The Mexican operations of retail giant Walmart have reported a 6.6% drop in net profit for the first quarter of 2025, with earnings falling to 12.317 billion pesos compared to 13.183 billion pesos during the same period last year.
According to Ignacio Caride, president of Walmart Mexico and Central America, the decline was due to “macroeconomic conditions” and a challenging comparative basis, primarily caused by calendar effects. Despite this, the company saw an increase in total sales of 6.5% during the first three months of the year, reaching 239.161 billion pesos compared to 224.589 billion pesos in 2024.
However, the company’s general expenses rose by 12%, from 35.466 billion pesos to 39.724 billion, while taxes also increased by 3.5%, from 3.963 billion pesos to 4.102 billion pesos. Caride noted that despite these challenges, the company expects revenue to increase in subsequent quarters, allowing it to leverage expenses and deliver better results for its investors.
In preparation for potential changes in Mexico’s labor laws, which aim to reduce the workweek from 48 hours to 40 hours per week, Walmart is taking proactive measures. Additionally, the retailer has confirmed plans to invest approximately 41.8 billion pesos in capital investments this year, underscoring its commitment to growth and expansion.
Caride expressed optimism that these efforts will ultimately contribute to improved results for the company’s investors. The outlook suggests that Walmart Mexico and Central America is well-positioned to navigate the changing economic landscape and maintain its position as a leading retailer in the region.
Source: La Jornada
