Alsea, S.A.B. de C.V. (ALSSF) Q4 2024 Earnings Conference Call Transcript

2025-02-26 15:10:19 ET

Alsea, S.A.B. de C.V. (ALSSF)

Q4 2024 Earnings Conference Call

February 26, 2025, 09:30 AM ET

Company Participants

Gerardo Lozoya - Head, IR and Corporate Affairs

Armando Torrado - CEO

Federico Rodriguez - CFO

Conference Call Participants

Alejandro Fuchs - Itau BBA

Ben Theurer - Barclays

Tiago Sardeli - Citi

Antonio Hernandez - Actinver

Renata Cabral - Citibank

Alvaro Garcia - BTG Pactual

Froy Mendez - JPMorgan

Julia Rizzo - Morgan Stanley

Presentation

Gerardo Lozoya

Good morning, everyone, and welcome to Alsea Fourth Quarter and Full-Year 2024 Earnings Video Conference. My name is Gerardo Lozoya, Head of Investor Relations and Corporate Affairs; and today our Chief Executive Officer, Armando Torrado; and our Chief Financial Officer, Federico Rodriguez, will be presenting the results.

Before we continue, a friendly reminder that some of our comments today will contain forward-looking statements based on our current view of our business, and that future results may differ materially from these statements. Today's call should be considered in conjunction with disclaimers in our earnings release and our most recent Bolsa Mexicana de Valores report. The company is not obligated to update or revise any such forward-looking statements. Please note that unless specified otherwise, the earnings numbers referred to are based on our pre-IFRS 16 standards.

I will now hand it over to Armando for his initial remarks. Please go ahead, Armando.

Armando Torrado

Thank you. Thank you. Good morning, everyone, and thank you, Gerardo, and welcome, welcome to Alsea's fourth quarter and full-year 2024 earnings video conference.

I would first like to thank our team members for their continued dedications to Alsea, the hard work and commitment that had been key to our solid performance this quarter and through the year. Today, I will provide an overview of the quarterly and full-year performance, covering our financial results, regional highlights, and key brand developments, and I will also highlight our progress on digital transformation, ESG initiatives, and expansion strategy. To begin with here, here are the key highlights for the 4Q of '24.

In the fourth quarter, we reported an 11.1% year-over-year increase in total sales, reaching MXN21.7 billion, or a 12% increase when excluding foreign exchange effects. Same-store sales grew 7.2%. EBITDA increased by 13% in the fourth quarter, reaching MXN3.6 billion, with a margin of 16.4%. It is relevant to notice the strength of our brands in different regions, which is in conjunction with the optimization of the portfolio, with a sale of 54 units of Burger King in Spain, strategic pricing, and cost control measures that were effectively an offset that minimum wages increases. We improved in both margin and financial strengths....

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