Wal-Mart Mexico Q1 net income soares 21%

Retailer Wal-Mart de Mexico SA said Tuesday its net income jumped 21 percent to 2.94 billion pesos (US$268mn) as intense price-slashing boosted sales while cost-cutting kept operating expenses in check.

Walmex, as the Mexican unit of the Arkansas-based Wal-Mart Stores Inc. is known, reported a 19 per cent increase in net sales to 49.9 billion pesos (US$4.5bn). "Consistent with our long-term vision, during this quarter we implemented a massive campaign of rollbacks in order to strengthen our competitive position in the market," the company's chief executive, Eduardo Solorzano, said in a statement.

Walmex is Mexico's largest retailer, with 910 supermarkets, restaurants, clothing stores and retail chains. In February, it announced plans to open 125 new stores and restaurants as part of its 2007 expansion plans.

(Source: Associated Press)