#Mexico #Mexico City #Retail Growth #Chedraui #Smart Final

Grupo Comercial Chedraui: Second Quarter 2025 Results Overview

Grupo Comercial Chedraui, S.A.B. de C.V., a prominent player in the retail sector, has recently unveiled its performance metrics for the second quarter of 2025. The report reflects a robust operational strategy that resonates well with both customers and market conditions, affirming the company’s trajectory of growth in a competitive retail environment.

Key Highlights from Q2 2025

• - Same Store Sales (SSS): There was a remarkable increase of 3.7% in Mexico, surpassing the National Association of Self-Service and Departament Stores (ANTAD) growth rate by 122 basis points. This achievement marks the twentieth consecutive quarter that Chedraui has outperformed ANTAD, showcasing the strength and loyalty of its customer base.

• - Customer Traffic: The smart pricing strategies implemented by Smart & Final led to a 1.5% increase in customer traffic year-over-year compared to Q2 2024, solidifying the brand’s appeal.

• - Consolidated Earnings: The company reported a 6.3% growth in consolidated EBITDA, with an 8.0% increase excluding transition costs associated with the new Regional Distribution Center (RCDC) in Chedraui USA.

• - Profit Margins: Chedraui Mexico's total EBITDA margin improved by 14 basis points, reaching 9.5%, while Chedraui USA reported an EBITDA margin of 8.3%, increasing to 8.6% when excluding transition costs.

• - Net Income Growth: Consolidated net income rose by 2.4%, and gained 6.1% while excluding transition costs, demonstrating effective cost management and operational efficiency.

• - Debt Management: The net debt to EBITDA ratio exhibited a commendable result of -0.05x at the close of Q2 2025, indicating financial stability.

• - Expansion Plans: Chedraui continues to pursue ambitious growth, with the opening of 30 stores in Mexico and one store in the United States during this quarter, reflecting a solid commitment to expanding its market presence.

CEO’s Insights

Antonio Chedraui, CEO of Grupo Comercial Chedraui, expressed gratitude towards both customers for their loyalty and employees for their diligence, attributing the company's successful results to these essential elements. He emphasized the company's dedication to maintaining low prices, a wide assortment of products tailored for each store, and an exceptional shopping experience. This strategy has proven effective in increasing customer preference and expanding market share.

In June, the company launched its summer campaign “Por ti, cuesta menos el verano Chedraui”, marking the fourth consecutive year of this initiative aimed at supporting Mexican families in their financial planning while reinforcing Chedraui as a trusted option for economical shopping.

Chedraui USA also benefited from increased traffic, particularly at Smart & Final, which can be attributed to strategic marketing efforts initiated in the latter half of 2024. These efforts are geared toward enhancing brand visibility and attracting new customers.

In addition, the successful migration of five legacy distribution centers serving El Super and Smart & Final to a consolidated facility in Rancho Cucamonga was completed this quarter, with a focus now on enhancing productivity to leverage the operational advantages expected from this transition.

Conclusion

The second quarter of 2025 for Grupo Comercial Chedraui has been marked by impressive growth metrics, reflecting their strategic business decisions and customer-centric approach. As they continue to expand and adapt to market dynamics, the company's trajectory suggests a promising future in both the Mexican and American retail landscapes. Stakeholders and investors will be keenly interested in the upcoming conference call on July 29, 2025, to delve deeper into these results and future strategies.