What have we learnt from the recently reported full year and fourth quarter results?

On the earnings side, most Mexican listed companies reported soft revenue growth, impacted by weak economic growth in Mexico, and with respect to international operations, by the devaluation of many currencies against the then strong Mexican Peso. Overall consumer was more stable than construction, industrials, and investment related companies. Also, notwithstanding weak revenues, many consumer companies were able to post decent margins, helped by the strong peso, cost control, and reduction in raw material costs. Hence retailers such as WalMex, Liverpool, Alsea Mexico, Femsa ex KOF, Liverpool, Chedraui, Soriana, Grupo Bimbo, posted soft but as expected revenues, but robust margins. Banks (Banorte, Regional, Gentera) generally posted solid numbers, with asset quality holding up, loan growth reasonable, and still high interest rates helping their profitability. Companies with high South American exposure (KOF) generally suffered. FIBRAs reported in line, industrials (FibraMQ, Prologis, Terrafina, Vesta) with decent operating trends; Fibras with hotels and offices had challenges due to oversupply and weak demand; retail Fibras in line. Infrastructure companies related to construction and homebuilding (Cemex, CMOC, Elementia, Consorcio Ara, Javer) mostly had difficult quarters and a difficult year. Most chemicals companies (ALPEK, Alfa) suffered from lower feedstock prices.

How did companies report their earnings? Here, we list some relevant data points for the top 30 most liquid companies that have reported.

1. Average number of pages in quarterly reports: 26
2. 93% of quarterly reports were provided in both English and Spanish.  
3. 13% reported in the last week of January, 23% in the first half of February and 63% in the second half of February.
4. The average length of earnings call, including Q&A, was 43 minutes.
5. 100% of earnings calls were in English.
6. 73% of companies provided an investor presentation, in addition to the earnings report. Within these, the average length of the presentation is 28 pages.
7. 57% of companies had the head of IR, CEO and CFO present in the earnings call. For large cap companies with large divisions, it’s a good idea to have the CEO/CFO of those divisions present in the call to provide detailed answers.
8. 100% of companies conducted their earnings call one day after the report.