Walmart’s Mexico and Central America Unit Sees Profit Surge
Strong Performance Reflects Mexicans’ Increased Spending Power
The Mexico and Central America division of retail giant Walmart has reported a remarkable 14.4% year-on-year increase in net profit for the first quarter. This impressive growth is attributed to robust sales across the region, driven in part by the growing disposable income of Mexican consumers.
Surpassing Expectations with Strong Financial Results
Walmart de Mexico, the leading retailer in the country, recorded a net profit of 13.18 billion pesos ($797.5 million) in the first quarter, exceeding analysts’ average forecast of 12.93 billion pesos. Quarterly revenue also saw a significant rise, reaching 226.19 billion pesos, beating estimates by analysts.
Steady Expansion and Increased Same-Store Sales
The company, known as Walmex, reported a 9.8% increase in revenue from its department store and grocery chains. Same-store sales grew by 9.4% in Mexico and 8.0% in Central America, driven by the addition of new stores in both regions. The Earnings before interest, tax, depreciation, and amortization (EBITDA) also climbed by 10.3% to 24.62 billion pesos.
Positive Outlook and Future Leadership Transition
CEO Guilherme Loureiro praised the company’s strong performance in the first quarter, highlighting the double-digit revenue growth and increased operating income. He attributed this success to government incentives and higher minimum wages, which boosted consumer spending. The company’s future leadership transition was also announced, with Ignacio Caride set to succeed Loureiro as CEO.
Exciting Times Ahead for Walmart in the Region
With a thriving business in Mexico and Central America, Walmart continues to excel in the retail market. The strategic growth plans and steady financial performance position the company for further success in the coming years. The region’s retail landscape is set to witness exciting developments under new leadership, ensuring Walmart’s continued growth and market dominance.