GRUPO ELEKTRA ANNOUNCES 9% EBITDA GROWTH TO Ps.6,939 MILLION IN THE FIRST QUARTER OF 2025

Apr 30 2025 00:26 BST

—Consolidated revenue increased 16% to Ps. 51,768 million, driven by strong growth in financial revenue—

—Continued growth in consolidated gross loan portfolio; it increased 14% to Ps.198,915 million—

—A 12% increase in consolidated deposits, to Ps. 243,931 million, generates solid prospects for the financial business, with optimal funding costs—

MÉXICO CITY, April 29, 2025 /PRNewswire/ -- Grupo Elektra, S.A.B. de C.V. (BMV: ELEKTRA* Latibex: XEKT), Latin America's leading specialty retailer and financial services company, and the largest non-bank provider of cash advance services in the United States, today announced first quarter 2025 results.

First quarter results

Consolidated revenue grew 16% to Ps.51,768 million in the period, compared to Ps.44,562 million in the same quarter of the previous year. Operating costs and expenses increased 17% to Ps.44,830 million, from Ps.38,199 million in the same quarter of 2024.

As a result, EBITDA was Ps.6,939 million, 9% higher than Ps.6,363 million a year ago. Operating income was Ps.4,553 million, 12% higher than Ps.4,067 million for the same period in 2024.

The company reported net income of Ps.1,865 million, compared to Ps.1,721 million a year ago.

	Q1 2024	Q1 2025	Change
			Ps.	%

Consolidated revenue	$44,562	$51,768	$7,206	16 %

EBITDA	$6,363	$6,939	$576	9 %

Operating profit Net result	$4,067 $1,721	$4,553 $1,865	$486 $144	12% 8%

Net result per share	$7.80	$8.90	$1.10	14 %

Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
As of March 31, 2024, Elektra* outstanding shares were 220.7 million and as of March 31, 2025, were 209.5 million.

Revenue

Consolidated revenue increased 16% in the period, reflecting a 23% increase in financial revenue and a 5% increase in commercial sales.

The increase in financial income — to Ps.33,844 million, up from Ps.27,526 million the previous year — largely reflects a 21% increase in Banco Azteca México's revenue, amid continued growth in its gross loan portfolio, which boosts the well-being of millions of families and business development.

The increase in revenue from the commercial business, to Ps.17,924 million, from Ps.17,036 million a year ago, is largely due to growth in motorcycle sales — which strengthen business productivity and the mobility of millions of people — and home appliances — which boost the quality of life of a growing number of families.

Costs and expenses

Consolidated costs for the quarter grew 9% to Ps.23,550 million, compared to Ps.21,534 million a year earlier. This increase is explained by a 19% growth in financial costs — derived from greater creation of loan reserves, in the context of solid growth in the consolidated gross portfolio — and a 2% increase in commercial costs, consistent with growth in merchandise sales.

Lower increase in consolidated costs relative to revenues for the period led to a 23% growth in gross profit, to Ps.28,219 million, from Ps.23,028 million a year ago. Gross margin increased three percentage points to 55% this quarter.

Selling, administrative and promotional expenses grew 28% to Ps.21,280 million, from Ps.16,665 million a year ago, as a result of higher operating and advertising expenses during the period.

EBITDA and net result

EBITDA grew 9% to Ps.6,939 million, compared to Ps.6,363 million in the previous year. The EBITDA margin was 13% in the period. The company reported an operating income of Ps.4,553 million, compared to Ps.4,067 million in the same quarter of 2024.

Relevant variations below EBITDA were the following:

An increase of Ps.82 million in depreciation and amortization, resulting from growth in the right-of-use asset balance.

An increase of Ps.91 million in interest expense, resulting from a higher balance of debt with cost at the end of the quarter compared to the previous year.

Consistent with the quarterly results, there was an increase of Ps.123 million in the tax provision for the period.

Grupo Elektra reported a net income of Ps.1,865 million, up from Ps.1,721 million a year ago.

Unconsolidated balance sheet

A proforma balance sheet exercise of Grupo Elektra is presented, which allows knowing the non-consolidated financial situation, excluding the net assets of the financial business, whose investment is valued in this case under the participation method.

This presentation shows the debt of the company without considering Banco Azteca's immediate and term deposits, which do not constitute debt with cost for Grupo Elektra. Also, the pro forma balance sheet does not include the bank's gross loan portfolio.

This provides greater clarity about the various businesses that make up the company and enables financial market participants to estimate its value while considering only the relevant debt for such calculations.

Consistent with the above, debt with cost as of March 31, 2025, was Ps.41,920 million, compared to Ps.38,568 million the previous year. This increase largely reflects the issuance of fiduciary certificates and the drawdown of bank lines during the period.

Cash and cash equivalents were Ps.9,000 million, up from Ps.12,267 million a year ago, and net debt was Ps.32,920 million, compared to Ps.26,301 million a year ago.

	As of March 31, 2024	As of March 31, 2025	Change
	As of March 31, 2024	As of March 31, 2025	Ps.	%


Cash and cash equivalents	$12,267	$9,000	(3,267)	(27 %)
Marketable financial instruments	25,717	27,208	1,491	6 %
Inventories	17,470	23,946	6,476	37 %
Accounts receivables	52,012	33,629	(18,382)	(35 %)
Other current assets	3,857	2,548	(1,308)	(34 %)
Investments in shares	41,575	48,208	6,634	16 %
Fixed assets	8,801	8,199	(602)	(7 %)
Right of use assets	12,056	12,470	414	3 %
Other assets	4,545	12,648	8,103	178 %

Total assets	$178,299	$177,856	($443)	(0 %)

Debt with cost	$38,568	$41,920	3,352	9 %
Suppliers	11,340	12,727	1,387	12 %
Other short-term liabilities	20,235	19,913	(321)	(2 %)
Other long-term liabilities	15,942	22,367	6,425	40 %

Total liabilities	$86,085	$96,928	$10,843	13 %

Stakeholder´s equity	$92,214	$80,928	($11,285)	(12 %)

Liabilities and equity	$178,299	$177,856	($443)	(0 %)
Figures in millions of pesos

Consolidated Balance Sheet

Loan Portfolio and Deposits

The consolidated gross loan portfolio of Banco Azteca Mexico, Purpose Financial, and Banco Azteca Latinoamerica as of March 31, 2025, grew 14% to Ps.198,915 million, compared to Ps.174,484 million the previous year. The consolidated non-performing loan ratio was 4.4% at the end of the period, compared to 4.2% the previous year.

Banco Azteca Mexico's gross loan balance increased 13% to Ps.190,630 million, up from Ps.169,099 million a year ago. The bank's delinquency ratio at the end of the period was 3.9%, compared to 3.7% the previous year.

Grupo Elektra's consolidated deposits totaled Ps.243,931 million, 12% higher than the Ps.216,897 million a year ago. Banco Azteca Mexico's traditional deposits were Ps.236,607 million, 10% higher than the Ps.214,793 million of the previous year.

Banco Azteca Mexico's traditional deposits-to-gross portfolio ratio was 1.2 times, enabling solid growth of the Bank with optimal funding costs.

The bank's liquidity coverage ratio (calculable liquid assets / total net cash outflow) at quarter-end was 701%, an outstanding figure in the Mexican banking sector.

Banco Azteca Mexico's capitalization ratio was 14.63%.

Infrastructure

Grupo Elektra currently has 6,150 contact points, compared to 6,170 units the previous year; the decrease is the result of strategies focused on maximizing the profitability of the company's contact points.

At the end of the period, Grupo Elektra had 4,908 points of contact in Mexico, 810 in the US, and 432 in Central America. The company's extensive distribution network provides customer proximity and close service, generating superior market positioning in the countries where it operates.

Company Profile:

Grupo Elektra is Latin America's leading financial services company and specialty retailer and the largest non-bank provider of cash advance services in the United States. The group operates more than 6,000 points of contact in México, the United States, Guatemala, Honduras, and Panama.

Grupo Elektra is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast-growing, and technologically advanced companies focused on creating economic value through market innovation and goods and services that improve standards of living; social value to improve community well-being; and environmental value by reducing the negative impact of its business activities. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. These companies include TV Azteca (www.TVazteca.com; www.irtvazteca.com), Grupo Elektra (www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Purpose Financial (havepurpose.com), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx), Punto Casa de Bolsa (www.puntocasadebolsa.mx), Total Play (irtotalplay.mx; www.totalplay.com.mx) and Total Play Empresarial (totalplayempresarial.com.mx). TV Azteca and Grupo Elektra trade shares on the Mexican Stock Market and in Spain's' Latibex market. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. The group of companies shares a common vision, values, and strategies for achieving rapid growth, superior results, and world-class performance.

Except for historical information, the matters discussed in this press release are concepts about the future that involve risks and uncertainty that may cause actual results to differ materially from those projected. Other risks that may affect Grupo Elektra and its subsidiaries are presented in documents sent to the securities authorities.

Investor Relations:

Bruno Rangel Grupo Salinas Tel. +52 (55) 1720-9167 jrangelk@gruposalinas.com.mx		Rolando Villarreal Grupo Elektra, S.A.B. de C.V. Tel. +52 (55) 1720-9167 rvillarreal@elektra.com.mx

Press Relations: Luciano Pascoe Tel. +52 (55) 1720 1313 ext. 36553 lpascoe@gruposalinas.com.mx

GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
MILLIONS OF MEXICAN PESOS

	1Q24		1Q25		Change

Financial income	27,526	62 %	33,844	65 %	6,318	23 %
Commercial income	17,036	38 %	17,924	35 %	888	5 %
Income	44,562	100 %	51,768	100 %	7,206	16 %

Financial cost	9,380	21 %	11,126	21 %	1,746	19 %
Commercial cost	12,154	27 %	12,423	24 %	269	2 %
Costs	21,534	48 %	23,550	45 %	2,015	9 %

Gross income	23,028	52 %	28,219	55 %	5,191	23 %

Sales, administration and promotion expenses	16,665	37 %	21,280	41 %	4,615	28 %

EBITDA	6,363	14 %	6,939	13 %	576	9 %

Depreciation and amortization	2,308	5 %	2,390	5 %	82	4 %

Other income, net	(12)	0 %	(4)	0 %	8	64 %

Operating income	4,067	9 %	4,553	9 %	486	12 %

Comprehensive financial result:
Interest income	445	1 %	480	1 %	35	8 %
Interest expense	(1,461)	-3 %	(1,551)	-3 %	(91)	-6 %
Foreign exchange gain (loss), net	30	0 %	18	0 %	(12)	-39 %
Other financial results, net	(671)	-2 %	(737)	-1 %	(66)	-10 %
	(1,656)	-4 %	(1,789)	-3 %	(133)	-8 %

Participation in the net income of
CASA and other associated companies	80	0 %	(9)	0 %	(88)	----

Income before income tax	2,491	6 %	2,756	5 %	265	11 %

Income tax	(770)	-2 %	(892)	-2 %	(123)	-16 %

Income before discontinued operations	1,721	4 %	1,864	4 %	142	8 %

Result from discontinued operations	(0)	0 %	1	0 %	2	----

Consolidated net income	1,721	4 %	1,865	4 %	144	8 %

GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
MILLIONS OF MEXICAN PESOS

	Commercial Business	Financial Business	Grupo Elektra	Commercial Business	Financial Business	Grupo Elektra

							Change

	*At March 31, 2024*			*At March 31, 2025*

Cash and cash equivalents	12,267	28,408	40,675	9,000	32,652	41,652	977	2 %

Marketable financial instruments	3,983	96,919	100,902	6,926	116,115	123,040	22,138	22 %

Performing loan portfolio	-	90,886	90,886	-	102,882	102,882	11,996	13 %
Total past-due loans	-	5,273	5,273	-	5,902	5,902	629	12 %
Gross loan portfolio	-	96,159	96,159	-	108,784	108,784	12,625	13 %

Allowance for credit risks	-	14,467	14,467	-	20,207	20,207	5,740	40 %

Loan portfolio, net	-	81,692	81,692	-	88,577	88,577	6,885	8 %

Inventories	17,470	(0)	17,470	23,946	-	23,946	6,476	37 %

Other current assets	23,024	10,835	33,859	22,167	13,843	36,011	2,152	6 %

Total current assets	56,744	217,854	274,598	62,039	251,187	313,226	38,628	14 %

Financial instruments	21,734	2	21,735	20,282	2	20,284	(1,452)	-7 %

Performing loan portfolio	-	76,352	76,352	-	87,319	87,319	10,968	14 %
Total past-due loans	-	1,973	1,973	-	2,811	2,811	838	42 %
Gross loan portfolio	-	78,325	78,325	-	90,131	90,131	11,806	15 %

Allowance for credit risks	-	5,408	5,408	-	5,911	5,911	504	9 %

Loan portfolio	-	72,917	72,917	-	84,219	84,219	11,302	16 %

Other non-current assets	22,500	707	23,207	85	342	427	(22,780)	-98 %
Investment in shares	2,422	11	2,433	2,104	15	2,119	(313)	-13 %
Property, furniture, equipment and
investment in stores, net	8,801	10,361	19,162	8,199	10,179	18,377	(785)	-4 %
Intangible assets	697	7,242	7,938	592	9,316	9,908	1,970	25 %
Right of use asset	11,896	1,919	13,816	12,325	2,333	14,657	842	6 %
Other assets	3,849	8,289	12,137	12,056	13,286	25,342	13,205	----
TOTAL ASSETS	128,642	319,301	447,943	117,682	370,878	488,560	40,617	9 %


Demand and term deposits	-	216,897	216,897	-	243,931	243,931	27,034	12 %
Creditors from repurchase agreements	-	33,204	33,204	-	44,155	44,155	10,951	33 %
Short-term debt	9,832	33	9,865	12,855	40	12,895	3,030	31 %
Leasing	2,017	772	2,789	2,611	873	3,484	695	25 %
Short-term liabilities with cost	11,849	250,907	262,756	15,465	289,000	304,465	41,709	16 %

Suppliers and other short-term liabilities	29,343	20,071	49,415	29,824	22,391	52,215	2,801	6 %
Short-term liabilities without cost	29,343	20,071	49,415	29,824	22,391	52,215	2,801	6 %

Total short-term liabilities	41,192	270,978	312,170	45,289	311,391	356,680	44,510	14 %

Long-term debt	25,361	(0)	25,361	23,977	(0)	23,977	(1,383)	-5 %
Leasing	11,065	1,183	12,248	11,331	1,548	12,880	631	5 %
Long-term liabilities with cost	36,426	1,183	37,609	35,309	1,548	36,857	(752)	-2 %

Long-term liabilities without cost	4,877	1,073	5,951	11,036	3,059	14,095	8,144	----

Total long-term liabilities	41,303	2,257	43,559	46,344	4,607	50,952	7,392	17 %

TOTAL LIABILITIES	82,495	273,235	355,730	91,633	315,999	407,632	51,902	15 %

TOTAL STOCKHOLDERS' EQUITY	46,147	46,066	92,214	26,048	54,880	80,928	(11,285)	-12 %


LIABILITIES + EQUITY	128,642	319,301	447,943	117,682	370,878	488,560	40,617	9 %

	INFRASTRUCTURE

	1Q24		1Q25		Change

Points of sale in Mexico
Elektra	1,227	20 %	1,245	20 %	18	1 %
Salinas y Rocha	32	1 %	32	1 %	-	0 %
Banco Azteca	1,920	31 %	1,935	31 %	15	1 %
Freestanding branches	1,733	28 %	1,696	28 %	(37)	-2 %
Total	4,912	80 %	4,908	80 %	(4)	0 %

Points of sale in Central America
Elektra	126	2 %	130	2 %	4	3 %
Banco Azteca	233	4 %	235	4 %	2	1 %
Freestanding branches	65	1 %	67	1 %	2	3 %
Total	424	7 %	432	7 %	8	2 %

Points of sale in North America
Purpose Financial	834	14 %	810	13 %	(24)	-3 %
Total	834	14 %	810	13 %	(24)	-3 %

TOTAL	6,170	100 %	6,150	100 %	(20)	0 %


Floor space (m²)	1,716	100 %	1,730	100 %	14	1 %


Employees
Mexico	62,386	88 %	61,651	88 %	(735)	-1 %
Central and South America	6,050	9 %	6,148	9 %	98	2 %
North America	2,506	4 %	2,455	3 %	(51)	-2 %
Total employees	70,942	100 %	70,254	100 %	(688)	-1 %

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SOURCE Grupo Elektra, S.A.B. de C.V.