Wal-Mart de México (WALMEX) Q4 2024 earnings summary

Executive summary

• Consolidated revenue grew 8.3% in Q4 and 8.1% for the full year, with double-digit EBITDA margins and strong omnichannel and eCommerce performance, especially in Mexico where eCommerce GMV rose 20% year-over-year.

• Same-store sales increased 4.3% in Mexico and 3.1% in Central America for Q4; full-year growth was 5.8% and 4.3% respectively.

• Opened 180 new stores in 2024, the highest since 2013, contributing 1.7% to total sales growth.

• Outperformed ANTAD self-service and clubs market by 190 bps in same-store sales growth for 2024, marking the 11th consecutive year of outperformance.

• Strategic investments in price, new stores, eCommerce, and technology supported market share gains and customer value.

Financial highlights

• 4Q24 consolidated revenues: MXN 274,705 million (+8.3% YoY); full-year: MXN 958,507 million (+8.1% YoY); net income: MXN 15,200 million in Q4 (+1.4% YoY), MXN 53,827 million for the year (+4.3% YoY).

• 4Q24 EBITDA: MXN 27,383 million (10.0% margin); full-year EBITDA: MXN 99,998 million (10.4% margin).

• Mexico Q4 revenue up 5.7%, same-store sales up 4.3%, EBITDA margin 10.2%, operating income down 3.2%.

• Central America Q4 revenue up 4.6% (constant currency), EBITDA margin 8.7%, operating income up 11.6%.

• Gross margin for 4Q24 remained flat at 23.7%; full-year gross margin expanded 30 bps to 24.1%.

Outlook and guidance

• 2025 revenue growth guided at 6%-7%, reflecting a more cautious macroeconomic outlook.

• SG&A expected to grow at single digits in 2025; focus on expense deleveraging and financial discipline.

• CapEx to continue increasing, focused on high-return investments.

• Proposed 2025 dividend and share buyback program, including an additional extraordinary dividend.

• Management expects continued focus on value, assortment, and omnichannel growth, with ongoing investments in price and technology.