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Walmex Profit Rises Amidst Rising Costs
29 Apr
Summary
- Walmex reported a 1.5% net profit increase in Q1.
- Strong Mexican sales and online growth offset rising costs.
- Investment of 43 billion pesos planned by 2026.
Walmart's Mexico and Central America division, known as Walmex, announced a modest 1.5% increase in net profit for the first quarter, achieving 12.50 billion pesos. This figure exceeded the expectations of financial analysts. The company's performance was bolstered by strong sales within Mexico and a notable surge in e-commerce, which saw net sales jump by 14.4%.
However, Walmex's overall revenue growth was constrained, rising by 1.7% to 245.02 billion pesos, which fell short of market forecasts. Higher operational expenses and reduced profitability in Central America also impacted the company's core earnings (EBITDA), which experienced a slight dip. Despite these headwinds, Walmex is looking towards future growth.
The company confirmed its commitment to expansion, revealing plans to invest approximately 43 billion pesos by 2026. This investment is intended to support ongoing expansion and enhance logistics capabilities. Additionally, shareholders approved a share buyback program of up to 10 billion pesos and an ordinary cash dividend of 1.16 pesos per share.
