Grupo Elektra Reports 6% Revenue Decline in Second Quarter of 2026

Overview

In a recently released financial report, Grupo Elektra, a major player in Latin America's retail and financial services market, has disclosed its earnings for the second quarter of 2026. The report indicates a consolidated revenue of Ps.47,761 million, reflecting a 6% decrease from Ps.50,864 million recorded in the same period last year. This decline has raised concerns among analysts and investors regarding the company's performance and market strategies moving forward.

Key Financial Metrics

The results reveal several critical figures that underline the current financial health of Grupo Elektra. The total costs incurred during the quarter rose slightly to Ps.23,422 million, compared to Ps.22,680 million from the prior year. Additionally, expenses related to sales, administration, and promotion dropped significantly, totaling Ps.18,986 million, down from Ps.22,056 million in 2025.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for this quarter amounted to Ps.5,353 million, down from Ps.6,129 million a year earlier, indicating a 13% reduction. This change has been partially influenced by foreign exchange fluctuations, which recorded a loss of Ps.182 million, contrasting with a profit of Ps.584 million from the previous year due to gains from currency translations.

Profitability Challenges

Grupo Elektra's net profit has been notably affected, plunging to Ps.560 million—a stark drop of 79% from Ps.2,696 million in the same quarter last year. This deterioration in profitability has raised alarms regarding the sustainability of the company’s business model, especially as it faces growing competition and changing market dynamics.

Loan Portfolio Analysis

On the balance sheet front, the gross loan portfolio figure stands at Ps.214,360 million, representing an increase from Ps.201,647 million year over year. However, the company's non-performing loan ratio remains a concern, currently sitting at 5.40%. Specifically, the performance of Banco Azteca, part of the Grupo Elektra umbrella, exhibits a gross loan portfolio of Ps.209,279 million, up from Ps.193,792 million in 2025. Its non-performing loan ratio stands at a slightly favorable 5.35%.

Deposits and Liquidity

Consolidated deposits have also seen modest growth, reaching Ps.255,724 million, compared to Ps.248,988 million in the previous year. Banco Azteca reported traditional deposits of Ps.246,581 million, an increase from Ps.241,451 million, showcasing a positive trend in customer deposits despite the overall financial challenges. Notably, Banco Azteca's liquidity coverage ratio surged to an impressive 504%, ensuring the bank remains well capitalized to meet its obligations.

Concluding Thoughts

The financial landscape for Grupo Elektra in the second quarter of 2026 presents a mixed picture. While the rise in loan portfolios and deposits suggests aspects of growth, the fall in revenue and profits raises significant concerns that may require strategic recalibrating. Investors will be keenly observing the company's next steps as it navigates these financial pressures in an intensely competitive market. Grupo Elektra's ability to adapt and innovate will be crucial in the upcoming quarters to restore investor confidence and stabilize its financial performance.