MEXICO: "Weak" consumption hits Comerci sales
Mexican retailer Controladora Comercial Mexicana has posted lower first-quarter sales, with fiscal reform in the country weighing on consumer spending.
The group, known as Comerci, posted a 0.9% fall in same-store sales, which contributed to a 0.8% dip in net sales to MXN10.62bn (US$811.4m).
Comerci said this year's later Easter had affected sales but added: "Consumption remained weak during the 1Q14, affected in part by a reduction in disposable income and tax increases due to the fiscal reform."
Nonetheless, same-store sales from its smaller City Market, Fresko and Sumesa chains "outperformed the rest", Comerci claimed.
Gross profit was flat at MXN2.71bn, operating profit was up 0.8% at MXN955.4m. Net income was 8.7% higher at MXN451m due in part to lower interest charges.
In January, Comerci said it was considering takeover approaches made by domestic and international suitors.
The retailer said it had received "approaches from foreign and domestic groups interested in a partnership or strategic sale". The company said it was "exploring" the approaches.
Comercial, which has 199 stores, is listed on the Mexican stock exchange but most of the business is owned by descendants of the company's founders.
- Why Post is increasing its exposure to cereal
- Lacklustre sales see Hershey turn to snacking
- Comment: Tread carefully over payment terms
- Food marketing firmly on UK political agenda
- E-commerce: Online could offer growth in Russia
- Hershey to acquire meat jerky firm Krave
- Hershey linked to takeover of jerky maker Krave
- Up & Go breakfast drinks set for UK launch
- Campbell aligns structure with growth objectives
- Mead Johnson offsets China slowdown
- 10 Key Trends in Food, Health and Nutrition 2015
- Unilever - Strategy and SWOT Report
- The Sugar Backlash and its Effects on Global Consumer Markets
- Global Consumer Trend Framework: Understanding Attitudes and Behaviors that Influence Global Consumption Habits
- PepsiCo, Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report