(Adds outlook from conference call)
MEXICO CITY, April 25 Mexico's No. 2 supermarket
chain, Organizacion Soriana, said on Friday its first-quarter
profit fell more than one-fifth and it lowered its 2014 forecast
because of sluggish consumer spending and temporary store
Soriana reported a profit of 795 million pesos
($61 million), compared with 1.016 billion pesos in the
January-March period a year earlier.
Revenue fell 6 percent to 23.823 billion pesos as already
weak Mexican consumer spending was compounded by the temporary
closing of stores for remodeling. The Easter holiday week, which
fell this year in April compared with March last year, also
A currency loss of 6 million pesos compared with a gain of
70 million pesos a year earlier added to the profit decline.
Soriana competes with Mexico's biggest supermarket chain,
U.S. controlled Wal-Mart de Mexico. Walmex on
Tuesday reported a 4.5 percent lower profit but slightly higher
The company lowered its 2014 forecast on a conference call
with analysts on Friday, estimating flat same-store sales
instead of the 4 percent growth it forecast last year.
The company said it closed around 20 stores in the first
quarter, either temporarily for refurbishment or permanently.
Shares in Soriana were up 0.13 percent at 39.00 pesos on
Friday after the results were announced.
($1 = 13.06 pesos at end March)
(Reporting by Elinor Comlay and Christine Murray in Mexico City
and Gabriela Lopez in Monterrey; Editing by W Simon and Richard