Supermarket giants Soriana and Chedraui have reported contrasting profit results for their fiscal second quarters, although both reported growth in sales for the period.
Soriana, the country’s second-largest retailer, saw net profit fall by 19% to 716.6m pesos ($55m), as sales costs rose and the peso fell against the dollar. The company has been trying to match market leader Walmex with aggressive promotions, which cut into earnings in the quarter. Overall sales however were up 6.5% to 22.8bn pesos.
Meanwhile, Chedraui, the country’s fourth-largest supermarket chain, saw net profit rise by 4.6% to 423.5m pesos ($32.7m). Sales were up a solid 7.1% to 12.36bn pesos, while like-for-like sales rose by 2.8%. The company reported growth both in Mexico and in the US, although results were affected by the shift of the Holy Week to the first quarter.
The company opened two stores in central Mexico, three in the state of Baja California Sur, and one store in Phoenix, Arizona. As of 30 June, Chedraui operated 146 stores in Mexico and 22 in the US.
NamNews - Thursday 29th July 2010