MEXICO CITY, Oct 25 (Reuters) – Wal-Mart’s Mexico unit (WALMEX.MX) said on Wednesday third-quarter net income rose 12.2% year-on-year, mainly due to strong sales.
Mexico’s largest retailer, Wal-Mart de Mexico (Wolmex), posted a net profit of 13.63 billion pesos ($782 million).
The chain’s quarterly sales rose 7.7% year-on-year to P213.07 billion, slightly below LSEG’s forecast of P213.34 billion.
Walmex said in a filing with Mexico’s main stock exchange that its sales were adversely affected by the appreciation of the Mexican peso, noting that sales growth would have been higher without the currency impact on its Central American business. .
Sales increased 9.5% in Mexico and 9% in Central America, with the addition of 24 new stores in Mexico and 3 new stores in Central America, contributing 1.6% to total revenue.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter increased by 8.5% to P23 billion.
Wolmex’s earnings per share reached P0.78, beating LSEG’s estimate of P0.74.
Wednesday’s results come after Walmex announced on Oct. 6 that it would go before an antitrust commission on suspicion of monopolistic conduct, following a three-year investigation by Mexico’s antitrust regulator Cofece. It is.
Walmex CEO Guilherme Loureiro said in a post-earnings presentation that he was confident the company “always complies with applicable laws.”
“This is Wolmex’s first opportunity to defend itself against the allegations brought by law enforcement authorities, and we will exercise all rights and remedies available to us under applicable law,” Loreiro said.
If regulators determine that Walmex violates competition laws, Cofes could impose fines of up to 8% of Walmex’s annual revenue in Mexico.
($1 = 17.4279 Mexican Pesos at the end of September)
Report by Valentine Hilaire and Aida Pelaez Fernández.Editing: Brendan O’Boyle, Tom Hogue, Cynthia Osterman
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