El Puerto de Liverpool SAB de CV (ELPQF) Q3 2024 Earnings Call Highlights: Strong Revenue ...

• Consolidated Revenue: MXN46 billion, an increase of 10.4% year-on-year.

• Retail Revenue Growth: 9.7% compared to last year.

• Financial Services Revenue Growth: 16.3% year-on-year.

• Real Estate Revenue Growth: 11.9% year-on-year.

• Same-Store Sales (Liverpool): 7.6% growth.

• Same-Store Sales (Suburbia): 7.6% growth.

• Gross Margin: 41.8%, slightly above last year.

• Operating Income: MXN6 billion, a 7% increase year-on-year.

• Net Profit: MXN4.4 billion, 11.3% above last year.

• EBITDA: MXN7.5 billion, 7.3% above last year.

• EBITDA Margin: 16.3%, 50 basis points below the prior year.

• Non-Performing Loans (NPLs): 4.1%, 63 basis points above a year ago.

• Bad Debt Provision: MXN1 billion, a 57% increase from last year.

• Digital Channel GMV Growth: 15% above a year ago.

• Marketplace GMV Growth: 33% year-on-year.

• CapEx: MXN2.8 billion for Q3, cumulative MXN8.5 billion, 42% higher than a year ago.

• Operating Cash Flow: Negative MXN1.1 billion for the quarter.

• Cash on Hand: MXN18.2 billion.

• Net Debt-to-EBITDA Ratio: 0.2x.

• New Store Openings: New Suburbia stores in Apodaca Huinala and Reynosa, and six new Liverpool Express units.

• Warning! GuruFocus has detected 4 Warning Signs with MTDR.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Consolidated revenue increased by 10.4% year-on-year, reaching MXN46 billion.

• Retail revenue grew by 9.7%, with double-digit growth in financial services and real estate.

• Net profit increased by over 11% year-on-year, aided by a favorable exchange rate.

• Liverpool's digital channel saw a 15% increase in GMV, with digital share growing to nearly 25%.

• The marketplace GMV grew 33% year-on-year, with a significant increase in SKUs and sellers.

• NPL ratio rose to 4.1%, 63 basis points above the previous year.

• Suburbia's same-store sales growth of 7.6% was lower than previous quarters.

• Operating expenses, including bad debt provisions, grew by 10.2%, driven by higher wages and new store costs.

• EBITDA margin decreased by 50 basis points compared to the prior year.

• Inventory levels increased by 20% due to early deliveries, raising concerns about potential overstocking.

Q: How is El Puerto de Liverpool preparing for the holiday season given the recent sales deceleration and increased inventory levels? A: Gonzalo Gallegos, CFO, stated that they are preparing for a strong holiday season with expected sales in the lower two-digit range. They have increased their inventory by 20% to ensure they are fully prepared, aiming to stabilize inventory levels by November in line with sales growth.