Optimism For Consumer Sector Reflected In Exito's Share Price, But Margin Concerns Hit Nutresa

The Colombian stock exchange is only moderately developed with the consumer sector dominated by two firms, food producer Grupo Nutresa (formerly Grupo Nacional de Chocolates) and retailer Almacenes Exito. Over the last 18 months the shares of both companies have tracked quite closely to the wider IGBC index. However, since the start of 2011 Exito has been a significant outperformer, while Nutresa has underperformed. Exito's outperformance can be tied to the general optimism surrounding the Colombian consumer sector. Meanwhile, Nutresa's underperformance is partly a result of the ramp up in commodity prices, which has damaged margins at many major food firms.

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