The markets are also waiting for the next monetary policy decisions by the Federal Reserve that anticipate reaching a level of 2% in the reference rate towards the end of this year
The reporting season begins in the first quarter of the year and with this we have met companies in various sectors that in common show a considerable impact on profit margins by assuming higher prices of raw materials in general.
The companies show significant advances -in annual terms- in income, by trying to update prices in the same line with inflation; however, the structure of costs and operating expenses have reflected a higher progress.
An example of this is Gruma, a very important player in the consumer sector, which showed increases in revenues of 17% compared to the same quarter of last year, by integrating advances in prices and volumes, but with a contraction in the operating flow ( EBITDA) that responded to higher raw material costs.
On the other hand, Grupo Rotoplas (AGUA) achieved a growth in sales of 9.3% year-on-year in the quarter, derived from the operating dynamism in the United States and Argentina, however, EBITDA showed a decrease of 18.7% compared to the same quarter of previous year, as a result of increases in expenses not only due to the price of raw materials but also due to the expansion of the e-commerce platform and the septic business, both in the United States.
We have also seen the results of leading issuers in the real estate sector, such as the case of Corporación Inmobiliaria Vesta, an important developer of industrial buildings, which included important occupancies in the portfolio of more than 93%, and assuming higher construction costs in the plan of expansion that currently seeks to integrate 1.3 million m² in the short term.
Likewise, in this same sector, Fibra Prologis, with solid results and great participation in the center and north of the country, stood out for an increase in the rents of its properties that, according to the administration, would be sustainable to mitigate in the future. the impact of inflation.
We estimate that the industrial leasing sector will continue to show marked strength in its fundamentals due to the disruption in supply chains, the change in consumer trends that has led to greater demand from e-commerce, and the link between industrial activity and the United States. .
In other cases, the Mexican Stock Exchange reported very solid results, assuming generalized growth in the main metrics given the progress in the transaction and information services business, which boosted the operating flow to historical levels.
There are several reports to be released in the coming days, in which we will see, to a greater or lesser extent, the impact on different sectors due to the current situation on inflation and interest rates.
We will also know reports that we anticipate as favorable as in the mining sector, infrastructure and financial institutions that could be strengthened by the same economic situation.
The evolution of the war crisis in Europe will largely determine the performance of commodity prices, particularly energy prices, which have motivated the general rise in other raw materials.
The markets are also waiting for the next monetary policy decisions by the Federal Reserve that anticipate reaching a level of 2% in the reference rate towards the end of this year.
The next inflation and employment readings will be very relevant for investors, as they set the tone for the magnitude of these next increases in interest rates, and thus weigh the valuations of the market in general, and thus determine the companies that will be able to better navigate this turbulent environment.