Tuesday, January 26, 2021
Home Lead Story Flipkart Acquisition Negatively Impacts Walmart International

Flipkart Acquisition Negatively Impacts Walmart International

Flipkart posted $6.14 billion (Rs 43,615 crore) revenue for the fiscal 2018-19, according to Chennai-based business intelligence platform Paper.vc

The Flipkart acquisition once again negatively impacted Walmart International’s operating income on Thursday which dropped to $600 million in the third quarter ending September from $1.2 billion a year-ago quarter — a massive drop of 46.2 per cent.

Operating income declined 5.4 per cent — or 4.1 per cent in constant currency — due in part to a non-cash impairment charge for Walmart International.

“As expected, the inclusion of Flipkart negatively affected operating income,” the company said in a statement on Thursday.

Net sales at Walmart International were $29.2 billion — an increase of 1.3 per cent.

The inclusion of Flipkart and strength in Walmex and China were partially offset by softness in the UK, said the company.

In the second quarter, the operating income of Walmart’s international operations fell by 29.3 per cent to $893 million while net sales declined marginally to $29.13 billion.

Walmart wrapped up Flipkart’s acquisition for $16 billion in 2018, which made it the world’s biggest e-commerce deal.

The company, however, was bullish on record sales it achieved during Flipkart’s “The Big Billion Day” festive sales in India.

walmart store
Walmart in Fajardo, Puerto Rico. Wikimedia Commons

“We celebrated the first anniversary of Flipkart and PhonePe as part of the Walmart family. It was great to see record sales in India during The Big Billion Days event,” said Doug McMillon, President and CEO, Walmart.

“Looking ahead, we’re prepared for a good holiday season. Our integrated offering with stores and eCommerce delivers value and convenience for our customers,” he added.

The US e-commerce behemoth reported $128 billion in total revenue for third quarter — an increase of $3.1 billion or 2.5 per cent.

The company had net cash provided by operating activities of $14.5 billion for the nine months ended October 31, 2019, which decreased when compared to $17.3 billion for the nine months ended October 31, 2018 primarily due to the timing of vendor payments and US associate payroll, as well as the inclusion
of Flipkart operations.

“We generated free cash flow of $6.8 billion for the nine months ended October 31, 2019, which decreased when compared to $10.3 billion for the nine months ended October 31, 2018 due to the same reasons as the decline in net cash provided by operating activities, as well as $0.8 billion in increased capital expenditures,” Walmart mentioned.

Also Read: Upcoming Smart TV of Nokia gets Certification from BIS

Flipkart posted $6.14 billion (Rs 43,615 crore) revenue for the fiscal 2018-19, according to Chennai-based business intelligence platform Paper.vc.

“The financials reveal how the e-tailer has performed after Walmart acquired 77 per cent of its equity in August 2018 for $16 billion (Rs 1,07,662 crore),” said Paper.vc.

According to the posted financials, the group firm (Flipkart) managed to achieve a 63 per cent reduction in losses to $2.42 billion (Rs 17,231 crore) for the fiscal under review, from the $6.6 billion (Rs 46,895 crore) loss posted in 2017-18. (IANS)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,773FollowersFollow

Most Popular

A Farmer Protest Timeline: How Things Turned Violent In Delhi On R-Day

Farmers, who were seen as friendly and peaceful for more than 60 days as they waited for the government to accept their terms, suddenly...

Happy Childhood May Lower Drug Risk Among Teens

If your teenage child has memories of a happy childhood, they are less likely to indulge in drinking or substance abuse and enjoy learning,...

Priyanka Chopra: Its Enlightening To Understand The Importance Of Women In Leadership

Actress Priyanka Chopra Jonas is celebrating the women who helped in drafting the Indian Constitution and says it has been enlightening to understand the...

72nd Republic Day: Time For A Patriotic Musical Rewind

As India celebrates 72nd Republic Day on Tuesday, it is time for a musical rewind of Republic Day songs. There are countless classics that spring...

Republic Day 2021: Significance of the Day and Highlights of The Parade This Year!

On 26th January 2021, the Republic of India celebrates its 72nd "Republic Day". It is the day on which India became the Sovereign Republic...

South Africa Activities To Keep Little Ones Occupied

The pandemic has normalized work-from-home and study-from-home scenarios, leading to increased face time between parents and children in the new year. While both parents...

Shilpa Shetty’s Yoga Tips To Bust Stress

Bollywood actress and yoga enthusiastic Shilpa Shetty Kundra on Monday suggested the right yoga tips to bust stress, and improve core strength and flexibility...

Air Pollution Linked To A Heightened Risk Of Diseases Of The Eyes

Air pollution is linked to a heightened risk of progressive and irreversible sight loss, known as age-related macular degeneration (AMD), a new study suggests....

Recent Comments