By Anthony Harrup


MEXICO CITY - Wal-Mart de Mexico SAB posted 11.8% net profit growth in the fourth quarter on double-digit increases in sales in Mexico and Central America.

Walmex, a unit of Arkansas-based Walmart Inc. and Mexico's largest retailer by sales, reported net profit of 14.8 billion Mexican pesos ($797 million) for the October-December period, up 11.8% from the year-earlier quarter.

Sales rose 10.8% from the fourth quarter of 2021 to 237.8 billion pesos. Same-store sales, which exclude stores opened in the past year, rose 10.2% in Mexico led by growth at no-frills Bodega stores and Sam's Club membership stores. In Central America, same-store sales rose 12.7%, with the highest growth in Nicaragua and Costa Rica.

Earnings before interest, taxes, depreciation and amortization, a measure of profitability, rose 7.5% to 25.3 billion pesos.

Capital expenditures in all of 2022 totaled 21.3 billion pesos, a third of which was invested in new stores and 43% in remodelings, with the rest in technology and logistics. Walmex opened 126 stores last year, bringing its total to 3,745 of which 2,863 are in Mexico and the rest in Central America.

Global supply chain disruptions at the beginning of last year led to delays in technology supplies, store equipment and construction materials, and Walmex invested 23% less than it had initially planned, chief financial officer Paulo García said in a webcast presentation.

"We plan to catch up with some of these projects in 2023," he added.

He said Walmex will propose dividends of 2.69 pesos a share for 2023, up from 1.71 pesos a shares in 2022. Walmex shares closed up 0.9% Wednesday on the Mexican stock exchange.


Write to Anthony Harrup at anthony.harrup@wsj.com


(END) Dow Jones Newswires

02-15-23 1815ET