Brazil drags for Coca-Cola Femsa but Q1 sales, profits up
- Q1 net profits up 9% to MXN2.4bn (US$138m)
- Net sales climb 8% to MXN37bn
- Operating profits jumps 9% to MXN4.9bn
- Total volumes edge up 1% to 816m cases
- Brazil volumes down 5% to 166m cases
Coca-Cola Femsa has seen a recovery in Mexico
Coca-Cola Femsa has posted a jump in Q1 sales and profits despite volumes declines in Brazil.
Q1 net profits were up 9% to MXN2.4bn (US$138m) in the three months to the end of March. Net sales climbed 8% to MXN37bn and operating profits jumped 9% to MXN4.9bn.
Femsa, the largest franchise bottler in the world, praised the result, but acknowleged setbacks in Brazil, which has seen consumer demand fall on economic concerns. Volumes in the country fell 5% to 166m cases and transactions also dropped, by 3% to MXN1.1bn. Sparkling beverages volumes slipped 5% in Brazil and 10% in Argentina, leading to a 3% dip for the category in South America. Overall, CSD volumes were level.
Femsa's CEO, John Santa Maria, said the results came against a tough economic backdrop, and that the company used its pricing leverage to deliver "a solid set of results across our markets to kick off the year".
Looking ahead, Santa Maria said: "We have the right people, capabilities, and strategies to continue delivering value throughout our operations."
The top and bottom line gains follow a net profits loss for Femsa in Q4. However, the results showed a recovering consumer landscape in Mexico, the company said, with volumes up 4% and transactions increasing 6%.
To read the company's official release, click here.
FEMSA (Fomento Economico Mexicano SA de CV) in Soft Drinks (Colombia)
FEMSA was the second most important player in soft drinks in 2015. It participates with strongly positioned brands such as Coca-Cola, Sprite, Fanta and Brisa (bottled water)....read more
- Cannabis – A clear and present danger to alcohol
- Is Irish whiskey ready to recognise its potential?
- Interview - Bernstein analyst Trevor Stirling
- The European beer market - Focus
- Trump, local spirits and the IR role - The Analyst
- Diageo appoints first programmatic marketing head
- Corporate Relations Director to leave Diageo
- Bacardi names new global communications head
- Diageo strike threat postponed with fresh vote
- Pernod Ricard pairs Usain Bolt with Mumm Champagne