The CEO of Walmart Mexico and Central America (Walmex), Christian Barrientos Pozzo, stated on Wednesday that despite moderate first-quarter performance, the company is confident in restoring its sales growth pace and anticipates a gradual improvement in full-year results.

**Q1 Performance: Revenue Growth, Profit Pressure** Walmex's first-quarter financial report shows that for the three months ending March 31, the company's revenue increased by 1.7% year-over-year to 245.02 billion Mexican pesos. Net profit reached 12.5 billion pesos, a 1.5% increase compared to the same period last year. However, concerns emerged regarding profitability metrics. The company's operating income declined by 2.2% year-over-year to 18.47 billion pesos, with the operating margin narrowing from 7.8% to 7.5%. EBITDA decreased by 0.4% to 24.98 billion pesos. By region, the domestic Mexican market showed robust performance, with revenue growing 4.4% to 204.35 billion pesos and same-store sales increasing by 3.1%. The Central America business was comparatively weaker; revenue grew 2.5% at constant exchange rates but declined significantly when measured in pesos.

**Reasons for Growth Slowdown: Increased Investment and Lower Foot Traffic** Walmex's Chief Financial Officer indicated that while the consumer environment is "not ideal," the company continues to outperform the market but needs to improve fundamentals to boost customer traffic. Data revealed that foot traffic in Mexican stores decreased by 0.9% year-over-year in the first quarter, while Central American foot traffic fell by 0.3%. General expenses grew by 4.4%, primarily allocated to new store openings and e-commerce investments. During the quarter, the company opened 14 new stores in Mexico and 3 in Central America, bringing the total store count to 3,330 and 952, respectively.

**CEO Outlook: Recovery Expected, Strategy Ongoing** The CEO stated during the earnings call, "We are beginning to see initial signs of improvement in key operational metrics. The actions we are taking are gradually yielding results, which strengthens our confidence in the path ahead." He described the current year as a "year of construction," emphasizing that the company will advance its plans with intensity and discipline. Walmex's previously announced $240 million capital plan is progressing, focusing on discount store expansion and supply chain automation. The company aims to reach 99% of Mexican households within three years and open more than 1,500 new stores between 2025 and 2029. The CEO emphasized, "We know we must do better. We have confidence in the continued improvement of our company's fundamentals and expect stronger performance in the coming quarters."