July 16, 2020 / 8:41 PM / 21 days ago

Mexico's Alfa swings to 2 billion peso loss as coronavirus bites

MEXICO CITY (Reuters) - Mexican conglomerate Grupo Alfa on Thursday reported a net loss of 2.1 billion pesos ($91 million) for the second quarter as the company took a significant hit from the coronavirus pandemic at several of its business units.

The results were a sharp reversal from Alfa’s net profit of 4.1 billion pesos during the same quarter last year.

Total sales were 74.3 billion pesos, a drop of 13% compared to the same period a year earlier, the Monterrey-based company said. But it looked forward to better times ahead.

“We are cautiously optimistic that the worst phase of economic closures may be behind us,” Alfa said in a report accompanying its earnings.

Still, Alfa, which operates in the food packaging, car parts, petrochemicals and energy industries, said it was analyzing a possible reduction or postponement of investments as part of measures to mitigate the impact of the pandemic.

The coronavirus and lockdowns intended to curb its spread battered Alfa on several fronts. Its auto parts maker Nemak, for example, was hit by halts in production, and telecom unit Axtel suffered from the peso’s depreciation against the dollar.

Reporting by Noe Torres; writing by Julia Love; Editing by Alistair Bell

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below