Wal-Mart de México (WALMEX) Q1 2025 earnings summary

Executive summary

• Consolidated revenues grew 6.5% year-over-year to MXN 240.98 billion, with growth in both Mexico (+2.9%) and Central America (+3.5% constant currency), despite challenging macro conditions and a tough comparative base.

• Outpaced ANTAD's self-service same-store sales growth for the 8th consecutive quarter; eCommerce GMV in Mexico rose 17%, and Central America eCommerce sales surged 54%.

• Gross margin expanded 20 basis points to 24.1% at the consolidated level, supported by new business contributions and logistics improvements.

• Focus remained on price leadership, value proposition, and expanding both physical and digital presence.

• New businesses such as Bait, Walmart Connect, and Scintilla contributed to growth and ecosystem development.

Financial highlights

• Total revenues reached MXN 240,975 million, up from MXN 226,194 million in 1Q24, with consolidated net income at MXN 12.32 billion, down 6.6%.

• Operating income decreased 1.5% to MXN 18.89 billion (margin 7.8%); EBITDA grew 1.9% to MXN 25.09 billion (margin 10.4%).

• Gross profit was MXN 58,075 million, a 7.2% increase year-over-year.

• SG&A expenses increased 12.0%, representing 16.5% of revenues.

• Cash position ended at MXN 23.94 billion, down 45% year-over-year.

Outlook and guidance

• Management expects a gradual ramp-up in revenues and improved consumption for the rest of 2025, with sales guidance maintained at 6% to 7% growth.

• Continued investment in growth, capital returns, and working capital improvement.

• Future results are subject to macroeconomic risks and uncertainties.