Mexican retail giant Wal-Mart de Mexico (Walmex) has reported a rise in third-quarter profits, as cost savings and increased market share helped offset the weak economy and flat September sales.
Walmex, which is majority owned by US retail titan Wal-Mart, posted net profit of 1.14bn pesos (US$102m) for the third quarter, a rise of 14% compared to the year-ago period, and in line with expectations.
Walmex posted an 11% rise in earnings before interest, taxes, depreciation and amortisation (EBITDA) to 2.09bn pesos.
The company’s third-quarter sales were up around 9% to 27.54bn pesos, while same-store sales rose 3.7%.
The company’s aggressive expansion and advertising, combined with price cuts, have boosted sales despite weak consumer demand. Company executives also said better price negotiations with suppliers and efficient distribution have helped boost profits, reported Reuters.