Revenues in telecoms sector firms declined 16 percent.
by David Ramirez
Latin Trade’s Multilatina Index –a ranking of the largest 25 multilatinas by US dollar revenue– plunged 19 percent in the second quarter compared with the same period in 2014. The total revenue of the firms composing the index fell to $105.2 billion, largely reflecting currency effects and the deterioration of economic conditions in their markets.
Sector-wise, the food & beverages index went down by 12 percent, to $27.1 billion, following declines in all the firms in the list, bar Arcor (21st in the ranking), whose revenue grew 3 percent driven by exports. JBS (3rd), the world’s largest meat processor, saw revenue fall by 5 percent as exports –80 percent of total sales– dropped 8 percent on their lagging performance in key markets in Asia, Latin America and the U.S. The revenues of Femsa (5th), the largest beverages multilatina, went down by 11 percent, but excluding currency effects and operations in Venezuela, they rose 8 percent in the period.
While the plunging oil index exclusively reflects the behavior of Petrobras (1st, falling 31 percent, to $25.8 billion), the decline in the mining sector index in the second quarter (23 percent, to $17.8 billion) largely mirrors the disappointing performance of Brazilian firms. Vale (4th), the largest in the category, posted 30 percent sales decline. As expected, commodity-related activities continue to suffer the brunt of low international prices.
The telecoms index fell 16 percent, …
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