2008-02-27

Femsa to bring Oxxo to Colombia

Femsa, the Mexican company, is to introduce its Oxxo convenience-store format to Colombia as well as other South American countries. In Mexico, Oxxo stores now represent 29% of Femsa sales. The company's Colombian operations are limited thus far to Coca-Cola production and bottling.

Javier Astaburuaga, director of finance at the group, says that Oxxo stores will not open immediately in Colombia but that they shouldn't take too long (i.e. before 2009). In 2007, Oxxo opened 716 stores to reach a total of 5,563. Late last year, Femsa gave out the Oxxo license for Colombia to the owner of a store in Ciudad Salitre, Bogota, for three years but the license only relates to the brand not the format or the concept. Femsa's gross Colombian margin rose from 44.8% in the final quarter of 2006 to 51.2% in the last three months of 2007.

Publication: SABI - Business News
Provider: South American Business Information
Date: February 27, 2008

Colombia: TGI attracts partner interest

Leopoldo Montanez, president of Transportadora de Gas del Interior (TGI), has said that he has received interest in a 9% stake from a possible partner; this would earn the firm resources of over US$40mil. Empresa de Energia de Bogota (EEB) owns 89.2% of TGI, CAF owns 9% and minority shareholders, 1.8%. EEB paid Peso$3,200bil for its stake in TGI, the largest gas-transport operation in all Colombia (and set to operate in Peru soon).

Montanez says that the potential partner would provide the funds TGI needs to meet its investment plan of US$300mil from 2008 to 2011. TGI, founded a year ago, wants to increase gas-transport capacity by 100% from Cusiana to 420 million cubic feet and by 100% also from the fields of La Guajira to 240 million cubic feet per day. TGI boasts a network of 3,700 kilometres of gas pipelines nationally (having taken the assets of Ecogas on).

Publication: SABI - Business News
Provider: South American Business Information
Date: February 27, 2008

2008-02-25

Enka and Eternit aim to be careful with profits

Enka de Colombia posted net profits of Peso$11.907bil last year, a dip of 49.3% compared to 2006, its exports hit by the rising value of the Colombian peso. Its dollar-based export sales rose 5.3% to reach US$66.2mil in 2007 and to signify a quarter of total sales. Polymer and fibre group Enka's Ebitda slipped Peso$6.616bil to Peso$25.732bil, explains the firm's president Alvaro Hincapie Velez.

Meanwhile, Eternit Colombiana has announced net profits in 2007 of Peso$2.97bil that it will look to store up for machinery replacements; this plan will first have to be approved by the upcoming Asamblea de Accionistas (AGM). Enka plans to do the same as well as righting losses from previous years. In 2006, the construction materials company Eternit posted net profits of Peso$9.551bil.

Publication: SABI - Business News
Provider: South American Business Information
Date: February 22, 2008

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