Wal-mart de Mexico S A B de C V (ADR)(OTCMKTS:WMMVY) Announces Financial Results For 1Q2015, Net Sales Increased 9.3%


Wal-mart de Mexico S A B de C V (ADR) (OTCMKTS:WMMVY) retraced the previous day’s gain a bit as it finished the last trading session with a loss of 0.36%. The volume of the day at 212,000 was much higher compared to the daily average of 57,000 but that might be taken as a bout of profit booking on the part of the cautious investors. On the other hand, the bulls can feel just a bit worried as the initial price rejection came from the strong resistance area around $26.80, a dangerous place considering the overbought state.


Not long ago, Wal-mart de Mexico S A B de C V (ADR)(OTCMKTS:WMMVY) announced financial results for 1Q2015. As per the reports, EBITDA for the year was recorded $9.8 billion pesos, which was 6.3% higher than previous years’ numbers. The EBITDA amount was 8.8% of total revenues.

Insights on Matter

When it comes to net sales, Wal-mart managed to report a whopping figure of $110,875, 9.3% higher than the sales figures posted by the company in the previous quarter. Total revenues of the company for the quarter were $111,723 as compared to $102,229 that it posted in the previous year. There was no other source of revenues for the company during the quarter other than the sales activity.

Wal-mart’s gross profit for the quarter was $24,151, 8.5% higher than the GP posted by the company during the same period in 2014. Total operating income of the company was accounted as much as $7,341, 6.2% higher than 1Q2014. Consolidated net income of the company was $5,175, up 8.9% as compared to the first quarter of 2014.

Total EBITDA for the first quarter was $9,816 as compared to last year’s $9,237. The consolidated net income of the company was Ps 5.142 million as compared to last year’s  Ps 4.781.

Avoiding Criminal Charges In Mexico Probe

A long investigation held by the government concerning Wal-Mart’s operations in Mexico has found very few major offenses; thereby freeing the company from past allegations. The report was first published in The Wall Street Journal. An earlier report suggested that Wal-Mart Mexico officials were to face criminal charges.

The current finding suggests that Wal-Mart will be free from these criminal charges by paying a decent fine. Another case that’s pending against Wal-Mart in India finds the company liable for violating many FCPA violations, a lot more than the Mexico probe.

Nobody from Wal-Mart has come forward to speak on this issue as of now.