Esteemed shareholders:
As Chairman of the Board of Directors of Grupo Palacio de Hierro, SAB de CV, and on behalf of the company, it is my pleasure to present this report, which is based on data provided by the CEO in his Annual Report regarding the company's performance, its results and the milestones reached during the 2024 fiscal year, in addition to a report detailing the activities of the Board of Directors.
During 2024, at Grupo Palacio de Hierro we reaffirmed that shared culture and teamwork are the fundamental pillars of our identity and the cornerstone of our sustained growth. Our customer-centric culture —based on teamwork, excellence, and our ambition to go the extra mile— has played a key role in overcoming challenges and capitalizing on opportunities this year. The same passion that began in 1888 with our first store in downtown Mexico City has led us to establish ourselves as a benchmark in the world of fashion and lifestyle.
Señoras y señores accionistas:
As Chairman of the Board of Directors of Grupo Palacio de Hierro, SAB de CV, and on behalf of the company, it is my pleasure to present this report, which is based on data provided by the CEO in his Annual Report regarding the company's performance, its results and the milestones reached during the 2024 fiscal year, in addition to a report detailing the activities of the Board of Directors.
During 2024, at Grupo Palacio de Hierro we reaffirmed that shared culture and teamwork are the fundamental pillars of our identity and the cornerstone of our sustained growth. Our customer-centric culture —based on teamwork, excellence, and our ambition to go the extra mile— has played a key role in overcoming challenges and capitalizing on opportunities this year. The same passion that began in 1888 with our first store in downtown Mexico City has led us to establish ourselves as a benchmark in the world of fashion and lifestyle.
The magic that defines El Palacio de Hierro is the result of the commitment, collaboration and creativity of every member of our team. This magic inspires us to give more to our customers, to dream even bigger, to set new goals, and to overcome challenges with the certainty that together, as a team, we can achieve our objectives.
The magic that defines El Palacio de Hierro is the result of the commitment, collaboration and creativity of every member of our team. This magic inspires us to give more to our customers, to dream even bigger, to set new goals, and to overcome challenges with the certainty that together, as a team, we can achieve our objectives.
In a global context marked by trade tensions between major powers, extreme climate events, geopolitical conflicts, and the rapid evolution of technological trends, businesses face growing uncertainty; however, for Grupo Palacio de Hierro, this challenging landscape also represents fertile ground for innovation and growth. Our focus on teamwork, constant adaptation, and continuous improvement has allowed us to turn uncertainty into opportunities that strengthen our position and long-term vision
In 2024, the Mexican economy saw its GDP increase by 1.3%, with slowing annual inflation of 4.2% and an exchange rate that was under pressure from a highly complex international panorama. Based on data from the Asociación Nacional de Tiendas de Autoservicio y Departamentales (ANTAD), within the department store segment, real growth in terms of same-store sales grew by 4.6% and total store sales by 6.0%, compared to 2023
In a global context marked by trade tensions between major powers, extreme climate events, geopolitical conflicts, and the rapid evolution of technological trends, businesses face growing uncertainty; however, for Grupo Palacio de Hierro, this challenging landscape also represents fertile ground for innovation and growth. Our focus on teamwork, constant adaptation, and continuous improvement has allowed us to turn uncertainty into opportunities that strengthen our position and long-term vision
In 2024, the Mexican economy saw its GDP increase by 1.3%, with slowing annual inflation of 4.2% and an exchange rate that was under pressure from a highly complex international panorama. Based on data from the Asociación Nacional de Tiendas de Autoservicio y Departamentales (ANTAD), within the department store segment, real growth in terms of same-store sales grew by 4.6% and total store sales by 6.0%, compared to 2023
In contrast, to the end of the 2024 fiscal year, Grupo Palacio de Hierro's total revenue reached MXN $56.080 billion, an 11.1% increase compared to 2023. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by 17.2%, reaching MXN $7.937 billion. Net income for the year stood at MXN $2.988 billion, a 22.7% increase compared to 2023.
In contrast, to the end of the 2024 fiscal year, Grupo Palacio de Hierro's total revenue reached MXN $56.080 billion, an 11.1% increase compared to 2023. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by 17.2%, reaching MXN $7.937 billion. Net income for the year stood at MXN $2.988 billion, a 22.7% increase compared to 2023.
During 2024, we inaugurated El Palacio de Hierro León, our fifteenth store in the country. Inspired by the cultural and architectural richness of Guanajuato, it pays tribute to one of Mexico's most emblematic states —renowned for its history, strong industrial presence, and rich culinary heritage. Inside, the store captures the colonial essence of the state's most iconic cities: from its colorful facades and cobblestone alleys to the central atrium, which evokes the entrance to a mine. The staircase, covered to resemble silver ingots, enhances the immersive experience of a space designed to offer a unique shopping experience in the region.
During 2024, we inaugurated El Palacio de Hierro León, our fifteenth store in the country. Inspired by the cultural and architectural richness of Guanajuato, it pays tribute to one of Mexico's most emblematic states —renowned for its history, strong industrial presence, and rich culinary heritage. Inside, the store captures the colonial essence of the state's most iconic cities: from its colorful facades and cobblestone alleys to the central atrium, which evokes the entrance to a mine. The staircase, covered to resemble silver ingots, enhances the immersive experience of a space designed to offer a unique shopping experience in the region.
We have make decisive progress towards our goal of becoming a sustainable Palacio, fulfilling our Purpose of “enriching and satisfying people through unique luxury experiences” while also generating a positive impact on our environment and society.
The Board of Directors presents this report for the consideration of the Shareholder's Meeting, in which it declares and explains the accounting policies and criteria used to prepare the Financial Statements, including, among others: the bases of presentation, the principles of consolidation, significant accounting policies and new accounting pronouncements, which were determined by external auditors and form an integral part of this Report.
We have make decisive progress towards our goal of becoming a sustainable Palacio, fulfilling our Purpose of “enriching and satisfying people through unique luxury experiences” while also generating a positive impact on our environment and society.
The Board of Directors presents this report for the consideration of the Shareholder's Meeting, in which it declares and explains the accounting policies and criteria used to prepare the Financial Statements, including, among others: the bases of presentation, the principles of consolidation, significant accounting policies and new accounting pronouncements, which were determined by external auditors and form an integral part of this Report.
In the opinion of the Board of Directors, the CEO's Report presented to the Shareholders Meeting appropriately and reasonably reflects the financial situation, results and milestones of the business during the 2024 fiscal year.
The Board of Directors acts in full compliance with solid corporate governance practices. Its work is supported by committees, as recommended in the Code of Best Corporate Governance Practices and Principles.
The Board met four times during the 2024 fiscal year. The most relevant issues discussed and approved by the Board of Directors include the bolstering of occupational and environmental safety programs; updates to the Strategic Plan; the reception and ratification of agreements of the Executive Committee; the corporate strategy; the monitoring of numerous strategic initiatives; the debt issuance program; and the company's investments and budgets. Furthermore, the Financial Statements presented during the fiscal year were reviewed and approved.
In the opinion of the Board of Directors, the CEO's Report presented to the Shareholders Meeting appropriately and reasonably reflects the financial situation, results and milestones of the business during the 2024 fiscal year.
The Board of Directors acts in full compliance with solid corporate governance practices. Its work is supported by committees, as recommended in the Code of Best Corporate Governance Practices and Principles.
The Board met four times during the 2024 fiscal year. The most relevant issues discussed and approved by the Board of Directors include the bolstering of occupational and environmental safety programs; updates to the Strategic Plan; the reception and ratification of agreements of the Executive Committee; the corporate strategy; the monitoring of numerous strategic initiatives; the debt issuance program; and the company's investments and budgets. Furthermore, the Financial Statements presented during the fiscal year were reviewed and approved.
The most relevant activities of each Committee, whose members are detailed in the Corporate Governance section of the Annual Report, are outlined below.
The Executive Committee.
Reviewed the budgets and operational and financial performance of each business, in addition to the commercial and digitalization strategies. Furthermore, it validated and monitored the foundations for the Strategic Plan.
The Audit and Corporate Practices Committee.
Reviewed both operational and financial performance and the internal and external audit plans, as well as those of the Compliance Department, in addition to reviewing the state of internal controls. Furthermore, it assessed external audit services and validated compliance with regulatory requirements. It also reviewed accounting policies, transactions with related parties, and all relevant legal and fiscal affairs.
The Finance and Planning Committee.
Assessed financial projections, assessed the company's investment projects, and oversaw the Company's financial structure and situation.
The Nomination, Evaluation and Compensation Committee.
Evaluated the annual performance of high-level executives, and it authorized salary and benefits increases and bonuses based on the results of these evaluations.
The most relevant activities of each Committee, whose members are detailed in the Corporate Governance section of the Annual Report, are outlined below.
The Executive Committee.
Reviewed the budgets and operational and financial performance of each business, in addition to the commercial and digitalization strategies. Furthermore, it validated and monitored the foundations for the Strategic Plan.
The Audit and Corporate Practices Committee.
Reviewed both operational and financial performance and the internal and external audit plans, as well as those of the Compliance Department, in addition to reviewing the state of internal controls. Furthermore, it assessed external audit services and validated compliance with regulatory requirements. It also reviewed accounting policies, transactions with related parties, and all relevant legal and fiscal affairs.
The Finance and Planning Committee.
Assessed financial projections, assessed the company's investment projects, and oversaw the Company's financial structure and situation.
The Nomination, Evaluation and Compensation Committee.
Evaluated the annual performance of high-level executives, and it authorized salary and benefits increases and bonuses based on the results of these evaluations.
During 2024, Grupo Palacio de Hierro achieved double-digit growth, outperforming Mexico's department store sector. It also consistently maintained a solid financial structure, enabling it to move forward with its growth and expansion plans.
During 2024, Grupo Palacio de Hierro achieved double-digit growth, outperforming Mexico's department store sector. It also consistently maintained a solid financial structure, enabling it to move forward with its growth and expansion plans.
Esteemed shareholders:
I would like to express my gratitude to all our employees for their dedication and hard work; to our Board of Directors, Executive Committee and all other Committees; and to you, our esteemed shareholders, for all your strength and support that has enabled us to continue on this path of constant endeavor and dedication. This is how our company continues to represent who we are and what we will continue to be: Totalmente Palacio.
Esteemed shareholders:
I would like to express my gratitude to all our employees for their dedication and hard work; to our Board of Directors, Executive Committee and all other Committees; and to you, our esteemed shareholders, for all your strength and support that has enabled us to continue on this path of constant endeavor and dedication. This is how our company continues to represent who we are and what we will continue to be: Totalmente Palacio.
