Wal-Mart de Mexico 2Q Profit Up 12% on Year

By Anthony Harrup

MEXICO CITY--Retailer Wal-Mart de Mexico SAB reported a 12% rise in second-quarter profit on double-digit sales growth in Mexico and Central America.

Profit for the April to June period was 10.89 billion Mexican pesos ($532 million), or 0.62 pesos a share, compared with 9.76 billion pesos, or 0.56 pesos a share, for the second quarter of 2021.

Walmex, as the unit of Bentonville, Arkansas-based Walmart Inc. is known, reported sales of 195.62 billion pesos, a 12% increase from a year earlier, with same-store sales up 10.8% in Mexico and 14.6% in Central America.

Overall, average ticket prices were up 5.7% and store traffic was up 5.4%.

Walmex increased its offering of private brands, providing savings for price-sensitive customers given the current high inflation environment in which spending is shifting away from discretionary items, Walmex chief executive Guilherme Loureiro said in a webcast presentation.

"Currently inflation is playing a role on the top line," he said.

Walmex's earnings before interest, taxes, depreciation and amortization, a measure of profitability, rose 11% from a year earlier to 20.15 billion pesos.

Write to Anthony Harrup at [e-mail]

(END) Dow Jones Newswires

07-26-22 1812ET