MARKETS
The S&P / BMV IPC was virtually flat, underperforming US indices, with pressure from Walmex’s weak results and the new threat of US tariffs. Meanwhile, the Mexican peso lost 0.9% at MXN$18.78/USD, and the yield of the 10-year M-Bono was up 9 bps to 9.49%.
The S&P / BMV IPC’s top gainers for the week were: ALFA A (+6.3%), KIMBER A (+5.7%) and CEMX CPO (+5.6%). On the other hand, the main losers were: WALMEX * (-8.9%), CUERVO * (-5.4%) and LIVEPOL C1 (-3.3%).
LISTED COMPANIES
Walmex reported weaker than expected 2Q25 results, as EBITDA declined, with the stock plunging 7.4% on Thursday. Consolidated revenues rose 8.3 % YoY, accelerating from the 6.5 % annual growth in 1Q25, in line with consensus. Mexico’s SSS rose 4.4 %, up from 1.4 % in 1Q25, mainly due to a 6.0% ticket inflation, as traffic declined 1.4 %. Central America posted 2.6% SSS growth, also up from 1.9 % in 1Q25, with ticket up 2.6% and traffic rising 1.4%. eCommerce GMV soared 20 % YoY, as the company obtained 1.7 million new digital subscribers in the quarter, driven by On-Demand (+24 %) and Marketplace (+14 %). Gross profit advanced 8.2 % YoY, but the gross margin flatlined at 24.1%. General expenses jumped 12.2 %, due to growth and omnichannel investments, resulting in a 0.2% EBITDA decrease and a 90-bps margin contraction to 9.5%. Net income dropped 10.3% YoY.
Moody’s Investor Service has downgraded Grupo Televisa’s issuer and senior debt credit ratings to Ba1, from Baa3. Moody’s also assigned a Ba1 Corporate Family Rating. The outlook remains negative.
TelevisaUnivision announced preliminary 2Q25 results. The company expects sales between US$1,205 million and US$1,210 million, down from US$1,257 million in 2Q24, mainly due to FX effects and weaker U.S. advertising, though sequential performance improved with stabilized linear ratings and strong sports content. In Mexico, local currency ad revenue showed flat to low single-digit growth driven by VIX and strong sports programming slate, partially offset by a decline in local advertising revenue, while subscription and licensing remained flat. Adjusted OIBDA is projected between US$395 million and US$400 million, up from US$362 million, driven by cost-cutting measures. The company expects to end the quarter with a net debt to adjusted OIBDA of 5.5x–5.6x. In addition, Univision announced it will launch a US$1.0 billion offer of Senior Secured Notes due 2032. The company plans to use proceeds from the Notes offering and cash on hand to refinance its 6.625% Senior Secured Notes due 2027.
AC reported mixed 2Q25 results. Consolidated revenues were up 8.0% YoY, broadly in line with Bloomberg consensus, supported by pricing initiatives and favorable mix effects despite a 2.7% decline in total volume to 619.3 MUC, with Mexico and the US posting volume contractions while South America advanced modestly. Gross profit rose 7.5% YoY, slightly lagging revenue growth due to a 13.7% YoY appreciation of the USD, pressuring the gross margin to 46.9%, down 20 bps sequentially. EBITDA increased 8.1% YoY, outperforming consensus, with a flat EBITDA margin of 20.7%, driven by strong US and South America performance offsetting weakness in Mexico. Net profit rose a tepid 1.2% YoY, missing estimates, as higher interest expense and lower FX gains compressed the bottom line.
Kimberly-Clark de México reported weak 2Q25 results with significant margin erosion. Sales remained unchanged YoY driven by a 2% decline in the Consumer segment and an 8% decrease in the Away from Home segment, while exports surged by 24%. Gross profit fell 10% YoY resulting in a gross margin of 38.2% in 2Q25, impacted by a significantly weaker peso against the previous year, which offset the MXN$500 million operating efficiencies. EBITDA experienced a 12% decline, with an EBITDA margin of 25.4%, reflecting the Peso depreciation and increased raw material costs. Net income decreased by 13%.
Nemak reported favorable 2Q25 results with strong margin expansion. Total revenues were up a modest 0.6% YoY in USD terms, slightly below consensus, supported by the carry-over of product repricing, commercial agreements, a more favorable product mix, and euro appreciation, which collectively offset the 4.1% decline in volume to 9.8 million equivalent units due to lower light-vehicle production in Europe. EBITDA rose 11.7% YoY, marginally above consensus forecasts, reflecting enhanced product mix, operational efficiencies and commercial agreements, while the EBITDA margin expanded to 14%, from 13% in 2Q24. The company reported a US$24 million net loss, significantly below market expectations, primarily explained by FX losses tied to the appreciation of the euro against Nemak’s euro-denominated liabilities.
Kuo reported strong 2Q25 results with higher sales and margin expansion. Consolidated revenues were up 4.2% YoY, driven by stronger selling prices and higher volume from the Pork Meat business, alongside increased volume and prices at Megamex. EBITDA grew 10.4% YoY attributed to Pork Meat’s margin expansion supported by a 12% decline in soybean prices and Megamex’s margins gains in the US market and improved production efficiencies. Net income reached MXN$770 million, compared to a MXN$179 million loss in 2Q24, primarily due to Pork Meat’s strong performance and the divestment of the Aftermarket Parts business.
Promotora de Hoteles Norte 19 reported soft 2Q25 results. Total revenues rose 7.7% YoY driven by ADR optimization and the inclusion of Full-Service hotels. Portfolio ADR advanced 5.8% YoY, while occupancy fell 1.6 pp to 54.8%, resulting in a 2.7% YoY rise in RevPAR. Total costs and expenses rose 17.4% YoY due to higher expenses in core operational categories and development expenses at the Altabix Stackup platform. EBITDA declined 28.4% YoY, with the margin contracting 890 bps to 17.5%. Net Income was MXN$22.4 million in 2Q25, compared to a MXN$54.3 million net loss of the previous year. The company has launched a plan to improve its profitability through operating efficiencies estimated at MXN$120 million.
Grupo Bimbo announced it will invest US$2 billion in Mexico between 2025 and 2028 to modernize its plants and expand its sustainable fleets. The company estimates that this investment will create 2,000 direct jobs and up to 10,800 indirect jobs.
Grupo Financiero Banorte announced its intention to amortize on July 18th its Structured Bank Notes with ticker symbol BANORTE 3-25 amounting to MXN$104.19 million. The company will offer to pay MXN$104.19 per structured bank note.
Fibra Educa announced the acquisition from a related party of six assets in the education sector with GLA of 42,250 M2, cap rate of 10.72%, and NOI margin of 88.81%. These properties represent 2.28% of FIBRA EDUCA’s annualized revenues and 7.2% of total GLA at the end of 1Q25. They have 15-year lease contracts extendable for a similar period and are located in the states of Coahuila, Morelos, and Mexico City. Fibra Educa financed itself with proceeds from the debt placement it carried out at the end of 2023 and the release of the deposit it created in August 2024.
Fibra Inn’s ADR increased 9.7% YoY to MXN$1,976 in June, accelerating relative to prior months. However, occupancy levels declined 2.8 PP to 60.4%. These factors together resulted in a 4.9% YoY RevPar increase to MXN$1,194 and a 4.4% YoY rise in lodging revenue to MXN$199.3 million. Fibra Inn’s technical committee announced the appointment of Banco Actinver as substitute trustee.
Fibra Mty has successfully completed the acquisition of the two remaining facilities of the “Batach” industrial portfolio for US$73.4 million excluding VAT on constructions, as well as other applicable taxes, acquisition costs, and expenses. The acquisition was fully funded with proceeds from the equity issuance completed in early 2024. Fibra Mty also concluded the sale of the office property known as Fortaleza, located in State of Mexico, for MXN$360 million, plus applicable VAT, which is part of the operations to purge the property portfolio.
VINTE reported positive 2Q25 results. Total revenue was up 0.9% YoY on a pro forma basis. Housing revenue grew 2.5% YoY, primarily due to an 11.8% increase in the average price per unit, although volume fell 6.8%. This was partially offset by a 62.1% decrease in land sales. The reported EBITDA declined 16.4% YoY on a non-comparable basis. Excluding last year’s extraordinary land sales, EBITDA would have been slightly higher. Net income increased 2.8% YoY due to lower financial expenses.
OTHER COMPANIES
Grupo Coppel announced the appointment of Diego Coppel Sullivan as its new CEO effective July 11th, replacing Agustín Coppel Luken, who will remain Chairman of the Board. The company intends to improve its corporate governance practices and consolidate its long-term growth strategy,
Innovatio Capital acquired the Querétaro Gallos Blancos soccer team from Grupo Caliente for US$120 million after receiving approval from the Mexican Soccer Federation (FMF), the Owners Assembly of the LigaMX and Cofece. Meanwhile, Grupo Orlegi announced it would sell the Atlas team, ending its multi-ownership, to comply with FIFA’s recent push on the matter; it will keep the Santos team.
Viva Aerobus’ total passenger traffic increased 6.1% YoY in June 2025 to 2.5 million, driven by a 5.8% increase in domestic and a 9.2% rise in international traffic.
ECONOMIC
Industrial activity rose 0.6 % MoM (seasonally adjusted) in May 2025, fueled mainly by a 2.8% increase in construction activity, according to INEGI. Industrial activity decreased 0.8 YoY (original data), primarily due to an 8.4% contraction in mining and a 3.7% reduction in the utilities sector.
International visitors increased 18.0% YoY to 7.9 million in May, INEGI reported. Total expenditures rose 6.3% YoY to US$2.6 billion while the average daily expense was down 9.9% to US$330.
The US government announced it will impose 30% tariffs on Mexican imports from August 1st. The Department of Commerce imposed a 17.09% tariff on Mexican tomato imports after cancelling the Suspension Agreement of the 2019 Antidumping Investigation.
CETES auction: 28-day CETES -20 bps to 7.65%; 91-day CETES -3 bps to 7.97%; 175-day CETES -4 bps to 8.07% and 721-day CETES +5 bps to 8.65%.
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