Alsea (ALSEA) investor relations material

Executive summary

• Total sales increased 1.4% year-over-year to MXN 20.1 billion, with same-store sales up 4.1% and digital orders representing 41.2% of total sales, growing 16.1%.

• EBITDA rose 1.8% to MXN 2.4 billion, margin 11.8%, up 10 basis points year-over-year; adjusted EBITDA post-IFRS 16 reached MXN 3.9 billion, margin 19.3%.

• Net income dropped 65.7% year-over-year to MXN 115 million due to a one-off debt refinancing impact and higher financing costs.

• 32 new stores opened in the quarter, with loyalty program users reaching 8.4 million and loyalty sales up 12%.

• Digital and loyalty sales grew strongly, with digital orders at 35.7 million and loyalty orders at 26.4 million.

Financial highlights

• Sales in Mexico rose 4.9% to MXN 11.2 billion; Europe up 1.5% (5.9% in local currency) to MXN 6 billion; South America down 10.7% to MXN 2.9 billion due to currency effects.

• Gross margin was pressured by business mix and start-up costs at the Guadalajara distribution center, partly offset by FX gains; gross profit increased 1.4% to MXN 13,435 million.

• CapEx totaled MXN 876 million, with 81% for store development, 20% for technology and process improvements, and 80.9% for new units, renovations, and maintenance.

• Free cash flow improved year-over-year but was negative MXN 977 million due to seasonality and higher interest payments.

• Cost of sales as a percentage improved by 10 basis points year-over-year.

Outlook and guidance

• Expect margin expansion in the second half as Guadalajara center stabilizes and FX benefits persist.

• Anticipate continued digital growth and further integration of loyalty platforms across brands and regions.

• Ongoing investment in store openings, remodeling, and maintenance across regions.

• World Cup expected to boost traffic, especially for Domino's, Chili's, and Starbucks in Mexico.

• Management expects to navigate the challenging consumer environment through strategic objectives: Grow, Build, Capitalize, and Care.