Walmart’s Mexico unit reports 12% jump in Q2 net profit

MEXICO CITY (Reuters) -Walmart’s Mexico unit on Tuesday said its second-quarter net profit rose 11.55% from the year-earlier period, citing “sustainable growth” across all regions and outdoing analyst expectations at a time of swelling inflation. Walmart de Mexico, the biggest retailer in Mexico, posted a net profit of 10.89 billion pesos ($540.84 million) and revenue of 195.62 billion pesos. Same day shares slid 4% following a slashed profit forecast from its U.S. parent. In Mexico, the retailer has vowed to work with suppliers and use other strategies to drive prices down as inflation ticks up, and analysts said they expected costs to put pressure on margins. However, the company known locally as Walmex reported its earnings before interest, taxation, depreciation and amortization (EBITDA) margin up 10.4%. ($1 = 20.1353 pesos at end-June)

(Reporting by Kylie Madry and Aida Pelaez-Fernandez; Writing by Daina Beth Solomon)

tagreuters.com2022binary_LYNXMPEI6P0W4-VIEWIMAGE