Walmart Mexico's Q3 performance was outstanding with both revenue and net profit increasing

It is learned that on October 25, Walmart Mexico announced its financial results for the third quarter of 2023. Due to strong sales, Walmart Mexico's overall profitability has increased significantly.

According to the financial report, Walmart Mexico's net profit in the third quarter was 13.63 billion pesos (US$782 million), a year-on-year increase of 12.2%; revenue was 213.07 billion pesos, a year-on-year increase of 7.7%, but slightly lower than analysts' expectations of 213.34 billion pesos.

Walmart said in a filing to the Mexican Stock Exchange that the appreciation of the Mexican peso had a negative impact on its revenue, and the retail giant also noted that sales in its Mid-America business would have been stronger without foreign exchange.

Walmart's same-store sales in Mexico and Central America increased by 9.5% and 9%, respectively, in the third quarter of 2023. The retail giant also expanded its physical store footprint, adding 24 new stores in Mexico and 3 new stores in Central America, while new stores accounted for 1.6% of its total revenue in the third quarter.

In addition, Walmart Mexico's earnings before interest, taxes, depreciation and amortization (EBITDA) increased 8.5% to 23 billion pesos in the third quarter; earnings per share reached 0.78 pesos, higher than analysts' expectations of 0.74 pesos.

It is worth noting that Walmart Mexico is facing an investigation by Cofece (Mexican antitrust regulator) for "alleged relatively monopolistic practices" in the supply and wholesale distribution of consumer goods.

In response, Guilherme Loureiro, CEO of Walmart Mexico, said Walmart will defend against the allegations of the investigating agency and will exercise all rights and remedies under applicable laws.

Cofece could fine Walmex up to 8% of the company’s annual revenue in Mexico if it finds it has violated competition laws, the report said.

Editor ✎ Nicole/

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