PriceSmart Inc. Delivers Strong Q1 Performance with 7.8% Revenue Growth, Driven by Central America and Caribbean Expansion
PriceSmart Inc., a leading membership-based warehouse club operator in Latin America and the Caribbean, reported strong financial results for the first quarter of fiscal year 2025. The company's net merchandise sales reached $1.22 billion, with total revenue exceeding $1.26 billion.
In its earnings release conference call on January 10, 2025, PriceSmart's Interim Chief Executive Officer, Robert Price, and Chief Financial Officer, Michael McCleary, highlighted the company's solid performance across various regions. Notably, the Central America segment contributed significantly to the growth in total consolidated comparable net merchandise sales for the first quarter.
"We are extremely pleased with our Q1 results," said Francisco Velasco, CEO of PriceSmart Inc., during the conference call. "Our management team and employees have worked tirelessly to drive business growth, and we are grateful for their dedication."
The Central America segment saw an 8.4% increase in net merchandise sales or 7% in constant currency, with a 5.1% rise in comparable net merchandise sales or 3.7% in constant currency. The Caribbean region also performed well, with net merchandise sales increasing by 5.4% or 7.9% in constant currency and comparable net merchandise sales rising by 5.2% or 7.6% in constant currency.
The Colombian market, where the company had opened 10 clubs at the end of Q1, witnessed a notable growth rate of 10.7% or 16.1% in net merchandise sales and comparable net merchandise sales respectively.
"Our continued expansion into new markets has paid off," said Michael McCleary, CFO of PriceSmart Inc., during the conference call. "We expect this momentum to continue throughout the year."
PriceSmart's Q1 results demonstrate the company's ability to execute its growth strategy effectively. The Central America segment's positive comparable net merchandise sales growth across all markets, except El Salvador, is a testament to the company's strong operational capabilities.
The conference call highlighted PriceSmart's focus on delivering value to its customers and creating a seamless shopping experience through its warehouse clubs. With its commitment to innovation and customer satisfaction, the company is well-positioned for future growth and success.
