Walmex Q1 Profit Rises Slightly, Beats Analyst Forecasts

Key Financial Highlights

Walmart's Mexico and Central America unit, known as Walmex, reported a first-quarter net profit of 12.50 billion pesos, marking a 1.5% increase from the previous year. This figure surpassed the 12.06 billion pesos forecasted by analysts polled by LSEG. However, total revenues of 245.02 billion pesos missed analyst expectations.

Performance Overview

The company's performance was driven by strong sales growth in Mexico and a significant 14.4% jump in net e-commerce sales within the country. This positive momentum was partially offset by rising operational expenses and weaker profitability in its Central American division, where operating income fell 15.4% in peso terms.

Corporate Actions and Outlook

Walmex shareholders approved a share buyback program of up to 10 billion pesos and an ordinary cash dividend of 1.16 pesos per share. Looking ahead, CEO Cristian Barrientos acknowledged early signs of operational improvement but emphasized that turning these efforts into tangible results would require significant intensity and discipline in the upcoming months.

Summary

Walmex's first-quarter results present a mixed picture of resilient growth in Mexico, particularly in e-commerce, against challenges from rising costs and a slowdown in Central America. The approved share buyback and dividend signal confidence to investors, while management focuses on disciplined execution for future growth.

FAQ

Q: What was Walmex's net profit in the first quarter?
A: Walmex reported a Q1 net profit of 12.50 billion pesos, a 1.5% increase year-over-year.

Q: Did Walmex's revenue meet expectations?
A: No, its revenue of 245.02 billion pesos missed the LSEG estimate of 269.96 billion pesos.

Source: Investing.com