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Q1 net profit dips below LSEG poll forecast

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Revenue rises 7%, ahead of forecasts

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Walmex cites difficult quarter, expects more consumption

(Updates with details from CEO video message in paragraphs 4, 5

and 8)

By Sarah Morland and Rafael Escalera Montoto

MEXICO CITY, April 29 (Reuters) - Walmart's Mexico and

Central America unit, known as Walmex, reported a 7% dip in its

first-quarter net profit on Tuesday, coming in below analysts'

expectations

Net profit fell to 12.32 billion pesos ($602.1 million) for

the first three months of 2025, short of a 13.10 billion peso

forecast from analysts polled by LSEG, even as revenue exceeded

forecasts with a 7% jump.

Revenue rose to 240.97 billion pesos, above a 238.57 billion

pesos forecast.

Walmex Chief Executive Officer Ignacio Caride said in a

video message the quarter was hit by challenging macroeconomic

conditions and negative comparative effects, such as the Semana

Santa holiday taking place in the second quarter instead of the

first.

"Despite the political noise and uncertainty, we are

focused on the things we can control," Caride said. "We remain

optimistic that we will begin to see a gradual increase in

consumption over the rest of the year."

The company reported a 1.4% rise in same-store sales in

Mexico and 1.9% growth in Central America. It added 17 stores in

Mexico and three in Central America.

"In the coming quarters we should see an increase in

revenues that will also allow us to leverage expenses and

improve results," Walmex said in a filing, adding it expects

capital spending to rise to 41.8 billion pesos this year,

compared to the 34.8 billion it spent in 2024.

Expanding its e-commerce capacities would be a key priority

for the year, Walmex said, adding that its mobile phone service

Bait reached 19.8 million active users and generated some 2.3

billion pesos in revenue during the quarter.

Walmex said it was also preparing for a possible change in

Mexico's labor laws, as the government contemplates reducing the

country's legal working week from 48 hours to 40 hours.

Walmex, which operates Walmart and Sam's Club stores as well

as low-cost supermarket chain Bodega Aurrera, is one of Mexico's

largest private employers.