Wal-Mart de Mexico's Profit, Sales Jump in Latest Quarter
October 25 2016 - 4:18PM
Dow Jones News
By Anthony Harrup
MEXICO CITY -- Retailer Wal-Mart de Mexico SAB reported growth
in sales and profit in the third quarter as Mexicans continued to
consume at a solid pace thanks to credit and employment growth amid
subdued inflation.
Walmex, as the unit of Bentonville, Ark.-based Wal-Mart Stores
Inc. is known, reported a profit of 10.05 billion Mexican pesos
($543 million) in the three months through September, compared with
5.92 billion pesos in the year-earlier quarter.
Net profit from continuing operations rose 17% from a year
before to 6.7 billion pesos. Walmex agreed in August to sell
clothing store chain Suburbia to department store operator El
Puerto de Liverpool SAB for around $1 billion.
Sales rose 11% to 126.86 billion pesos, while earnings before
interest, taxes, depreciation and amortization, or Ebitda, a
measure of operating cash flow, rose 12% to 11.79 billion
pesos.
The median estimate of analysts polled by The Wall Street
Journal called for net profit of 6.59 billion pesos on sales of
127.15 billion pesos, and Ebitda of 11.94 billion pesos.
Walmex shares closed down 0.4% on the Mexican stock exchange
ahead of the report.
The Mexican economy has been growing below potential and is
expected to expand just over 2% this year, while retail sales have
remained robust, increasing 8.3% in the first eight months.
Retailers cite the positive impact of job creation, consumer
credit and growth in remittances from Mexicans living abroad, which
are boosted in peso terms by a weaker local currency.
On the other hand, inflation crept above the central bank's 3%
target in mid-October, while consumer confidence has sunk to
multiyear lows in part because of the sharp peso depreciation.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
October 25, 2016 17:03 ET (21:03 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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