October 25, 2012 / 12:35 AM / in 5 years

Mexico's Comerci Q3 profit triples as debt financing costs fall

MEXICO CITY, Oct 24 (Reuters) - Retailer Comercial Mexicana on Wednesday said its third-quarter profit tripled as debt financing costs fell after it paid down loans with its sale of its stake in Costco’s Mexico operations.

Comerci said third-quarter profit climbed to 441 million pesos ($34 million) in the July-September period, up from 143 million pesos in the same period a year earlier, when foreign exchange losses related to interest payments weighed.

The company, which has struggled under a heavy debt load, agreed to sell its 50 percent stake in Costco’s Mexico unit in June to pay down debt and the company more than tripled its annual forecast profit after the sale.

Third quarter revenue rose 7 percent to 12.2 billion pesos.

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

Comerci shares are trading around record levels and closed up 0.96 percent at 36.92 pesos.

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