LATIN AMERICA: Walmex, Femsa Report Strong Q2

Regional majors Walmex and Femsa have both recorded strong growth for their fiscal second quarters, helped by continued expansion and growing demand in core markets.

Walmex saw its second-quarter sales grow by 11.5% to 127.6bn pesos, on like-for-like growth of 7.9%, helped by 9% growth in Mexico and 6.9% growth in Central America.  Underlying net profit, meanwhile, grew by 14.5%, although it was down 9% to 6.2bn pesos on a reported basis.

The group said it benefitted from improved price competitiveness at its Bodega Aurrera banner, while its Sam’s Club chain continued to expand its membership numbers.  However, supermarkets in countries such as Guatemala and El Salvador reported sluggish growth.

Meanwhile, retail and bottling giant Femsa saw its second-quarter net profit jump up 25.9% to 4.9bn pesos, while revenue grew by 25.9% to 94.5bn pesos.  The group said its Retail division recorded revenue growth of 12.6%, helped by the expansion of the Oxxo c-store banner, which recorded like-for-like sales growth of 5%.

However, the group’s Coca-Cola Femsa subsidiary, Latin America’s largest Coke bottler, saw its profit fall 25% due to lower margins and higher raw material costs. Sales at the unit were up 9.3%.