross margin: 32.4% (+230 bps YoY).

• 2Q25 EBITDA: CLP 50,637 million (+8.0% YoY); EBITDA margin: 7.5% (+70 bps YoY).

• 2Q25 net income: CLP 14,952 million (+126.2% YoY); 1H25 net income: CLP 19,162 million (-25.5% YoY, reflecting weak 1Q25).

• Operating expenses rose 4.8% year-over-year, slightly above inflation, mainly due to higher minimum wage and electricity rates.

• Same-store sales declined 3.5% in 2Q25, impacted by competition and cannibalization.

Outlook and guidance

• Targeting 8% EBITDA margin for 2025, with a long-term goal of 9%.

• Plans to open 24 new stores and remodel 25 in 2025, with all Mayorista 10 stores to be converted.

• 2025-2029 investment plan of USD 600 million, with 60% for organic growth, 15-20% for efficiency, and 20-25% for maintenance, funded by operating cash flow.

• Omnichannel and multiformat strategies to drive future growth.

• Energy efficiency initiatives to increase renewable energy coverage to over 50% by 2027.