Walmart Mexico announces Q3 results, net profit down 5% due to increased costs

It is learned that on October 23, Walmart Mexico announced its third-quarter financial results for 2024. Its net profit in the third quarter fell 5% year-on-year due to increased costs caused by increased sales and increased general expenses.

The financial report shows that Walmart Mexico's net profit in the third quarter was 12.93 billion pesos (about 657 million U.S. dollars), lower than the average forecast of 13.62 billion pesos by analysts on the London Stock Exchange. Revenue increased by 8% from the same period last year to 228.43 billion pesos (about 11.52 billion U.S. dollars), slightly lower than the 229.12 billion pesos expected by analysts.

At the same time, sales costs increased by more than 7% year-on-year, general expenses increased by nearly 15%, and taxes increased by about 23%. Despite this, earnings before interest, taxes, depreciation and amortization (EBITDA) still increased by 6.5% to 24.46 billion pesos this quarter. Ignacio Caride, CEO and executive president of Walmart Mexico, said that in the future, the omnichannel experience will be accelerated through simplification, digitization and automation to improve business efficiency.

In terms of e-commerce and business expansion, Walmart's Mexico e-commerce channel gross merchandise volume (GMV) accounted for 6.8% of the total GMV in the quarter. In addition, same-store sales in Mexico increased by 4.5%, and same-store sales in Central America increased by nearly 4%. Walmart also opened 32 new stores in Mexico and 7 new stores in Central America to further expand its market coverage.

It is worth noting that Walmart Mexico is currently waiting for a ruling from Mexico's antitrust regulator Cofece on whether it is involved in monopolistic behavior, an investigation that began in 2020. Walmart Mexico said it had asked a Cofece commissioner to withdraw from the case at a hearing on September 30, and that the "administrative phase" of the investigation is expected to be resolved in the fourth quarter of this year.

Author ✎ Rayna/

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