Inflation is already weighing on Mexican companies, and the increase in the prices of raw materials and energy has affected the profits of some, causing a less brilliant quarter than expected.
During the second quarter of 2022, the sales of 30 companies (excluding banks) that are listed on the Index of Prices and Quotations (S&P/IPC BMV) were slightly higher than expected by analysts, while the operating flow (Ebitda) and the net income was lower than what was estimated by the experts.
Revenues reached 1.38 billion pesos, a growth of 12.6% compared to the same period last year and a figure 4.1% higher than that estimated by analysts.
On the other hand, the consolidated Ebitda was 297,280 million pesos, an annual decrease of 3.5% and 4.2% below estimates.
The consolidated net income was one of the hardest hit during the period from April to June, since it registered an amount of 99,134 million pesos, which meant a decrease of 27.9% compared to the second quarter of 2021 and 13% below the estimate by analysts.
“Some companies such as banks, airports, consumer discretionary and department stores benefited from the economic and social recovery, and a comparable base that is easier to beat. On the other hand, we had companies that were very marginalized due to higher costs of energy and supplies, such as Cemex, Volaris and the mining companies (which also suffered lower metal prices and other unfavorable circumstances),” said Carlos Gómez, an analyst at Intercam.
Among the companies with the highest increase in sales in the quarter are Grupo Carso, with 64%; Southeast Airport Group (ASUR), with 49.4%; Grupo Aeroportuario del Pacífico (GAP), with 35%; Alsea, with 34.6%, and Telesites, with 34.1%. The mining company Grupo México was the one that registered the worst performance, with a drop of 18.1%.
“In general we saw solid reports from companies and despite the fact that there was pressure on margins, especially in the consumer staples, industrials and materials sectors, both revenues and profits were higher. If we go into the sectors, discretionary consumption was surprising with Liverpool and Alsea thanks to the growth in both revenues and Ebitda”, said Belén Ulloa, senior analyst of variable income management at Casa de Bolsa Finamex.
Ulloa added that within basic consumption there were also reports that surprised Bimbo, Coca Cola FEMSA and Arca Continental due to an adequate combination of sales volumes and pricing strategy. On the other hand, margins in the materials sector fell 2.4 percentage points, mainly due to Grupo México reporting lower volumes and higher costs.
The airports had robust numbers in passenger traffic; however, the sector’s profit margins were affected by Volaris due to high fuel costs.
The most outstanding performances in the operational flow category were the airport groups, supported by an increase in the number of passengers, even exceeding pre-pandemic levels, since there is a greater opening and fewer restrictions on international flights, mainly to destinations such as the United States. and Europe.
Gómez explained that despite the mixed results of the companies, this quarter was key because it laid the foundations for what can be expected for the performance of the issuers in the face of a more adverse economic environment. “For the third quarter, we would expect a more evident impact of the new circumstances and economic expectations on the operations of the firms, so we would expect pressure on the margins and profitability of the issuers due to costs,” added the Intercam analyst .