Mexico's Comerci Q4 profit soars on lower interest payments

Wed Feb 27, 2013 5:07pm EST

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* Q4 profit 363 mln pesos vs 201 mln pesos yr earlier

* Revenue up 2.7 pct to 11.6 bln pesos

MEXICO CITY Feb 27 (Reuters) - Retailer Comercial Mexicana on Wednesday said its fourth-quarter profit soared, helped by lower debt payments and a slight increase in sales.

The company, known locally as Comerci, said fourth-quarter profit climbed 81 percent to 363 million pesos ($28.2 million) in the October-December period, up from 201 million pesos in the same period a year earlier.

Fourth-quarter revenue rose 2.7 percent to 11.6 billion pesos from 11.3 billion pesos a year earlier.

Comerci paid just 107 million pesos in interest on debt in the fourth quarter, compared to 429 million pesos in the fourth quarter last year.

Last November, the company said it arranged a 2.5 billion pesos ($192 million) syndicated loan to pay down debt related to a restructuring deal negotiated in 2010.

Comerci, which operates the upscale City Market grocery stores as well as discount stores and restaurants, agreed to the debt restructuring deal with creditors in 2010 after heavy losses on currency derivatives led it to default on obligations in late 2008.

Comerci shares closed up 1.25 percent at 45.45 pesos before it reported results.

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