Wal-Mart de México (WALMEX) Q3 2024 (Q&A) earnings summary

Executive summary

• Resilience and market share gains continued despite decelerating consumer demand and increased competition, supported by ecosystem expansion and programs like Bait and Beneficios.

• Operates 3,065 stores in Mexico and 912 in Central America, serving over 6 million daily customers.

• Consolidated revenue grew 8.0% year-over-year in 3Q24, with Mexico up 6.1% and Central America up 4.6% on a constant currency basis.

• Omnichannel and digital initiatives drove market outperformance for the sixth consecutive quarter.

• Leadership expressed dissatisfaction with Q3 performance but confidence in actions taken for Q4 and long-term growth.

Financial highlights

• 3Q24 consolidated revenues: $230.2B MXN (+8.0% YoY); 9M24: $683.8B MXN (+8.0% YoY).

• 3Q24 gross profit: $57.4B MXN (+10.5% YoY); gross margin 24.9%.

• 3Q24 operating income: $18.7B MXN (+5.5% YoY); margin 8.1%.

• 3Q24 EBITDA: $24.5B MXN (+6.5% YoY); margin 10.6%.

• 3Q24 net income: $12.9B MXN (-5.1% YoY); EPS: 0.741 pesos.

Outlook and guidance

• Optimism for a strong Q4 season, particularly during Buen Fin, with expectations of improved consumer activity.

• Management expects continued growth from omnichannel, digitalization, and automation investments.

• Anticipated benefits from technology upgrades and ecosystem integration to materialize more fully by the end of next year.

• Future performance is subject to risks and uncertainties, including regulatory outcomes.