Pochteca Jumps Most Since November on Profit: Mexico City Mover

Grupo Pochteca SAB (POCHTECB), the chemical maker formerly known as Dermet de Mexico, rose the most since November after reporting earnings climbed in the first quarter.

The shares jumped 6.5 percent to 2.12 pesos at 1:25 p.m. in Mexico City, the biggest intraday increase since Nov. 17. The IRT Small Capitalization (IRTSMALL) index of 20 Mexican companies including Pochteca was little changed.

Earnings before interest, taxes, depreciation and amortization -- a measure known as Ebitda -- rose 11 percent to 41 million pesos ($3.2 million) in the first quarter, according to preliminary results sent yesterday to the Mexican stock exchange. A “better product mix” helped push up sales 3 percent to 1 billion pesos, the Mexico City-based company said.

“Despite all the increases in costs, they’re staying profitable and that’s very good,” Gerardo Copca, an analyst with Metanalisis SA in Mexico City, said today in a telephone interview. “Although it doesn’t trade a lot, you’re seeing interest today from various investors.”

Volume was 296 percent of the three-month daily average. Brokerage Banorte-Ixe Casa de Bolsa executed the most buy orders on the day, according to data compiled by Bloomberg.

A planned capital increase approved by shareholders on March 15 will bring the company’s pro forma ratio of net debt to Ebitda to 1.8 times, within its target of two times, the company said. Without the capital increase, it would be 3 times, according to Pochteca.

To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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