Controladora Comercial Mexicana, S.A.B. de C.V. Inactive
Filed: 1 Aug 03, 12:00am
CONTROLADORA COMERCIAL MEXICANA ("CCM") ANNOUNCES RESULTS FOR THE SECOND QUARTER 2003. (Mexico City, July 23, 2003) Controladora Comercial Mexicana (BMV: "Comerci"; NYSE: "MCM") announces on this date its Second Quarter 2003 results. This report shows the status of the Company in terms of operation, cash flow generation and capital investment, as well as the financial statements for the period ended June 30, 2003. During the second quarter the Company increased 1.0% in same store sales compared to same period in 2002. Nevertheless this positive result, we are still being affected by the prices decrease due to the change in our promotional strategy. Regarding the income statement, net sales increased 7.3% from $7,463.7 million during the second quarter 2002 compared to $8,010.9 million for the same period in 2003. Gross profit increased 8.7%, from $1,489.6 million in 2002 to $1,619.2 million in 2003, increasing gross margin in 25 basis points to conclude with 20.2% in 2003. This improvement is mainly due to the fact that our change in strategy has granted a greater cost of sales control of the Company. When eliminating promotions, consumers are inclined to buy proportionally at each of the different departments thus an increase in the Company's gross margin. Operating expenses increased only 1.6% from $1,366.1 million during 2002 to $1,388.2 million for the same period in 2003, representing an improvement of 97 basis points of net sales percentage. As a result, the operating profit increased 87.0% from $123.5 million during the second quarter of 2002 to $231.0 million for the same period in 2003, representing 1.7% and 2.9% of net sales for 2002 and 2003 respectively. EBITDA during the individual quarter increased 34.8% from $311.5 million during 2002 to $420.0 million for the same period of 2003. With respect to integral cost of financing it is worth mentioning the following: During the individual quarter interest paid increased 40.5% from $57.7 million in 2002 to $81.1 million in 2003. This was mainly due to the $40.0 million additional charge for the use of the call option of the US$100 million bond. Interest gained during 2003 increased 7.4% compared to last year from $7.0 million in 2002 to $7.6 million in 2003. Foreign exchange results had a substantial positive change of 138.9% from $130.8 million loss in 2002 to $50.9 million gain in 2003. Monetary position results changed 107.5% from $64.6 million gain during 2002 to $4.8 million loss in 2003. In consequence, integral result of financing improved 76.5% during the individual quarter from $116.8 million loss in 2002 to $27.5 million loss in 2003. Other financial operations registered a substantial change reflecting the goodwill's amortization from Auchan's operations acquisition. Cumulative net effect from deferred and non-deferred tax represents a charge of $22.2 million for the second quarter of 2002 compared to $129.9 million for the same period of 2003. Due to above-mentioned net profit increased 491.0% from $33.4 million loss in 2002 to $130.7 million gain in 2003. Net profit expressed as percentage of net sales was (0.5%) in 2002 and 1.6% in 2003. Capital investments during the year reached $ 646.9 million. On June 30, 2002 the Company had 173 stores in its five different formats and 55 Restaurantes California. During this year the five former Auchan stores have been integrated to our Mega format. Five more units have been remodeled and two more have been closed down; one Comercial Mexicana store in the Northeast and one Bodega in the Central Zone. In cumulative terms the following is detailed: Same store sales decreased 0.2%. Net sales increased 4.1% from $15,072.3 in 2002 to $15,693.7 million in 2003. Gross profit increased 4.8% showing an improvement of 13 basis points of gross margin to conclude with 20.3% in 2003. Operating expenses decreased 0.6% representing a reduction of 81 basis points in the percentage of net sales in 2003 compared to same period of 2002. As a result, operating results increased 46.6% from $344.9 million in 2002 to $505.6 million in 2003 representing 2.3% and 3.2% of net sales in 2002 and 2003 respectively. Due to above mentioned EBITDA increased 20.7% from $712.8 million in 2002 to $860.7 million in the same period of 2003. Integral result of financing improved 39.4% from $87.0 million loss in 2002 to $52.8 million loss in 2003. Cumulative net effect of deferred and non-deferred total taxes represents a cumulative charge of $42.4 million in 2002 compared to $172.6 million in 2003. As a result of above-mentioned net profit increased 116.8% from $186.5 million in 2002 to $404.3 million in 2003. Net profit expressed as percentage of net sales was 1.2% for 2002 and 2.6% for 2003. We would like to point out that even though our comparison was relatively easy, the gross, operating and EBITDA margins were better than in the previous years, representing a back on track as a result of our commercial strategy change. Additionally the Company's working capital improved compared to the first semester of the year with a net difference of 14 days between suppliers and inventories turnover. Last year the second quarter closing difference was 6.5 days. It is important to point out that nevertheless the Company has expanded 5.3% the sales area during the year, inventories have decreased 9.2% in absolute terms. Accounts receivable increased primarily to the VAT to be recovered and to other receivable taxes. Stockholder's equity increased 7.3% from $11,279.4 million in 2002 to $12,101.2 million in 2003. The Distribution Center has started operations and is receiving merchandise beginning this week
Francisco Martinez de la Vega |
| Geographic Distribution | |||||||||
| As of June 30, 2003 | |||||||||
| ZONE | C.M. | BOD. C.M. | MEGA | SUMESA | COSTCO | TOTAL STORES | Rest. CALIF. | SQ.FT. | AREA % |
| Metrop. | 19 | 25 | 18 | 15 | 5 | 82 | 30 | 5,377,612 | 42.2% |
| Center | |||||||||
| Aguascalientes | 1 | 2 | 1 | 4 | 305,630 | ||||
| Celaya | 1 | 1 | 1 | 3 | 1 | 257,634 | |||
| Cuautla | 1 | 1 | 1 | 87,188 | |||||
| Cuernavaca | 3 | 1 | 2 | 6 | 2 | 354,638 | |||
| Guadalajara | 3 | 1 | 1 | 5 | 417,693 | ||||
| Guanajuato | 1 | 1 | 42,668 | ||||||
| Irapuato | 1 | 1 | 1 | 99,889 | |||||
| Leon | 2 | 1 | 1 | 4 | 1 | 344,219 | |||
| Manzanillo | 1 | 1 | 43,228 | ||||||
| Michoacan, Zam. | 1 | 1 | 44,595 | ||||||
| Morelia | 3 | 1 | 4 | 2 | 290,851 | ||||
| Pachuca | 1 | 1 | 2 | 142,030 | |||||
| Pto.Vallarta | 1 | 1 | 2 | 1 | 122,020 | ||||
| Puebla | 2 | 1 | 3 | 1 | 7 | 3 | 766,034 | ||
| Queretaro | 3 | 1 | 1 | 1 | 6 | 2 | 540,929 | ||
| Salamanca | 1 | 1 | 82,979 | ||||||
| San Luis Potosi | 2 | 1 | 1 | 1 | 5 | 1 | 448,327 | ||
| Toluca | 1 | 1 | 2 | 2 | 177,852 | ||||
| Uruapan | 1 | 1 | 43,045 | ||||||
| Total | 30 | 6 | 11 | 2 | 8 | 57 | 17 | 4,611,449 | 36.2% |
| Northwest | |||||||||
| Culiacan | 1 | 1 | 100,158 | ||||||
| Mazatlan | 1 | 1 | 92,957 | ||||||
| Mexicali | 1 | 1 | 2 | 170,715 | |||||
| Tijuana | 7 | 1 | 8 | 2 | 647,685 | ||||
| Hermosillo | 1 | 1 | 101,310 | ||||||
| Total | 9 | 0 | 1 | 0 | 3 | 13 | 2 | 1,112,826 | 8.7% |
| Northeast | |||||||||
| Tampico | 1 | 1 | 2 | 130,006 | |||||
| Monterrey | 1 | 1 | 131,320 | ||||||
| Total | 1 | 0 | 1 | 0 | 1 | 3 | 0 | 261,326 | 2.1% |
| Southeast | |||||||||
| Cancun | 3 | 1 | 4 | 2 | 302,659 | ||||
| Jalapa | 1 | 1 | 2 | 1 | 207,689 | ||||
| Veracruz | 1 | 1 | 2 | 131,664 | |||||
| Merida | 1 | 1 | 2 | 1 | 184,396 | ||||
| Total | 5 | 1 | 1 | 0 | 3 | 10 | 4 | 826,409 | 6.5% |
| Southwest | |||||||||
| Acapulco | 4 | 1 | 1 | 6 | 2 | 405,465 | |||
| Chilpancingo | 1 | 1 | 71,935 | ||||||
| Zihuatanejo | 1 | 1 | 76,521 | ||||||
| Total | 6 | 1 | 0 | 0 | 1 | 8 | 2 | 553,921 | 4.3% |
| TOTALS | |||||||||
| TOTAL UNITS | 70 | 33 | 32 | 17 | 21 | 173 | 55 | ||
| TOTAL AREA | 4,721,639 | 1,934,122 | 3,631,255 | 162,815 | 2,293,712 | 12,293* | 12,743,547 | 100% | |
| % TOTAL AREA | 37.05% | 15.18% | 28.49% | 1.28% | 18.00% | 100.00% | |||
| M2 | 438,655 | 179,686 | 337,355 | 15,126 | 213,093 | 1,183,915 | |||
| *Seats | |||||||||
| CONTROLADORA COMERCIAL MEXICANA, S.A. DE C.V. | |||||
| Balance Sheet | |||||
| 2003-II | 2002-II | Var. | |||
| Total Assets | 22,789,154 | 22,119,976 | 3.03% | ||
| Current Assets | 6,324,872 | 6,028,659 | 4.91% | ||
| Temporary investments | 790,785 | 813,349 | -2.77% | ||
| Trade acount receivable, net | 114,146 | 110,174 | 3.61% | ||
| Other accounts and notes receivable | 1,322,227 | 579,862 | 128.02% | ||
| Inventories | 4,033,136 | 4,446,292 | -9.29% | ||
| Prepaid and other assets | 64,578 | 78,982 | -18.24% | ||
| Long Term | 168,128 | 0 | 100.00% | ||
| Accounts and documents receivable,net | 0 | 0 | 0.00% | ||
| Investment in shares of subsidiaries and non-consolidated associated | 0 | 0 | 0.00% | ||
| Other investments | 168,128 | 0 | 0.00% | ||
| Property Plant and Equipment | 15,819,124 | 15,605,978 | 1.37% | ||
| Property | 16,087,579 | 15,774,387 | 1.99% | ||
| Machinery and Industrial equipment, net | 0 | 0 | 0.00% | ||
| Other equipment | 4,904,871 | 4,488,499 | 9.28% | ||
| Accumulated depreciation | 5,555,715 | 4,808,706 | 15.53% | ||
| Construction in progress | 382,389 | 151,798 | 151.91% | ||
| Deferred Assets, net | 5,128 | 2,296 | 123.34% | ||
| Other Assets | 471,902 | 483,043 | -2.31% | ||
| TOTAL LIABILITIES | 10,599,470 | 10,755,753 | -1.45% | ||
| Current Liabilities | 6,543,034 | 6,051,546 | 8.12% | ||
| Suppliers | 5,033,525 | 4,959,396 | 1.49% | ||
| Bank Loans | 54,236 | 391,492 | -86.15% | ||
| Stock Market Loans | 319,157 | 0 | 0.00% | ||
| Taxes to be paid | 0 | 105,055 | -100.00% | ||
| Other | 1,136,116 | 595,603 | 90.75% | ||
| Long Term Liabilities | 1,611,537 | 1,843,529 | -12.58% | ||
| Bank Loans | 0 | 304,990 | 0.00% | ||
| Stock Market Loans | 1,611,537 | 1,538,539 | 4.74% | ||
| Other Loans | 0 | 0 | 0.00% | ||
| Deffered Loans | 2,332,624 | 2,730,183 | -14.56% | ||
| Other Liabilitites | 112,275 | 130,495 | -13.96% | ||
| Consolidated Stock Holders' Equity | 12,189,684 | 11,364,223 | 7.26% | ||
| Minority Interest | 88,515 | 84,782 | 4.40% | ||
| Majority Stock Holders' Equity | 12,101,169 | 11,279,441 | 7.29% | ||
| Contribuited Capital | 7,988,695 | 7,986,316 | 0.03% | ||
| Capital Stock (nominal) | 1,737,600 | 1,737,600 | 0.00% | ||
| Restatement of Paid in Capital Stock | 5,312,944 | 5,312,944 | 0.00% | ||
| Paid in Capital | 938,151 | 935,772 | 0.25% | ||
| Contributions for Future Capital Increase | 0 | 0 | 0.00% | ||
| Capital Increase (Decrease) | 4,112,474 | 3,293,125 | 24.88% | ||
| Retained Earnings and Legal Reserve | 6,178,776 | 5,495,404 | 12.44% | ||
| Reserve for repurchase of units | 1,006,179 | 1,059,671 | -5.05% | ||
| Results from holding Nonmonetary Assets | (3,476,746) | (3,448,444) | 0.82% | ||
| Net income | 404,265 | 186,494 | 116.77% | ||
| Figures in thousands pesos as of June 30, 2003 | |||||
| CONTROLADORA COMERCIAL MEXICANA, S.A. DE C.V. | |||||
| INCOME STATEMENTS | |||||
| 2003-II | % | 2002-II | % | VAR % | |
| Net Sales | 8,010,940 | 100.00% | 7,463,724 | 100.00% | 7.33% |
| Cost of Sales | 6,391,776 | 79.79% | 5,974,153 | 80.04% | 6.99% |
| Gross Income | 1,619,164 | 20.21% | 1,489,571 | 19.96% | 8.70% |
| Operating Expenses | 1,388,156 | 17.33% | 1,366,064 | 18.30% | 1.62% |
| Operating Income | 231,008 | 2.88% | 123,507 | 1.65% | 87.04% |
| Integral Results of Financing | 27,465 | 0.34% | 116,849 | 1.57% | -76.50% |
| Interest Expense | 81,095 | 1.01% | 57,704 | 0.77% | 40.54% |
| Interest Income | (7,563) | -0.09% | (7,042) | -0.09% | 7.40% |
| Foreign Exchange Loss | (54,075) | -0.68% | 117,710 | 1.58% | 145.9% |
| Restatement of UDIs | 3,181 | 0.04% | 13,092 | 0.18% | -75.70% |
| Gain from Monetary Position | 4,827 | 0.06% | (64,615) | -0.87% | -107.47% |
| Other Financial Operations | (59,460) | -0.74% | 15,702 | 0.21% | 478.68% |
| Earnings Before Tax & Profit Sharing | 263,003 | 3.28% | (9,044) | -0.12% | -3008.04% |
| Tax Provision and Employee Profit Sharing | 657 | 0.01% | 18,744 | 0.25% | -96.49% |
| Deferred Taxes | 129,215 | 1.61% | 3,493 | 0.05% | 3599.26% |
| Minority Interest | 2,452 | 0.03% | 2,142 | 0.03% | 14.47% |
| Net Earnings | 130,679 | 1.63% | (33,423) | -0.45% | 490.99% |
| Depreciation & Amortization | 188,996 | 2.36% | 188,003 | 2.52% | 0.53% |
| Ebitda | 420,005 | 5.24% | 311,510 | 4.17% | 34.83% |
| Figures in thousands pesos as of June 30,2003 | |||||
| OPERADORA COMERCIAL MEXICANA, S.A. DE C.V. | |||||
| ACUMULATED RESULTS | |||||
| 2003-II | % | 2002-II | % | var. | |
| Net Sales | 15,693,742 | 100.00% | 15,072,273 | 100.00% | 4.12% |
| Cost of Sales | 12,509,330 | 79.71% | 12,033,144 | 79.84% | 3.96% |
| Gross Income | 3,184,412 | 20.29% | 3,039,129 | 20.16% | 4.78% |
| Operating Expenses | 2,678,838 | 17.07% | 2,694,194 | 17.88% | -0.57% |
| Operating Income | 505,574 | 3.22% | 344,935 | 2.29% | 46.57% |
| Integral Results of Financing | 52,753 | 0.34% | 87,025 | 0.58% | -39.38% |
| Interest Expense | 141,589 | 0.90% | 111,234 | 0.74% | 27.29% |
| Interest Income | (23,894) | -0.15% | (17,657) | -0.12% | 35.32% |
| Foreign Exchange (Gain) Loss | (9,073) | -0.06% | 111,567 | 0.74% | -108.13% |
| Restatement of UDIs | 7,957 | 0.05% | 19,021 | 0.13% | -58.17% |
| Gain from Monetary Position | (63,826) | -0.41% | (137,140) | -0.91% | -53.46% |
| Other Financial Operations | (129,138) | -0.82% | 24,238 | 0.16% | 632.79% |
| Earnings Before Tax & Profit Sharing | 581,959 | 3.71% | 233,672 | 1.55% | 149.05% |
| Tax Provision | 34,775 | 0.22% | 37,954 | 0.25% | -8.38% |
| Deferred Taxes | 137,840 | 0.88% | 4,428 | 0.03% | 3012.92% |
| Minority Interest | 5,079 | 0.03% | 4,796 | 0.03% | 5.90% |
| Net Earnings | 404,265 | 2.58% | 186,494 | 1.24% | 116.77% |
| Depreciation & Amortization | 355,169 | 2.26% | 367,910 | 2.44% | -3.46% |
| Ebitda | 860,743 | 5.48% | 712,845 | 4.73% | 20.75% |
| Figures in thousands pesos as of June 30, 2003 | |||||
| CONTROLADORA COMERCIAL MEXICANA, S.A. DE C.V. | |||
| Consolidated Statement of Changes in Financial Position | |||
| 2003-II | 2002-II | Var. | |
| Consolidated Net Income | 409,344 | 191,290 | 114.0% |
| + (-) Items Added to Income Which do not Require use of cash | 493,481 | 381,681 | 29.3% |
| Cash flow form Net Income of the Year | 902,825 | 572,971 | 57.6% |
| Cash Flow from Change in Working Capital | (218,892) | (854,179) | -74.37% |
| Cash Generated (Used) in Operating Activities | 683,933 | (281,208) | -343.2% |
| Cash Flow form External Financing | 52,037 | 303,044 | -82.8% |
| Cash Flow from Internal Financing | (134,067) | (130,957) | 2.4% |
| Cash Flow Generated(Used)by Financing Activities | (82,030) | 172,087 | -147.7% |
| Cash Flow Generated (Used)in Investment Activities | (680,719) | (345,878) | 96.8% |
| Net Increase(Decrease)in Cash and Shorts-Term Investments | (78,816) | (454,999) | -82.7% |
| Cash and Short Term Investment at the Beginning of Period | 869,601 | 1,268,348 | -31.4% |
| Cash and Short Term Investment at the End of Period | 790,785 | 813,349 | -2.8% |
| OPERADORA COMERCIAL MEXICANA, S.A. DE C.V. | |||
| OTHER DATA | |||
| 2003-II | 2002-II | var. | |
| Working Capital | (218,162) | (22,887) | 853.2% |
| Pension Fund and Seniority Premiums | 31,933 | 33,220 | -3.9% |
| Executives* | 322 | 399 | -19.3% |
| Employers* | 31,291 | 30,682 | 2.0% |
| Workers* | 493 | 467 | 5.6% |
| Circulation Shares* | 1,083,524,271 | 1,085,890,871 | -0.2% |
| Repurchased Shares* | 2,475,729 | 109,129 | 2168.6% |
| * Numbers in units | |||