Wal-Mart de Mexico Profit Falls
July 26 2016 - 4:20PM
Dow Jones News
MEXICO CITY—Wal-Mart de Mexico SAB, Mexico's biggest retailer,
said Tuesday its net profit fell in the second quarter, while sales
and operating profits saw double-digit increases from a year
earlier.
The unit of Arkansas-based Wal-Mart Stores Inc. reported net
profit of 6.19 billion Mexican pesos ($330 million) in the
April-June quarter, compared with 6.81 billion pesos a year
earlier. Excluding discontinued operations, net profit was up
14.5%.
Sales rose 11.5% from a year before to 127.55 billion pesos,
helped by strong consumption in Mexico where the company runs 2,362
stores, and gains in Central America where it has 709 stores.
Operating cash flow measured by earnings before interest, taxes,
depreciation and amortization rose 12.3% to 11.56 billion
pesos.
The results were in line with the median expectations of six
analysts polled by The Wall Street Journal, which called for net
profit of 6.2 billion pesos on sales of 127.1 billion pesos, and
Ebitda of 11.5 billion pesos.
Mexican retail sales have been robust in 2016, thanks to
increases in employment and wages, low inflation and strong
remittances from Mexicans living abroad that have been boosted even
more in peso terms because of the depreciation of the Mexican
currency.
Retail association Antad, of which Walmex is a member, reported
same-store sales up 6.8% in the first half of the year, and total
sales up 10% from the first six months of 2015.
Walmex shares closed down 2.6% on the Mexican stock exchange
ahead of the report.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
July 26, 2016 17:05 ET (21:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Walmart (NYSE:WMT)
Historical Stock Chart
From Apr 2024 to May 2024
Walmart (NYSE:WMT)
Historical Stock Chart
From May 2023 to May 2024