PriceSmart, Inc. (NASDAQ: PSMT), the operator of warehouse clubs across Latin America and the Caribbean, has released its fourth-quarter financial results for fiscal year 2024, ending August 31. The company reported an increase in both revenue and comparable sales, alongside plans to expand operations in Guatemala with a seventh warehouse club slated for 2025.
Q4 Financial Overview
For the fourth quarter, PriceSmart’s total revenue reached $1.23 billion, marking a 9.6% year-over-year increase from $1.12 billion in the same quarter of fiscal 2023. Net merchandise sales rose 9.5% to $1.19 billion, driven primarily by a 6.2% increase in comparable net merchandise sales for clubs open for over 13.5 months. Adjusting for currency fluctuations, comparable net merchandise sales grew by 6.0%.
Operating income in the quarter totaled $49.2 million, compared to $32.1 million the previous year. Last year’s figures included a $9.2 million expense related to a tax settlement and a $5.7 million charge for asset impairment and club closures. Net income rose sharply by 89% to $29.1 million, or $0.94 per diluted share, compared to $15.4 million, or $0.49 per share, in the same period last year. Adjusted EBITDA for Q4 came in at $70.7 million, up from $57.2 million a year prior.
Full-Year Results
For fiscal year 2024, PriceSmart reported total revenue of $4.91 billion, an 11.4% increase from the prior year. Net merchandise sales for the year grew 11.2% to $4.78 billion, with foreign exchange rates providing a positive impact of $114.1 million. Comparable net merchandise sales rose 7.7% year-over-year, with currency-adjusted growth at 5.2%.
Operating income for fiscal year 2024 was $220.9 million, up from $184.5 million last year. Net income for the year increased by 27.2% to $138.9 million, or $4.57 per diluted share, compared to $109.2 million, or $3.50 per diluted share, the previous year. Adjusted EBITDA stood at $303.6 million, an increase from $275.7 million in fiscal 2023.
Planned Expansion in Guatemala
In line with its growth strategy, PriceSmart announced plans to open a new warehouse club in Quetzaltenango, Guatemala. Expected to begin development in early fiscal 2025, the new location will be the company’s seventh club in Guatemala and is anticipated to open in summer 2025. This addition will bring PriceSmart’s total to 56 clubs across its operating regions.
Conference Call and Further Information
PriceSmart will host a conference call to discuss these results on October 31, 2024, at 12:00 p.m. Eastern Time. Investors and stakeholders can join by dialing toll-free at (800) 549-8228 or internationally at (646) 564-2877, referencing the PriceSmart earnings call. A replay will be available until November 7, 2024, accessible via (888) 660-6264 domestically or (646) 517-3975 internationally, using passcode 28615#.
About PriceSmart
Headquartered in San Diego, California, PriceSmart operates 54 warehouse clubs across 12 countries and one U.S. territory. Offering a U.S.-style membership shopping experience, PriceSmart has a strong presence in markets such as Colombia, Costa Rica, and Panama. The company aims to expand its footprint further, with additional locations planned in Cartago, Costa Rica, and Quetzaltenango, Guatemala.
