Grupo Comercial Chedraui S.a.b. C.v. Stock Earnings Reports

Grupo Comercial Chedraui reported Q1 2026 results amid soft consumer spending in Mexico (particularly the Southeast) and tighter immigration enforcement in the U.S. Key operating highlights: Chedraui Mexico same-store sales (SSS) grew 2.1%, outperforming ANTAD's self-service segment by 73 bps for the 23rd consecutive quarter; Chedraui Mexico total sales rose 6.3% (including a 4.6% sales floor expansion). Chedraui USA SSS declined (El Super & Fiesta down ~2.8% in USD; Smart & Final down ~1.4%), with consolidated sales down 6.2% in pesos primarily due to a 14.3% appreciation of the peso versus the dollar. Margins and profitability: consolidated EBITDA margin improved 22 bps to 8.6% despite a 3.8% decline in consolidated EBITDA; Chedraui Mexico EBITDA margin held at 9.5%; Chedraui USA EBITDA margin improved 21 bps to 7.7% driven by expense control and RCDC efficiencies (Smart & Final margin +135 bps). Consolidated net income rose 1% to MXN 1,583 million. Balance sheet and cash: the company finished Q1 with net cash of MXN 2,556 million and net cash/EBITDA of -0.10x (improved vs. prior year). CapEx jumped ~63.8% YoY to MXN ~2,096 million (3.1% of sales), primarily for new store openings and remodels; organic openings included 1 Tiendas Chedraui and 18 Supercitos in the quarter. Growth initiatives and outlook: management reiterated confidence in the long-term outlook and commitment to continued investment (organic growth, store remodels, e-commerce expansion and third-party partnerships such as Rappi). Supercitos rollout is a priority (guidance: ~130 Supercitos this year; target ~1,000 in coming years). Key risks: continued weak consumption in Mexico (esp. Southeast) and sustained U.S. immigration enforcement affecting traffic and same-store sales; currency translation headwinds. Management emphasized ongoing strict expense control, inventory and promotional optimization, and additional supply-chain/distribution efficiencies from RCDC to protect margins and reach guidance.