Introduction
The depreciation of the Mexican peso against the US dollar and other currencies has bolstered the revenues of several companies listed on the S&P/BMV IPC, excluding banks, during the first quarter of 2025. The average exchange rate in Q1 2025 was 20.4128 pesos per dollar, compared to 16.9781 pesos in the same period of 2024, representing a 20.23% depreciation.
Overall Performance
According to experts at Valmex, the first quarter of 2025’s earnings season was mostly neutral. Out of the 35 companies in the IPC, 20 (57%) experienced a slowdown in revenue growth and compressed profitability.
However, total revenues increased by double digits due to the peso’s depreciation, strong performance in international operations (mainly in Europe), and a favorable pricing environment in the materials sector.
Beneficiaries of Peso Depreciation
Among the S&P/BMV IPC companies, mining firms Industrias Peñoles and Grupo México reported the most significant revenue increases during the referenced period, as they were among the most benefited by the currency conversion of the currencies in which they operate.
- Industrias Peñoles: Revenues grew by 59.17% in Q1 2025 compared to the same period in 2024, rising from 23,087 million pesos to 36,748 million pesos.
- Grupo México: Revenues increased by 36.52%, totaling 85,748 million pesos from 62,808 million pesos. These mining companies were favored not only by the peso’s depreciation but also by higher metal prices (silver 38.4%, gold 38.2%, zinc 15.8%, copper 10.7%).
- Grupo Aeroportuario del Pacífico (GAP): The company managing 12 airports in Mexico and two more in Jamaica was among the most benefited by the exchange rate in Q1. Their revenues grew by 30.14%, increasing from 8,495 million pesos to 11,055 million pesos.
- Grupo Aeroportuario del Sureste (Asur): Their revenues expanded by 18.18% in the mentioned period, rising from 7,435 million pesos to 8,787 million pesos.
- Bolsa Mexicana de Valores (Bolsa): The exchange rate benefited this company, leading to a 16.65% increase in revenues.
- Chedraui: The company saw a 14.81% increase in revenues due to the peso’s depreciation.
Companies Negatively Affected
On the other hand, companies like Gruma, Cemex, Alfa, and Grupo Cementos Chihuahua were negatively impacted by a negative effect of the peso’s depreciation.
- Gruma: The corn flour and tortilla producer reported a 6% decrease in reported dollar-based revenues during Q1 2025. However, when converted to pesos, their revenues increased by 16.21%.
- Cemex and Grupo Cementos Chihuahua (GCC): Both construction materials companies experienced a 7.4% and 9.6% decrease, respectively, in dollar-based revenues (11.70% increase in pesos for both).
Key Questions and Answers
- What is the S&P/BMV IPC? The S&P/BMV IPC is the primary index of the Bolsa Mexicana de Valores (Mexican Stock Exchange), tracking the performance of leading companies listed on the exchange.
- Who are Industrias Peñoles and Grupo México? Industrias Peñoles and Grupo México are prominent Mexican conglomerates operating in mining, transportation, energy, and related sectors.
- How did the peso’s depreciation affect different companies? While mining firms Industrias Peñoles and Grupo México benefited from the peso’s depreciation, companies like Gruma, Cemex, Alfa, and Grupo Cementos Chihuahua experienced negative impacts due to factors such as reduced volumes, weakened consumer demand in Mexico, adverse weather conditions, and lower prices in the petrochemical sector.
