Walmex Reports Q1 Revenue Growth, Profit Decline Amid Economic Challenges

Walmart's Mexico and Central America unit (Walmex) reported a 7% decline in first-quarter net profit to approximately 12.32 billion pesos, missing analyst expectations despite a 7% rise in revenue to 240.97 billion pesos. The profit drop was attributed to rising general expenses, up 12%, driven by investments in expansion, technology, and higher labor costs, as well as unfavorable calendar effects like the shift of the Easter holiday and an extra leap-year day in 2024. Same-store sales increased modestly in both Mexico and Central America, while operating profit fell 1.5% and earnings per share and EBITDA showed only limited growth. Walmex management cited challenging macroeconomic conditions but expressed optimism for stronger consumption and revenue growth in upcoming quarters. The company is maintaining its full-year sales growth guidance and remains focused on expanding store count and e-commerce operations. Strategic priorities also include preparing for potential labor law changes in Mexico and leveraging its strong market position to drive future growth.