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Categories: Corporate Results

Mexico's Walmex 3rd-Qtr Net Profit Jumps 18 pct

Source: Reuters
09/10/2009

Mexico City, Oct 8 - Mexico's top retailer Walmex said on Thursday its third-quarter net profit jumped 18 percent, beating analysts' expectations as low-price promotions helped it weather a steep economic slump.

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Mexico's first big company to report its results for the quarter, Wal-Mart de Mexico, or Walmex, said it earned 3.862 billion pesos ($286 million) in the July-September period, compared with 3.269 billion pesos a year earlier.

Analysts were expecting the company to earn 3.753 billion pesos in the period.

Quarterly total revenue rose 12 percent to 64.589 billion pesos, while earnings before interest, tax, depreciation and amortization (EBITDA) grew by 17 percent to 6.393 billion pesos.

Chief Executive Eduardo Solorzano told a conference call on Thursday that despite the challenging economic environment, Walmex had gained market share from formal and informal competitors alike.

Despite tough economic times, Walmex has opened more stores than originally planned and kept customers from drifting to other competitors, helped by its blanket television and radio ads and aggressive low-price campaign.

Walmex shares ended near flat at 47.78 pesos on Thursday before earnings results were disclosed.

The company, a unit of U.S. retail giant Wal-Mart Stores, operates 1,334 stores and restaurants across Mexico.



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