April 23, 2019 / 8:47 PM / 2 months ago

Mexico's Alfa first quarter net profit slides, down across all units

MEXICO CITY (Reuters) - Mexican conglomerate Alfa posted a 64.5 percent fall in first quarter net profit on Tuesday, hit by higher financial costs and weaker performance in nearly every segment.

The company, which operates in the food packaging, car parts, petrochemicals and energy industries, said profit in the January-March period was 1.26 billion pesos ($65 million), compared with 3.55 billion pesos in the year-earlier quarter.

Revenues were down almost across the board with the exception of Alpek. Sales at the petrochemicals unit grew 10 percent due to its acquisition last year of Brazilian petrochemical companies Suape and Citepe.

The company as a whole posted revenue of 86.1 billion pesos, just a bit higher than 85.9 billion pesos recorded in the year-earlier period.

Operating income fell for each unit except in foods division Sigma, which saw a 5 percent increase, helped by sales that held steady from the first quarter of last year.

Auto parts division Nemak suffered from weaker activity in the automotive industry and less demand from some assembly plants.

In addition, Alfa said its financial costs grew, cutting into net profit.

Reporting by Daina Beth Solomon and Noe Torres; Editing by Cynthia Osterman

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