Walmex, the Mexican subsidiary of US retail giant Wal-Mart, reported double-digit growth in sales and operating profits for its Q2.
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Sales in the quarter were 24.025bn pesos (US$2.5bn), up from 21.008bn pesos a year ago. Operating profits rose from 1.032bn pesos to 1.235bn pesos in the same period.
Given the economic torpor affecting Mexico, the strong set of results was attributed by analysts to aggressively low prices and a strong focus on expansion.
“They continue to make improvements on the operational side, and they continue to invest aggressively. They haven’t slowed down,” Francisco Chevez, an analyst with Salomon Smith Barney in New York, told Reuters.
“It’s a virtuous circle. The more you invest, the more you sell in the future, the more you grow, and the harder it is for competitors to keep up,” he said.
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By GlobalDataWalmex’ earnings for the quarter under review before interest, taxes, depreciation and amortization (EBITDA) came in at 1.720bn pesos, up from 1.474bn pesos in the second quarter of 2001.
The subsidiary expects to open 67 new stores between January this year and June of next year, and 13 opened during the second quarter.
