MEXICO CITY (Reuters) – Walmart’s Mexico and Central America unit reported a 14.4% year-on-year rise in first-quarter net profit on Wednesday, helped by strong sales in markets partly attributed to increased disposable income among Mexicans.
Walmart (NYSE:) de Mexico, the country’s largest retailer, reported net income of 13.18 billion pesos ($797.5 million), above the average estimate of 12.93 billion pesos projected by analysts polled by LSEG.
The department store and grocery chain’s quarterly revenue rose 9.8% from the year-ago quarter to P226.19 billion, beating the average estimate of P224.41 billion from analysts surveyed by LSEG.
The company, also known as Walmex, said in a filing to Mexico’s main stock exchange that same-store sales rose 9.4% in Mexico and 8.0% in Central America as it opened nine stores in Mexico and three in Central America.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 10.3% to P24.62 billion for the quarter.
“We started 2024 with a strong first quarter, delivering double-digit total revenue growth on a constant currency basis, with operating income up 80 basis points, outpacing sales growth,” CEO Guilherme Loureiro said Wednesday at the quarterly results presentation.
Loureiro also noted that government advances and higher minimum wages boosted disposable income in the quarter, boosting consumption.
Loureiro said the extra leap year day also had a positive impact, as did Easter week, which fell in March this year compared to April last year.
Walmex announced earlier in April that Loureiro would leave his post at the end of the month.
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The company will offer Ignacio Caride, former MercadoLibre (NASDAQ:) and current Walmex COO as the next CEO at the April 30 board meeting. He will also be nominated for the post of Chairman of the Board of Directors.
Loureiro will be named regional head of Walmart for Canada, Chile and Walmex.
($1 USD = 16.5310 Mexican pesos at the end of March)