MEXICO: Coca-Cola FEMSA posts booming Q1 as new buys come on-board
- Q1 net profits jump by 18.5% to MXN2.75bn (US$206m)
- Sales rise by almost a third in three months to end of March, hitting MXN33.5bn
- Operating profits increase by 13% to MXN4.31bn
Coca-Cola FEMSA has reported a strong start to 2012, with recent purchases contributing to double digit increase across the board.
The company, which is the largest Coca-Cola franchise bottler in the world, said yesterday (26 April) that net profits in the three months to the end of March rose by 18.5% year-on-year to MXN2.75bn (US$206m). Sales were also up by healthy double digits, jumping by 29.7% to MXN33.54bn, while operating profits increased by 13% to MXN4.31bn.
The numbers included the results from Grupo Tampico as of October and Grupo CIMSA as of December. Stripping out the M&A effects, net sales still performed well, lifting by 21.6%. Operating profits minus the purchases were up by 7.9%.
Volumes in the quarter were up by 16.2% to 703m cases - by 4.7% to 633.2m cases without the new additions - with Venezuela, Mexico and Argentina improving notably.
"In the face of an environment of continuing commodity cost pressures, the execution skills of our operators continued to bolster our competitive position, generating double-digit top- and bottom-line growth for the first quarter of 2012," said CEO Carlos Salazar Lomelin. "In Mexico, … we are well on track to achieve the previously identified synergies.
"At the same time, we continue to seek for new opportunities to … deliver growth … as exemplified by our exclusivity agreement with The Coca-Cola Co to evaluate the potential acquisition of their bottling operations in the Philippines."
The company also said that its shareholders will receive a cash dividend of MXN2.77 per share, which relates to fiscal 2011, on 30 May.
To read the company's official announcement, click here.
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