Latest news with #Banorte
Reuters
4 days ago
- Business
- Reuters
Walmart Mexico's market value sheds $3.7 billion after Q2 profit dip
MEXICO CITY, July 17 (Reuters) - Walmart's Mexico and Central America unit, known as Walmex ( opens new tab, saw some $3.7 billion wiped from its market value on Thursday after the retailer posted weaker-than-expected margins for its second quarter, although revenues grew. The stock tumbled 7.4% on Thursday, its steepest daily decline since 2020, decreasing Walmex's market capitalization by 68.6 billion Mexican pesos ($3.7 billion). Mexico's largest retailer, which operates Walmart, Sam's Club and Bodega Aurrera stores across six countries, on Wednesday posted a 10% drop in net profit, although sales were up 8%, as Walmex spent more than analysts expected. Net profit was 11.2 billion pesos ($598 million) in the quarter, below analysts' expectation of close to 13 billion pesos, while the core earnings margin hit 9.5%, the lowest level for that quarter since 2020. "The company faces a very important challenge: regaining profitability," analysts at financial group Banorte said. Actinver analyst Antonio Hernandez said in a note to clients that the margin pressure came from investments in tech, e-commerce, store openings and labor expenses. "The benefits of these investments will continue to translate into stronger growth and accelerated market share gains," Chief Financial Officer Paulo Garcia said in a call with analysts on Thursday. "We're prioritizing investments with the highest returns and dropping those with lower returns," he added. Walmex has made a push in recent years to consolidate its market share, particularly in online sales. CEO Ignacio Caride, who in a pre-recorded webcast on Wednesday said he was unhappy with the results, said he believed the group's overall strategy was on track and reiterated the company's guidance and share buyback plans. Caride took the job last year after more than a decade at e-commerce powerhouse MercadoLibre (MELI.O), opens new tab. Executives noted that Walmex would continue to expand its store footprint, with 4,124 stores currently and 25 new openings over the quarter, and push on with a remodeling campaign for a wave of stores that opened more than a decade ago. Executives said on the call that unusually torrential rains in June in Mexico City - its wettest June in over 20 years - had "a big impact" on food and drinks sales. Built on a lake, Mexico City is prone to floods in and around its metropolitan area. ($1 = 18.7500 Mexican pesos)
Reuters
4 days ago
- Business
- Reuters
Walmart Mexico's market value sheds $3 billion after Q2 profit dip
MEXICO CITY, July 17 (Reuters) - Shares in Walmart's Mexico and Central America unit, known as Walmex ( opens new tab, slid 6% on Thursday morning, wiping off 60.9 billion pesos ($3.25 billion) from the firm's market capitalization after posting weaker-than-expected margins. "The company faces a very important challenge: regaining profitability," analysts at financial group Banorte said. Walmex on Wednesday posted a 10% decrease in net profit, despite sales coming up 8%, as the firm spent more than analysts expected. That pressure came from investments in tech, e-commerce, store openings and labor expenses, Actinver analyst Antonio Hernandez wrote in a note to clients. The group's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin landed at 9.5%, 81 basis points below the year-ago quarter and the lowest since the same quarter in 2020. Walmex, Mexico's largest retailer, has made a push in recent quarters to consolidate its market share, particularly in online sales. CEO Ignacio Caride, who took the job last year, had spent more than a decade at e-commerce powerhouse MercadoLibre (MELI.O), opens new tab. Caride acknowledged in a pre-recorded webcast on Wednesday that he was unhappy with the results, though he said Walmex's overall strategy was on track. Executives are set to discuss the results with analysts in a call later on Thursday. ($1 = 18.7527 Mexican pesos)
The Sun
11-06-2025
- Business
- The Sun
Mexico prepares Azteca Stadium for historic 2026 World Cup
WITH a year until Mexico makes history as the first three-time World Cup host, the dream of a spectacular showcase is colliding with the practical challenges of modernising the iconic Azteca Stadium for global soccer's premier event. Beneath the imposing silhouette of Mexico's football cathedral - where Pele dazzled with Brazil in 1970 and Maradona's 'hand of God' propelled Argentina to glory in 1986 - construction crews tackle the formidable task of bringing one of the sport's most storied venues into the 21st century. The stakes are magnified as the 'Santa Ursula colossus' will host the tournament's opening match, a global spectacle that will focus the world's attention on Mexico from day one. Renovations will expand the stadium's capacity from 87,000 to 90,000, with upgrades centred on meeting FIFA standards through new changing rooms, enhanced hospitality zones, revamped VIP areas and additional seating in spaces previously occupied by boxes and lounges. While government officials and football administrators envisioned the project as a symbol of national pride, the renovation process has eroded trust between developers, local residents and other stakeholders. Stadium administrators announced in February that they had secured a 2.1 billion peso ($110.19 million) credit line from local financial group Banorte - along with a controversial new name: Estadio Banorte. FIFA regulations mean the stadium will be referred to as 'Estadio Ciudad de Mexico' during the World Cup, yet the rebranding has sparked a fierce backlash from some fans, who view it as sacrificing football heritage for commercial interests. HARSH REALITY The backlash over the stadium's new name represents only one facet of the mounting tensions. Box and suite holders - some with relationships spanning decades - have threatened legal action after FIFA announced it would commandeer their seats during the tournament, overriding established contracts. One member of the Mexican Association of Box Holders has already filed a legal challenge to defend access rights. Beyond the stadium walls, frustration runs equally deep. Residents of Santa Ursula and surrounding neighbourhoods fear that promised infrastructure improvements like pedestrian bridges and transit lines will fail to address fundamental issues including inadequate lighting, water shortages and persistent traffic congestion. 'We're not the stadium's backyard,' one local resident told Expansion Politica. 'But we're always treated that way.' By contrast, Guadalajara and Monterrey, Mexico's other two host cities, face fewer obstacles. Guadalajara's 48,000-seat stadium, opened in 2010, has already hosted major events including the 2011 Pan American Games, while Monterrey's 53,500-capacity venue, inaugurated in 2015, needs only minor upgrades - primarily new turf and a pitch ventilation system. 'We'll install a system to ventilate and oxygenate the pitch before replacing the grass,' said Alejandro Hutt, Monterrey's Host City Manager. 'That will be an important legacy from the World Cup and beyond.' As construction continues, Javier Aguirre's Mexico squad are building towards a crucial summer, with a Gold Cup title defence ahead and friendly matches against Turkey this week, followed by Japan and South Korea in September. After failing to advance beyond the group stage at Qatar 2022 - their worst World Cup performance since 1978 - Mexican fans crave more than just a well organised tournament. They want to see Mexico break the 'fifth-game' curse and reach the quarter-finals for the first time since 1986, the last time they were World Cup hosts. For a football-mad nation, pride will come not merely from hosting - but from delivering on all fronts. ($1 = 19.0578 Mexican pesos)
The Sun
11-06-2025
- Business
- The Sun
Mexico readies for historic third World Cup as Azteca Stadium tensions grow
WITH a year until Mexico makes history as the first three-time World Cup host, the dream of a spectacular showcase is colliding with the practical challenges of modernising the iconic Azteca Stadium for global soccer's premier event. Beneath the imposing silhouette of Mexico's football cathedral - where Pele dazzled with Brazil in 1970 and Maradona's 'hand of God' propelled Argentina to glory in 1986 - construction crews tackle the formidable task of bringing one of the sport's most storied venues into the 21st century. The stakes are magnified as the 'Santa Ursula colossus' will host the tournament's opening match, a global spectacle that will focus the world's attention on Mexico from day one. Renovations will expand the stadium's capacity from 87,000 to 90,000, with upgrades centred on meeting FIFA standards through new changing rooms, enhanced hospitality zones, revamped VIP areas and additional seating in spaces previously occupied by boxes and lounges. While government officials and football administrators envisioned the project as a symbol of national pride, the renovation process has eroded trust between developers, local residents and other stakeholders. Stadium administrators announced in February that they had secured a 2.1 billion peso ($110.19 million) credit line from local financial group Banorte - along with a controversial new name: Estadio Banorte. FIFA regulations mean the stadium will be referred to as 'Estadio Ciudad de Mexico' during the World Cup, yet the rebranding has sparked a fierce backlash from some fans, who view it as sacrificing football heritage for commercial interests. HARSH REALITY The backlash over the stadium's new name represents only one facet of the mounting tensions. Box and suite holders - some with relationships spanning decades - have threatened legal action after FIFA announced it would commandeer their seats during the tournament, overriding established contracts. One member of the Mexican Association of Box Holders has already filed a legal challenge to defend access rights. Beyond the stadium walls, frustration runs equally deep. Residents of Santa Ursula and surrounding neighbourhoods fear that promised infrastructure improvements like pedestrian bridges and transit lines will fail to address fundamental issues including inadequate lighting, water shortages and persistent traffic congestion. 'We're not the stadium's backyard,' one local resident told Expansion Politica. 'But we're always treated that way.' By contrast, Guadalajara and Monterrey, Mexico's other two host cities, face fewer obstacles. Guadalajara's 48,000-seat stadium, opened in 2010, has already hosted major events including the 2011 Pan American Games, while Monterrey's 53,500-capacity venue, inaugurated in 2015, needs only minor upgrades - primarily new turf and a pitch ventilation system. 'We'll install a system to ventilate and oxygenate the pitch before replacing the grass,' said Alejandro Hutt, Monterrey's Host City Manager. 'That will be an important legacy from the World Cup and beyond.' As construction continues, Javier Aguirre's Mexico squad are building towards a crucial summer, with a Gold Cup title defence ahead and friendly matches against Turkey this week, followed by Japan and South Korea in September. After failing to advance beyond the group stage at Qatar 2022 - their worst World Cup performance since 1978 - Mexican fans crave more than just a well organised tournament. They want to see Mexico break the 'fifth-game' curse and reach the quarter-finals for the first time since 1986, the last time they were World Cup hosts. For a football-mad nation, pride will come not merely from hosting - but from delivering on all fronts. ($1 = 19.0578 Mexican pesos)
Reuters
11-06-2025
- Sport
- Reuters
Mexico readies for historic third World Cup as Azteca Stadium tensions grow
MEXICO CITY, June 11 (Reuters) - With a year until Mexico makes history as the first three-time World Cup host, the dream of a spectacular showcase is colliding with the practical challenges of modernising the iconic Azteca Stadium for global soccer's premier event. Beneath the imposing silhouette of Mexico's football cathedral - where Pele dazzled with Brazil in 1970 and Maradona's 'hand of God' propelled Argentina to glory in 1986 - construction crews tackle the formidable task of bringing one of the sport's most storied venues into the 21st century. The stakes are magnified as the 'Santa Ursula colossus' will host the tournament's opening match, a global spectacle that will focus the world's attention on Mexico from day one. Renovations will expand the stadium's capacity from 87,000 to 90,000, with upgrades centred on meeting FIFA standards through new changing rooms, enhanced hospitality zones, revamped VIP areas and additional seating in spaces previously occupied by boxes and lounges. While government officials and football administrators envisioned the project as a symbol of national pride, the renovation process has eroded trust between developers, local residents and other stakeholders. Stadium administrators announced in February that they had secured a 2.1 billion peso ($110.19 million) credit line from local financial group Banorte - along with a controversial new name: Estadio Banorte. FIFA regulations mean the stadium will be referred to as "Estadio Ciudad de Mexico" during the World Cup, yet the rebranding has sparked a fierce backlash from some fans, who view it as sacrificing football heritage for commercial interests. The backlash over the stadium's new name represents only one facet of the mounting tensions. Box and suite holders - some with relationships spanning decades - have threatened legal action after FIFA announced it would commandeer their seats during the tournament, overriding established contracts. One member of the Mexican Association of Box Holders has already filed a legal challenge to defend access rights. Beyond the stadium walls, frustration runs equally deep. Residents of Santa Ursula and surrounding neighbourhoods fear that promised infrastructure improvements like pedestrian bridges and transit lines will fail to address fundamental issues including inadequate lighting, water shortages and persistent traffic congestion. "We're not the stadium's backyard," one local resident told Expansion Politica. "But we're always treated that way." By contrast, Guadalajara and Monterrey, Mexico's other two host cities, face fewer obstacles. Guadalajara's 48,000-seat stadium, opened in 2010, has already hosted major events including the 2011 Pan American Games, while Monterrey's 53,500-capacity venue, inaugurated in 2015, needs only minor upgrades - primarily new turf and a pitch ventilation system. "We'll install a system to ventilate and oxygenate the pitch before replacing the grass," said Alejandro Hutt, Monterrey's Host City Manager. "That will be an important legacy from the World Cup and beyond." As construction continues, Javier Aguirre's Mexico squad are building towards a crucial summer, with a Gold Cup title defence ahead and friendly matches against Turkey this week, followed by Japan and South Korea in September. After failing to advance beyond the group stage at Qatar 2022 - their worst World Cup performance since 1978 - Mexican fans crave more than just a well organised tournament. They want to see Mexico break the 'fifth-game' curse and reach the quarter-finals for the first time since 1986, the last time they were World Cup hosts. For a football-mad nation, pride will come not merely from hosting - but from delivering on all fronts. ($1 = 19.0578 Mexican pesos)
