Grupo Famsa strengthens its financial structure and moves forward to transform its operation to improve its
- Author: Adam Floyd Jan 12, 2018,
Jan 12, 2018, 7:38
During 1Q17, Famsa Group made significant efforts to strengthen its financial structure, reducing the balance of its bank and stock market debt in pesos, by 9.1% and 12.5%, respectively, compared to the end of 2016. In addition, on May 4, 2017, the Company will liquidate the second amortization of the GFAMSA16 issue for Ps.166.6 million, which means that the stock market debt in pesos will decrease to Ps.1,554 million, equivalent to 20.9% less at December 31, 2016.
On the other hand, and following the asset monetization announced in February of this year, a guarantee trust was created to which 20 properties were contributed, with a commercial value of Ps.2,006 million and whose trustee is Famsa Mexico. In the same sense, 10 properties were sold for Ps.827 million and 25 properties are in the process of being sold for an estimated commercial value of Ps.2,258 million, for which we estimate a significant advance in their monetization for June 30, 2017
On the commercial front, operations in Mexico were the main catalyst of consolidated results, achieving a 6.4% growth in Net Sales and a 6.0% VMT in relation to 1Q16, in line with the Guide (+ 12.2%) and White Line (+ 9.0%) in the quarter. In contrast, in the United States Famsa USA's peso sales fell 13.3% due to weak demand stemming from the social and political uncertainty of the Hispanic population in that country.
In this regard, Humberto Garza Valdez, CEO of Grupo Famsa, commented: "We started 2017 facing significant challenges. Nevertheless, we achieved positive results from the timely implementation and execution of our strategic initiatives, estimating that the Company improves its liquidity and profitability for the following quarters, together with the application of resources obtained through the monetization of assets, and despite a persistent environment of higher inflation and interest rates in Mexico, and uncertainty in United States.
About Famsa Group Founded in 1970 in Monterrey, Nuevo León, Famsa Group has consolidated into a public company with strong presence in the retail sector, focusing on meeting various consumption, financing and saving needs of families. Its target market is the middle-low segment of the population in Mexico and the Hispanic population in certain states of the United States of America in which it operates. Grupo Famsa's retail sales in Mexico include furniture, appliances, appliances, cell phones, computers, motorcycles, clothing and other durable consumer goods, which are sold primarily through Grupo Famsa stores. In the states of Texas and Illinois in the United States of America, Grupo Famsa offers furniture, appliances, white goods, computers and other durable consumer goods, through its subsidiary Famsa, Inc.Contact: Investor Relations Paloma E. Arellano Bujandapaloma.firstname.lastname@example.org Tel. (81) 8389-3400 ext. 1419
SOURCE Grupo Famsa, S.A.B. of C.V.
SOURCE Grupo Famsa, S.A.B. of C.V.More news: Tokorozawa Iris Garden - Wikipedia, the free encyclopedia