Wal-Mart de Mexico 3Q Net Profit Rises on Higher Sales, Tax Agreement
October 25 2023 - 7:11PM
Dow Jones News
By Anthony Harrup
MEXICO CITY--Mexico's largest retailer Wal-Mart de Mexico said
its net profit increased in the third quarter amid higher sales and
boosted by the release of tax provisions related to Central
America.
The unit of Bentonville, Ark.-based Walmart Inc., known as
Walmex, reported net profit rose 12% to 13.63 billion Mexican pesos
($742 million), compared with 12.15 billion pesos in the
year-earlier quarter.
Sales in the July through September period were up 7.7% to 213.1
billion pesos, with same-store sales rising 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, while contributing to a higher gross profit margin by
lowering the cost of imports, Walmex said.
Chief Financial Officer Paulo García said in a webcast
presentation that net profit benefited as the company released a
substantial part of tax provisions from previous quarters after
reaching an agreement in a dispute with tax authorities in a
Central American country.
Walmex agreed to cover past tax liabilities and received written
confirmation of taxes that will apply in future, he said.
"While we believe we had strong legal grounds to uphold our
positions, we concluded that the substantial reduction on the
amounts claimed and the certainty for the future were the best
decision for Walmex," García said.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
October 25, 2023 18:56 ET (22:56 GMT)
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