Investor Presentaiton
With the purpose of simplifying our commercial structure, our operation in
Mexico was divided into two business units: self-service and specialty formats.
Merchandising was centralized in self-service and Suburbia is now in charge of
the apparel business for self-service. In addition, the administrative processes for
Mexico and for Central America were centralized and are now conducted by
Global Shared Services for Latin America -GSSLA- located in Costa Rica. In June,
we launched our eCommerce portal, walmart.com.mx, thereby extending our
communication and sales channels with our customers. Moreover, we made the
important decision to sell our restaurant division and focus on our core business.
By executing these strategies, our total consolidated income for the year was
425.2 billion pesos, whereas our EBITDA grew to 40.2 billion pesos, 9.5% of
income. With these results, in a year full of challenges, we reiterate our
commitment to continue leveraging the multiple growth opportunities offered by
the six countries in which we operate.
In Mexico we were able to continue growing, despite economic challenges:
Total income amounted to 367.7 billion pesos, representing 3.4% growth over
figures for 2012.
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Our installed capacity grew 7.2% with the addition of 4.4 million square feet
in sales floor as a result of the grand opening of 214 operating units, the
majority of them during the fourth quarter of the year, we increased our
presence in 29 new locations.
Our constant search for operating improvements has allowed us to achieve
36.8 billion pesos in EBITDA, 10.0% of income.
In Central America, we posted an improvement in sales and profitability growth,
thanks to the successful integration of the region and the efforts conducted to
become more productive and improve our value proposition for our customers:
Total income amounted to 57.4 billion pesos, some 2.1% higher than in 2012,
which is equivalent to 5.7% on a constant currency basis.
Our EBITDA increased to 3.4 billion pesos, which is 24.3% as a result of the
recovery achieved in profitability and operating efficiency, which is 6.0% of
income.
We have over 226,000 associates, who are our Company's greatest strength. As a
result, over 26,200 associates were promoted throughout 2013, and we invested
some 2.7 million man-hours in training.
Our Company's commercial success is also the achievement of our suppliers. The
products we sell are purchased from over 27,308 business partners. We continue
offering training, consultancy, and access to financing to our suppliers; our aim is
to further strengthen the value chain and generate savings for our customers.
Our corporate leadership also extends to the field of corporate responsibility; in
matters of sustainability we continue driving water and energy efficiency, as well
as waste management. Our Walmart de México Foundation, through which we
have achieved changes in the communities we serve, is now ten years old. An
example of the work done by the Foundation in 2013 was the setting up of 887
collection centers, through which 1,888 tons of food were channeled to the
Mexican Red Cross for the victims of hurricanes Ingrid and Manuel, benefiting
over 170,000 families.
I wish to thank our associates for their commitment and efforts, our business.
partners for their continued support, our shareholders for their confidence, and
our customers for their preference, which is our motivation to continue improving
and thus be able to offer them the best value proposition at the lowest prices
possible, so they may live better.
2013 Financial and
Social Responsibility Report
Scot Rank
CEO
Walmart de México y Centroamérica
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