GRUPO COMERCIAL CHEDRAUI, S.A.B. DE C.V. FOURTH QUARTER 2023 RESULTS

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Grupo Comercial Chedraui, S.A.B. de C.V.

Feb 20, 2024, 18:20 ET

MEXICO CITY, Feb. 20, 2024 /PRNewswire/ -- Grupo Comercial Chedraui, S.A.B. de C.V. reports its 2023 fourth quarter results. All figures are shown in nominal terms and reported under International Financial Reporting Standards (IFRS).

4Q'23 Highlights:

Growth of 8.7% in Same-Store Sales (SSS) in Mexico, exceeding the 6% recorded by ANTAD.
7.3% growth in consolidated EBITDA
Consolidated EBITDA margin increase: +66 bps to 9.1%
- +18 bps in Retail Mexico to 8.4%
- +117 bps in Retail US to 9.4%
18.6% increase in consolidated Net Income
ROE of 18.6%, a 130-bps improvement compared to 2022
Net debt (cash) to EBITDA at -0.24x at year-end 2023

Antonio Chedraui, Grupo Comercial Chedraui's CEO, remarked:
"Our customer-centric strategy continues to deliver positive results. During the fourth quarter and throughout 2023, both in Mexico and the United States, we achieved our guidance and continued to grow organically with the opening of 57 stores in Mexico and three in the United States, totaling 460 and 379 stores, respectively.

In Mexico, same-store sales (SSS) continued to exceed ANTAD levels, with an average spread of 283 bps throughout 2023, indicating a steady gain in market share. At Chedraui USA, our customer base continues to grow.

For 2023 consolidated EBITDA, our operating leverage, expense efficiencies, and improvement in inventory management and promotions drove an expansion of 60 bps, achieving a margin on sales of 8.9%. These combined efforts resulted in a continued increase in Chedraui's profitability; thus, at the end of 2023, we achieved a ROE of 18.6%, 130 bps higher than in 2022.

It is noteworthy that the cash generation in our operations in both countries allowed us to end with a net cash position at the end of 2023 of $5,553 million pesos, or a negative 0.24x net cash to EBITDA ratio.

We are pleased to inform our investors that the company's Board of Directors at the meeting held today, agreed to recommend at the next shareholders meeting the distribution of an ordinary dividend payment on April of this year for $1,147 million pesos, and an extraordinary dividend to be paid in two installments, on November and December, for $500 million pesos each. The above is equivalent to a total of $2,147 million pesos or 28.1% of majority income in 2023.

Finally, I want to recognize and express gratitude to the commitment and dedication of our employees in Acapulco, who, in the face of the impact of Hurricane Otis, effectively applied our business continuity plan, which allowed us to overcome this event in record time, while reinforcing our commitment to customers, being the first self-service chain to reopen its stores. We also provided immediate relief to our coworkers and community members through Fundación Chedraui."

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Conference Call Information

Date

Wednesday, February 21^st, 2024
10:00 am (EST)
9:00 am (Mexico City CT)

Conference Call

Operator-assisted US toll-free dial-in number: +1 877 407 3982
Operator-assisted Mexico toll-free dial-in number: 01 800 522 0034
Operator-assisted international toll free: +1 201 493 6780
Grupo Comercial Chedraui SAB de CV Q4'23 Conference Call - 1655499

Webcast

https://viavid.admin.webcasts.com/admin/index.jsp?guest=reports_1655499

SOURCE Grupo Comercial Chedraui, S.A.B. de C.V.