Mexican retail powerhouse Wal-Mart de Mexico, or Walmex, posted 34 percent growth in net profit for the third quarter on Friday as aggressive expansion and cost savings fueled growth.
Walmex (WALMEXV.MX: Quote, Profile, Research), a unit of No. 1 global retailer Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research), reported a net profit of 2.001 billion pesos ($186 million) for the quarter.
Walmex has used aggressive expansion and low prices to become the dominant retailer in Mexico’s fragmented market with more than 700 stores and restaurants.
It said quarterly sales rose 14.7 percent to 38.658 billion pesos year on year. Same-stores sales, which measure performance only at stores open at least a year, grew a healthy 6.6 percent as Walmex continued to outperform rivals.
“We continue building customer trust and driving, quarter after quarter, more customers into our stores and restaurants,” CEO Eduardo Solorzano told analysts in a conference call.
Walmex’s quarterly core earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 26 percent over the previous year’s quarter, while operating profit, or EBIT, jumped 28 percent.
The report was in line with expectations. Analysts in a Reuters poll had forecast growth of 31 percent in quarterly net profit, 22 percent in EBITDA and 15 percent in sales.
Walmex keeps plowing profits into expansion to take a growing share of the market, with no sign of slowing.
Solorzano said the retailer will end the year with 95 new stores, 25 more than originally planned under a $737 million expansion plan unveiled last February. Of those, more than 50 will open in the final quarter of the year and five are leased rather than owned by Walmex, he said.
“We have the capabilities and commitment to open that many stores efficiently during such a short period of time,” Solorzano said. “We are working to have a more evenly distributed opening program for next year.”
More: today.reuters.com
Mexican retail powerhouse Wal-Mart de Mexico, or Walmex, posted 28 percent growth in net profit for the second quarter on Thursday as expansion and cost savings fueled growth.
Walmex (WALMEXV.MX: Quote, Profile, Research), a unit of No. 1 global retailer Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research), reported a net profit of 1.95 billion pesos ($181 million) for the period, compared with 1.52 billion pesos a year earlier.
Net profit for the first half of the year reached 3.801 billion pesos. Walmex has used aggressive expansion and low prices to become the dominant retailer in Mexico's fragmented market.
More: today.reuters.com
Mexicos Soriana quarterly net profit ticks up
Soriana, one of Mexicos top retailers, posted a 4 percent rise in net profit for the first quarter on Tuesday, below analysts estimates, with moderate growth in sales and operating results.
Soriana (SORIANAB.MX: Quote, Profile, Research) said net profit reached 548 million pesos ($50 million), compared with 525 million pesos in the same quarter of 2005. Analysts polled by Reuters Estimates had forecast a 14 percent rise to 597 million pesos.
Soriana, which operates 202 stores mainly in northern Mexico, said its quarterly sales rose 11 percent year on year to 12.395 billion pesos. Operating profit,
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Mexico's Bolsa stock index rose above 18,000 for the first time, led by Wal-Mart de Mexico SA, Latin America's largest retailer, on expectations that the central bank will continue cutting interest rates early next year.
The index rose to a record for a third day, gaining 209.82, or 1.2 percent, to 18,029.50 at 3:12 p.m. New York time. The Bolsa has surged 4.8 percent since Dec. 8, the day before Mexico's central bank cut its benchmark lending rate more than expected to 8.25 percent. The cut followed a government report that
UPDATE 1-Mexico's Telmex quarterly net profit leaps
Leading Mexican telephone company Telmex said its second-quarter net profit jumped 42 percent, boosted by new businesses in Brazil and Chile.
Telmex (TMX.N: Quote, Profile, Research)(TELMEXL.MX: Quote, Profile, Research), owned by Mexican entrepreneur Carlos Slim, said on Tuesday that it had a April-June net profit of 6.530 billion pesos ($606 million).
The bottom line was sharply higher than market expectations. A Reuters survey forecast Telmex would report a net profit of 5.900 billion pesos.
Telmex included in its results its recently acquired Brazilian long-distance operator Embratel (EBTP4.SA: Quote, Profile, Research) and Chilean company Chilesat (TLX.SN: Quote, Profile,
UPDATE 1-Mexico's Geo 3rd-qtr net profit rises 32 pct
Geo, Mexico's No. 1 home builder, posted a 32 percent rise in third-quarter net profit from a sales surge during a nationwide housing boom.
Geo (GEOB.MX: Quote, Profile, Research) said on Wednesday net profit in the July-September period was 267 million pesos ($25 million) as revenues rose 24 percent.
Revenues at Geo jumped to 2.657 billion pesos as the company sold 9,624 houses in the period, up from 8,600 homes in the same quarter a year earlier.
Geo said its core earnings before interest, taxes, depreciation and amortization rose 31 percent to 641 million pesos.
"For
Mexico 1-month T-bill yield rises to 7.02 pct
The yield on Mexicos benchmark 28-day Cetes, or T-bills, edged up 1 basis point to 7.02 percent on Tuesday amid expectations of rising U.S. interest rates.
Longer-term Cetes yields ticked up from last week at a central bank auction, along with rates on Mexicos 3-year and 7-year peso from when they were last auctioned on May 16.
The yield on the three-month bill rose to 7.36 percent from 7.28 percent last week, while the yield on the six-month yield rose to 7.63 percent from 7.50 percent.
The 3-year peso bond rose to a yield of 8.50
Mexicos Walmex April same-store sales up 9.9 pct
Leading Mexican retailer Wal-Mart de Mexico, or Walmex, said on Tuesday its same-store sales rose 9.9 percent in April, compared with a year earlier.
Walmex (WALMEXV.MX: Quote, Profile, Research), controlled by U.S. retail giant Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research), said total sales for the month were 14.966 billion pesos ($1.37 billion), up nearly 21 percent from the same month last year.
Same-store sales measure revenues only at stores open at least a year and are seen as the best performance indicator.
Analysts in a Reuters poll had forecast a 9 percent increase as sales
Mexico Walmex same-store sales up 4.6 pct in Aug
Leading Mexican retailer Wal-Mart de Mexico, or Walmex, said on Thursday its same-store sales rose 4.6 percent in August, compared with the same month last year.
Walmex (WALMEXV.MX: Quote, Profile, Research) said total sales in August were 13.046 billion pesos ($1.2 billion), up 12.8 percent.
Same-store sales measure revenues only at stores open at least a year and are seen as a better indication of sales performance than overall sales.
Source: today.reuters.com
Mexicos Comerci net seen up on strong operations
Comercial Mexicana, one of the countrys largest retailers, will likely report a 35 percent rise in net profit for the second quarter thanks to a rise in sales and operational improvements.
Known by investors as Comerci (COMERCIUBC.MX: Quote, Profile, Research) (MCM.N: Quote, Profile, Research), the company should report a net quarterly profit of 302 million pesos ($27 million), according to the average estimate of five analysts consulted by Reuters.
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UPDATE 1-Mexico July same-store sales rose 3.1 pct - group
Mexico's top retailers' group ANTAD said on Monday its members' same-store sales rose 3.1 percent in July year-on-year, falling further behind powerhouse Wal-Mart's Mexico unit.
Wal-Mart de Mexico (Walmex) (WALMEXV.MX: Quote, Profile, Research), which is not in the association, said last week its same-store sales in July were up 7.5 percent.
The National Association of Supermarkets and Department Stores, or ANTAD, which includes about 100 of the country's main retailers, said members' total sales for July rose 10.8 percent from July 2004.
Same-store sales at outlets open 12 months or longer are considered
