Gross Margin
Q: What drove higher gross margins this quarter?
A: Management explained that better supplier terms, dynamic pricing, and increased scale led to higher margins, though such fluctuations are normal and not a redefinition of their outlook.

Efficiency & SBC
Q: How will efficiencies and SBC affect cost structure?
A: They are executing ongoing efficiency initiatives to curb rising labor costs, while share‐based payments are expected to remain around 1% of sales, with any costs tied to enhanced performance.

Cash Deployment
Q: What are the post-IPO benefits and cash plans?
A: Management noted a positive supplier halo effect post-IPO and is deploying the MXN 4.3 billion excess cash into high-return initiatives, reinforcing a robust balance sheet.

Organic Growth
Q: Is growth organic or driven by acquisitions?
A: The focus remains on organic growth, as management prefers expanding naturally given talent scarcity, though they don’t entirely rule out M&A.

Store Quality
Q: Are new store openings meeting performance expectations?
A: Their disciplined, decentralized approach ensures each new vintage outperforms the last, maintaining strong and consistent operational performance.

Mature Performance
Q: How are mature stores performing overall?
A: Management reported that mature locations continue to generate robust, steady sales growth by delivering increased value to customers.

Sales Mix
Q: What trend is expected for private label penetration?
A: Private label sales are trending upward, mirroring global hard discounter trends, even though quarterly figures may fluctuate.

Basket Evolution
Q: How are basket sizes and ticket frequencies evolving?
A: Although increased private label purchases slightly pull down average ticket size, enhanced customer frequency is gradually boosting overall ticket counts.

Competitive Model
Q: Are competitors adopting the hard discount model?
A: No significant shifts have been observed among competitors, which reinforces the company’s strong positioning in the hard discount space.

Next Milestone
Q: What is the next strategic milestone for the business?
A: The plan remains to execute its proven model more efficiently and rapidly, with no radical changes on the horizon.

SKU Discipline
Q: Will the number of SKUs on shelves increase?
A: They maintain a disciplined approach by swapping underperformers for new items, only expanding SKU counts if it meets stringent value and rotation criteria.

New Categories
Q: Any update on testing new product categories?
A: Management is piloting around 50–60 SKUs in new categories but will only scale up successful tests, ensuring every product continues to deliver high value.

Currency Risk
Q: How vulnerable is the business to a weaker peso?
A: While the market is susceptible to currency fluctuations, past devaluations have been weathered, and management expects adjustments over time.

Easter Impact
Q: Did the Easter calendar shift significantly affect sales?
A: Although hypermarkets saw a seasonal bump from Easter, the overall full-quarter impact was minimal.