Walmart’s int’l biz profit falls due to Flipkart

Bengaluru: The world’s largest retailer Walmart has said that both gross profit and operating income in its international business fell, primarily due to Flipkart where it acquired 77% stake last year for $16 billion.
Walmart said that its international operating income fell 38% to $790 million for the first quarter of the new financial year. Gross profit rate declined 172 basis points (100bps = 1 percentage point), the company said in a statement on Thursday.
“A large part of the decline was due to dilution from Flipkart, which was expected, partially offset by the deconsolidation of Brazil,” said Walmart CFO Brett Biggs in a post-results statement. “The full-year earnings dilution related to Flipkart is still in line with expectations.”
Operating income fell by 9.9% and gross profits 116bps in the previous quarter ending January, the first full quarter when Flipkart results were consolidated in its business.