Covering the Mexican Economy, Actinver Research

Actinver

Covering the Mexican Economy

Actinver Research

Actinver is a mexican leading financial group, that generates well being for individuals and companies through advisory services that provides investment management to maintain and grow their wealth.

Macroeconomics

<ul>
<li>Supermarket 2Q24 results were overall mixed vs our estimates, with sales decelerating amid mostly calendar headwinds, and La Comer posting the best SSS and sales performance; all of our 3 covered players still beat the industry and thus continue to gain market share, as expected.</li>
<li>In terms of profitability, the 3 companies were able to post solid gross margin expansion amid efficiencies and product mix, yet SG&amp;A pressure, amid higher labor expenses, offset most of this pressure as expected; Chedraui was the only player able to post a slight EBITDA margin expansion.</li>
<li>Having recently launched our Supermarkets coverage (link to report here), we continue to see Chedraui (Outperform, P$160 PT) as the best positioned supermarket for either consumer trade up or trade down, as well as with a healthy format and geographical diversification.</li>
</ul>


Supermarket 2Q24 results were overall mixed vs our estimates, with sales decelerating amid mostly calendar headwinds, and La Comer posting the best SSS and sales performance; all of our 3 covered players still beat the industry and thus continue to gain market share, as expected.
In terms of profitability, the 3 companies were able to post solid gross margin expansion amid efficiencies and product mix, yet SG&amp;A pressure, amid higher labor expenses, offset most of this pressure as expected; Chedraui was the only player able to post a slight EBITDA margin expansion.
Having recently launched our Supermarkets coverage (link to report here), we continue to see Chedraui (Outperform, P$160 PT) as the best positioned supermarket for either consumer trade up or trade down, as well as with a healthy format and geographical diversification.


Actinver Research - Supermarkets post 2Q24: Sales deceleration with healthy margins (Sector Update)

<ul>
<li>Within the last years, where change has been the only constant, one thing remains unchanged: grocery shopping.</li>
<li>Supermarkets have thus thrived, supported in recent years by pantry loading, eat-at-home trends, omnichannel capabilities, and increasing salaries.</li>
<li>We are positive on the outlook for the space, with our covered companies expected to further benefit from increasing salaries and differentiation in value propositions, although the latter is a reflection of increased competition that we expect to continue.</li>
</ul>


Within the last years, where change has been the only constant, one thing remains unchanged: grocery shopping.
Supermarkets have thus thrived, supported in recent years by pantry loading, eat-at-home trends, omnichannel capabilities, and increasing salaries.
We are positive on the outlook for the space, with our covered companies expected to further benefit from increasing salaries and differentiation in value propositions, although the latter is a reflection of increased competition that we expect to continue.


Actinver Research - Supermarkets: The white space opportunity (Coverage Initiation)

Mexico

Wal-Mart de Mexico S.A.B. de C.V. retails food, clothing, and other merchandise under a variety of store formats. The Company operates Wal-Mart Supercenters, Sam's Club wholesale outlets, Bodega discount stores and Superama supermarkets.

Wal-Mart de Mexico SAB de CV (WALMEX* MM EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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Dividend (Yield)	0.00

Actinver Research - Supermarkets post 2Q24: Sales deceleration with healthy margins (Sector Update)

Supermarket 2Q24 results were overall mixed vs our estimates, with sales decelerating amid mostly calendar headwinds, and La Comer posting the best...

Actinver

Actinver Research - Supermarkets: The white space opportunity (Coverage Initiation)

Supermarkets have thus thrived, supported in recent years by pantry loading, eat-at-home trends, omnichannel capabilities, and increasing salaries.

Actinver