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- **Topline Growth**: Q4 net sales +9.2%, full-year +7.7%, driven by 7.5% comparable sales growth across all regions.
- **Expansion Pipeline**: 3 new clubs in Jamaica and 1 in Chile, with 2026 openings planned. Digital sales up 21.6% to $306.7 million.
- **Profitability**: GAAP net income +8.3% YoY to $31.5 million; EBITDA margin 6.5% vs. 7.0% prior year.
- **Risk Management**: Resilient performance post-Hurricane Melissa; 60% of markets reliant on remittances show no sales impact.
- **Financial Discipline**: 12.9% SG&A as % of revenue; effective tax rate down 260bps to 28.4%.


**【CEO Summary Section】**
- **Revenue Growth**: Net merchandise sales increased 9.2% year-over-year in Q4, driven by 7.5% comparable sales growth across all regions. Full-year net sales reached $5.2 billion, up 7.7%.
- **Expansion Momentum**: Opened 3 new clubs in Jamaica (La Romana, Montego Bay, South Camp) and 1 in Chile, with 2026 openings planned. Colombia segment grew 18.3% in Q4.
- **Supply Chain Enhancements**: Launched new distribution centers in Trinidad and the Dominican Republic, and began migrating to the RELEX forecasting system.
- **Digital Expansion**: 12-month digital sales reached $306.7 million (+21.6%), with 32.4% of members making online purchases.

**【CFO Financial Commentary】**
- **Profitability**: GAAP net income of $31.5 million in Q4 (up 8.3% YoY), Non-GAAP EBITDA of $75.5 million (+6.8% YoY). Full-year EBITDA margin expanded to 6.0%.
- **Cost Management**: SG&A expenses as % of revenue improved to 12.9% in FY25 (vs. 13.3% prior year), driven by technology investments.
- **Tax Efficiency**: Effective tax rate for FY25 was 28.4% (down from 31.1% prior year), reflecting tax optimization across jurisdictions.

**【Q&A Highlights】**
- **Hurricane Resilience**: Clubs in Jamaica remained undamaged during Hurricane Melissa; 8-week post-storm sales up 7.2%.
- **Chile Expansion**: Executory agreement for first club site; no opening date disclosed but prioritized for 2026-2027.
- **Remittance Impact**: No material impact on sales despite 1% U.S. remittance fee increase; 60% of markets rely on remittances for 10-20% of GDP.
- **Liquidity Management**: $285 million in cash, but $59.7 million in Trinidad restricted to local currency; monitoring U.S. dollar availability in Honduras.


PriceSmart, Inc. (PSMT) Q4 2025 Earnings Call Transcript

- **Leadership Transition**: David Price becomes CEO, Gualberto Hernandez CFO.\n- **Expansion Ambitions**: 3 new clubs opening in Q3-Q4, evaluating Chile for market entry.\n- **Digital Growth**: 19.8% YoY e-commerce sales surge, 6.1% of total revenue.\n- **Financial Strength**: 8% sales growth, 15.8% gross margin, $35.2M net income.\n- **FX Risk Management**: Trinidad financing to mitigate currency conversion challenges.\n- **Sustainability Push**: RELEX platform adoption for efficiency, 27.7% private label penetration.\n

**【Management Opening Remarks】**
- Interim CEO Robert Price announced leadership changes: David Price will become CEO effective September 1, 2025, and Gualberto Hernandez will replace retiring CFO Michael McCleary.\n- Emphasized employee dedication and shareholder gratitude.\n
**【CEO Strategic Priorities】**
- **Real Estate Expansion**:\n  - Opened new clubs in Costa Rica (Cartago) and Guatemala (Quetzeltenango), with a 6th Dominican Republic club set to open in Spring 2026.\n  - Evaluating Chile as a new market with local consultants and site scouting.\n  - Total clubs will reach 57 post-openings.\n- **Logistics Enhancements**:\n  - Upgrading Panama DC for coal products and opening new DCs in Guatemala, Trinidad, and Dominican Republic.\n  - Testing China-based distribution consolidation and using own truck fleets.\n  - Leveraging free trade zones in the U.S. and Costa Rica to reduce tariffs.\n- **Membership Growth**:\n  - Private label sales at 27.7% of total merchandise, up 30bps YoY.\n  - Digital sales reached $79M (19.8% YoY growth), 6.1% of total sales.\n  - 62% of members have online profiles, with 33% making online purchases.\n  - Sustainability report highlights ESG initiatives, including RELEX platform migration for inventory efficiency.\n
**【CFO Financial Review】**
- **Q3 2025 Results**:\n  - Net merchandise sales: $1.3B (8% YoY growth, 9.5% in constant currency).\n  - Gross margin: 15.8% (up 20bps).\n  - Net income: $35.2M ($1.14 EPS).\n  - Adjusted EBITDA: $79M (11.4% YoY growth).\n- **Regional Performance**:\n  - Central America: 7.5% sales growth, driven by all markets.\n  - Caribbean: 8.2% growth, led by strong demand in non-food categories.\n  - Colombia: 10.1% growth, health services up 13.9%.\n- **Membership Metrics**:\n  - 5.1% membership growth to 2M accounts.\n  - Platinum members now 16.1% of base (vs. 11% YoY).\n  - Operating income up 12.7% to $56.2M.\n- **Liquidity Challenges**:\n  - $75.9M in local currency cash (Honduras, Trinidad FX constraints).\n  - Q4 Trinidad financing ($65M) to address currency conversion needs.\n
**【Q&A Highlights】**
- **Trinidad Financing**:\n  - $15M U.S. dollar loan repayable in Trinidad dollars.\n  - $50M indexed to U.S. dollars, mitigating Jamaican currency risk.\n  - Aims to reduce FX volatility and improve vendor payments.\n- **Chile Expansion**:\n  - Attractive due to stable government, strong middle class, and similar GDP to Colombia.\n  - Focus on Santiago and secondary cities for club openings.\n  - No other regional markets under active consideration.\n  - FX management remains a key operational challenge.\n

- **Revenue Growth**: Q2 sales up 5.8% YoY, driven by 6.7% comparable sales growth across all regions.
- **Tariff Mitigation**: 50% local sourcing and 33% U.S. imports reduce Asia dependency; direct China shipments to in-country DCs avoid U.S. tariffs.
- **Profitability**: Net income +11.4% YoY to $43.8M; EBITDA up 3.4% to $87M.
- **Digital Expansion**: Online sales surge 19.3% YoY to $76.2M; pharmacy e-commerce launched in Costa Rica.
- **Growth Pipeline**: 6 new clubs in permitting stages; 2025 targets include 7th Guatemala club and 1st Dominican Republic recycling center.

**【CEO Opening Remarks】**
- Announced the successful opening of the 9th warehouse club in Cartago, Costa Rica, highlighting enhanced shopping experience and operational efficiency.
- Discussed ongoing tariff challenges, noting 50% of products are locally sourced and 33% from the U.S., reducing dependency on Asia.
- Emphasized flexibility in supply chain strategies, including direct shipments to in-country distribution centers (e.g., Costa Rica, Panama) to mitigate tariff impacts.

**【CFO Financial Highlights】**
- **Revenue Performance**: Q2 net merchandise sales reached $1.3B, up 5.8% YoY (7% in constant currency). Comparable sales grew 6.7% (7.9% in constant currency).
- **Regional Growth**: 
  - Central America: 5.4% sales growth (4.6% in constant currency), driven by all markets except El Salvador.
  - Caribbean: 6.4% sales growth (8.6% in constant currency), with strong contributions from all markets.
  - Colombia: 6.6% sales growth (16% in constant currency), fueled by non-foods and health services.
- **Gross Margin**: 15.6% (down 10bps YoY), with $10M increase in gross profit dollars.
- **Operating Expenses**: SG&A rose to 12.4% of revenue (vs. 12.2% YoY), driven by tech investments.
- **Profitability**: Net income of $43.8M ($1.45/diluted share), up 11.4% YoY. Adjusted EBITDA reached $87M, +3.4% YoY.
- **Balance Sheet**: Ended Q2 with $145.5M cash and $116.9M short-term investments, despite $77.3M in local currency illiquidity.

**【Q&A Key Takeaways】**
- **Tariff Impact**: No reciprocal tariffs imposed by Central American/Caribbean partners yet. 50% of goods locally sourced, 33% from U.S., minimizing direct exposure. Direct shipments from China to in-country DCs (e.g., Costa Rica, Panama) avoid U.S. tariffs.
- **Expansion Plans**: 6 potential new clubs in various stages of permitting. 2025 targets include 7th Guatemala club and 1st Dominican Republic recycling center.
- **Digital Growth**: Online sales reached $76.2M (5.7% of total), up 19.3% YoY. Pharmacy e-commerce launched in Costa Rica.
- **Sustainability**: 7 recycling centers operational, with 1 more planned in Dominican Republic.


PriceSmart (PSMT)-10 Apr 25-2025 Q2 Earnings call transcript

- **Revenue Growth Accelerates**: 12% YoY to $1.2B, outpacing industry average
- **Margin Expansion**: EBITDA margin +0.6pts to 6.8%, driven by digital transformation
- **Strategic Wins**: 
  - E-commerce traffic +30%
  - Supply chain cost savings 2%
  - Workforce productivity +5%
- **Capital Allocation**: $50M buyback, $40M expansion, $30M e-commerce
- **FY25 Outlook**: 10-12% revenue growth, >7% EBITDA margin

**【CEO Opening Remarks】**
- Q1 2025 revenue reached $1.2 billion, up 12% YoY, driven by strong performance in the North American market and new store openings in Central America.
- EBITDA margin improved to 6.8% (vs. 6.2% last year), reflecting operational efficiency gains.
- Highlighted strategic initiatives: 
  - Expansion of e-commerce platform with 30%+ traffic growth
  - Sustainability initiatives reducing supply chain costs by 2%
  - Workforce productivity programs boosting labor efficiency by 5%

**【CFO Financial Highlights】**
- GAAP net income of $72 million ($0.78 EPS) vs. $65 million ($0.68 EPS) last year
- Free cash flow of $120 million used for: 
  - $50 million share buyback
  - $40 million new store openings
  - $30 million e-commerce infrastructure
- Balance sheet remains strong with $350 million available liquidity
- Guidance: FY25 revenue +10-12%, EBITDA margin >7%

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