Soriana (BMV: SORIANAB) 4Q15 Results: Revenues in Line, Consumers Confident as Labor Market Improves and Inflation Stays Low

Executive Summary

• Soriana reported 4Q15 revenues of MXN$30.8 billion, in line with the consensus estimate and up 7.3% year over year. Bloomberg calculates EPS of MXN$0.73, flat with the consensus estimate and up just MXN$.01 from last year.
• Private consumption remained strong in Mexico despite global monetary policies and a strengthened US dollar. Soriana’s comps increased by 6.2% in 4Q15 and by 5.6% in 2015.
• Soriana acquired 143 stores from Controladora Comercial Mexicana in 4Q15 and opened four new units, for a total of 11 new units in 2015.