MEXICO: Coca-Cola FEMSA posts FY sales lift, but profits slide
- Full-year net profits slide 13.4% to MXN11.5bn (US$865m)
- Net sales in FY rise 5.6% to MXN155.2bn
- FY operating profits slip 2.3% to MXN21.5bn
- Volumes in 2013 up 5.2% to 3.2bn unit cases
The group reported a rise in FY sales, but profits were down
Coca-Cola FEMSA has recorded a rise in full-year sales and volumes, but profits were dragged down by the financing of acquisitions.
The Monterrey-headquartered bottler, a JV between Mexican retailer FEMSA and the Coca-Cola Co, said today (26 February) that net profits in the 12 months to the end of December fell by 13.4% to MXN11.5bn (US$865m). Sales in the period rose by 5.6% to MXN155.2bn, while operating profits slipped by 2.3% to MXN21.5bn.
Full-year volumes for the company, the world’s biggest bottler of Coca-Cola products, were up by 5.2% to 3.2bn unit cases.
In Q4, net profits slid by 29% to MXN3.1bn, while sales were up by 8.5% to MXN43.2bn. Operating profits in the final three months of 2013 fell by 8.5% to MXN6.6bn.
John Santa Maria Otazua, the group’s CEO, said it had faced “many challenges” in 2013, particularly a “tough consumer environment” in Brazil and Mexico and a “volatile currency environment”.
The bottler said its fourth quarter earnings were affected by higher interest from debt resulting from acquistions in Brazil, including bottler Spaipa Industria Brasileira de Bebidas and currency exchange losses.
Mexico's soft drinks producers are facing a new tax of MXN1 (US$0.08) per litre of sugar-sweetened beverages.
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