Walmex Q3 net profit jumps more than 12%, pushed by higher sales
Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter rose 8.5 per cent to 23 billion pesos.
Walmart's Mexico unit on Wednesday posted a 12.2 per cent year-on-year jump in its third-quarter net profit, driven mainly by stronger sales.
Walmart de Mexico, or Walmex, the biggest retailer in Mexico, posted net profit of 13.63 billion pesos ($782 million).
Quarterly revenue at the chain rose 7.7 per cent from the year-earlier period to reach 213.07 billion pesos, missing slightly the LSEG estimate of 213.34 billion pesos.
Walmex said in a filing to Mexico's main stock exchange that its revenues were impacted negatively by the Mexican peso's appreciation and noted sales growth would have been higher without foreign exchange effects on its Central America operations.
Sales increased 9.5 per cent in Mexico and 9 per cent in Central America, with the retailer adding 24 new stores in Mexico and three in Central America, which contributed 1.6 per cent to total revenues.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter rose 8.5 per cent to 23 billion pesos.
Walmex's earnings per share hit 0.78 pesos, beating the LSEG estimate of 0.74 pesos.
Wednesday's results follow Walmex's announcement on Oct. 6 that it would face an antitrust panel for alleged monopolistic practices after a three-year investigation by Mexico's antitrust regulator Cofece.
Walmex CEO Guilherme Loureiro said in a presentation after the results that the company is confident that it has "always complied with the applicable law."
"This is the first opportunity for Walmex to defend itself against the allegation of the investigative authority and we exercise all rights and remedies available to us under applicable law," Loureiro said.
If the regulator determines Walmex has violated competition law, Cofece can impose a fine of up to 8 per cent of the company's annual income in Mexico.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
07:45 AM IST