La Comer Q2 Profit Falls 16% as Expansion Costs Squeeze Margins

La Comer’s net income fell 16.4% to MXN 671 million in the second quarter despite a 5.7% increase in net sales to MXN 12,933 million. The upscale Mexican grocer is deliberately sacrificing near-term profitability to fund an aggressive expansion drive. Investments in new store openings, higher wages and increased advertising compressed operating and EBITDA margins.

Operating profit declined 9.2% to MXN 932 million, pushing the operating margin down to 7.2%. EBITDA dropped to MXN 1,331 million, narrowing the margin from 11.7% a year earlier to 10.3%. The year-on-year comparison was somewhat distorted by a MXN 162 million one-off gain from a land sale in the second quarter of 2025.

First-half figures revealed a telling split at the operational level. Gross profit climbed 8.9% to MXN 7,481 million, lifting the gross margin to 30% from 29.5% on the back of a better product mix and logistics efficiencies. However, those supply-chain gains were entirely offset by rising overhead, leaving half-year net income down 8.1% to MXN 1,413 million.

The margin pressure is the direct cost of a physical footprint expansion. Across its 94 stores and 424,037 square metres of selling space, La Comer runs four distinct banners aimed at wealthier shoppers. On June 3, the company invested MXN 80 million to open a new Sumesa store, relaunching the smaller neighbourhood format to target frequent, local shopping trips in dense urban areas.

For market participants, the company serves as a useful barometer for the health of Mexico's affluent consumer base. Shoppers are still spending, as evidenced by 4.1% same-store sales growth in the first half. The critical question for the second half is whether this expansion begins to generate a return. Investors will closely watch if same-store growth re-accelerates from the 2.9% posted in the second quarter, and whether wage pressures ease enough to protect the improved gross margin.