Walmart's Mexico and Central America unit reported a 1.4% increase in its fourth-quarter net profit, reaching 15.2 billion Mexican pesos (€714 million), slightly below analysts' forecasts as general expenses rose by approximately 15%.
Analysts polled by LSEG had projected profits for the retail chain, known as Walmex, at around 16.55 billion pesos (€778 million).
Net sales for the quarter rose 8.3% year-on-year to 272.88 billion pesos (€12.83 billion), with revenues aligning with analysts' expectations.
Core earnings, or earnings before interest, taxes, depreciation, and amortisation (EBITDA), increased 2.5% to 27.38 billion pesos (€1.29 billion), slightly below the LSEG estimate of 28.97 billion pesos (€1.36 billion).
Performance Highlights
During the final three months of 2024, the company added 91 stores in Mexico and 13 in Central America, primarily discount Bodega Aurrera stores and six Walmart Supercenters.
Same-store sales rose by 4.3% in Mexico and 3.1% in Central America during the quarter, while the gross merchandise value of its e-commerce operations in Mexico grew by 20%.
In a conference call, the company highlighted the successful expansion of its licensed brand product offerings in its Supercenters, including Mickey Mouse, Harry Potter, and Hello Kitty merchandise.
Additionally, Walmex announced an 8.8 billion peso (€414 million) share buyback this year as part of its commitment to returning value to shareholders. The company also stated that it is actively reviewing efficiencies across its entire structure.
"I feel good about the business overall," said the unit's CEO, Ignacio Caride, during the call. "As we move into 2025, we remain optimistic. We are aware of the challenges ahead but are confident in our ability to navigate through them."
