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.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.