IPC companies earn 360,154 million pesos in profits

Of the 35 most traded companies on the Mexican Stock Exchange (BMV) listed on its main index, the S&P/ IPC BMV, 31 reported combined net profits of more than 360,154 million pesos in 2023. Only four lost.

The five companies that reported the highest profits last year together totaled 90 billion pesos.

They are the Monterrey-based Fomento Económico Mexicano (FEMSA), the cement company GCC, the highway administrator Pinfra, the auto insurance company Quálitas and the restaurant and cafeteria administrator Alsea.

FEMSA was the issuer that reported the highest increase in net income, with an increase of 122.7 percent. The Coca-Cola distributor and operator of Oxxo convenience stores went from earning Ps. 34.743 billion in 2022 to Ps. 77.378 billion last year. According to its report, the growth was the result of its expansion strategy.

The second place goes to GCC, with an increase in its net profit of 110.5%, going from 140.3 million dollars (2,387 million pesos) to 295 million dollars (5,030 million pesos).

Enrique Escalante, the company's CEO, mentioned that this performance was the result of strong customer relationships and operational excellence. Its consolidated net sales rose 17.8% in 2023, boosting the issuer's earnings.

Pinfra reported net income growth of 82%, from Ps. 1,148.6 million in 2022 to Ps. 2,088.5 million in 2023. According to its quarterly report, the increase was due to growth in the construction sector, as concessioned highways, such as Amería-Manzanillo and Pátzcuaro-Uruapan, represented revenues of 3,297.5 million pesos.

Quálitas reported an increase in its net profit of 71.6% in 2023. According to its report, it reached 3,791 million pesos last year. This growth was due to an 11% increase in insured units at the end of the year.

Alsea reported an increase in net income of 49.7% in 2023, from 1,757 million pesos to 2,631 million pesos, which was achieved by the increase in sales, commercial strategies, product innovation, efficiencies in expense control, the company mentioned in the report sent to the BMV.

Record losses

In contrast, there are four issuers that reported losses in their net income in 2023, totaling 74,732 million pesos.

The Monterrey-based conglomerate Alfa was the issuer that recorded the largest net loss in 2023, according to its report.

The company reported (negative) earnings with a loss of 811 million dollars in 2022 and 769 million dollars in 2023.

In its press release it emphasized that this loss is due to the impairment of Alpek's investment in the Corpus Christi, Texas plant and the impact of the devaluation of the Argentine peso. Orbia presented losses of 51 million dollars (869 million pesos), a reduction of 56.86% compared to what was reported in 2022.

This is the second consecutive year in which the broadcaster has incurred negative figures. Grupo Televisa reported net losses of Ps. 10,611 million in 2023, a 23.43% difference with respect to the Ps. 45,283 million reported in 2022. Volaris, the Mexican low-cost airline, posted a loss of Ps. 8 million last year, after posting a loss of Ps. 80 million in 2022.