Chedraui achieves 67% increase in sales in 2021

Chedraui's total sales in the fourth quarter of 2021 increased by 67%, exceeding market expectations.
The company outperformed industry indicators in Mexico and experienced solid growth, with a significant expansion in same-store sales and successful acquisition of Smart & Final in the United States.

Chedraui's total sales increased 67%. Photo: Shutterstock.com/photopixel

02/18/2022

Chedraui, the Mexican retail chain, surpassed market expectations with a 67% increase in total sales in the fourth quarter of 2021. This growth was largely driven by the recent acquisition of Smart & Final, a price club in the United States. Within Mexico, Chedraui's results were solid and outperformed the indicators of the National Association of Supermarkets and Department Stores (ANTAD). The company reported a 65.5% increase in gross profit (EBITDA) and a 19.5% net increase in sales, excluding the recently acquired operations.

Chedraui also experienced a significant growth in same-store sales in Mexico, with a 10.5% increase, surpassing the performance of ANTAD stores. Over the past 12 months, the company opened 17 new stores, resulting in a 0.7% expansion in sales floor. In the United States, the consolidation of Smart & Final played a crucial role in driving sales, while organic performance was also outstanding. Same-store sales in the US increased by 3.1%, slightly affected by calendar effects, and total sales saw an 11.5% increase in dollar terms.

Looking ahead, Chedraui is expected to continue delivering positive results, although it may face challenges related to inflation and supply chain disruptions in the first quarter of 2022. Despite these challenges, Intercam, a multiple banking institution, reiterated its recommendation to buy Chedraui's stocks, considering it as the most affordable option in the Mexican retail sector and significantly below its historical valuation.

Read the full article (in Spanish).

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