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

Executive summary

• Consolidated revenue grew 8% year-over-year, with Mexico up 6.1% and Central America up 4.6%.

• E-commerce GMV in Mexico grew 16%, with On-Demand up 22% and Extended Assortment up 13%.

• Gross margin expanded by 50 basis points to 24.9% at the consolidated level.

• Net income decreased 5.1% year-over-year in 3Q24, but grew 5.6% for the nine-month period.

• 39 new units opened in the quarter, contributing 1.7% to consolidated sales growth.

Financial highlights

• 3Q24 consolidated revenues reached $230.2B MXN, up 8.0% year-over-year; gross profit rose 10.5% to $57.4B MXN.

• Operating income increased 5.5% year-over-year to $18.7B MXN; EBITDA grew 6.5% to $24.5B MXN.

• SG&A expenses grew 14.6%, mainly due to labor costs, strategic investments, and a one-off tax provision release in Central America.

• Cash and cash equivalents stood at $48.5B MXN as of September 30, 2024.

• EPS was 0.741 pesos for 3Q24 and 2.214 pesos for 9M24.

Outlook and guidance

• Continued focus on price leadership, digitalization, omnichannel acceleration, and automation to drive growth.

• New store openings ahead of annual guidance, with 76 new stores year-to-date.

• Expectation of further gross margin benefits from ecosystem verticals.

• Management expresses confidence in the current strategy despite risks and uncertainties.