Report from the
Board of Directors
At Liverpool, personalized customer service continues to be our main differentiator.
To our Shareholders
In 2024, we continued advancing our omnichannel strategy to offer personalized experiences that exceed our customers’ expectations. Consolidated revenue increased by 9.6% compared to the previous year, reaching $214,848 million pesos.
In the Retail business, revenue totaled $190,725 million pesos, expanding 8.9% compared to last year.
We transformed our stores, offering a wide range of value-added services that enrich the customer experience, such as Extended Catalog, Mercado Gourmet, Extended Warranty, Beauty Experience, Geek Help, Experiencia Gourmet, among others.
During the year, we continued our Liverpool store renovation program, completing the remodeling in Santa Fe, León, and the ground floor of Parque Delta. We also reopened the Acapulco and La Isla stores.
Suburbia evolved with its ‘Rediscover Suburbia’ strategy, strengthening customer connections through private labels, a wider variety of products, and new in-store services. We opened 8 new stores, reaching a total of 194 units.
Liverpool Express brings us closer to the customer by expanding our geographic presence and reaching new market segments. This format, designed to meet the specific needs of each location, features Click & Collect and Financial Services as the core of its offering. We closed 2024 with 40 stores.
Liverpool Express brings us closer to the customer by expanding our geographic presence and reaching new market segments.
We opened 8 new Suburbia stores, reaching a total of 194 units.
Our digital channels achieved growth of 16.4% for Liverpool, 75.0% for Suburbia, and 41.1% for Marketplace. We diversified our offerings by expanding the Marketplace catalog by 41.4%. Digital sales participation reached 27.6% and 6.2% for Liverpool and Suburbia, respectively.
Liverpool has established itself as one of the most important BYD distributors in Mexico with 4,384 units sold during the year, and an extensive network of 6 operational showrooms and 3 certified workshops.
The Financial businesses division demonstrated solid performance, with an 18.4% increase in revenue. We surpassed 7.8 million credit accounts at El Puerto de Liverpool. Non-Performing Loans remained at good levels with a 50 basis point increase compared to the previous year, reaching 3.2%.
In line with our strategy of offering innovative financial products and services, we introduced the “Activa” card at Liverpool, a savings and investment account operated by Banco Actinver and managed through our digital platforms.
Supported by our digital channels, the Insurance division achieved a historical record with 3.5 million active policies.
Galerías Shopping Centers ended the year with an occupancy rate of 92.3%. Total revenue increased by 7.3%. This year, we acquired the Altama City Center shopping mall in Tampico, Tamaulipas.
Overall, EBITDA recorded $37,558 million pesos, a 7.3% growth compared to 2023. Net income, at $23,154 million pesos, was 18.8% higher than the previous year.
16.4% growth achieved in our digital channels for Liverpool, 75.0% for Suburbia and 41.1% for Marketplace.
92.3% Centers. Total revenue increased by 7.3%.
We made progress in reducing our carbon footprint, working towards neutrality by reducing 268,000 tons of CO2 equivalent.
At the end of the fiscal year, we maintained a solid financial position, with cash-on-hand of $24,728 million and a leverage ratio of -0.04 times net debt to EBITDA.
CAPEX reached $12,134 million pesos, a record figure for El Puerto de Liverpool in Mexico; 43% was allocated to logistics and IT projects, 31% to renovations and expansions, and 17% to new store openings.
Income tax amounted to $8,955 million, a 19.4% increase compared to the previous year. Other withheld and paid taxes, import taxes and duties, contributions to IMSS, SAR, and INFONAVIT were $18,362 million pesos.
During the Ordinary Shareholders’ Meeting held March 12th, 2024, a $3,959 million pesos dividend was declared.
At El Puerto de Liverpool, we reaffirm our commitment to a sustainable future through concrete actions in our operations and value chain. We made progress in reducing our carbon footprint, working towards neutrality by reducing 268,000 tons of CO₂ equivalent. We implemented strategies for responsible waste management, ensuring the recycling of 100% of material, with the potential for reuse, and optimized water use, reducing potable water consumption by more than 1 million cubic meters. In addition, we strengthened our responsible purchasing strategy, auditing social and environmental practices of our strategic suppliers. In the social sphere, we promoted gender equality by increasing the participation of women in middle and senior management roles, and we enhanced our impact on education by benefiting more than 100,000 users through Liverpool Virtual University and complementary programs.
In the “World’s Best Companies” ranking by Time and Statista, El Puerto de Liverpool was positioned at 222nd position out of 750 companies. We also reached the 180th position out of 500 in the “World’s Best Companies for Sustainable Growth” ranking, becoming the fourth-best Mexican company out of the 13 included.
Last March, after more than 40 years with the company, Mr. Max David Michel reached retirement age and left his position as Chairman of the Board of Directors.
Mr. David leaves an invaluable legacy in our company. His outstanding contribution to El Puerto de Liverpool’s growth and profitability has been possible due to his strategic vision and tireless commitment. We express our sincere gratitude and wish him the best in this new stage.
With deep sadness, we report the passing of Mr. Henry Brémond P., who was Chairman of this Board from 1982 to 1995 and Chairman of the Patrimony Board since 2003. Mr. Henry was a visionary leader, a committed philanthropist, and an exceptional human being. His dedication and passion for El Puerto de Liverpool were fundamental to the growth and development of this institution. His legacy will live on, driving us to build our future with the same passion and commitment demonstrated in his every action. We express our deepest sympathy in his memory.
El Puerto de Liverpool was recognized in the “World’s Best Companies” ranking by Time and Statista.
On December 23rd, we took a significant step in our diversification strategy by signing a definitive agreement to acquire, together with the Nordstrom family, 100% of the shares of Nordstrom Inc. not owned by either party. The transaction is subject to the fulfillment of certain conditions, including regulatory approvals in the United States of America and the approval of Nordstrom shareholders.
This year, we demonstrated a solid capacity for growth and adaptation in a dynamic environment. Omnichannel and continuous improvement have been key components in offering Value-Added Services that enrich the shopping experience. Our financial structure, supported by a robust balance sheet, allows us to be prepared to face profitability challenges and achieve our growth objectives, guaranteeing stability and resilience in a dynamic environment. With this solid foundation, we are paving the way to a greater future, full of opportunities and growth for our company.
We appreciate the trust placed in us by our customers, employees, shareholders, suppliers, and tenants, under whom El Puerto de Liverpool’s growth and profitability are consolidated.
Sincerely,
The Board of Directors
Mexico City,
December 31st, 2024