Soriana’s 4Q24 EBITDA Falls 7.9% Due to Rising Costs

Soriana, a leading retail chain, reported a 7.9% drop in EBITDA for 4Q24, citing increased operating costs and a challenging comparison with the prior year.

According to the company's financial results filed with the Mexican Stock Exchange (BMV), quarterly revenue decreased 0.8% year-over-year to MX$48.99 billion (US$2.3 billion). Same-store sales fell 0.5%, while total sales across all outlets saw a slight decline of 0.1% compared to Q4 2023.

The company attributed its weaker performance to the high revenue base in Q4 2023, which was bolstered by extraordinary sales of essential goods in Acapulco following a hurricane and insurance claims for damaged stores.

Operating expenses rose 11.6%, driven by increased hiring to address vacancies and the addition of 18 new stores during the year.

Despite lower revenue, Soriana achieved a gross profit of MX$11.67 billion, with a margin of 23.8%, a 2.1% improvement from the same period last year. For 2024, gross profit reached MX$42.43 billion, reflecting a 5.7% increase year-over-year and a margin of 23.7%.

Quarterly EBITDA stood at MX$3.9 billion, representing an 8.0% margin, while annual EBITDA totaled MX$12.71 billion, or 7.1% of total revenue, marking a 1.5% decline from 2023.

Net income for the quarter amounted to MX$1.86 billion, equating to 3.8% of sales. For the full year, net income was MX$3.91 billion, representing 2.2% of total revenue.