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Walmart (NYSE:WMT) de Mexico, the biggest retailer in Mexico, said its net profit rose to 13.3 billion pesos ($646.3 million) from the prior October-to-December period. Revenue increased 9.5% to reach 214.6 billion pesos.
The company said in a report that same-store sales were solid across Mexico and Central America, and new businesses such as advertising platform Walmart Connect and rental income helped the gross margin, which grew 10 basis points to just over 23%.
However, the company known as Walmex also reported a more than 13% jump in costs, and the EBITDA margin fell to 11% from 11.4% a year before.
“We’re seeing an increase in the cost of doing business in areas such as salaries, along with strategic investments,” Walmex said in a report.
Executives in an online presentation accompanying the results said the company would focus on productivity and managing expenses to compensate for ongoing costs, including planned investments.
($1= 20.5075 Mexican pesos at end-December)
