Wal-Mart De Mexico 2Q Net Up 10%

Wal-Mart de Mexico SA, the country's top mass merchandiser, reported a 10% rise in profits during the second quarter, boosted by a 20% jump in operating income, according to a Dow Jones report.

The company, controlled by U.S.-based Wal-Mart Stores, said Monday that net income rose to 940 million pesos ($1=MXN9.78), above the MXN853 million reported for the second quarter of 2001.

Walmex, as the company is also known, said in a press release that operating income expanded to MXN1.24 billion from MXN1.03 billion during the same comparative period, as total sales expanded 14% to MXN24.03 billion and gross margin widened 15% to MXN4.86 billion.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, jumped 17% in the second quarter to MXN1.72 billion.

The company said it opened 25 retail outlets during the first six months of the year. It has also invested close to MXN2.30 billion in fixed assets, seeking to increase and modernize installed capacity and distribution.

Operating expenses rose 13% in the second quarter to MXN3.62 billion, the company said.

Walmex, which contributed more than 25% of its parent company's $35 billion in international sales in 2001, operates 573 commercial outlets and restaurants, including Bodega Aurrera, Sam's Club and Wal-Mart Supercenter hypermarkets; the upscale supermarket chain Superama; Suburbia clothing stores and Vips restaurants.