Wal-Mart de México (WALMEX) Q3 2024 earnings summary

Executive summary

• Consolidated revenue grew 8.0% year-over-year in 3Q24, with Mexico up 6.1% and Central America up 4.6%.

• Omnichannel and eCommerce GMV in Mexico grew 16%, with On-Demand up 22% and digital ecosystem users reaching 15.1 million.

• Same-store sales in Mexico rose 4.5%, led by Sam's Club and ticket growth, while Central America saw a 3.7% increase.

• Gross margin expanded by 50 bps to 24.9% in 3Q24, supported by new businesses and supply chain efficiencies.

• Board changes included Guilherme Loureiro appointed Chair and Kathryn McLay's resignation.

Financial highlights

• 3Q24 consolidated revenues reached $230.2B MXN (+8.0% YoY); EBITDA grew 6.5% to $24.5B MXN; operating income increased 5.5% to $18.7B MXN.

• Gross margin expanded 50 bps to 24.9%; EBITDA margin was 10.6% (down 20 bps YoY); operating margin was 8.1%.

• SG&A expenses rose 14.6%, mainly due to labor costs, growth investments, and a one-off tax provision release.

• Net income margin was 5.6% in 3Q24, with net income down 5.1% YoY due to a prior year tax provision release.

• Cash and cash equivalents stood at $48.5B MXN as of September 30, 2024.

Outlook and guidance

• Continued focus on price leadership, digitalization, automation, and ecosystem expansion to drive growth.

• New store openings ahead of annual guidance, with 76 new stores year-to-date.

• Expectation of further gross margin benefits from ecosystem verticals and omnichannel acceleration.