EconomyFinancialWhat do VIPs and Starbucks have in common? The...

What do VIPs and Starbucks have in common? The two brands operated by Alsea grow after two years of sales affected by Covid-19

Alsea , the controller of restaurants that owns brands such as Domino’s Pizza and Starbucks, managed to contain the inflationary pressures at the beginning of the year and maintained the growth it has had in recent quarters, which has led it to overcome the COVID-19 crisis .

The company directed by Fernando González registered consolidated growth in all the geographies where it operates, to which was added efficient cost control, which increased its revenues 49.1% to 15,228 million pesos in the first quarter of the year, from 10,212 million dollars from the same quarter of 2021.

Compared to the first quarter of 2019, net sales growth of 11.2% and same-store sales growth of 17.5% were achieved during the quarter, the company said in its income statement, sent to the Mexican Stock Exchange ( BMV).

“This quarter we have been able to counteract the inflationary pressure in food and energy costs thanks to our efficiency strategies and price adjustments. For the foreseeable future, we expect cost pressure to continue, but we will continue to rely on the mitigation strategies of our excellent sourcing and logistics teams, and the bargaining power of our leading brands, to offset this. in the best way possible,” said González, quoted in the document.

Alsea detailed that its operating flow (EBITDA) increased 69.1% to 3,458 million pesos, which raised its consolidated EBITDA margins to 22.7%. The net profit was 512 million pesos, which reversed the loss of 469 million pesos for the same period last year.

Home sales have increased 13.1% compared to the first quarter of last year, which represents an amount greater than 3,000 million pesos, reaching more than 11.4 million orders and a 20.2% share in Alsea’s consolidated sales. Wow+, the delivery platform, reported 958,000 active users at the end of the quarter.

Regarding the regions, the sales of Alsea Mexico increased by 47.4% and those of Alsea Europe and South America followed the same trend with increases in sales of 48.5% and 55.2%, respectively.

Casual food brands show a strong recovery, with a growth of 67.8% compared to the first quarter of 2021 and a reach of 96.1% compared to the first quarter of 2019. The fast food segment continues to show positive performance, presenting a growth in same-store sales of 32.5% and 32.4% compared to those registered in the first quarter of 2021 and 2019, respectively.

Starbucks continues to be a brand that has managed to adapt even better than expected to new sales trends, reporting same-store sales growth of 47.5% and 33.1% compared to the same period in 2021 and 2019, respectively.

In Mexico, VIPS restaurants, which had had the most difficulty recovering from the crisis, had sales growth with more than one year in operation at 82.1% compared to the first quarter of 2021. Starbucks, Burger King and Domino’s continue to be the best-performing brands, with same-store sales growth of 42.2%, 38.1% and 32.2%, respectively.

During the twelve months ended March 31, 2022, Alsea made capital investments, excluding acquisitions, for 712 million pesos, of which 349 million pesos, equivalent to 49.0% of total investments, were allocated to the opening of 27 units, the renovation and remodeling of existing units of the different brands. The remaining 363 million pesos were allocated mainly to the replacement of equipment, strategic technology projects and improvement of processes and software licenses, among others.

“With the favorable pace observed at the start of the year, it is good to highlight the important adaptations of the company in an adverse environment for consumption (the turn towards sales for delivery). It will be key to evaluate the inflationary effect on consumers, since this This aspect could imply challenges during this year,” Monex said in an analysis of Alsea’s financial statements.

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