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The strength of the Mexican peso brought weakness to sales and profit expectations for some companies nationals with income in dollars like Becle, Bachoco and Bimbo groupwhich are more exposed to the American currency than, in some cases It represents more than 56 percent of their entries.
“There is an issue now in the exchange rate, where companies that sell in dollars or export had a significant drop in their margins, because even if they sold the same units or more, when they translated into pesos they were less (their income), and the non-dollarized expenses such as salaries, electricity and others, continued to put pressure on their margins,” he explained. Ricardo Pérez Vas, co-founder of the consulting firm RiÓN.
The owner of Tequila Cuervo, 1800, Maestro Dobel and Tequila Centenario, Beclesuffered the pressures of the strong peso over the past year, in part because56 percent of its sales come from the United States and Canada and only 27 percent from Mexico.
During 2023operational flow (EBITDA) of the company fell 25.7 percent annuallywhile its income fell 3 percent annually.
“It was negatively impacted on its operations outside of Mexico, given that agave, its main raw material, is purchased in pesos, thus affecting its profitability,” said Luis Willard, Head of Consumer Goods for GBM Grupo Bursátil.
It was followed in negative territory Bachoco, with a 21 percent drop in EBITDA and a 5 percent annual reduction in revenue.
“The strengthening of the peso in the numbers is not positive for those that have exports, in addition to this exchange effect we observe that the volume is weakening for the company, that is negative and is observed,” explained Marisol Huerta, independent analyst.
The protein producer reported that Its sales to the United States last year represented 17.5 percent of its revenue.
Notably the ‘superweight’ closed 2023 with an appreciation of almost 13 percent against the dollar, to stand at 16.96 units per US bill.
The above was negative for Bimbo, since 54.5 percent of its income comes from its operations in dollars and euros.
“Companies like Gruma and Bimbo that have businesses outside of Mexico did see an impact on growth due to the exchange rate conversion when reporting in pesos. However, not at an operational level,” said Luis Willard, Head of Consumer Goods for GBM Grupo Bursátil.
The firm he presides Daniel Servitje reported that last year Its net sales reached record levels with 399 thousand 879 million pesosorn increase of just 0.3 percent annually, but excluding the effect of the exchange rate the increase would be 10.7 percent.
In addition, your operational flow (EBITDA) rose only 3 percent annually, but it obtained a historic amount of 54,942 million pesos.
“The superweight did have an important effect for Bimbo, but only in the exchange issue, because in volumes and local currencies its sales were solid; It is also important to note that the company issued other important costs and expenses such as labor costs in the United States and restructuring costs in the region,” said Marcela Muñoz, deputy director of analysis for Vector.
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Sigma and Gruma win
Sigma and Gruma stand out for being the two consumer companies whose raw material costs are usually dollarizedwhich is why they stand out among the most benefited.
Sigmaowner of brands such as Fud, Yoplait and Café Olé Last year it achieved a 37 percent annual increase in its EBITDA and a 15 percent annual increase in revenue.
“It was another very beneficiary since around 40 percent of its costs in Mexico are dollarized, which resulted in a significant improvement in the region’s profitability,” Willard revealed.
While Gruma, 67 percent of its income comes from coins which are not the Mexican peso, however, Last year its EBITDA rose 24 percent annually and revenues rose 18 percent annuallylargely due to product diversification.
“In raw materials they did have benefits, but it is important to remember that their exchange hedges are made 6 to 8 months in advance. It seems to me that we will see this benefit more towards 2024 with the reduction in the costs of raw materials such as corn and wheat. ”Muñoz concluded.
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