MEXICO: Alfa posts US$823m FY net loss

By: just-food.com | 2 February 2009

Mexican conglomerate Alfa posted a net loss of US$823m for 2008 due to foreign currency debt and the impact of Hurricane Ike.

Due to "unpredictable events" and losses in the mark-down of inventories hit Alfa's net income to the tune of US$54m. The company made a loss of some US$463m due to equity swaps, interest rates and financial derivatives used to fix the price of gas and gasoline.

Alfa reported an operating income of $542m, a drop from $578m in the comparable period for 2007 and impacted by "negative industry trends" and the depreciation of the peso during the fourth quarter.

Revenues reached $10.64bn, 11% higher than 2007, due to increased sales volumes and higher pricing across its different businesses during the first half of the year.

On a cumulative basis, 2008 EBITDA was $964m, the same as in 2007.

However, Alfa's food business Sigma saw a 13% rise in revenue to reach $26.10bn, while operating income reached $2.04m from $1.96m in the comparable period of 2007.

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