Retailer Femsa Emerges as Surprise Winner From Mexico Oil Plans

400x225

Puerto Vallarta.- While crude producers see delays in promised auctions that will end the state monopoly on drilling, retailer Fomento Economico Mexicano SAB is taking advantage of a low-profile change letting gas stations bypass Petroleos Mexicanos to market any gasoline of their choice.

Femsa surged the most since 2012 on Feb. 26 after agreeing to acquire 227 gas stations, and it’s seeking to add even more pumps to complement the Oxxo shops whose red-and-white signs are fixtures across the country. The shares are beating the benchmark IPC index in 2015 as well as Alfa SAB, which invests in drilling, and petrochemical supplier Mexichem SAB.

“No one saw this coming,” Jose Maria Flores, an analyst at Ve Por Mas SA, said in a telephone interview. “A beer seller is gaining from the energy reform.”

Alfa and Mexichem are falling this year as the global rout in crude prices slows the implementation of the privatization law. At the same time, controls are coming off of private ownership of gas stations.

Ironic Benefits

“It’s ironic that companies related to oil aren’t seeing benefits, and those that have nothing to do with the industry are benefiting directly,” Cristina Morales, a Signum Research analyst, said in a telephone interview. “We’re seeing an upside to the energy reform that wasn’t so obvious.”

Femsa gained 1.4 percent to 142.06 pesos at 9:49 a.m. in Mexico City. The shares had risen 7 percent this year through Monday, outpacing the 1.9 percent gain for the IPC index. Alfa had dropped 3.4 percent and Mexichem declined 6.4 percent. Ve Por Mas’s Flores doesn’t rate Femsa, while Morales has a buy recommendation.

Neither Monterrey-based Femsa nor Alfa would comment on the possible effect of the energy overhaul on their stocks. Mexichem didn’t respond to requests for comment.

An Energy Ministry press official, when reached for comment, pointed out a March 9 speech by Minister Pedro Joaquin Coldwell, who said that the energy law’s implementation was advancing with “efficacy and agility.”

Femsa already had operated some services in the 227 stations, which the company said generated 16.2 billion pesos ($1.1 billion) in sales of gasoline and related products in 2014.

“With the new regulatory framework resulting from the energy reform in Mexico, we will be able to open franchises ourselves,” Chief Financial Officer Javier Astaburuaga said on a Feb. 26 conference call.

Margin Pressure

Gas stations offer very profitable returns on investments, although they can lower operating margins for Femsa Comercio, the company’s convenience store arm, Astaburuaga said. Femsa’s fourth-quarter net income of 7.25 billion pesos beat analysts’ estimates of 5.95 billion pesos.

Mexico passed legislation in 2013 to end state-owned Pemex’s production monopoly, which dated to 1938, and allow foreign companies to develop fields. The government projects that opening up the industry will generate $62.5 billion in investments by 2018.

Oil and petrochemical producers in the country probably will still benefit from the influx of foreign cash once drilling is under way, while food companies will be helped as increased output cuts power costs, according to Veronica Uribe, an analyst at Monex Casa de Bolsa. She dropped her rating on Femsa to sell from hold in February after a 27 percent stock rally in a year pushed the shares close to her price target.

In the meantime, she sees a company whose beer and alcohol sales account for about 20 percent of its convenience-store revenue making off with the winnings.

“It’s very positive,” Uribe said. “The gas stations will generate traffic to Oxxo stores and Oxxos will generate traffic in gas stations.”

--With assistance from Adam Williams in Mexico City.

vallartatodaysource

reportproblem

Mexico Gov't Still Eyeing 5 pct Growth in 2018

10658261w

Puerto Vallarta, Jal.- Mexican Finance Secretary Luis Videgaray said the government still expects a series of recent economic reforms will lead to growth of 5 percent by the end of President Enrique Peña Nieto's six-year term in 2018.

"I don't have the slightest doubt that Mexico will have sustainable average growth rates in that range," Videgaray said in an interview published Monday by El Universal newspaper.

Though acknowledging that growth conditions depend on external and cyclical factors, the minister said the "potential" to be unleashed by structural overhauls in the energy, telecommunications, labor and financial sectors will help fuel economic expansion.

Provided that the overhauls are implemented "in a thorough and timely manner," the growth forecasts will be met, according to Videgaray.

He also stressed the importance of an annual document that provides an overview of Mexico's economic picture and will serve as a guide for the country's economic policy in 2016.

That panorama includes a "high degree of uncertainty" in global markets, capital flows triggered by monetary policy, particularly in the United States, and sharply lower oil prices, which the minister said earlier this month will put a strain on Mexico's public finances next year.

Despite the challenges, the minister said the 2016 budget will not include cuts in areas such as pensions, although funding for government programs and ministries will come under review.

Regarding expectations that the U.S. Federal Reserve will raise interest rates this year, Videgaray said if that happens it will be up to Mexico's central bank to make an independent decision on whether to follow suit and raise its benchmark rate from its record-low level.

vallartatodaysource

reportproblem

Mexico's Lodging Sector Remains an Appealing Environment for Investment

puerto vallarta barcelo hotels building beach views54 9209

Puerto Vallarta, Jal.- Given strengthening industrial activity, increases in foreign direct investment and recent political reforms, the long-term outlook for Mexico's economy - and lodging sector - is strong.

Benefiting from steady growth in operating performance, the hotel investment climate has remained healthy with transaction volume in 2014 near $500 million for the third consecutive year.

Our latest research report covers key investment trends in Mexico's lodging sector as well as a review of the key Mexico City, Cancun, Los Cabos and Puerto Vallarta markets.

vallartatodaysource

reportproblem

Tacos Are on Credit as Street Vendors in Mexico Use Apps

1200x 1

Puerto Vallarta, Jal.- In Mexico city, known for its sprawling street markets, consumers are shunning cash and opting for credit cards they swipe on merchants’ smartphones to pay for everything from shoes to tacos.

“People will always ask, ‘do you take cards?’, and if you do, they’ll go ‘I want this, I want that,’” said Jorge Preciado, who promotes and recruits vendors to sell their wares in markets across Mexico, such as Bazar Condesa. “Cash will always
circulate, but paying with a card is going to become the norm,” he said in a phone interview.

541386193 NextelMexicoInt

vallartatodaysource

reportproblem

 

The Dollar at Its Highest Level Since March 2009

dollar

The current exchange rate for the retail trade is 15.55 pesos to $1.00, according to Banamax data; its highest level since March 2009, and 15.20 pesos per $1.00 for wholesale trade; which is also the highest in the last seven years.

The Dollar is getting stronger in the international market because of the uncertainty of the Brazilian and Euro zone economy and the perspective of the labor market in the United States.

The European Central Bank (BCE) published its last monetary policy, and it was decided to maintain interest rates as they currently are. BCE president, Mario Draghi, at a press conference, pointed out the program to buy bonuses will start on March 9, with an amount of sixty thousand Euros a month, and will continue until September 2016, or when inflation goes as far as to 2 % down.

On the other hand, In the United States, the initial applications for unemployment went up by 7, 000, reaching its highest level in nine months last week, and incrementing unemployment application to 320,000, much higher than what the market was expecting.

However, since unemployment applications tend to be unpredictable and are affected by seasonal factors, February agricultural payroll data are still the principal indicators for the exchange rate market, and also for determining the United States’ labor market trend; a Bank basic analysis points out.
An additional factor, that could also be putting some pressure to the parity exchange rate, is the circumstances of the Brazilian economy, and the depreciation of the Real against the dollar, which has reached levels never seen in the last ten years.

Furthermore, the share markets in Mexico and United Stated report earnings. The Dow Jones was going up 0.15% while the Price and Quotes Index were moving with a 0.91% profit.


[readon1 url="index.php?option=com_sobipro&pid=1&sid=703:mar&Itemid=212"]Source:www.VallartaToday.com-by MAR Translation Services[/readon1]

vallartatodaysource

reportproblem

JALISCO EXPORTS BULL FROG MEAT TO THE UNITED

142560149233

Puerto Vallarta, Jal.- Fifteen years ago, bull frog meat was something entirely unknown in Jalisco. Now a days, this amphibious can be found in 15 cattle farms in Jalisco, and some owners have already started to export its meat to United States; which means a substantial development for the cattle farmers, said Ruben Ruiz Medina, Biologist Promoter for Jalisco Secretary of Rural Development.

He also said that that exportation is done through a Queretaro company, certified for this purpose. Bull frog meat exportation from Jalisco’s cattle farms is a big incentive to consolidate its reproduction and to increase the supply and demand of this meat, in the local, as well as in the international market.
The yearly volume that these Jalisco cattle farms generate are of about 20 tons, out of which two were exported last year, while to this date in 2015; half a ton has already been exported.

The good results that one can see in this kind of business make farmers look at this activity a very lucrative one, in such a way that there are three new cattle farm projects already under construction, some with a capacity of producing 20 tons of meet per year.

Ruiz Medina emphasized that an expert in bull frog breeder can produce a kilo of meat for an average of 60 pesos, and could sell it for 140 pesos. However, he did say that for the business to be sufficiently profitable, each farm requires to produce at least two tons of meat a year.

Another alternative is to sell the bull frog live; they can be sold for 90 to 100 pesos a kilo. Demand for the live specimen can be found especially at Science, Medical-biologist kind of educational institutions, since the anatomy configuration of the animal lends itself to experimentation.

As a fact, SEDER biologist mentioned that there is currently a demand of 60 to 80 animals a year in the United States; which represents a valuable niche for business in the bull frog breeding in Mexico, of which Jalisco is already part.

He also pointed out that there are some technical demands which are hard to avoid, such as the dimension of the installations, which required sheltered space of 300 to 350 square meters to generate a proper surrounding for breeding, and the control of humidity, temperature, lighting and water quality, among other things.

toro5


[readon1 url="index.php?option=com_sobipro&pid=1&sid=703:mar&Itemid=212"]Source:www.VallartaToday.com-by MAR Translation Services[/readon1]

vallartatodaysource

reportproblem

Joint Promotion Spurs Activity In Colombia

col1Puerto Vallarta, Jal.- The participation of the Riviera Nayarit and Puerto Vallarta in the Experiencia Aviatur and the Feria Anato, the most important tourism business event in Colombia, boosted the positioning of the destination in this emerging market.

Inflation goes up to 3.4 % the First Two Weeks of February

inflacion

Puerto Vallarta, Jal. - Inflation was up to 3.04 % by the second week of February, which represents an increase of 0.11 % in relation to the second week of January.
According to the Statistic and Geographic National Institute, at this same time in 2014, consumers had suffered a yearly inflation of 4.21 % and a biweekly inflation of 0.12%.

The figures above are based on the underlying indicator which removes the prices that have greater impact and volatility, such as the energy sector, thus allowing the conclusion that the biweekly inflation was 0.28%.

Among the underlying services, general merchandise registered a percentage increase of 0.36 on the first two weeks of February; while other services, such as housing and education, suffered 0.21 % increase.

Meanwhile, still comparing with the first two weeks of January, farming products went down 0.98% and government fees such as energy products were reduced by 0.08% even though their annual impact on the inflation rate was 0.41%.

Banco de Mexico expects the annual inflation rate for 2015 will remain at around 3%. The inflation rate will be lower during the first semester of the year while the second semester will experience a higher inflation rate.

They also pointed out that inflation could go up if the peso stays for a long time as it is now (15 to $1), and cannot be brought back to 12.80 to $1 as it used to be.

[readon1 url="index.php?option=com_sobipro&pid=1&sid=703:mar&Itemid=212"]Source:www.VallartaToday.com-by MAR Translation Services[/readon1]

vallartatodaysource

reportproblem

Forbes and Travel & Leisure Place Riviera Nayarit Hotels On Their Lists Of Top Properties

pm lapuntaestates

Punta Mita is validated as the most exclusive development in Mexico with the appearance of the St. Regis and Four Seasons hotels on the list of top hotels from around the world; U.S. News Travel also included Villa La Estancia and Grand Velas.

The Riviera Nayarit’s excellent hotel infrastructure was front and center on the lists of the best hotels in Mexico—and the world. Forbes Travel Guide, Travel + Leisure and U.S. News Travel have spotlighted the Riviera Nayarit, much as TripAdvisor recently did.

On this occasion, the kudos went to St. Regis Punta Mita Resort, Four Seasons Resort Punta Mita, Villa La Estancia Beach Resort & Spa and Grand Velas Riviera Nayarit.

Travel + Leisure’s annual list of the Top 500 Hotels in the World for 2015 included two of the destination’s hotels: St. Regis y Four Seasons. The list of the World’s Top 50 Hotels included the St. Regis at no. 16.

Forbes Travel Guide’s exclusive selection of top resorts from around the world included properties from the Riviera Nayarit’s Glamour Peninsula: Four Seasons was awarded five stars, while St. Regis received four stars.

Another important travel page, U.S. News Travel, highlighted four of the Riviera Nayarit’s resorts as the best in the country: St. Regis took 3rd place; Villa La Estancia was in 14th; Four Seasons followed in 15th place and Grand Velas took 25th place.

Though it might seem somewhat less well-known, U.S. News Travel boasts 33 million visits per month, with approximately 150 million page views during the same time period—not inconsiderable numbers, to be sure.

Below please find the complete lists:
Travel + Leisure
Top 500- Latin America
http://www.travelandleisure.com/tl500/2015/region/mexico-central-south-america.
Top 50
http://www.travelandleisure.com/slideshows/worlds-best-hotels-2014/2

Forbes Travel Guide
http://www.forbestravelguide.com/about/awardwinners

U.S. News Travel

http://travel.usnews.com/features/2015-Best-Hotels-in-Mexico-Winners/.

 

Takeoff for Blue Label Mexico

businessJohannesburgCBDxxxSamantha Khoza waits for customers at her Samantha’s Cell Plus Sound
shop in Johannesburg’s CBD. Picture: SUNDAY TIMES

Puerto Vallarta, Jal- LOSSES that have dogged Blue Label Mexico are set to become a thing of the past soon, much to the relief to the South African prepaid company.

Its parent company, Blue Label Telecoms, is South Africa’s largest vendor of prepaid airtime and electricity. While business is pumping in South Africa — it announced a 15% rise in headline earnings for the six months to November — the Mexican business has been a big drag on the company’s performance.

Mark Levy, joint CEO along with his brother Brett, said that had the Mexican business broken even, headline earnings would have been up 34%.

In all, Blue Label Mexico, in which Levy’s company holds a 40% stake, grew by R14.5-million to R45-million, despite a 20% increase in revenue for sales of prepaid airtime and payment of services.

Sorting out Mexico has remained an overhang on Blue Label’s shares — the stock moved up only 1.3% over the last year, compared to an 11.7% gain in the JSE’s All Share index over that time — but it seems there is now light at the end of the tunnel. Blue Label touched a three-day high of R8.65 on Wednesday when results were published

The company is expected to get a boost from new rules implemented by Mexico’s telecoms regulator, which has attracted a flurry of new wireless competitors. Although this led initially to a steep cut in commission from airtime sales in that country, it could be a blessing in disguise.

Levy said that for the first time outside of South Africa, Blue Label would now be able to distribute more sim cards in Mexico, which would help it create an annuity revenue from a wider distribution network. Previously, Blue Label was limited by the fact that it had been contracted to sell exclusively for billionaire Carlos Slim, owner of Telcel, which had 70% of the mobile telephony market.

Blue Label Mexico owns the largest private network of point-of-sale devices — 75 000 — in Mexico.

Blue Label has now signed up several other cellphone companies on whose behalf it will distribute airtime. It intends to grow revenue from these clients from 15% to 30%.

The Mexican business began trading in August 2009. By 2013, it had a combined R113-million in losses — of which Blue Label’s share was R51-million.

But Levy’s company has plans to branch out in Mexico. In particular, there is also a big market in Mexico for vending food vouchers.

“If our strategy and vision is correct, people must hang in there. That’s the game plan.”

Back in South Africa, Blue Label’s commission from electricity sales grew 18% to R79-million and prepaid airtime vouchers revenue jumped 65% to R1.2-billion. Margins increased too, as pretax profit climbed 17% to R417-million.

In South Africa, the company is pursuing growth in selling prepaid water vouchers, as prepaid water meters are gaining prevalence.

• This article was first published in Sunday Times: Business Times

vallartatodaysource

reportproblem

The Riviera Nayarit and Puerto Vallarta At Expo Tu Boda

 boda1

Puerto Vallarta, Jal- Their presence at this event consolidates their promotional efforts in the romance segment; there were more than six thousand end consumers and over 300 exhibitors including providers, travel agencies and destinations within Mexico.
Mexico City’s World Trade Center hosted Expo Tu Boda 2015 from February 13-15, with the participation of the Riviera Nayarit Convention and Visitors Bureau and the Puerto Vallarta Tourism Trust, as well as area hotels.

Their presence in this important expo was due to the excellent results and high demand in the romance segment for both destinations; there were over 6,000 end consumers there looking to plan their upcoming weddings, anniversaries or honeymoons.

Expo Tu Boda had an excellent attendance rate during its three days of exhibits. There were approximately 300 exhibitors including providers, travel agents and destinations within Mexico. Among the Riviera Nayarit’s participating hotels were the Grand Velas, Grupo Vidanta, Grupo Marival and La Tranquila.

The representatives were able to strengthen the romance segment and highlight the Riviera Nayarit and Puerto Vallarta as exceptional destinations, with quality services and facilities that are perfect for beach weddings; world-class hotels and restaurants; and high-octane adventure and ecotourism activities.

During the event visits by couples were encouraged to this region, which is recognized worldwide for its charm and its romantic atmosphere framed by mountains, rivers, and the exceptional sunsets of the Mexican Pacific, not to mention its idyllic locations and gastronomy.

Expo Tu Boda has catered to women who are immersed in romance for the past 23 years with exhibits and digital platforms to help them find everything they’ve ever dreamed of for their special occasion.

The expo has over 110,000 yearly visitors to its different events around the country and gathers hundreds of millions of impressions thanks to its advertising, public relations and direct marketing campaigns. These are some of the reasons why the Riviera Nayarit and Puerto Vallarta consider it important to maintain a presence at the event.

reportproblem

The Birds Of The Riviera Nayarit On International TV

aves1

Puerto Vallarta, Jal- Five international TV stations—among them The Pursuit Channel and the Discovery Channel—will be airing James Currie’s program, taped here during his second and most recent visit to the destination.

The endemic and migratory bird population of the Riviera Nayarit caused such an impact on the professional career of James Currie, noted producer and host of Nikon Birding Adventures TV, that he returned to the destination this 2015 to tape a new show, which will be aired on five international television stations.

Among the stations that will transmit the show is The Pursuit Channel, considered the second most popular channel for outdoor programs in the world with delivery to over 42 million homes.

The Discovery Channel’s Destination America is another top production, reaching 65 million homes.

Mr. Currie’s itinerary included a visit to the Sierra Madre and one with the Huichol ethnic community in the Sierra del Nayar, as well as a trek to the Lagunas Encantadas in Santa María del Oro and Tepeltitic.

Back in the Riviera Nayarit, the team’s first stop was in Punta de Mita, where they sailed off to the Islas Marietas, followed by stops in Lo de Marcos and San Pancho, ending with a surf lesson in Sayulita.

On this occasion, James Currie arrived in search of certain species of birds, which will be shared with viewers once the programs air in the upcoming months. In order to complete his mission, he hired two local expert birdwatchers, Francisco García from San Blas and Luis Morales from San Pancho.

Nikon Birding Adventures TV is the only birding TV program in the United States, which is why the Riviera Nayarit Convention and Visitors Bureau hosted this FAM trip. This takes into consideration the hundreds of thousands of followers Mr. Currie has in dozens of countries.

The destination’s natural bounty is undoubtedly of great relevance when positioning it on an international level, as the Riviera Nayarit is one of the regions with the highest diversity of endemic and migratory bird species in the world.

reportproblem

One&Only Will Build a Resort in Riviera Nayarit

2ed94efa 3fb9 4cf9 9746 0fe7c9692f56

Puerto Vallarta, Jal.- One&Only Mandarina, will offer approximately 145 luxurious villas as well as private residential estates, world-class farm-to-table dining and original retail options.

The Riviera Nayarit continues to call worldwide attention. Now the luxury hotel chain One&Only will build a resort in the land of La Mandarina that is located in the border of Compostela and Banderas Bay.

Kerzner International Holdings Limited has entered into an agreement with BK Partners, a private equity fund focused on tourism and land development, to develop and operate One&Only Mandarina in Riviera Nayarit.

One&Only Mandarina, will offer approximately 145 luxurious villas as well as private residential estates, world-class farm-to-table dining and original retail options.

The beachfront resort will maximize the dramatic rain forest location, with each secluded villa individually placed to celebrate where the sky meets the sea and the lush flora and fauna.

A wide variety of accommodation will include Ocean Cliff Villas, Tree House Villas and Mountain Villas, all placing an emphasis on privacy and beautiful vistas.

Adults will discover the chic pool, soaring high above the Pacific, with private cabanas and a sophisticated poolside café and lounge, perfect for a decadent escape or an intimate gathering.

The building of the Jala – Banderas Bay highway has been a fundamental piece so this international hotel chain decided to invest in Riviera Nayarit, besides the culturally and naturally rich destination.

REPORT AN ERROR