Background on Walmart de Mexico
Walmart de Mexico, a prominent retail company operating in Mexico and Central America, reported its financial performance for the first quarter of 2025. The company is a significant player in the retail sector, with brands like Walmart, Sam’s Club, and Bodega Aurrera under its umbrella.
Q1 Financial Performance
On Tuesday, Walmart de Mexico announced that its net income had decreased by 6.6% year-over-year in Q1, totaling 12,317 million pesos (approximately 602 million USD). This figure fell short of analysts’ expectations, which had been set at 13,100 million pesos.
Despite the lower-than-expected net income, Walmart de Mexico’s total revenue increased by 7% to 240,975 million pesos during the period, surpassing analysts’ forecasts from LSEG.
Revenue Breakdown
- Total revenue for Walmart de Mexico, including its Central American operations, amounted to 240,975 million pesos, representing a 6.5% increase compared to the January-March 2024 period.
- Same-store sales in Mexico rose by 1.4%, while Central America experienced a 1.9% increase.
- The company added 17 new stores in Mexico and three in Central America during the quarter.
Future Outlook and Investments
Walmart de Mexico anticipates improved revenue growth in upcoming quarters, which should enable better expense management and enhanced results. The company plans to invest 41,800 million pesos in capital expenditures this year.
Moreover, Walmart de Mexico is preparing for potential changes in Mexican labor laws, as the government contemplates reducing the legal working week from 48 to 40 hours.
Key Questions and Answers
- What is Walmart de Mexico’s financial performance in Q1 2025? The company reported a net income of 12,317 million pesos (approximately 602 million USD), which fell short of analysts’ expectations of 13,100 million pesos.
- How did Walmart de Mexico’s total revenue perform in Q1 2025? Total revenue increased by 7% to 240,975 million pesos compared to the January-March 2024 period.
- What are Walmart de Mexico’s plans for capital investments in 2025? The company intends to invest 41,800 million pesos in capital expenditures this year.
- How is Walmart de Mexico preparing for potential changes in Mexican labor laws? Walmart de Mexico is taking steps to adapt to the possible reduction of the legal working week from 48 to 40 hours, should the Mexican government implement this change.
