The following is a summary of the Alsea, S.A.B. De C.V. (ALSSF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Alsea's total Q1 2024 sales increased by 2.7% YoY, reaching MXN18 billion, or a 12.2% increase excluding FX effects.
EBITDA grew by 12.4% YoY, reaching MXN2.6 billion.
Same-store sales grew by 10.1% YoY.
Digital orders comprised 30.3% of total sales, totaling MXN5.5 billion.
Net income decreased by 22% YoY to MXN 440 million while EPS rose to MXN 3.36, a 58% YoY increase.
CapEx for the quarter amounted to 940 million pesos, and Pre-IFRS gross debt increased 1.7 billion pesos YoY.
Business Progress:
27 corporate units and 9 franchises were opened primarily under the Starbucks and Domino's brands.
Alsea's digital strategy accounted for 30.3% of all Q1 2024 sales.
Loyalty program sales rose by 21.7%, accounting for 20.6% of total sales.
They advanced ESG initiatives, with Mexico and Iberia locations branded as green stores, using 70% and 50% of clean energy respectively.
They suffered from foreign exchange losses in Argentina due to the cash conversion difference.
They were named Franchisee of the Year by Starbucks International in Mexico and Spain.
Expected digital sales to reach around 50% by the end of the year to boost customer loyalty.
They are optimistic about the economics in Argentina despite the devaluation of the peso.
Alsea intends to complete minority stake payments by Q1 2025, aided by a working capital injection from acquiring the remaining part of the European entity.
They have secured the supply chain for mozzarella cheese, crucial for Domino's operations, till late 2024.
Based on different FX effects, they have prepared their budget and guidance and do not anticipate significant appreciation of the Mexican peso.
More details: ALSEA SAB DE CV IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.