Walmex Q1 Revenue up 1.7% to 245bn Pesos, Margins Narrow to 7.5%
Walmex's Q1 revenue rose 1.7% year-on-year to 245.01bn pesos, driven by 4.4% growth in Mexico but offset by a 10.3% drop in Central America. Operating income fell 2.2% to 18.47bn pesos as margins narrowed to 7.5%, while net income edged up 1.5% to 12.50bn pesos.
1. Consolidated Q1 Results
Walmex reported consolidated revenue of 245.01bn pesos in Q1, up 1.7% year-on-year. Gross profit rose 2.6% to 59.59bn pesos, but operating income declined 2.2% to 18.47bn pesos, narrowing operating margin to 7.5% from 7.8%. Net income increased 1.5% to 12.50bn pesos with net margin steady at 5.1%.
2. Mexico Division Performance
Mexico segment revenue grew 4.4% to 204.35bn pesos, supported by a 6.0% rise in gross profit to 49.80bn pesos and a gross margin lift to 24.4%. Operating income edged up 0.3% to 15.89bn pesos, although operating margin slipped to 7.8% from 8.1%.
3. Central America Challenges
Central America revenue fell 10.3% to 40.66bn pesos, with gross profit down 11.8% to 9.79bn pesos and gross margin narrowing to 24.1%. Operating income dropped 15.4% to 2.57bn pesos, pushing operating margin lower to 6.3% amid price investments.
4. E-commerce Trends
In Mexico, e-commerce net sales rose 14.4%, supported by 20% growth in on-demand services, while gross merchandise value gained 9% despite a 14% drop in marketplace activity. Central America saw a 24% increase in GMV, contributing to gross margin expansion alongside new business contributions.