Sales growth impacted by Hurricane Otis

  • Wal-Mart de Mexico’s fourth-quarter net profit rose 1.2% to MXN15 billion
  • Sales for the quarter were 6.7% higher at MXN253.66 billion
  • Earnings before interest, taxes, depreciation and amortization rose 5.4% to MXN26.71 billion
  • Same-store sales in Mexico rose 6.6% and in Central America rose 4.6%
  • The impact of Hurricane Otis and a non-recurring accounting adjustment affected sales growth and net profit

Retailer Wal-Mart de Mexico, also known as Walmex, reported a 1.2% increase in net profit for the fourth quarter. Sales were 6.7% higher, while earnings before interest, taxes, depreciation and amortization rose 5.4%. Same-store sales in Mexico and Central America also saw positive growth. However, the impact of Hurricane Otis and a non-recurring accounting adjustment affected sales growth and net profit.

Public Companies: Wal-Mart de Mexico (Walmex), Walmart (N/A)
Private Companies:
Key People:

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Factuality Level: 8
Justification: The article provides specific financial figures and includes information about the impact of Hurricane Otis on Wal-Mart de Mexico’s fourth-quarter net profit. The information is supported by the company’s official statements. However, the article does not provide any alternative perspectives or potential criticisms of the company’s performance, which could affect the overall factuality level.

Noise Level: 3
Justification: The article provides relevant information about Wal-Mart de Mexico’s fourth-quarter net profit, sales, and same-store sales. It also mentions the negative impact of Hurricane Otis on the company’s results. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on financial figures and does not explore the consequences of the hurricane on the company or its customers in detail. Overall, the article contains some noise and filler content, but it stays on topic and supports its claims with data.

Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the Mexican stock market and companies in the retail industry, particularly Wal-Mart de Mexico (Walmex).

Presence of Extreme Event: Yes
Nature of Extreme Event: Natural Disaster (Hurricane)
Impact Rating of the Extreme Event: Minor
Justification: The article mentions that Wal-Mart de Mexico’s fourth-quarter net profit was negatively affected by the impact of Hurricane Otis, which caused devastation in the Pacific resort of Acapulco. However, the impact on sales growth and profitability was relatively modest, resulting in a minor impact rating.

Reported publicly: www.marketwatch.com