Walmart de México (Walmex) reported a drop in profits of 5% annually during the third quarter, which it attributed to cost growth from its higher sales and general expenses.
The retail sales company recorded a net profit of 12,934 million pesos, according to its report sent to the Mexican Stock Exchange (BMV).
However, the company’s income increased 8% to 228,427 million pesos.
The company also reported that its Board of Directors approved the appointment of Guilherme Loureiro as its president, as well as president of the Compensation and Succession Planning Committee.
“Kath’s resignation is effective as of this date. Gui’s appointment and Kath’s resignation had the favorable opinion of the Compensation and Succession Planning Committee,” the company highlighted.
Regarding the investigation it faces by the Federal Economic Competition Commission (Cofece) after its competitor Chedraui denounced it for monopolistic practices, Walmex reported that it is already working with the regulator to resolve the issue.
He noted that on August 27 he presented his final arguments before Cofece and that on September 30 he had an oral hearing with the regulatory authority.
Read: Walmart de México accuses persecution by antitrust body
He added that that day he presented a request for recusal for one of the four Cofece commissioners due to his active participation in the commission’s 2020 economic study, which is the basis of the Investigative Authority’s case.
In addition, the company indicated that it made public on its Investor Relations website (www.walmex.mx) all the relevant documents of the case, and that it expects a resolution in this administrative stage during the fourth quarter of 2024.
“Walmex is confident that its actions have complied with applicable legislation and that its participation in the Mexican market has resulted in lower prices for consumers, particularly benefiting Mexican families with the lowest incomes,” the company highlighted.
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Chedraui profits fall 25%
Chedraui’s net profits fell 25% annually to 1,456 million pesos (mp) in the period.
The impact on net income is the result of higher depreciation and
amortization, as well as an increase in the financial cost, explained CEO Antonio Chedraui in the company report.
Meanwhile, revenues increased 11.8% to 71,886 million pesos.
The group reported that the majority of its income came from the sale of goods and leasing, as well as other services.
Same sales, those of those stores with more than a year of operation, grew 4.9%.
Consolidated EBITDA, a financial indicator that measures a company’s operating profitability, advanced 3.5%.
“We face strong competition from other supermarket and self-service store operators, both national and international, including Walmart de México (“Walmex”), Soriana, LaComer and other Mexican and international self-service stores. (…) We cannot assure that our performance will not be adversely affected by increased competition, whether as a result of the competitors described above or other competitors,” Chedraui noted.
