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Good afternoon, everyone, and thank you for joining me in this conference call regarding the financial results of the first quarter of this year.
Starting with the top line of our income statement. The company's total revenues had a nominal increase of 6.3% versus the same period from the last year, closing in MXN 41.8 billion, basically derived from an increase of 5.7% in same-store sales and the net effect of 6 new stores and 3 closures in the last 12 months.
Additionally, a negative impact in other income in comparison with last year's income regarding the sales of land that we did not have this year. The increase in total sales because all of this was 6.6%.
Talking about the performance at a store format level, our stores directed to a low price strategy in this case, Soriana Mercado and Soriana Express, having showing the best performance in the last quarters as a result to that equation that the management team has been working to improve processes, catalog, competitiveness, quality and navigability inside the stores in order to improve the value proposition and as a consequence, the shopping experience for its clients.
Meanwhile, we continue making important investments in advertising campaigns for Soriana Hiper and Soriana Super stores, boosting and promoting the grand variety of regional products as well as our own private and exclusive brands. We're as of today, more than 1,500 SKUs are available in our division, both in store and online, where at the end of 2023, we have renovated more than 600 SKUs, showing an increase in sales between 15% and 20% in this private brand.
Regarding the performance of our stores by the region. Outstanding sales of Coahuila, Durango, Tamaulipas and [ south ] Pacific region, where we see positive double-digit results.
Also, and moving to our digital business, we achieved an increase in sales of 25% in the quarter in our platforms. Basically, derived from the implementation made in continuing improving the navigation experience, particularly in our app that provoke as a consequence, an increase in order of double digits.
Also, and regarding an important business, the real estate business, we closed this quarter with an occupancy of 88.4%, which represent a growth of 4.9 percentage points versus last year, reaching more than MXN 700 million and an increase of 6% in the income, net income derived from this business.
These positive results come from making better commercial synergies with different brands where we could achieve a double-digit increase in occupancy in different states of the country, like Aguascalientes, Campeche, Colima, Guerrero and [ Guayabal ].
Likewise, gross profit reached MXN 9.7 billion in this quarter, which represents a gross margin of 23.3%, an increase of almost 4% against last year's result. Since in 2023, we had an extraordinary income in sales of land that now affects the comparative of the quarter.
Regarding the operative expenses line, there was an increase of 6.9% versus last year, reaching MXN 6.9 billion, which represents a 16.6% over the income. This increase in the operational expense is basically attributable mostly to cost of personnel, a higher expenditure in the advertising campaign and the cost of insurance delivered from the Hurricane Otis that affect Acapulco.
As a consequence of the variation just mentioned, the company's EBITDA this quarter reached MXN 2.9 billion, which represents 7.1% margin over the sales and an increase of 1.7% compared to the first quarter of last year.
On the other hand, regarding the financial items, net financial costs closed in MXN 742 million, showing an increase of more than 60% due to a reduction in the financial product, basically derived from minor average balance in cash and investment and also affecting a comparative basis due to an extraordinary income that we obtained in 2023 as well as a financial -- an increase in the financial expense derived from an increase of 20% in the total debt of the company that basically we are using as a working capital debt to finance the growth and the buyer of land that the company is performing very aggressively this year.
Finally, the net income for the quarter reached MXN 789 million, which is equivalent to 1.9% over the sales.
Moving on, to talk about the progress made with our partner, Falabella. This quarter, Sodimac, the home improvement business, continuing with 13 stores in operation, and 1 more is under construction here in Monterrey, and we expect to open that store basically in the following weeks.
Results continue showing a positive trend where the digital business stand out showing an increase of almost double digit since the service expands to more states where the physical stores are present.
On the other hand, our financial business with Falabella credit card keeps growing. And at the close of this quarter, more than 700,000 cards were issued operated in more than [ 100 ] stores, and we have [ 100 ] in term of physical malls in the stores, and we operate also in more than 400 stores with digital journey. The credit portfolio adds up to MXN 4.1 billion.
Finally, as an update of the expansion plan, I would like to share with you that in February, we opened the second Soriana Super store in Mexicali, with an investment of close to MXN 300 million with a great acceptance for our client and a very positive feedback.
Likewise, in this sense, we have opened 6 new stores in the last 12 months, basically in the State of Chihuahua, Tamaulipas, Coahuila, Jalisco, and Baja California. Also, we continue with an aggressive remodeling plan [indiscernible] come from and an updated of the image and the improvements in the layout that we are trying to offer a much better shopping experience to our clients.
In the first quarter, basically due to all of this, we have invested more than MXN 1.8 billion in CapEx, mainly for store maintenance, equipment repositions, store remodeling and the stores that are under construction.
With furthermore, we hope that this information has been of your interest, and we can now continue to the Q&A session. Thank you very much.
[Operator Instructions] The first question is from Alejandro Fuchs from Itau BBA.
I have 2 very quick ones. The first one was on this extraordinary income of sale last year during the quarter. Could you help us maybe with the total amount and the impact on the gross margin?
And then the second one is, I think you provided some guidance on the last earnings call of around 25 bps EBITDA margin expansion for this year, given the results of this quarter, I wanted to see how you feel about the guidance going forward for the remainder of the year? Should we expect that expansion to continue? I wanted to pick your brain a little bit about that.
Sure, Alejandro. Well, first of all, a little more detail about the extraordinary income in last year. Basically, was the sale of [ land ] that are close, several land that we have basically give us around -- a little more than MXN 110 million of net income. Basically, we just registered the net income, not the sale of the land, just the net income already paying taxes and the cost and everything. So it was an important amount that go directly to the EBITDA. And it's a little more than [ MXN 110 million ].
And regarding the second question about the EBITDA expansion, as probably you have heard from me in past quarters, we don't use to change the guidance for the year. No matter, as you say Alejandro is very obvious that it starts to make more challenge, achieve that expansion in at EBITDA level.
Right now, still we believe that we have an important opportunity to continue improving the gross margin, mainly still we see an opportunity of around 20 basis points that we have to improve the strength of the company and that we are working on that normally that we have probably like 12 months in which we have made important progress to reduce the shrink.
Still, I see an opportunity of around a little more than 20 basis points on that. And probably we can have some help to achieve the goal at a [ high ] bit of level coming from this item. And second, I think that also in the expenses, we can have an opportunity as probably you see, still we have an important difference between the growth in gross profit and against the growth in expenses.
Still, we have some pressure from the publicity campaign that we have been very aggressive in the last months in order to recuperate market share. So we don't see it as an expense, its more an investment for the long term and to recuperate the perception of low prices in the marketing. But we know that we are over investment on that. And probably, we can modulate a little that investment and obtain some points from that.
And the third important thing is that also in the expense line is an important amount of money that is coming from the remodeling process. Remember that Soriana because we are really, really conservative in our accounting policies. There is a lot of the investment that we make in the remodeling plan that doesn't go to CapEx and go directly to the expense line in the P&L.
So remember, it's something that I always said Soriana have a lot of things that probably other companies just call CapEx. Soriana have an important amount a month, yes, in CapEx, but also in the expense line. So that is not something that will go forever.
Every quarter, we have already a couple of peers being very aggressive in remodeling plans. Still, we have stores that we have to continue with that remodeling plan. But it's not something that it will be forever in some part of the time, we will end with that, and we will have a completely renewed chain of stores in the company.
So I still believe that the company has the opportunity to continue improving the EBITDA margin, but also as a matter of fact, Alejandro I shared your opinion that it will be much more challenged to achieve the initial goal with the results that we are achieving in the first quarter. I expect that gives you some clarity about the 2 questions, Alejandro.
Very clear, Rodrigo. Maybe if I can just make a follow-up very quickly. Regarding the news of your partnership with Nubank, I was wondering if you can provide some color on this, is it having a positive impact on traffic in the stores? Is this something that you guys are decided about for the future? If you could provide any color on that partnership, I think it will also be interesting.
Sure. Well, actually, we always say that, Soriana, obviously, we are a retail, but we are an important platform business. At the end of the day, we receive more than 700 million visits every year. So that interaction of people going to our stores create a very profitable platform for make businesses with other partners. And in this case, particularly Nubank that has been very aggressive for growth in Mexico.
We are converting important partners to keep to the final client services to make more efficient their visit to our stores. So right now in the Soriana stores, you can make a lot of the banking transactions that now requires in our cashier lines is not something that is new for Soriana. We have several years working on that. And we will continue to try to be very innovative and offer more services to our clients and make more productive every time that they go to the store.
Our next question is from Mr. Miguel Ulloa from BBVA.
The first one would be regarding the consumer environment you're facing and how has changed from the last months, which categories are moving the fastest and which are laggards.
Well, firstly, Miguel, thank you for your question. So unfortunately, for I think not only Soriana, for the whole market, still we see a client with an important consumption trend. Fortunately, we are not seeing any sign that they have some kind of pressure in their pockets.
Actually, in the other way, some categories like an example, in private brands, Miguel, we just, we rolled the strategy to be more and more strong in our private brand strategy. Remember that right now, we don't only have intra-private brand. We also have premium private brands. This premium private brand that obviously have a tremendous quality, much higher than the commercial brand, but also the entry level price is important, is having an important success.
So I think that the client is willing even to spend a little more to obtain more quality. We are not seeing any down trade going from like an example, typically from a crisis going from beef to chicken or to egg, because they want to prioritize cheaper proteins. We are not seeing nothing like that. Still, we see a client with an important healthy purchasing power.
In some regions, the increase is very high, particularly like an example, City Club that have an average ticket a little more than the double of a supermarket or a traditional Soriana store is growing really important. Also the e-commerce that have probably 5x the ticket of the stores is growing very important. So in general, I don't see any sign of weakness in the purchasing power of the client, Miguel.
Obviously, also, I think that something important to consider is that we are now particular here in Mexico. And we know that in election years, there is much more money outside and more expenditure. And there is more willing to spend. So I think that all of that kind of things is helping to maintain a very healthy environment in consumption. And actually, it's more important. Things I don't know that you have seen lately the employment rate in Mexico. But right now, the problem is to find personnel. So there is a lot of things that are really positive that obviously help the consumption.
[Operator Instructions] That was the last question. This concludes the Q&A session for today.
Okay. Thank you very much, all of you guys that are joining us in this conference call. And remember that, obviously, if you have other questions, just give us an email, and it will be a pleasure be in contact with you as soon as possible. Have a good day. Bye-bye.