Walmex 1Q25 Profit Falls 7% Despite Revenue Increase

Walmart’s Mexico and Central America branch (Walmex) reported a 7% decline in net profit for the first quarter of 2025, falling short of analysts’ expectations despite a stronger-than-anticipated increase in revenue.

The retailer posted a net profit of MX$12.32 billion (US$602.1 million) for the quarter, below the MX$13.10 billion expected by analysts surveyed by LSEG. Revenue for the same period rose 7% year over year to MX$240.97 billion, exceeding the forecast of MX$238.57 billion.

Ignacio Caride, CEO, Walmex, said the quarter was impacted by challenging macroeconomic conditions and unfavorable calendar effects, including the shift of the Semana Santa holiday to the second quarter. “Despite the political noise and uncertainty, we are focused on the things we can control,” Caride said in a video message. “We remain optimistic that we will begin to see a gradual increase in consumption over the rest of the year.”

Same-store sales rose 1.4% in Mexico and 1.9% in Central America. The company opened 17 new stores in Mexico and three in Central America during the quarter.

Walmex stated it expects to see higher revenues in the coming quarters, which could help manage expenses and improve performance. Capital expenditures are projected at MX$41.8 billion for 2025, up from MX$34.8 billion in 2024.

The company emphasized that expanding its e-commerce operations remains a strategic priority. Its mobile phone service, Bait, reached 19.8 million active users and generated approximately MX$2.3 billion in revenue during the first quarter.

Walmex also announced preparations for potential changes to Mexican labor laws, as the government considers reducing the legal workweek from 48 to 40 hours. The company, which operates Walmart, Sam’s Club, and Bodega Aurrera stores, is one of Mexico’s largest private employers.