MEXICO: Acquisitions boost Coca-Cola Femsa H1

By just-drinks.com editorial team | 24 July 2009

Coca-Cola Femsa has reported a 29% rise in sales for the first half of 2009, boosted by sparkling soft drinks in Mexico and Brazil-based Refrigerantes Minas Gerais (Remil).

Net sales for the six months to the end of June rose to MXN46.3bn (US$3.5bn), compared to MXN35.8bn for the same period of 2008, Coca-Cola Femsa said today (24 July).

Net profits for the half-year rose 1.6% to MXN3.5bn, after a 17% increase in the second quarter offset a decline in the first three months of the year. Operating income rose by 16% for the half to MXN6.9bn.

Group CEO Carlos Salazar Lomelin said: "Among other factors, we benefited from the growth of our sparkling beverages category, particularly in Mexico; the consolidation of our Remil franchise territory in Brazil; and the strong performance of the Jugos del Valle line of juice-based beverages throughout our operations along with our ability to improve our pricing architecture."

Femsa was further boosted in June by its takeover of sales and distribution for Brisa water in Colombia.

Group volume sales in the second quarter rose by 10% to 607m cases, with Remil accounting for 3% of the growth.

Excluding favourable exchange rates, as well as Remil and Brisa, net sales rose by 14% for the half-year.

Sectors: Soft drinks