Q2 2024 Wal Mart de Mexico SAB de CV Earnings Call- Q&A Transcript
Key Points
- Wal - Mart de Mexico SAB de CV (WMMVF) reported a 6.4% total revenue growth in Q2 2024, with operating income up 6.8% and EBITDA growth of 7.7%.
- E-commerce GMV grew 19%, driven by on-demand and marketplace, maintaining leadership in omnichannel.
- The company launched two new initiatives, the Digital Connection Program and Walmart Luminate, aimed at increasing customer loyalty and providing better data analytics for suppliers.
- Same-store sales in Mexico grew 5.5%, with Walmart Express leading the growth among formats.
- New businesses like Bait and Walmart Connect showed strong performance, contributing positively to the P&L.
- Central America reported only a 2.6% same-store growth, with softer performance in Costa Rica due to deflation.
- SG&A expenses increased by 130 basis points as a percentage of sales, driven by labor costs, remodels, and utilities.
- Inventory levels grew 13.1% above sales growth, indicating potential inefficiencies in inventory management.
- The launch of the open-loop capabilities for financial solutions has been postponed to Q4 due to regulatory and development delays.
- The company faced challenges in certain categories during the hot sale event, such as TVs, toys, and video games, due to less disposable income from customers.
Good afternoon. This is Salvador Villaseñor, in charge of Investor Relations at Walmex. Thank you for joining us today to review the results for the second quarter of 2024.
Today with me is Ignacio Caride, President and Chief Executive Officer of Wal-Mart de México y Centroamérica; Raúl Quintana, our Chief Omnichannel Operating Officer; and Paulo Garcia, our Chief Financial Officer. The date of this webcast is July 24, 2024. Today's webcast is being recorded and will be available at www.walmex.mx.
Before we start, let me remind you that the content of this webcast is property of Wal-Mart de México, SAB de CV and is intended for the use of the company's shareholders and the investment community. It should not be reproduced in any way. This webcast may contain certain references concerning Wal-Mart de México, SAB de CV's future performance that should be considered as good faith estimates made by the company. These references only reflect
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