Flipkart and PhonePe had all-time high monthly active customers during the July-September quarter, Walmart revealed during its earnings call on November 17. Flipkart also led international net sales for Walmart that owns a majority of the e-commerce platform.
Walmart’s international net sales grew by 1.3% YoY to $29.6 billion. If changes in currency rates are not taken into account, the net sales would have been $30.6 billion, up 5% YoY led by Flipkart, Canada and Walmex (the Mexican and Central American Walmart division).
“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.” — Walmart CEO C. Douglas McMillon
“Strong growth in net sales at Flipkart was helped by a record number of monthly active customers,” the company said but did not provide specific numbers. Walmart’s international net sales accounted for 22% of its total revenue. E-commerce contributed 14% of international net sales. Going forward, Walmart’s priority markets will be India, China, Mexico and Canada, Judith McKenna, President and CEO of Walmart International, said.
Flipkart’s “third quarter GMV [gross market value] continued to reflect strong demand post-COVID lockdowns with significant growth in monthly active customers”, Brett M. Biggs, the CFO said. Flipkart’s improved margin mix also aided Walmart’s international adjusted operating income along with government stimulus in various markets and cost saving initiatives in Mexico, Briggs said.
Inventory for the quarter reduced by 9.4% and fell to $10.8 billion. The company said that if currency changes are excluded, it decreased by 5%, primarily due to timing of the Big Billion Days event at Flipkart. Walmart International’s gross profit rate increased by 90 base points, primarily due to Flipkart and reduced sales of fuel in the UK.
In the quarter, Walmart:
- Made additional investment of $30 million in Ninjacart, a fresh produce supply chain start-up. The American company had earlier invested $50 million in Ninjacart in August 2019.
- Acquired mobile gaming start-up Mech Mocha via Flipkart
- Announced a strategic partnership with Flipkart and Aditya Birla Fashion and Retail
- Total revenue: $134.7 billion (up 5.2% YoY)
- International net sales: $29.6 billion (up 1.3% YoY)