Mexico Consumer Companies To Save On Strong Peso -Banamex
20 3월 2009 - 7:27AM
Dow Jones News
Local Citigroup (C) unit Banamex said Thursday that the peso's
recent appreciation versus the dollar is good news for Mexican
consumer companies that have significant dollar-denominated
costs.
In less than two weeks, the exchange rate has fallen from above
15.50 pesos to the dollar to less than MXN14 to the dollar, though
the peso gave back some of those gains Thursday to close at
MXN14.1775.
Banamex said in a report that a peso worth MXN14 to the dollar
implies a 7% appreciation from the end of February and that a
number of local companies have dollar costs that represent as much
as 40% of their total cost of sales.
"This translates into savings equivalent to 2.7% of those
costs," Banamex said.
The main beneficiaries of a stronger peso include poultry
producer Bachoco (IBA), restaurant operator Alsea (ALSEA.MX), and
consumer products company Kimberly-Clark de Mexico (KCDMY), Banamex
said.
Companies that have open positions in exchange derivatives,
namely corn flour and tortilla company Gruma (GMK), could also see
reduced losses.
"The recent appreciation of the peso favors Mexican consumer
companies in general, although we don't discard periods of
volatility in the exchange rate," Banamex said.
Banamex said the exchange rate benefits are secondary, however,
to consumer demand, which is expected to fall as the economy
contracts this year and credit becomes scarcer.
-By Paul Kiernan, Dow Jones Newswires; 5255-5001-5726,
paul.kiernan@dowjones.com