Reuters reported that Walmart’s Mexico unit’s net profit increased by 12 percent in the second quarter. IMAGE FROM FILE: Inside a Walmart shop in Mexico City, Mexico, a Walmart sign can be seen. March 28, 2019. Edgard Garrido/Reuters WEEK Ahead in Global Business
Walmart (NYSE:WMTMexico )’s subsidiary reported on Tuesday that its second-quarter net profit increased 11.55 percent year on year, citing “sustainable growth” across all areas and outperforming analyst estimates at a time of rising inflation. Walmart de Mexico, Mexico’s largest retailer, reported a net profit of 10.89 billion pesos ($540.84 million) on sales of 195.62 billion pesos. Same-day shares fell 4% as its parent company in the United States cut its earnings outlook. In Mexico, the company has pledged to cooperate with suppliers and employ other price-cutting techniques as inflation rises, and experts predict that expenses will put pressure on profits. Walmex reported a 10.3 percent earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, down from 10.4 percent in the second quarter of previous year. ($1 = 20.1353 pesos at the end of June)
