MARKETS
The S&P / BMV IPC fell 1.6% last week, diverging from US indices, pressured by profit-taking and mixed quarterly results, which more than offset stronger-than-expected macroeconomic data. Meanwhile, the Mexican peso was down 0.4% and the yield of the 10-year M-Bono was up 12 bps to 9.43%.
The S&P / BMV IPC’s top gainers for the week were: Q * (+4.2%), CEMEX CPO (+3.7%), MEGA CPO (3.0%). On the other hand, the main losers were: BIMBO A (-12.9%), TLEVISA CPO (-10.4%) and ORBIA * (-9.8%). Off-index, VOLARIS’ 15.6% decline was also notable.
LISTED COMPANIES
Hoteles City Express has reshaped its board amid signs of a possible change in control. Luis Barrios stepped down as Chairman but remains on the board, while new directors—including Pedro Solís Cámara (board of Fibra Plus), Gustavo Ramírez Berrueta (Board of Fibra Plus), and Abelardo Hernández (Soha Capital, ex Sura)—joined. The move has sparked market speculation about a potential shift in strategy, perhaps reminiscent of the Fibra Plus / Fibra HD merger, albeit with differences.
Cemex reported weak 1Q25 operating results; net income was helped by a non-recurring gain on the sale of the Dominican operations. Total revenues fell 1% YoY on a like-to-like basis, as higher prices could not fully offset lower volumes. Consolidated volume showed a 2% fall in cement and a 4% decline in aggregates, reflecting challenging weather conditions and a tough prior-year comparison. EBITDA decreased 10% YoY on a like-to-like basis, pressured by lower volumes, maintenance expenses, and FX headwinds from the peso depreciation, partially mitigated by energy and freight savings. The EBITDA margin narrowed 200 basis points to 16.5%. Net profits surged 189%, mainly driven by non-recurring gains from the sale of Dominican Republic operations. The company reiterated its flat EBITDA guidance for 2025.
Megacable reported mixed 1Q25 results. Total revenues rose 7.8% YoY, supported by growth in the Mass Segment despite flat Corporate Telecom revenues. RGUs expanded 7.9%, driven by gains in internet and telephony subscribers, while ARPU per unique subscriber fell 1% YoY as the mix shifted away from video services. EBITDA increased 8.2%, reaching a record level, with the EBITDA margin slightly expanding to 46.3% from 46.1%, reflecting better scale and cost efficiencies. Net profits dropped 10%, impacted by higher depreciation charges and greater financial expenses linked to increased debt.
Grupo Bimbo reported lower-than-expected 1Q25 results. Total revenues rose 10.8% YoY, driven by favorable FX effects, positive volume growth, and contributions from recent acquisitions. North America revenues increased 13.6% despite a challenging consumer environment, supported by share gains in key categories, solid results in Canada and a favorable FX effect. Mexico revenues advanced 1.7%, reflecting a positive mix and category growth in sweet baked goods, cookies, and salty snacks. Latin America revenues grew 19.4%, supported by double-digit growth in Brazil and the Southern Cone, along with improvements in Chile and Colombia. Gross profit climbed 11.8%, with the margin expanding 50 basis points to 52.5% due to lower raw material costs. Adjusted EBITDA increased 8.0%, though the margin narrowed 30 basis points to 12.4% as strategic investments and weak demand in North America offset cost benefits. Net profit fell 26.6%, reflecting a 17.4% increase in financing costs and a decline in operating income.
Televisa reported weak 1Q25 results, with continued revenue declines. Total revenues contracted 6.1% YoY, mainly due to a 13.2% drop in Sky revenues driven by a 19.3% reduction in RGUs. Cable revenues fell 3.1%, reflecting a slightly lower subscriber base and weaker performance in Enterprise operations, despite gains in voice and mobile lines. Broadband accesses in cable decreased slightly. Operating segment income fell 3.1%, although the margin expanded by 100 basis points to 37.8% due to efficiencies and synergies across the business. Net profit dropped 66.4%, reflecting the absence of a one-time gain recorded in 1Q24.
Orbia reported weak 1Q25 results. Total revenues declined 3% YoY due to weaker performance in Polymer Solutions and Building & Infrastructure, partially offset by gains in Fluor & Energy Materials and Precision Agriculture. Reported EBITDA fell 21% YoY, with the margin contracting 261 basis points to 11.0% on legal and restructuring charges, a raw material supply disruption, and lower sales in Polymer Solutions and Building & Infrastructure. Adjusted EBITDA was up 3% with an EBITDA margin of 14.4%. The net loss narrowed 27% YoY, driven by lower financial expenses and a tax benefit.
Volaris reported weak 1Q25 results and withdrew guidance. Total operating revenues decreased 11.7% YoY, affected by peso depreciation and lower revenue per passenger despite a 6.3% growth in available seat miles (ASMs). The load factor fell 1.6 percentage points to 85.4% as capacity expanded faster than demand. Total operating expenses rose 3.6%, reflecting higher redelivery costs and maintenance expenses. EBITDAR dropped 13.6%, with the EBITDAR margin narrowing 70 basis points to 29.9%. Net income turned negative, also affected by higher financial expenses. Net debt to LTM EBITDAR improved to 2.7x from 3.1x a year ago, reflecting disciplined cash management and payments from Pratt & Whitney to compensate for engine recalls.
América Móvil reported neutral 1Q25 results with revenues in line but lower-than-expected EBITDA and net profits as Mexico operations were squeezed by competition from BAIT. Total revenues rose 14.1% YoY, supported by a 15.8% increase in service revenues driven by strong postpaid growth and resilient broadband and PayTV trends, and a 6.0% rise in equipment revenues. The mobile segment posted a 5.7% increase in service revenues, led by 8.8% growth in postpaid, while the fixed-line segment advanced 6.7%, with broadband revenue up 9.8% and PayTV up 8.7%. Adjusted EBITDA increased 13.3% YoY, as the depreciation of the Mexican peso against regional currencies and improved margins in most operations boosted performance. The adjusted EBITDA margin reached 39.2%, slightly below the 39.6% recorded in 1Q24. Net income jumped 38.6% YoY, supported by slightly lower financing costs.
Walmex reported modest 1Q25 results, with a slow-down in same-store sales. E-commerce sales rose 17.0%, reflecting sustained demand and an expanded last-mile network. Gross profit increased 7.2%, with the gross margin expanding to 24.1% from 23.9% as the company managed cost of goods sold more efficiently. EBITDA rose 1.9%, while the EBITDA margin contracted to 10.4% from 10.9% due to higher expenses, particularly in wages, energy, and digital capabilities. Net profit declined 6.6%, impacted by increased financial costs and a higher effective tax rate. Shareholders approved the payment of a MXN$1.69/share cash dividend and a MXN$8.8 billion share buy-back reserve.
Grupo México reported strong 1Q25 results. Total revenues increased 10.4% YoY in USD terms, supported by higher metal prices and a strong performance in the Mining Division, with sales up 18.7%. Copper production was down 0.9% due to lower output at Asarco, partially offset by gains in Southern Peru. Transportation revenues declined 12.1%, reflecting a 14.2% drop in volume measured in tons-km. Consolidated EBITDA rose 12.7% YoY, with the EBITDA margin expanding to 52.8% from 51.8%, driven by operating leverage in the Mining Division offsetting lower profitability levels in Transportation and Infrastructure. Net profit reached a 16.7% increase, reflecting stronger operating income and favorable commodity pricing. Shareholders approved the payment of a MXN$1.20/share cash dividend from May 27th, with a 4.8% dividend yield.
Femsa reported mixed 1Q25 results which were below consensus. Total revenues increased 11.1% YoY, supported by broad-based growth across all business units and favorable FX effects. Proximity Americas revenues rose 6.8%, helped by store expansion, although same-store sales fell 1.8% due to weaker traffic. Proximity Europe revenues advanced 18.0%, mainly reflecting currency appreciation, as sales remained flat in local terms. Health revenues surged 21.0% driven by growth in Colombia, Chile, and Ecuador, partially offset by a contraction in Mexico. Fuel revenues grew 1.8%, as higher prices and volumes compensated for a softer operating environment. Coca-Cola FEMSA revenues increased 10.0%, backed by favorable pricing and FX tailwinds. Gross profit climbed 15.8%, with the margin expanding 160 basis points to 40.3%, aided by margin expansions in most divisions. Adjusted EBITDA rose 8.8%, resulting in an EBITDA margin contraction of 30 basis points to 12.9%. Net income jumped 54.3% YoY, driven by stronger operating results, FX gains, financial income linked to Heineken, and a non-recurring gain from discontinued operations.
Liverpool reported weak 1Q25 results. Total revenues rose 10.4% YoY, supported by growth across all segments. Retail revenues advanced 9.5% driven by clearance campaigns and inventory optimization. Same-store sales increased 7.9% at Liverpool and 7.3% at Suburbia. Financial revenues grew 16.8%, aided by a larger portfolio, despite a 28.2% YoY rise in provisions. The NPL ratio stood at 3.7%. Real estate sales grew 14.3%, with occupancy improving to 92.4%. Liverpool’s EBITDA fell 7.3%, while the margin declined 230 bps to 12.0%, impacted by higher labor costs and store expansion. Net income dropped 19.1% on higher financial expenses following the bond issuance in January.
Alsea reported mixed 1Q25 results. Total revenues (pre-IFRS 16) increased 12.8% YoY, mainly supported by solid brand preference and commercial strategies in Mexico, Spain, and Colombia. SSS rose 5.1%, with strong momentum in Europe and South America. The company opened 34 new units in the quarter, reaching 4,795 total stores. Digital sales jumped 21.6% and represented 38.7% of total revenues, while active loyalty program users totaled 8.2 million. EBITDA excluding IFRS 16 declined 9.1%, pressured by calendar effects, peso depreciation, and higher costs in South America. The EBITDA margin narrowed to 11.7%, down 290 basis points. Net income decreased 23.9%. Net debt to EBITDA stood at 2.6x.
Coca-Cola FEMSA reported positive 1Q25 results. Consolidated revenues rose 10.0% YoY, supported by favorable FX effects and pricing initiatives, despite a 2.2% decline in volumes. Gross profit increased 12.0%, with the gross margin expanding 80 basis points to 45.4%, helped by lower sweetener costs and raw material hedging. Adjusted EBITDA advanced 11.0%, while the EBITDA margin widened to 18.9% from 18.7%. Net income attributable to the controlling interest rose 2.7%, reflecting improved operating results and lower financing costs, partially offset by a higher effective tax rate.
Grupo Financiero Inbursa reported solid 1Q25 results. The total loan portfolio increased 17.9% YoY, supported by strong growth in retail and wholesale segments, with notable expansions in auto, payroll and credit card loans. The NPL ratio remained at 1.6%. Deposits climbed 23.1%. The financial margin rose 20.0%, helped by higher loan volumes and risk-adjusted spreads. NIM improved to 7.1%, from 6.8%, reflecting enhanced credit pricing and mix. Provisions rose 40.2% in line with portfolio expansion. Adjusted financial margin grew 17.9% YoY. Non-interest expenses advanced 21.3%, mainly due to higher administrative costs. The efficiency ratio stood at 17.0%, from 16.5%. Net income rose 29.8%, driven by stronger operating performance and positive market-related income, while ROE reached 14.2%.
GAP posted positive 1Q25 results. Total revenues increased 30.1% YoY, supported by a 20.9% rise in aeronautical revenues and a 41.3% jump in non-aeronautical revenues, both benefiting from higher tariffs, peso depreciation, and expanded commercial offerings. Total passenger traffic grew 4.2%, driven by stronger domestic demand across Mexican airports and solid route additions. EBITDA rose 21.1%, while the EBITDA margin contracted to 54.7% from 50.9%, reflecting the consolidation of the cargo and bonded warehouse business, as well as higher concession taxed and technical assistance fees. Net profit advanced 15.7%, supported by stronger operating results, partially offset by FX losses and higher financial expenses related to new bond issuances.
OMA reported positive 1Q25 results with a strong margin expansion. Total revenues declined 5.0% YoY, mainly affected by lower construction revenues, while aeronautic and non-aeronautic revenues combined rose 15.6%, driven by a 9.1% increase in total passenger traffic. Adjusted EBITDA increased 16.1% YoY, with the adjusted EBITDA margin expanding to 74.9% from 74.6%, reflecting higher operating leverage. Net profit rose 19.7%, supported by stronger operating income and lower construction-related distortions.
Genomma Lab reported neutral 1Q25 results. Total revenues rose 5.0% YoY, supported by strong Suerox performance across markets, which offset a weaker-than-expected flu season and share losses in the U.S. cough and cold category. Gross profit increased 1.0%, while the gross margin declined to 62.8% from 65.3% due to higher cost of goods sold. EBITDA grew 12.0%, driven by productivity gains and cost efficiencies, which boosted the EBITDA margin by 149 basis points to 23.8%. Net income advanced 15.4%, reflecting stronger operating income and favorable FX effects.
Peñoles delivered strong 1Q25 results, driven by a favorable pricing environment for precious metals. Average gold and silver prices increased 38.2% and 38.4% YoY, respectively, which supported a 28.8% rise in total revenues. Gold production rose 4.8% due to higher processed volumes at Herradura with improved grades, while silver output declined 12.8% because of halted activity at Tizapa and San Julián (disseminated body), along with lower grades at other units. EBITDA surged 220.2% compared to the same period in 2024, supported by lower production costs and peso depreciation. The EBITDA margin expanded to 35.0%, from 14.1%, reflecting operational efficiencies and reduced administrative expenses. Finally, net income turned positive versus the net loss recorded in 1Q24, driven by improved prices, internal efficiencies, and strong operating cash generation.
Grupo Carso reported weak 1Q25 results. Total revenues were flat YoY, as growth of 20.3% in Condumex, 16.5% in Carso Energy, 10.6% in Elementia, and the new consolidation of Zamajal offset the 32.8% drop in infrastructure and construction and the 2.4% contraction in retail. EBITDA fell 21.2% YoY due to higher local costs, inflation, and expenses related to the hydrocarbons division, with Condumex and Carso Energy partially mitigating the decline. The EBITDA margin contracted to 12.0%, from 15.2%. Net profits decreased 45.9% YoY, dragged by weaker operating income despite an improvement in the comprehensive financing result and stronger contributions from associated companies.
Vesta delivered solid 1Q25 results. Total rental income rose 10.7% YoY, supported by higher leasing activity, inflation-indexed contracts, and incremental rents from previously vacant space. Adjusted NOI rose 8.5%, while the NOI margin fell 10 bps to 95.7% reflecting high costs of revenue generating properties. Adjusted EBITDA advanced 9.3%, while the EBITDA margin improved to 85.2% from 84.7%, aided by a lower share of administrative expenses relative to revenues. Vesta FFO rose 11.4% YoY driven by higher operating income and lower interest income, while the FFO after tax increased 8.2%.
Regional saw mixed 1Q25 results. The total portfolio grew 13% YoY, supported by commercial and mortgage loan expansion. The NPL ratio reached 1.4%, up 1 basis point versus 1Q24, with a 1.5x coverage ratio. Deposits advanced 12% YoY, driven by strong growth in demand and time deposits. The financial margin increased 8%, supported by higher interest income, while the NIM remained stable at 6.6%. Provisions rose 10%, reflecting loan portfolio expansion and prudent risk management. The adjusted financial margin grew 8%. Non-interest expenses climbed 17%, pressured by higher compensation and administrative costs. The efficiency ratio deteriorated 85 basis points to 40.3%. Net profit improved 1% YoY, supported by operating income growth. ROE reached 20.6%, down 136 basis points compared to 1Q24, reflecting a higher equity base.
BanBajío reported mixed 1Q25 results. The total loan portfolio expanded 10.8% YoY, driven by growth in business and consumer loans. The NPL ratio reached 1.5%, slightly above the 1.3% from 1Q24, while coverage stood at 135.2%. Deposits rose 10.5%, with 94.2% of monthly transactions completed digitally. The financial margin decreased 2.8% despite higher average productive assets, as lower interest rates weighed on returns, and NIM contracted from 7.0% to 6.3%. Provisions surged 46.8% in line with loan expansion. The adjusted financial margin declined 6.4%. Non-interest expenses increased 10.3% due to higher wages, tech investments, and general costs, pushing the efficiency ratio to 37.4%. Net income fell 10.4% and ROE reached 21.3%, affected by a lower operating result and higher effective tax rate.
La Comer reported mixed 1Q25 results. Total revenues rose 8.1% YoY, supported by solid growth across all formats and categories, with same-store sales up 3.3% despite a high comparison base that included extraordinary sales and a calendar benefit in 1Q24. Gross profit increased 10.1%, while the gross margin expanded 55 basis points to 30.3% due to a shift toward higher-margin products and operational efficiencies in distribution and inventory. EBITDA rose by 7.2%, with the EBITDA margin slightly narrowing to 12.5% from 12.6%, reflecting increased expenses in wages, electricity, and digital operations. Net profit declined 2.7%, pressured by higher income taxes.
Chedraui delivered mixed 1Q25 results. Total revenues rose 14.8% YoY, supported by a 3.7% increase in Mexico and a 4.7% gain in the U.S., along with an FX tailwind. Same-store sales grew 1.2% in Mexico and 2.8% in the U.S., driven by traffic gains and targeted marketing campaigns, although calendar effects from Easter and fewer selling days tempered growth. Gross profit advanced 15.4%, with the gross margin expanding 11 basis points to 23.4% as inventory and promotion strategies offset cost pressures and transition expenses from the Rancho Cucamonga distribution center. EBITDA rose by 8.8%, lagging revenues due to higher labor and logistics costs, so the margin declined to 8.4%, from 8.9%; excluding RCDC expenses, EBITDA rose 12.8% and the margin reached 8.7%. Net profit fell 20.9%, affected by higher financial expenses and depreciation related to the RCDC lease; without these effects, net profit would have declined 12.7%.
Soriana reported weak 1Q25 results. Total revenues declined 1.1% YoY, pressured by a 3.9% drop in SSS as consumer demand softened. Gross profit fell 4.2%, with the gross margin narrowing to 22.5%, from 23.3%, reflecting pricing pressures and inventory adjustments. EBITDA decreased 4.5%, while the EBITDA margin slipped to 6.8%, from 7.1%. Net profit contracted 11.4%, despite a 10.4% reduction in net financial cost supported by higher interest gains.
Pinfra announced mixed 1Q25 results. Total revenues declined 5% YoY due to lower contributions from the construction and asphalt plant segments, which were affected by a high base from one-time IFRIC 12 compensation and reduced asphalt mix sales. EBITDA increased 8%, driven by strong performance from toll road concessions, which accounted for 99% of consolidated EBITDA. The EBITDA margin expanded to 67% from 59% as lower-margin segments had less weight in the revenue mix. Net profit fell 8% YoY, mainly impacted by FX results and higher taxes, despite the increase in operating income.
GMXT posted mixed 1Q25 results. Total revenues increased 5.7% YoY, supported by growth in the Intermodal, Chemicals, and Energy segments, despite a 6% drop in total car volume due to economic headwinds and weather disruptions in the U.S. EBITDA rose 2.1% YoY, while the EBITDA margin contracted 150 basis points to 43.6%, affected by a less favorable traffic mix and an 8.2% increase in operating costs. Net income declined 5.9% YoY on higher depreciation and amortization, FX losses and net higher interest costs.
Traxión reported favorable 1Q25 results. Revenues were up 9.2% YoY, driven by a strong 15.7% increase in Mobility of Cargo, which benefited from a 20.5% rise in average revenue per kilometer due to price adjustments. Additionally, Mobility of Personnel revenues advanced 7.8% due to higher demand. The company mentioned that it also adjusted rates in this business unit, which will begin to be reflected in the following months. This offset the slowdown in the Logistics and Technology business, whose revenues were up 6.0% due to the closure of the last-mile B2C business last year. However, this measure allowed the Logistics and Technology margin to improve 292 bps to 10.0%, which boosted Traxión’s EBITDA margin by 130 bps to 18.5%. As a result, the company’s consolidated EBITDA grew a healthy 17.1%. Additionally, net income was 16.5% higher YoY, as a favorable operating performance more than offset higher financial costs.
Bafar delivered solid operating 1Q25 results, but net profits were down. Revenues were up 17.0% YoY. The food division was the main driver with a 15.8% revenue growth, fueled by higher export volumes and average prices in both Mexico and the U.S. Additionally, Fibra Nova’s revenue advanced 27.4% due to continued portfolio expansion, new contracts, adjustments in rents per square foot, and a favorable FX effect. Gross profit increased 3.7% YoY, lagging revenue growth, due to higher raw material prices and an unfavorable FX effect; the gross margin contracted 380 bps to 29.7%. However, operating expenses remained stable despite the digitalization process, resulting in a stronger 15.3% YoY EBITDA growth. The EBITDA margin slipped 30 bps to 16.7%. Net income decreased 18.5% YoY to MXN$769.6 million, due to higher financial expenses and lower FX gains.
KUO posted strong 1Q25 results. Consolidated revenues increased 11% YoY, fueled by higher prices and volumes in the pork and Herdez Del Fuerte businesses, as well as favorable FX impacts in the U.S. market. EBITDA climbed 56%, reflecting lower input costs for pork and soymeal, improved product mix and positive inventory adjustment in polymers, and better hedging results and stronger product mix in the US for Herdez del Fuerte. The EBITDA margin widened to 10.3%, from 7.4%. Net profits surged 1,852%, benefiting from both the solid operating performance and a gain from discontinued operations following the sale of the auto parts business.
Cydsa posted mixed 1Q25 results. Revenues were up 26.5% YoY. Manufacturing and Specialty Chemicals sales rose 29.5%, driven by higher chlorine and soda production volumes from the new membrane technology plant, stronger demand for edible salt and refrigerant gases, and a favorable FX effect. However, Energy Processing and Logistics revenues fell 11.1% due to the temporary suspension of one of the two electricity and steam co-generation plants. EBITDA grew 11.9% YoY, below revenue growth, due to rising natural gas costs and higher-priced energy purchases from the CFE, resulting from the aforementioned temporary suspension of part of its electricity and steam cogeneration capacity. The EBITDA margin contracted to 26.9% in 1Q25, from 30.4% in 1Q24,. The company expects to recover such capacity during 4Q25. Net profits decreased 39.3% YoY, on rising net financial expenses.
Actinver reported positive 1Q25 results with higher-than-expected 70% net profit growth. The net interest margin was up 14.3% YoY, supported by a 16.0% reduction in interest paid, which offset the 9.8% drop in interest earned, both due to lower reference rates. Additionally, provisions decreased by 10.0%, resulting in a 16.0% increase in the adjusted financial margin. Commissions earned were 46.2% higher due to the growth of the asset management, fiduciary, client, and brokerage businesses, as well as an extraordinary gain from the exclusivity agreement with Zurich Seguros. Trading revenues advanced 18.5% on rising FX and equity operations. However, administrative expenses grew 22.8% due to a 10% headcount expansion, higher variable compensation, IT expenses for strategic projects, and non-recurring expenses related to the change in core banking. Net profits registered a higher-than-expected 69.6% increase to MXN$529 million in the quarter. ROE improved 469 bps to 16.69%.
Invex reported strong 1Q25 results with net profits of MXN$1.88 billion with a 50% ROE in 1Q25. The main highlights of the quarter were: i) In the financial business, the total portfolio grew +20% YoY to MXN$45.4 billion, driven by a significant 35% YoY increase in the consumer portfolio, which offset the slight 1% rise in the commercial portfolio. The NPL ratio increased marginally to 2.3% at the end of 1Q25, also driven by the consumer portfolio growth. Trust assets increased 8%, but assets under custody fell 2%; ii) Ammper recorded an extraordinary profit of approximately MXN$700 million due to the start of operations of its first electric infrastructure project. It has two other projects under development. In addition, energy supply increased 27% YoY to a record level of 1,026 GWHr due to new connected loads and higher demand in Mexico and Texas; iii) Investment promotion reported a MXN$1.56 billion extraordinary gain with the partial sale of GANA, receiving 77 million FMX23 CBFEs.
Fibra Inn posted favorable quarterly results. Revenues were up 16.4% YoY, primarily due to a 6.4% increase in lodging revenues and a 6.0% RevPar rise, driven by a 9.7% ADR adjustment, which offset a 2 PP decrease in occupancy levels to 58.3%. Additionally, it recorded food and beverage revenues, “other hotel revenues”, and leases due to the incorporation of Tregnor, a related party, from January 1st of this year. NOI increased 10.9% YoY. However, the NOI margin contracted to 31.1% in 1Q25, from 32.7% in 1Q24, on a 19.1% rise in operating expenses resulting from higher property taxes, preventive maintenance expenses, and Tregnor’s food and beverage and other operating costs. Meanwhile, FFO registered a significant 34.3% YoY growth. The margin improved to 19.8% in the current quarter, from 17.2% in 1Q24.
Médica Sur posted positive 1Q25 results. Revenues advanced 11.6% YoY, fueled by stronger activity at the Hospital (+15.3%) and in Clinical Services and Diagnostic Units (+10.9%), which offset a decrease in “Others” (-20.3%). EBITDA grew 13.2% growth with an EBITDA margin of 21.0%, slightly higher than the 20.7% of the previous year, on rising sales and disciplined cost and expense management. Net profits rose 16.8%, supported by favorable operating results and higher financial income.
Hotel reported excellent 1Q25 results. Revenues were up 24.5% YoY. Stronger tourist activity during the quarter contributed to boost occupancy by 2.1 PP to 72.0%, which allowed the company to increase its ADR 9.9%. RevPar rose 13.1% and lodging revenues 24.7%. Food and beverage revenues advanced 23.4%, “other hotel revenues” 40.1%, and vacation club revenues 37.3%. EBITDA grew 26.1% YoY to MXN$317.9 million, while the EBITDA margin expanded 40 bps to 32.8%. Net profits rose 60.4% YoY due to lower interest payments.
OTHER COMPANIES
Grupo Modelo, a subsidiary of AB InBev, announced a US$3.6 billion investment in Mexico from 2025 to 2027 to upgrade breweries, promote circular economy initiatives, and modernize 300,000 local shops.
Banamex launched Switch, a 100% digital debit account aimed at Generation Z and customers seeking to manage their money entirely from their mobile phones. The app allows users to customize their digital card, adjust deposit limits, block their card temporarily, schedule cardless withdrawals, and access account statements.
TRADE AND ECONOMICS
Mexico’s preliminary 1Q25 GDP grew a stronger-than-expected 0.2% QoQ (seasonally adjusted), INEGI reported, thus avoiding recession fears. GDP increased 0.8% YoY (original data), supported by a 6.4% expansion in primary activities and a 1.5% increase in tertiary activities, which offset the 0.9% decline in secondary activities.
The IGAE was up by a stronger-than-expected 1.0% MoM in February (seasonally adjusted), mainly due to the increases of 2.5% in secondary activities, 1.0% in primary activities and 0.6% in tertiary activities. Nevertheless, the IGAE declined 0.7% YoY (original data) as a result of the contraction in the three sectors (primary -3.5%, secondary -1.3% and tertiary -0.3%).
Mexico recorded a higher-than-expected US$3.4 billion trade surplus in March, according to INEGI. Exports rose 9.6% YoY to US$55.5 billion (non-oil +9.7% and oil +7.1%), while imports increased 7.1% YoY to US$52.1 billion (non-oil +8.0% and oil -6.3%).
The unemployment rate stood at 2.2% in March 2025, down from 2.3% in March 2024, INEGI reported.
Banco de Mexico announced it will deliver to Hacienda no later than April 30th a MXN$17.99 billion operating surplus deriving from FX and operating profits for the 2024 fiscal year.
CETES auction: 29-day CETES -15 bps to 8.65%; 92-day CETES –12 bps to 8.51%; 183-day CETES -4 bps to 8.39% and 365-day CETES -8 bps to 8.49%.
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