Wal-Mart de Mexico SAB de CV Sponsored ADR Class V

Consolidated second-quarter total revenues grew 1.9% reported and 3.2% in constant currency; first-half revenue grew 1.8% reported and 3.6% in constant currency. In Mexico, total revenues rose 3.1% and same-store sales grew 1.8%; gross margin expanded 10 basis points to 24.1% of total revenues, SG&A was 17.3% of sales, and EBITDA margin was 9.6%, flat year over year. In Central America, total revenues rose 3.6% in constant currency and same-store sales grew 2.4%; gross margin contracted 110 basis points to 23.4% and EBITDA margin was 8.4%, down 80 basis points. Consolidated gross margin was 24.0%, SG&A was 17.4% of sales, EBITDA margin was 9.4%, and net income margin was 4.4%. Cash from operations was MXN 90.3 billion over the last 12 months, working capital provided about MXN 4.9 billion, capex was MXN 39.3 billion, shareholder returns were MXN 38.6 billion, and ending cash was MXN 30.1 billion. Full-year guidance was revised to sales growth of 3.5% to 4.5% in constant currency and an EBITDA margin slightly below last year's level.

Cristian Barrientos said the quarter reflected a still-soft consumer environment, with shoppers more intentional and value-focused, and he framed the company’s response around everyday low prices, availability and omnichannel convenience. He emphasized progress in price perception, availability, e-commerce capability, seller onboarding, automation and new business lines like Walmart Connect and Bait. His tone was candid but constructive: results are not yet where the company wants them, but he said market share gains show customers are responding to the changes.

Paulo Garcia focused on the quarter’s financial impact and the revised outlook. He noted Mexico gross margin expanded 10 basis points to 24.1%, driven mainly by new businesses, while SG&A rose 20 basis points to 17.3% of sales; in Central America, gross margin fell 110 basis points to 23.4% and EBITDA margin declined to 8.4% because of price investments and lower volumes. He also highlighted strong cash generation, with MXN 90.3 billion from operations, MXN 39.3 billion of capex, MXN 38.6 billion returned to shareholders, and MXN 30.1 billion in cash at quarter-end. He said the full-year outlook was cut because consumer recovery has taken longer than expected, but he kept the message that the business fundamentals and strategic priorities remain intact.

The call did not include live Q&A, but management addressed likely investor concerns in the prepared remarks: softer demand, weaker basket sizes, and the lag in Costa Rica’s recovery. They explained that marketplace GMV was still affected by seller-related issues from last quarter, though recovery actions are gaining traction. Management also said the company is prioritizing execution improvements, including availability, price perception, private brands, and faster seller onboarding, while acknowledging that some of these actions will take time to fully show up in results.