What: Walmart's Mexico unit, Walmex, reported a 12.2% increase in net profit for the third quarter compared to the same period last year.

Why it is important: The significant increase in net profit and stronger sales for Walmex demonstrates the company's financial growth and success in the market.

The growth was primarily driven by higher sales. The company generated a net profit of MXN 13.63 billion (USD 782 million) during the quarter. Quarterly revenue rose by 7.7% to reach MXN 213.07 billion, slightly below the estimated figure. Walmex noted that its revenue was impacted by the appreciation of the Mexican peso, and without foreign exchange effects, its sales growth would have been even higher. Walmex experienced sales growth of 9.5% in Mexico and 9% in Central America.

The company opened 24 new stores in Mexico and three in Central America during the quarter, contributing to the increase in revenues. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 8.5% to MXN 23 billion. Walmex exceeded the estimated earnings per share, with MXN 0.78 compared to the expected MXN 0.74.

The company is currently facing an antitrust panel for alleged monopolistic practices after a three-year investigation. Walmex is confident in its compliance with the law and will defend itself against the allegations. If found guilty, the company could face a fine of up to 8% of its annual income in Mexico.

Walmart Mexico Q3 net profit jumps more than 12%