PREVIEW-Mexico's Walmex net profit seen up 10 pct

* What: Walmex second-quarter earnings survey

* When: Scheduled to report on July 9

* Net profit seen up 10 percent

MEXICO CITY, July 3 (Reuters) - Walmex, Mexico's biggest
retailer, is expected to report a 10 percent increase in
second-quarter net profit, helped by an aggressive advertising
campaign and promotions that attracted more customers and
boosted sales.

Six analysts surveyed by Reuters forecast, on average, that
Walmex's April-June net profit would come in at 3.271 billion
pesos ($317 million), up from 2.971 billion pesos a year
earlier.

Revenue for Walmex (WALMEXV.MX: Quote, Profile, Research) is expected to be up 12
percent in the quarter, boosted by customers attracted to price
cuts for basic foods.

"Walmex increased its spending on advertising and
promotions because competition is heating up, mainly from the
expansion of Soriana," BBVA-Bancomer brokerage said in a note.

Soriana (SORIANAB.MX: Quote, Profile, Research), the No. 2 retailer in Mexico,
strengthened its presence in the attractive Mexico City market
last year with its purchase of 198 stores from rival Gigante
(GIGANTE.MX: Quote, Profile, Research).

Higher advertising spending and store expansion is seen
putting pressure on Walmex's margins, but more efficient
distribution and more profitable price negotiations with
suppliers will bring a 10.8 percent rise in earnings before
interest, taxes, depreciation and amortization (EBITDA).

Walmex, controlled by the U.S. retailer Wal-Mart Stores
Inc. (WMT.N: Quote, Profile, Research), is expected to report earnings on July 9.

Below are average estimates of the analysts in the survey.
All figures are in Mexican pesos.
=============================================================

2008 2007 PERCENTAGE

APRIL-JUNE APRIL-JUNE CHANGE
-------------------------------------------------------------
Revenue 57.290 bln 51.089 bln +12.1 pct
EBITDA 5.418 bln 4.888 bln +10.8 pct
EBITDA margin 9.46 pct 9.57 pct -11 bps*
Operating profit 4.403 bln 4.003 bln +10.0 pct
Operating margin 7.69 pct 7.84 pct -15 bps
Net profit 3.271 bln 2.971 bln +10.1 pct
=============================================================

*Basis points

($1 =10.3070 pesos at end June)
(Reporting by Gabriela Lopez; Editing by Steve Orlofsky)