• 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 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. 

Expert analysis

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