Source: Company reports

1Q16 RESULTS

Walmex reported 1Q16 revenues of MXN$126.4 billion, up 13.2% from a year ago. The strong growth comes from a combination of consistent sales throughout all business formats, divisions, and countries. The company also reported a noted improvement in gross margin, largely due to solid execution and the maintenance of a significant price gap that allowed for gains in market share, again, across several formats, regions, and divisions. Walmex also reported solid cash generation, which grew faster than sales. Consumption in Mexico and Central America was positive during the quarter, and growth for Walmex self-service and Sam’s food and consumables was 9.0%; general merchandise, 9.6%; and apparel 15.4%. EPS was MXN$0.39, up 30.1% or MXN$0.09 from the year-ago quarter.

2016 GUIDANCE

For 2016, management stated that growth remains on track. Consensus estimates call for revenue growth of 9.4%, to MXN$535.1 billion. Consensus estimates call for EPS of MXN$1.62, representing 11.7% growth.