MARKETS
The S&P / BMV IPC had a marginal gains of 0.3% during the last week, supported by the rally in US markets, and rumors that President elect Donald Trump will impose gradual tariffs to avoid any potential inflationary impact. However, the Mexican peso lost 1.6% to MXN$20.84/USD while the yield of the yield of the Mexican 10-year M-Bono rose 9 bps to 10.33%.
The S&P / BMV IPC’s top stock gainers for the week were: RA * (+7.1%), OMA B (+6.5%) and KOFL L (+5.6%). The index’s biggest losers were: CUERVO * (-10.9%), ALSEA * (-7.9%) and TLEVISA CPO (-6.9%).
Next week, we expect the following macroeconomic indicators: inflation rate, IGAE, retail sales and the Citibanamex Expectations Survey.
LISTED COMPANIES
Femsa’s convenience chain OXXO announced an agreement with Nu Mexico whereby the Brazilian fintech’s clients will have access to OXXO’s network of more than 22,000 stores across the country to make cash deposits and withdrawals. Nu’s existing network will reach more than 30,000 physical contact points with this agreement.
Liverpool released preliminary results for 4Q24, saying it expects consolidated revenue growth between 9.2% to 9.6% YoY, driven by successful promotional campaigns including El Buen Fin, Venta Nocturna and other seasonal offers which will translate into a same-store growth of approximately 7.3% for the department stores and approximately 5.2% for Suburbia. The company anticipates lower margins than the previous year due to a reduction in the commercial gross margin, an increase in operating expenses and a higher provision for doubtful accounts. The company will publish 4Q24 results on February 27th. On the other hand, Liverpool issued US$1.0 billion in Senior Notes to finance part of the recently announced acquisition of a 49.9% equity stake in Nordstrom. This included US$500 million in 6.255% Senior Notes due 2032 and US$500 million in 6.658% Senior Notes due 2037.
Grupo Chedraui released its 2025 guidance. In Mexico, the company expects a SSS growth between 3.5-4.5% while total sales would rise between 7.5% to 8.5%. In the US, the company anticipates SSS to rise 2.0-3.0% in US dollars, while total sales will likely be up 3.0-4.0%. It also estimates a sales floor expansion of 4.3% in Mexico and 1.3% in the US. Its internal operational efficiency plan is expected to mitigate higher labor costs, leading to a consolidated EBITDA margin expansion of 10-20 bps (0-10 bps in Mexico, 20-30 bps in the US and flat in real estate). Capex will represent an estimated 3.4% of consolidated sales. The net bank debt/ EBITDA ratio is expected close reach -0.3x by the end of 2025. Such a figure does not include the possibility of inorganic growth during the year.
Alsea’s Board of Directors appointed Christian Gurría Dubernard as its next CEO, effective July 1st, succeeding Armando Torrado Martínez, who along with the rest of the board will assist him during this transition period. Mr. Gurría has worked at Alsea for more than 25 years. He began his career at the company in 1991 with Domino’s Pizza as an in-store operator, later advancing to a Regional Director role. He has since held various leadership positions across all segments of the company, including Director of Casual Dining in Mexico, Director of Starbucks in Mexico, and most recently, Director of Starbucks in France and the Benelux region over the past six years.
GFNorte, BBVA Mexico, HSBC Mexico, Scotiabank Inverlat and Banco Santander Mexico agreed to sell their equity stakes in Trans Union Mexico to TransUnion for an enterprise value of MXN$16.8 billion. TransUnion will thus own 94% of its Mexican subsidiary, up from 26%. The transaction is expected to take place by the end of 2025, subject to regulatory approval.
Fibra Uno successfully placed US$800 million in unsecured sustainable bonds in international markets. This included US$300 million with a 12-year term and an 8.25% coupon, and US$500 million with a 7-year term and a 7.70% coupon. The Fibra will use proceeds to prepay the FUNO 26 Senior notes, extending its debt maturity profile with no USD amortizations until 2030.
Fibra Inn reported that its average daily rate increased 15.2% YoY to MXN$1,893. However, it was partially offset by a 4.9 PP decrease in occupancy levels to 50.0%. These factors generated a 4.8% RevPar growth and a 6.4% rise in hotel revenues, which stood at MXN$165.8 million.
Lasites’ shareholders approved the conversion of series “B-1” and “B-2” into a new, sole series with full voting rights.
Diablos Rojos will propose its shareholders a 100:1 split to increase the liquidity of its shares and an MXN$133.5 million capital increase through the issuance of 13.35 million shares at a price of MXN$10.0 each.
Qualitas’ car insurance subsidiary Qualitas Compañia de Seguros Colombia S.A. has been authorized to start operations. Premium underwriting and service to agents and clients will begin in the coming days.
Bolsa announced the creation of the Executive Commercial and Marketing Department, which will be headed by Mr. Luis René Ramón Arana and will include the following divisions: Commercial, Marketing, Corporate Communications and Financial Culture. The main purpose will be to strengthen and unify the group’s commercial strategy, as well as to optimize the coordination and alignment between the different business areas.
Planigrupo Latam has extended the tender offer period to acquire 100% of GAV’s shares to next January 31st as it is still pending Cofece authorization.
Fibra Plus obtained MNX$3.15 billion in loans from five institutions, that it will use to strengthen its financial structure. The Fibra also concluded the first phase of its asset divestment program amounting to MXN$870 million.
Kuo has concluded the sale of its Aftermarket Business to Frasle Mobility, after having obtained regulatory approvals and fulfilling precedent conditions within the agreement. Kuo will use proceeds to strengthen its capital structure through debt prepayments, investment in strategic projects, and other corporate purposes.
Javer has called an extraordinary shareholder’s meeting for next January 31st to cancel the listing of its shares on the MSE, after Vinte announced it acquired a 99.92% equity skate in the company. Javer’s CFO, Felipe Loera, announced his resignation from January 13th to become Consorcio Ara’s new CEO.
OTHER COMPANIES
The Banamex dual IPO may be delayed to 2026 as it depends on market conditions and regulatory approvals, according to Citi’s CEO Jane Fraser.
Amazon Web Services began operations at its US$5 billion digital city in the State of Querétaro to provide more than 440 hi-tech services including cloud computing, data storage and artificial intelligence projects, according to Paula Bellizia, Latin America VP.
Mexico’s telecom regulator (IFT) approved Altán Redes’ acquisition by CFE, making it the new operator of Red Compartida. CFE now manages network infrastructure and serves end users in both wholesale and retail markets. IFT also canceled the January 27, 2025, 5G spectrum auction after the National Agency of Digital Transformation and Telecommunication (ATDT) stated it, or any future IFT successor, couldn’t proceed under current terms.
TRADE AND ECONOMICS
President Claudia Sheinbaum released the “Plan Mexico” which is an ambitious framework aimed at transforming the country’s economy through the participation of the public and private sectors. Its main goals include to be among the world’s 10 largest economies, to increase the investment to GDP ratio above 28% by 2030, and the creation of 1.5 million jobs in specialized manufacturing and strategic sectors. An important part of the Plan will be the “Nearshoring decree”, which will be published during the next few days. The Plan Mexico expects to attract US$277 billion in investments from domestic and international investors, and is aligned with Donald Trump’s goal of reducing Chinese exports into North America.
International visitors rose 20.3% YoY to 7.6 million in November 2024, which included a 51.8% YoY increase in international visitors to 3.9 million and a 13.2% YoY rise in excursionists to 3.7 million. Total expenditure was up 11.0% YoY to US$2.7 billion, despite a 7.7% reduction in the average expenditure per tourist to US$362.
The Monthly Indicator of Private Consumption (IMCP) showed a seasonally adjusted 0.7% MoM decrease in October 2024, with domestic goods declining 1.0% and imported goods falling 0.5%. The original data indicated a 1.4% YoY increase in private consumption, driven by a notable 6.0% rise in imported goods, while domestic goods saw a slight 0.7% increase.
Gross fixed investment increased 0.1% (vs. the +0.2% expectation) MoM in October 2024, after two consecutive months with declines, according to seasonally adjusted data. Nevertheless, gross fixed investment decreased 2.6% YoY (original data, vs. the -2.8% forecast), the second consecutive month with an annual contraction, due mainly to an 11.0% decline in construction .
CETES auction: 28-day CETES -10 bps to 9.78%; 90-day CETES +3 bps to 9.85%; 175-day CETES -6 bps to 9.76% and 679-day CETES -21 bps to 10.18%.
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