In This Article:
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Wal - Mart de Mexico SAB de CV (WMMVF) reported a 6.5% increase in consolidated total revenue, driven by growth in both Mexico and Central America.
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The company opened 20 new stores in the first quarter, contributing 1.6% to total sales growth.
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E-commerce business grew by 17%, with a significant 26% growth from on-demand services.
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New businesses like Walmart Connect and Byte showed strong performance, with Walmart Connect growing revenue by 25% and Byte reaching 19.8 million active users.
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The company maintained a strong focus on price leadership and affordability, which helped improve customer satisfaction and trust.
Negative Points
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Same-store sales growth was modest at 1.4%, with a decline in transactions by 3.2%.
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The company faced macroeconomic challenges, including political noise and uncertainties, impacting overall performance.
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Gross margin expansion was limited, with only a 10 basis point increase in Mexico.
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SGNA expenses grew by 12%, driven by investments in new stores, technology, and labor costs.
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Inventory levels increased by 15%, indicating potential inefficiencies in inventory management.
Q & A Highlights
Q: Can you elaborate on the impact of macroeconomic conditions on your Q1 2025 performance? A: Ignacio Carri, CEO, explained that Q1 was challenging due to macro conditions, a strong comparative base, and calendar effects like the leap year and Easter shifting to Q2. Despite these challenges, the company saw progress, with a 1.4% same-store sales growth and a focus on maintaining low prices to help customers save money.
Q: How did e-commerce perform during the quarter, and what are your future plans for this segment? A: Raul Quintana, Chief Omnichannel Operating Officer, reported a 17% growth in e-commerce, driven by a 26% increase in on-demand services. The company plans to enhance its marketplace and implement a "one hallway" initiative to improve customer experience by year-end.
Q: What were the key drivers behind the growth in new businesses? A: Ignacio Carri highlighted that new businesses like Byte and Walmart Connect are enhancing the core business. Byte reached 19.8 million active users, generating 2.3 billion pesos in revenue, while Walmart Connect's revenue grew by 25%.
Q: How is the company addressing the slowdown in certain product categories? A: Raul Quintana noted an industry-wide slowdown in categories like video games and TVs. The company is focusing on improving delivery KPIs and expanding its marketplace to counteract these challenges.