Walmart clocks 1.3% growth in Q3 net sales
New Delhi: e-Commerce giant Walmart has clocked 1.3 per cent increase in net sales in its international business at $29.6 billion in the third quarter ended October 31, supported by strong results of Flipkart and PhonePe that saw 'all-time high' monthly active users.
The US-based company had picked up a majority stake in the Indian e-commerce major, Flipkart, for $16 billion in 2018. Earlier this year, Walmart led a new $1.2 billion financing round that valued Flipkart at $24.9 billion. In a statement, Walmart said its 'international' segment's net sales were at $29.6 billion, an increase of 1.3 per cent, and that changes in currency rates had negatively affected net sales by approximately $1.1 billion. "Excluding currency, net sales would have been $30.6 billion, an increase of 5 per cent, led by Flipkart, Canada and Walmex. Strong growth in net sales at Flipkart was helped by a record number of monthly active customers," it added.
During the earnings call too, Walmart President, CEO and Director C Douglas McMillon noted the strong performance of its India units. "In India, Flipkart and PhonePe had strong results for the quarter. The number of monthly active customers for these platforms is at an all-time high," he said. The strong growth for Flipkart and its payment app, PhonePe, have come on the back of 'Big Billion Day' sales (held from October 16-21). E-commerce companies in general are witnessing strong growth in their business amid the pandemic as shoppers turn to digital platforms to maintain social distancing. "Flipkart continues to perform well and recently completed its best-ever Big Billion Day sales event in October.
Their third quarter Gross merchandise value (GMV) continued to reflect strong demand post-COVID lockdowns with significant growth in monthly active customers," Walmart Chief Financial Officer and Executive Vice President Brett M Biggs said. Flipkart, which competes head-on with Amazon in the Indian market, has been focussing on strengthening its presence in various categories like fashion and grocery.
It is also investing aggressively in the Indian market and has announced picking up stakes in augmented reality company Scapic and premium youth-focused fashion firm USPL and buying Intellectual Property from Mech Mocha. Flipkart Group has also made a Rs 1,500-crore investment in Aditya Birla Fashion and Retail Ltd (ABFRL), and Rs 260-crore investment in Arvind Youth Brands. Walmart said its total revenue was at $134.7 billion, an increase of $6.7 billion. Consolidated operating income was $5.8 billion, an increase of 22.5 per cent. "This was another strong quarter on the top and bottom line... We think these new customer behaviours will largely persist and we're well positioned to serve customers with the value and experience they're looking for," McMillon said.