Wal-Mart de México (WALMEX) Q4 2024 (Q&A) earnings summary

Executive summary

• Q4 2024 saw consolidated revenue grow 8.3% and full-year revenue rise 8.1%, with strong omnichannel and eCommerce performance, especially in Mexico where eCommerce GMV increased 20% year-over-year.

• Same-store sales in Mexico rose 4.3% in Q4, outpacing the market by 190 basis points for the 11th consecutive year, while Central America posted 3.1% growth.

• Strategic investments in price, new stores, eCommerce, and technology supported market share gains and customer value.

• The business ecosystem, including digital and fintech initiatives, is driving deeper customer engagement and data-driven offerings.

• Market share gains accelerated, with nearly 200 basis points gained versus ANTAD in 2024, up from 50 in 2023 and 10 in 2022.

Financial highlights

• 4Q24 consolidated revenues: MXN 274,705 million (+8.3% YoY); EBITDA: MXN 27,383 million (10.0% margin); net income: MXN 15,200 million (5.5% margin).

• FY24 consolidated revenues: MXN 958,507 million (+8.1% YoY); EBITDA: MXN 99,998 million (10.4% margin); net income: MXN 53,827 million (5.6% margin).

• Gross margin for 4Q24 was 23.7%; full-year gross margin expanded to 24.1%.

• Walmart Connect advertising business grew 22% in Q4, below the year average of 27%, but remained the highest in absolute terms.

• Effective tax rate was lower due to a one-off adjustment related to fixed asset tax values, resulting in a MXN 15 million net income impact.

Outlook and guidance

• 2025 is expected to start similarly to late 2024, with improvements anticipated as the year progresses.

• Continued focus on growth through new stores, eCommerce, and ecosystem businesses, with disciplined investment in high-return areas.

• Gross margins in 2025 are expected to benefit from new business contributions, with volatility managed through price investments as needed.

• SG&A is projected to grow at a single-digit rate, with labor costs rising 12% in 2025 and ongoing efficiency initiatives to offset inflation.

• Strategic investments in automation, distribution centers, and e-commerce will continue, with flexibility to reprioritize as macro conditions evolve.