Walmex sees growth in sales and profit, resolves tax dispute

  • Wal-Mart de Mexico’s net profit rose 12% in the third quarter
  • Sales increased by 7.7% to 213.1 billion pesos
  • Same-store sales rose 8% in Mexico and 7.9% in Central America
  • Earnings before interest, taxes, depreciation and amortization rose 8.5% to 22.97 billion pesos
  • The strength of the Mexican peso negatively affected sales growth but contributed to a higher gross profit margin
  • Walmex released tax provisions after reaching an agreement with tax authorities in a Central American country

Mexico’s largest retailer, Wal-Mart de Mexico (Walmex), reported a 12% increase in net profit for the third quarter. Sales also saw a significant boost, rising by 7.7% to 213.1 billion pesos. Same-store sales in Mexico and Central America increased by 8% and 7.9% respectively. Earnings before interest, taxes, depreciation, and amortization rose by 8.5% to 22.97 billion pesos. The strength of the Mexican peso had a mixed impact, negatively affecting sales growth but contributing to a higher gross profit margin. Walmex also reached an agreement with tax authorities in a Central American country, resulting in the release of tax provisions and providing certainty for future tax liabilities.

Public Companies: Wal-Mart de Mexico (Walmex), Walmart Inc. (WMT)
Private Companies:
Key People: Paulo García (Chief Financial Officer)

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Factuality Level: 8
Justification: The article provides specific financial figures and quotes from the Chief Financial Officer of Wal-Mart de Mexico, which adds credibility to the information. However, it does not provide any opposing viewpoints or potential drawbacks of the company’s financial performance, which could indicate a lack of balance in the reporting.

Noise Level: 7
Justification: The article provides information on Wal-Mart de Mexico’s net profit increase in the third quarter, sales growth, and the release of tax provisions. However, it lacks analysis of long-term trends or antifragility. It also does not hold powerful people accountable or provide scientific rigor. The article stays on topic and supports its claims with data, but it does not provide actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the Mexican retail market and Walmart Inc.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the financial performance of Wal-Mart de Mexico. However, there is no mention of any extreme event or its impact.