Mexican retailer Controladora Comercial Mexicana has posted a 71% drop in second-quarter net profit due to higher financial costs.

Comerci said that sales rose 5.3% to MXN13.38bn (US$1bn) and operating profit fell 9.7% to MXN672.1m.

However, net profit fell to MXN83.6m and the company booked a financial loss of MXN461.7m in the second quarter.

In a filing with the Mexican stock exchange, Comerci said that interest payments tripled year-on-year. In the April to June period, the company said interest payments rose to MXN621m. 

Comercial is renegotiating its loan agreements having defaulted on current debt in October after racking up billion-dollar losses on currency derivatives last year.