La Comer SAB de CV · BMV:LACOMER/UBC
La Comer SAB de CV — Q1 2018 Earnings Presentation
25 slides from La Comer SAB de CV's earnings presentation, April 2018
Slide 1: Grupo La Comer
Slide 2: Disclaimer
Disclaimer “The following material is submitted by way of general information regarding La Comer, S.A.B. de C.V., “La Comer”, as it stands to date. Said information is presented in a summarized fashion and is not intended to be comprehensive. Nor does it constitute a recommendation for potential inv
Slide 3: La Comer Summary
LA COMER SUMMARY 29 9 10 13 ▪ Almost 60 years of experience in the Mexican Food Retail market. ▪ Stores: 61, more than 248,000 sq.mts. of sale area, in 4 different formats. ▪ Geographic Distribution: 64% of the stores located in Mexico City metropolitan area. ▪ Real Estate: 45 units (31 stores +14
Slide 4: Corporate Structure
CORPORATE STRUCTURE La Comer is the product of the spin-off of Comerci when on January 1st 2016, 143 stores were sold to Soriana. Major Shareholders Free Float 56.4% * 43.6%* *As of April 2018 Listed on the Mexican Stock Exchange 44% float Real Estate subsidiaries Personnel Services La Comer started
Slide 5: New La Comer Group – Spin-off Rationale
NEW LA COMER GROUP– SPIN-OFF RATIONALE In 2016 La Comer started operations with 54 stores: • Differentiation • Focus on medium to high segments • Medium and small formats • Development of innovative concepts • Growth potential 54 • Value proposition based on price, quality stores and shopping experi
Slide 6: Socioeconomic Levels in Mexico
SOCIOECONOMIC LEVELS IN MEXICO ABC+ C C-/D+ D-/E $35,000- +$11,600-$34,999 $6,800-$11,599 $0-$6,799 Population 21% 17% 36% 26% *INEGI 2014 ABC+ Levels represent 21% of population; but 51% of Income Income 51% 17% 22% 10% ABC+ C C-/D+ From 15% to 25% of income, used for From 30% to 50% of income, use
Slide 7: Population in Mexico Is Becoming Less Young
POPULATION IN MEXICO IS BECOMING LESS YOUNG As Mexico becomes an “older” country, disposable income grows and the taste for “culture and sophistication” increases
Slide 8: Target Market of La Comer
TARGET MARKET OF LA COMER Medium and High Income Classes Why? • It is not a well attended market • We compete better against other players • The customer values our attributes more • These are segments that better resist crises • Potentially more profitable Junio, 2016 Noviembre 2015
Slide 9: Strategy
STRATEGY Differentiation: • Superior in perishable quality • Pleasant shopping experience • Superior shopping environment • Trained employees and better customer support • Premium and gourmet products • Collection of imported products • Specialized departments like cava and prepared food • Fair and
Slide 10: Mission
MISSION Food retail company that best serves medium and high socioeconomic level in the country, offering the best shopping experience in the market based on quality, customer support and service.
Slide 11: Brands & Formats
BRANDS & FORMATS La Comer is the umbrella that supports all formats to deliver a consistent brand image.
Slide 12: City Market format
Wide range of gourmet products as wines, cheeses, meat, imported groceries, and organic products. Exclusive product agreements with international brands. Sophisticated atmosphere and high quality service. Prepared foods for consumption in and out of the store. Specialized departments of pr
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Slide 14: Fresko format
Neighborhood market with a selected variety of special products by local customs (kosher, organic). Excellent quality of perishables, emphasizing freshness. Designed especially for a convenient and quick purchase. 10 stores as of today Sales area of about 1,500 to 4,000 square meters. Lo
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Slide 16: La Comer format
In addition to perishable and grocery products, this format offers general merchandise and household appliances as tableware and linens, among others. La Comer offers greater range and variety of products . Specialized departments such as Xpressa Café, prepared food and fine pastry Located i
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Slide 18: Home delivery service - Omni channel
Home delivery service - Omni channel Since the start of La Comer, a new area was created to focus in e-business and home delivery Strategy of differentiation based on better service and unrivaled quality in perishables 2016: Improvement in operations and service 2017: New platform • User friendl
Slide 19: Food Retail SSS Growth
FOOD RETAIL SSS GROWTH Food Retail Sector SSS Growth (%) 15.0 10.0 5.0 0.0 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 (5.0) (10.0) Antad La Comer Comerci Walmex Soriana Chedraui Walmex y Chedraui only Mexican operations
Slide 20: Financial Data
FINANCIAL DATA Dec-13* % Dec-14* % Dec-15** % Dec-16 % Dec-17 % Net sales 12,071 100 13,078 100 14,041 100 14,757 100 16,635 100 Cost of sales 9,078 75.2 9,781 74.8 10,531 75.0 11,148 75.5 12,423 74.7 Gross profit 2,993 24.8 3,297 25.2 3,509 25.0 3,610 24.5 4,213 25.3 Expenses 1,969 16.3 2,166 16.6
Slide 21: Financial Data: Income Statement
FINANCIAL DATA Income Statement 1Q2018 % 1Q2017 % Var. Net sales 4,287 100.0% 3,767 100.0% 13.8% Cost of sales 3,126 72.9% 2,775 73.7% 12.6% Gross profit 1,162 27.1% 991 26.3% 17.2% Selling expenses net 955 22.3% 829 22.0% 15.2% Operating profit 207 4.8% 162 4.3% 27.4% Financial income 45 1.1% 49 1.
Slide 22: Balance Sheet
BALANCE SHEET Assets Total liabilities and stockholders' equity Cash and Temporary investments 2,301 Trade payables 3,135 Clients (net account receivables) 723 Taxes payable 24 Recoverable taxes 14 Other accrued liabilities 212 Inventories 2,375 Current Liabilities 3,371 Other assets 125 Total Curre
Slide 23: 2017 & 2018
2017 & 2018 2017 Summary 1) One store closure for total remodeling 2) Partial remodeling of two stores 3) Opening of 3 new stores in the year 4) Most of the projects for this year were delayed, and are expected to be open during 2018. 2018 Plans 1) Control of pre-operating expenses 2) Estimate of 8
Slide 24: Store Openings
STORE OPENINGS La Comer, has initiated an aggressive plan to open new stores giving priority to the formats Fresko and City Market to increase its scale of operation. Beginning La Comer Year end January 1st 2016 2022 # stores 54 117 City City Market Market, 30% 13% Fresko, Fresko & 8% Sumesa 71% Sum
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La Comer, S.A.B. de C.V. — Q1 2018 Earnings Presentation on 6ix