MEXICO: Coca-Cola FEMSA H1 profits up, but bad weather flattens Q2
- Half-year net profits up 9% to MXN5.64bn
- Net sales up 29.2% to MXN69.93bn
- Operating profits rise 10.8% to MXN9.09bn
- Company continues to aim for growth through M&A activity
Coca-Cola FEMSA saw a rise in profits, bad weather flattened sales in Q2 despite soaring sales
Coca-Cola FEMSA has revealed a rise in half-year profits, but bad weather and volatile markets flattened Q2 net profits.
Half-year net profits rose 9% to MXN5.64bn (US$412m), while net sales leapt 29.2% to MXN69.93bn, the company announced late yesterday (24 July). The firm, the world's largest Coca-Cola franchise bottler, saw H1 operating profits rise 10.8% to MXN9.09bn.
Net profits in Q2 were flat at MXN2.85bn, but operating profits rose 7.8% to MXN4.71bn. Sales leapt 27.8% to MXN36.12bn.
The company attributed its strong overall performance to double-digit sales growth across the group, and the integration of Grupo Tampico, Grupo CIMSA and Grupo Fomento Queretano in Mexico.
In May, Coca-Cola FEMSA completed a deal to buy the drinks unit of fellow Mexican group Grupo Fomento Queretano, while earlier this month it recieved regulatory approval to acquire dairy firm Santa Clara Mercantil de Pachuca.
Carlos Salazar Lomelin, Coca-Cola FEMSA's CEO, said: “In the face of bad weather conditions in several markets and ongoing currency and commodity volatility, we produced positive results for the second quarter. Consistent with our strategic framework, we continue to pursue growth through accretive mergers and acquisitions."
He added: "Consistent with our strategic framework, we continue to pursue growth through accretive mergers and acquisitions."
Shares in Coca-Cola Femsa dropped 0.5% to 164.76 pesos at the close yesterday.
To view the full announcement, click here.
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