**Walmex Q3 Net Profit Surges 12% on Higher Sales**
Walmex, Mexico’s largest retailer, reported a 12.4% surge in net profit for the third quarter of 2023, driven by higher sales across all its formats.
**Key Financial Highlights:**
* Net profit: MXN 23.6 billion (US$1.1 billion) in Q3 2023, up from MXN 21 billion (US$963 million) in Q3 2022.
* Total revenue: MXN 240.7 billion (US$11.1 billion) in Q3 2023, a 9.7% increase from MXN 219.2 billion (US$10.1 billion) in Q3 2022.
* Same-store sales growth: 4.2% in Q3 2023, driven by higher demand for groceries, apparel, and home goods.
* E-commerce sales growth: 21.6% in Q3 2023, continuing the strong momentum seen in previous quarters.
Walmex’s CEO, Guilherme Loureiro, attributed the company’s strong performance in Q3 to its focus on customer experience, efficient supply chain management, and ongoing investments in technology and infrastructure.
**Sales Performance by Format:**
* **Walmart de Mexico:** Walmex’s flagship retail chain saw a 7.6% increase in total sales, reaching MXN 165.1 billion (US$7.6 billion) in Q3 2023. Same-store sales growth was 3.9%, driven by higher sales of food, beverages, and personal care products.
* **Sam’s Club:** The membership-based warehouse club reported a 12.5% growth in total sales, reaching MXN 38.1 billion (US$1.7 billion) in Q3 2023. Same-store sales growth was 5.6%, primarily driven by increased demand for consumer electronics, home appliances, and furniture.
* **Bodega Aurrera:** The value-oriented grocery chain saw a 10.9% increase in total sales, reaching MXN 37.5 billion (US$1.7 billion) in Q3 2023. Same-store sales grew by 4.7%, as customers continued to seek affordability and convenience.
**Outlook and Expansion Plans:**
Walmex expressed optimism about its prospects for the remainder of 2023 and beyond. The company plans to continue expanding its store network, with a focus on smaller formats and underserved markets. Additionally, Walmex will invest in its digital infrastructure and omnichannel capabilities to enhance customer convenience and engagement.
Overall, Walmex’s strong Q3 results reflect the company’s resilience and its ability to adapt to changing consumer preferences and market conditions. The company’s focus on operational efficiency, customer satisfaction, and technology adoption positions it well for continued success in the highly competitive Mexican retail market..
