Molinos Rio de La Plata SA, Argentina’s largest food company, declined the most in more than three months after its 2011 profit fell 26 percent.
Molinos retreated 7.5 percent to 25.25 pesos at the close in Buenos Aires, the steepest decrease since Nov. 17. The benchmark Merval index retreated 0.1 percent.
The company, controlled by the Perez Companc family, reported today net income of 277 million pesos ($63.8 million) in 2011, down from 376 million pesos the previous year, according to data on the website of the Buenos Aires exchange.
“The fall can be attributed to the results as the rest of the market is fairly calm,” Leonardo Chialva, a partner at Buenos Aires-based financial adviser and asset management firm Delphos Investment, said in an interview. “Molinos is also quite illiquid,” which exacerbates moves, Chialva said.
Molinos shares have retreated 16 percent this year. The Merval has gained 9 percent.
This year’s retreat is attributable in part to an expected drop in the soybean harvest during the upcoming growing season, according to Chialva. “News of lower soy crops give Molinos much less negotiating leverage with local providers,” he said.
Argentina’s soybean harvest may total 46.5 million metric tons in the season that starts on April 1, less than the 49 million produced last year, a unit of the U.S. Department of Agriculture said March 6. Crops have been affected by hot, dry weather this year.
To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
Source: bloomberg.com