Walmart Mexico profit misses estimates as costs bite

Key facts

• Net profit fell 6% to 11.03 billion pesos, missing analyst expectations.
• Total revenue rose 3% to 248.83 billion pesos, below forecasts.
• EBITDA margin narrowed 30 basis points to 10.2% as expenses rose.
• E-commerce GMV grew 15% in Mexico and 23% in Central America.

Walmart de Mexico reported a 6% drop in third-quarter net profit to 11.03 billion pesos, falling short of analyst expectations. Revenue also missed forecasts, increasing by 3% to 248.83 billion pesos, as rising costs and investments impacted margins. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew only 0.4% to 25.37 billion pesos, with the EBITDA margin narrowing by 30 basis points to 10.2%. General and sales expenses both rose by nearly 6% year-on-year. The company did see strong e-commerce growth, with online gross merchandise value up 15% in Mexico and 23% in Central America.