Wal-Mart de Mexico, the US retailer’s arm in Central America, has reported a 7% increase in half-year profits on the back of higher sales.

The company booked net profit of MXN9.64bn (US$703.4m) for the six months to the end of June. Operating income was up 10% at MXN13.6bn.

The retailer, which operates over 2,400 stores in Mexico and across Central America, reported a 13% increase in net sales to MXN193.37bn. It opened 109 retail stores in the first half of 2012.

Earlier this year, the company, also known as Walmex, found itself at the centre of bribery allegations that covered part of the last decade.

The New York Times reported a former Walmex executive told a senior Wal-Mart Stores lawyer in 2005 the Mexican retailer had bribed officials to obtain permits to open stores.

The newspaper said Wal-Mart sent investigators to Mexico City and discovered evidence of bribery. However, after being presented with the evidence, the world’s largest retailer decided to end the investigation, the newspaper said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Walmex has been investigating the claims and Mexico’s attorney general also launched a probe into the allegations.

Commenting after reporting its half-year results yesterday, Walmex said it was “participating in an independent investigation into possible corrupt practices” started by Wal-Mart and “revisions into similar matters by the competent authorities”.

It added: “Although Walmex does not presently believe, based on the information currently available and the advice of its external Mexican counsel, that these matters will have a material adverse effect on its business, given the inherent uncertainties in such situations, Walmex can provide no assurance that these matters will not be material to its business in the future.”