Grupo Pochteca SAB (POCHTECB), the chemical distributor controlled by billionaire Antonio del Valle’s family, rose to the highest price in four years after saying revenue will more than double by 2015.
The shares jumped 7.2 percent to 3.71 pesos at the close of trading in Mexico City, the highest level since September 2008 on a closing basis. The benchmark IPC index of 35 Mexican stocks rose 0.1 percent, while the IRT Small Capitalization index, of which Pochteca is a part, fell 0.1 percent.
Chief Executive Officer Armando Santacruz said that sales will climb to $700 million in 2015 from the $309 million Pochteca forecasts for this year. Earnings before interest, taxes, depreciation and amortization will rise to $50 million in 2015, tripling from a forecast $16 million this year, Santacruz said today in an e-mailed response to questions.
“With the market being this fragmented, Pochteca has great potential to consolidate its position and to buy up companies and build up its market share,” said Fernando Perez Lizardi, an analyst with Corporativo GBM SAB, the country’s largest brokerage by transactions.
Pochteca expects to spend about $200 million on acquisitions over the next three years, according to Santacruz.
Earlier today, Santacruz said in a phone interview that the company is planning a reverse stock split. The most probable scenario is that one new share would equal 10 current shares, he said from Mexico City. The transaction is likely to win shareholder approval and be carried out before the end of the year, he said.
The split is “something we’ve been discussing basically to give the stock a little more tradability and to get away from such a low value per share,” Santacruz said.
Pochteca has soared 90 percent this year, the biggest advance on the IRT Small Capitalization (IRTSMALL) gauge.
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