Chedraui (CHDRAUI) Q4 2024 earnings summary

Executive summary

• Consolidated sales grew 11.2% year-over-year in Q4 2024, driven by positive trends across all business segments and favorable currency effects.

• Opened 57 stores in Mexico and 2 in the U.S. during Q4, supporting organic growth; total for 2024 was 84 in Mexico and 6 in the U.S., reaching 925 stores.

• Launched a new perishables pricing strategy at Smart & Final, increasing customer count and unit volume but impacting gross margin.

• Customer loyalty program in Mexico reached 13 million members, accounting for 74% of sales and supporting advanced analytics.

• Board recommended a total dividend of MXN 2,147 million for 2024, including ordinary and extraordinary payments, representing 31.9% of net income.

Financial highlights

• Consolidated sales reached MXN 77,582 million in Q4 2024, up 11.2% year-over-year.

• Consolidated EBITDA was MXN 5,921 million (7.6% margin); excluding transition costs, EBITDA was MXN 6,179 million (8% margin).

• Net income totaled MXN 1,363 million (1.8% of sales), down 45.4% year-over-year; excluding transition costs, net income was MXN 1,876 million (2.4% of sales).

• FY 2024 consolidated sales were MXN 281,762 million, up 7.1%; net income was MXN 6,819 million, down 13.6%.

• CapEx for 2024 was MXN 11,454 million, 4.1% of sales, 53% higher than previous year.

Outlook and guidance

• RCDC transition costs in the U.S. are expected to decline by Q2 2025, with normalized operating levels and EBITDA margin improvements for El Super and Smart & Final by 2026.

• In Mexico, anticipate a 10 basis point EBITDA margin gain over 2024 results, with guidance unchanged.

• Continued focus on organic growth and openness to M&A opportunities in both Mexico and the U.S.

• Board proposes dividend payments in April, November, and December 2025, totaling MXN 2,147 million.