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Creating
financial
value

Our value-creation financial strategyled us to deliver sound results this year. We were able to increase sales across all regions and business formats in an extensive, profitable and sustainable way.
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Olga González

Senior Vice President and Chief Financial Officer
de Walmart de México y Centroamérica

Focused on improving a seamless, omnichannel shopping experience for our customers, along with transformational agility and a new digital mindset, we were able to obtain the necessary funds to reinvest in the business, drive future growth, and improve profitability in Mexico and Central America.

Improving quality all across the business

Our solid revenues increase, supported by our consistent price investment to keep up our competitiveness, and our commitment to generating operating efficiencies to reduce expenses and invest in the future growth of the business, allowed us to increment earnings higher than sales, and to strengthen the financial health of our company.

In Mexico, total revenues amounted to 503.7 billion pesos, 8.1% higher than last year, driven by sale increases  across all merchandise divisions, and by more traffic in our stores and clubs, thus overperforming market growth (ANTAD self-service stores and clubs). Our eCommerce sales are increasingly getting stronger, and since they grew 47.4% in GMV for 2018, they now account for 1.4% of sales in the country.

In Central America, total revenues amounted to 113.2 billion pesos, accounting for 5.9% growth on a constant currency basis, thanks to the solid commercial strategies in place and a positive beginning of the Center of Excellence program in our stores, which has led us to gain market share in spite of the challenging economic, political and social conditions in the countries of this region.

Total revenues
Mexico

503.7
billion pesos
+8.1%

Our
eCommerce
sales are increasingly
getting stronger

Total revenues
Central America

113.2
billion pesos
+5.9%*
*On a constant currency basis

Growth by region,
format and division

Comp Stores Growth Walmex
January-December 2018

mapa*On a constant currency basis
grafica-norte-en
chart-5 By format in Mexico M é x i c o 6.7% S u p e r a m a S a m ’ s C lub Bo deg a A u rr e r a W a l m a r t
chart-5 By division in Mexico M e x i c o 6.7% Apparel General merchandise Food and consumables

Managing expenses
to reinvest in the
business

We’re aware that in order to offer our customers Every Day Low Prices, we need to maintain a disciplined control of expenses across our operations, so that we can create efficiencies and fund top performance projects to ensure our bussiness growth in the future.

Encouraged by our successful productivity initiatives implemented in our stores, distribution centers and offices, we were able to decrease general expenses in Mexico by 10 basis points, so that they now account for 14.4% of the total revenues in the country. EBITDA totaled 51.7 billion pesos, accounting for 11.6% growth as compared to 2017, and for 10.3% of total revenues. Also in Central America, we were able to leverage expenses from operating improvements, by 120 basis points, thus getting EBITDA for 10.1 billion pesos, 10.4% over the figures reported last year, and 8.9% of the total revenues.

Due to the solid performanceof our operations, we continue generating resources to keep developing a seamless, omnichannel shopping experience for our customers.

Strategic capital
management

In 2018, we generated cash in our company for 60.5 billion pesos. This is a reflection of our financial soundness and the successful execution of our business strategy and operating efficiencies. Our capital was invested in productive, profitable and innovative projects aligned to our long-term priorities and strategies.

We opened 134 new stores this year, thus adding 1,662,000 sq. ft. worth of sales floor to our unit base and 2.3 percentage points to our consolidated sales growth. Also, we remodeled stores in México to adapt them to our omnichannel approach and achieve a better shopping experience for our customers and members.

We believe in the potential for growth in the region so much that we opened two new distribution centers, one in Managua, Nicaragua and the other in Coris, Costa Rica; and announced the construction of another in Villahermosa, Tabasco, in Mexico, which will help us improve our supply chain capabilities and serve more customers in a more efficient way.

Cash
generation60.5billion pesos

We opened134new stores

2new distribution
centers in
Central America

We released

our mobile application
Cashi Más que Efectivo

We updated our point of sale system to FlexPOS as part of the most important investments made in technology to facilitate the implementation of business strategies in the stores, to streamline our associate work by decreasing manual processes, and to drive our supply of financial services.

Another highlight is the release of our mobile application Cashi Más que Efectivo (Cashi, more effective than cash), which simplifies the use of cash for our customers and allows them to buy merchandise and pay services online without the need of a credit or debit card.

5 straight years
growing above of the marketDifference in same store sales growth
Walmex1 vs Antad Autoservicio y Clubs2 (percentage points)

3-93.53.32.11.60.4 2017 2016201520142018
1 Self-service & Sam’s Club
2 Excluding Walmex

Delivering value
to shareholders

We are a company which consistently compensates shareholders for their trust. This year, a dividend of 1.65 pesos per share was decreed, to be paid as follows: an ordinary dividend of 0.76 pesos per share in four installments of 0.19 pesos per share each, in April, August and November 2018, and February 2019; and an extraordinary dividend of 0.89 pesos per share, to be paid in four installments of 0.20, 0.10, 0.45 and 0.14 pesos per share in April, August and November 2018, and February 2019, respectively. On the other hand, the dividends paid during 2018 amounted to 25.6 billion pesos, at 1.48 pesos per share. This includes the 0.16 pesos per share corresponding to the remaining ordinary dividend decreed in 2017, and does not consider the dividends decreed in 2018, paid in February 2019.

Dividend paid
durging 2018
25.6
billion pesos

Dividend decreed
1.65
pesos per share

Our performance in 2018
was very strong

and our results
reflect the right execution of our strategy and
generate new opportunities for
the future growth of our company

Olga González

Senior Vice President and Chief Financial Officer
de Walmart de México y Centroamérica

Dividend paid
durging 2018
25.6
billion pesos

Dividend decreed
1.65
pesos per share

Key performance indicators

Transactions 1

Millions 

Total Revenues1 1

MXN Billion% Growth

Operating Income1

MXN Billion 

EBITDA1

MXN Billion 

Investment in Fixed Assets2

MXN Billion 

Cash Generation2

MXN Billion 

Dividend Paid (January-December)

MXN BillionMXN per share

Number of Associates

  

Total Units1

  
1 Walmex excluding Banco Walmart, Vips & Suburbia
2 Excluding Suburbia as of 2016

Income statement
and balance sheetAt December 31, 2018 (MXN Billion)

Consolidated
2018
% a
revenues
2017
% a
revenues
%
growth
Total revenues
616.9
100
573.4
100
7.6
Gross margin
141.6
23.0
131.1
22.9
8.0
General expenses
92.6
15.0
86.9
15.2
6.5
Operating income
49.2
8.0
43.8
7.6
12.2
EBITDA
61.7
10.0
55.5
9.7
11.3

Assets
 

3-1

Cash38.8

Inventories63.3

Fixed Assets & Others204.4

Liabilities
& Equity

5-5

Suppliers85.3

Equity & Others221.2

Total
306.5