Mexico's Walmex sees second-quarter growth from continuing operations

Mexico's biggest retailer, Wal-Mart de Mexico, on Tuesday reported moderate growth in revenue and earnings from continuing operations after selling some of its businesses last year.

Earnings from continuing operations was 5.4 billion pesos ($337 million), up 5.3 percent.

Revenue climbed about 10 percent, in line with expectations, to 114.4 billion pesos, as sales at stores in Mexico open at least a year (same-store sales) climbed 5.4 percent and the company has opened 19 new stores this year.

Walmex had struggled in the last year against tough competition and weak consumer spending in Mexico, and last year offloaded its restaurant business and its bank to focus on its core supermarket business.

On a net basis, the company reported a profit of 6.81 billion pesos ($434 million), compared with a profit of nearly 10.42 billion pesos in the year-earlier period, as a result of the divestments.

Earnings also came in below analysts' expectations of a net profit of 7.086 billion pesos, according to a Reuters poll of five analysts.