RESEARCH: Grupo Famsa 3Q17 Credit Update - Asset monetization might be going better than expected

02 November 2017

We were pleasantly surprised when Grupo Famsa announced during the 3Q17 conference call that it would sell 10 of 17 properties to raise MXN 1.23bn, after fearing that an initial valuation of MXN 1.1bn for all 17 was too optimistic.

 

On the operational side, the US business continues to disappoint. Now that the two stores that were closed during the quarter represent one-third of the square footage, we expect sales to decline even further. It is good news that during 3Q17 provisions for the loan portfolio to individuals in Mexico was up to 11.2%, breaking a streak of at least four years when during non-audited financials provisions were coming down to then spike during the audited fourth quarter.

 

CLICK HERE to access Grupo Famsa 3Q17 Credit Update
CLICK HERE to access Grupo Famsa 2Q17 Credit Update