(Adds details on revenues, store openings)
MEXICO CITY, April 24 (Reuters) - Mexico’s No. 2 supermarket chain Organizacion Soriana on Friday said its first-quarter profit fell 1.76 percent as price cutting and spending on promotions offset a pickup in sales.
The company reported a profit of 781 million pesos ($51 million), compared with 795 million pesos in the year-earlier period.
Quarterly revenue rose 4.6 percent to 24.924 billion pesos, helped by a 3 percent pickup in same-store sales and the opening of 17 new stores in the last year.
The supermarket chain said it spent more on promotions to bring customers into its stores and its profit margin contracted 100 basis points from the year-earlier quarter to 21.2 percent.
Soriana in January announced it would acquire 160 stores from Mexico’s fourth-largest supermarket chain, Comercial Mexicana, and it announced an asset-sale plan and capital raise to finance the purchase.
$1 = 15.2610 pesos at end March Reporting by Elinor Comlay; editing by Gunna Dickson