Loading...
01/11 08:11
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary indicates strong financial performance with significant store openings, increased private label penetration, and optimistic revenue and same-store sales growth guidance. The Q&A section provides additional insights, highlighting minimal inflation impact, successful meat and produce pilots, and growing brand resonance among higher-income segments. Although there are concerns about lease expenses and management's vague response on same-store sales sustainability, the overall sentiment is positive. The company's expansion strategy and strong guidance suggest a potential stock price increase.
Same Store Sales Growth 17.7% growth compared to 10.7% in the second quarter of last year. This growth is driven by continuous improvements in the value proposition to customers, an increasing number of tickets, and more items per ticket.
Total Revenues MXN 18.8 billion, a 38.3% increase year-over-year. The growth is attributed to strong Same Store sales growth rates and the company's rapid expansion.
EBITDA MXN 844 million, a 22.5% increase year-over-year. The EBITDA margin decreased by 58 basis points to 4.5%, mainly due to higher logistics costs, non-cash share-based payment expenses, and the acceleration of store openings. Excluding non-cash share-based payments, EBITDA would have increased by 32% year-over-year, and the margin would have been 5.8%, down 27 basis points.
Cash Flow from Operating Activities MXN 1.9 billion, a 56% increase compared to 2024. This increase is due to significant negative working capital generated by the business model.
Net Local Cash Position Approximately MXN 1.1 billion, with an additional $150 million in cash mostly from IPO funds.
Sales Expenses as a Percentage of Revenue Increased slightly from 10.4% to 10.5%, driven by higher store personnel and depreciation & amortization expenses due to the accelerated rate of store openings.
Admin Expenses as a Percentage of Revenue Increased by 31 basis points from 3.6% to 3.9%, including an incremental MXN 111 million in non-cash share-based payment expenses.
Negative Working Capital Increased from MXN 5 billion in June 2024 to MXN 7 billion in Q2 2025, excluding IPO proceeds. This reflects the company's accelerated growth and self-funded model.
Store Expansion: Opened 142 net new stores in Q2, totaling 3,031 stores. Accelerated store opening rate with 259 stores opened in the first 6 months of 2025 compared to 215 in the same period last year. On a 12-month basis, 528 stores were opened versus 460 in the previous 12 months.
New Regions and Distribution Centers: Invested in 4 new regions to be opened in the second half of 2025, including new distribution centers, logistics, and personnel.
Revenue Growth: Total revenues increased by 38.3% year-over-year to MXN 18.8 billion. Same Store sales grew by 17.7% compared to 10.7% in Q2 2024.
Cash Flow: Operating cash flow increased by 56% year-over-year to MXN 1.9 billion. Ended with a net local cash position of approximately MXN 1.1 billion and a $150 million cash position from IPO funds.
EBITDA: EBITDA increased by 22.5% year-over-year to MXN 844 million. Excluding non-cash share-based payment expenses, EBITDA would have increased by 32%.
Growth Strategy: Focused on accelerating store openings and investing in new regions to maximize shareholder value. Despite margin impacts, the company prioritizes growth and scale benefits.
Accelerated Store Openings: The rapid increase in the number of store openings and investments in new regions, including distribution centers and logistics, is leading to higher operational costs and impacting consolidated margins. This could strain resources and affect profitability in the short term.
Increased Administrative Expenses: Administrative expenses as a percentage of revenue have risen, partly due to share-based payment expenses. This increase could pressure overall profitability.
Higher Logistics Costs: The opening of new regions and associated logistics costs are contributing to a decline in EBITDA margin, which could impact financial performance.
Margin Compression: EBITDA margin has decreased due to higher logistics costs, share-based payment expenses, and the accelerated store opening rate. This could affect the company's ability to maintain profitability.
Operational Leverage Visibility: The benefits of operational leverage are not immediately visible due to the high rate of store openings. This could lead to concerns about the long-term sustainability of growth.
Store Openings: The company plans to accelerate the rate of store openings, with 4 new regions and associated distribution centers and logistics to be launched in the second half of 2025.
Revenue Growth: The company expects continued rapid revenue growth, driven by improvements in its value proposition and increasing customer transactions and items per ticket.
EBITDA Margin: EBITDA margin is expected to be impacted by higher logistics costs and accelerated store openings, but the company anticipates operating leverage to become evident as store vintages mature.
Cash Flow: The company projects that its accelerated growth will continue to be self-funded through significant cash flow generated from negative working capital.
The selected topic was not discussed during the call.
The earnings call summary highlights strong revenue growth, positive same-store sales trends, and an optimistic outlook for new store openings. Management's confidence in maintaining growth, coupled with strategic allocation of savings and expansion plans, supports a positive sentiment. Despite some uncertainties in guidance, the overall tone is favorable, with no significant competitive threats and strong brand recognition. The positive sentiment is further reinforced by the anticipated operational leverage and successful product mix adaptation, leading to a likely stock price increase in the short term.
The earnings call summary indicates strong financial performance with significant store openings, increased private label penetration, and optimistic revenue and same-store sales growth guidance. The Q&A section provides additional insights, highlighting minimal inflation impact, successful meat and produce pilots, and growing brand resonance among higher-income segments. Although there are concerns about lease expenses and management's vague response on same-store sales sustainability, the overall sentiment is positive. The company's expansion strategy and strong guidance suggest a potential stock price increase.
The earnings call showed strong financial performance with a 35% revenue increase and a 49% rise in operating cash flow. Despite a slight margin decline, the optimistic guidance on talent investments, store expansions, and new tech systems suggests growth. The Q&A highlighted management's confidence in their strategic investments and stable consumer environment. Although there were concerns about unclear responses on labor costs and stock dilution, the overall sentiment leans positive due to the robust financial metrics and strategic growth initiatives.
The earnings call highlighted strong financial performance with significant revenue growth and EBITDA margin expansion. Despite potential risks like economic uncertainty and supply chain challenges, the company maintains a positive outlook with plans for substantial new store openings and revenue growth in 2025. The Q&A session revealed confidence in expansion strategy and competitive positioning. However, the lack of a share buyback program and increased SG&A expenses are slight negatives. Overall, the positive financial results and optimistic guidance suggest a positive stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
