We would like to especially thank our associates, because they are closest to our customers and members. As Sam Walton used to say, “If you want the people in the stores to take care of the customers, you have to make sure you’re taking care of the people in the stores.” Through programs such as Walmart Education, we offer opportunities to improve their quality of life. This effort enabled 2,400 of our associates to finish middle school, high school or college. As a result, we achieved the highest Associate Engagement Index score in our history, with a rating of 90%.

We are a people-led, tech-powered, omnichannel retailer, dedicated to helping people save money and live better. In 2023, we continued to invest in low prices, achieving a price perception improvement of 120 basis points in Mexico. Moreover, we worked with the Mexican government’s Package to Counter Inflation (PACIC), to bring every day low prices to our customers by freezing the cost of the basic household food basket.

Overall, sales grew by 8.2% in the Mexico and Central American region. In Mexico, we opened our 3,000th store, grew sales 9.3%, and we grew in same-stores sales 60 basis points above the formal market as measured by ANTAD. Of those stores, more than 1,200 are enabled to offer On Demand services, strengthening our position as a leading omnichannel player.

We are also creating new ways to help our customers solve their problems and meet their needs. As a tech-powered company, we are offering solutions that are safe, convenient and affordable, such as Bait, which provides access to the benefits of the digital economy. Through Cashi, we offer financial services such as credit, remittances and a digital wallet, all at a low cost. We have also helped brands reach customers more effectively via Walmart Connect. Finally, we have expanded our offering of basic primary health care services at affordable prices with our Health Membership and opened our first Medical Services Center in Mexico City.

We have made strides towards becoming a Regenerative Company, doing our part to help society and the planet, while creating more development opportunities for our associates and suppliers, and making a positive impact in the communities where we operate. For example, we are Mexico’s largest donor to food banks. Through the Walmart de México Foundation, we donated 40,300 tons to 98 food banks across the country. Moreover, we have continued to develop the platforms to strengthen small and medium-sized enterprises (SMEs) and farmers, helping them increase their average income by 40.3% in Mexico.

After the devastation of Hurricane Otis on the coast of Guerrero, we acted immediately to safeguard the well-being of our associates and the community. We donated 100 million Mexican pesos, including 50 million from the Walmart Foundation, set up collection points at our stores, opened soup kitchens, a medical facility and we offered free cell phone and internet services to Bait customers in the area.

We also made progress towards our sustainability goals, achieving a water reuse rate of 38.2% in our stores and distribution centers, and a 78.5% progress towards our Zero Waste target. Likewise, we have implemented various programs to mitigate climate change, such as the installation of solar panels on the roofs of all our new stores. However, we did not reach our emission reduction target this year. In order to ensure that we stay on course to achieve our Zero Emissions goal for 2040, we will improve our medium-term emissions reductions plans.

We would like to thank to all our associates for their commitment and efforts, as well as all our customers, members, suppliers and investors for their trust. We will continue to strengthen our position as a great omnichannel retailer, powered by technology and led by the best people.