MEXICO: Coca-Cola FEMSA Q1 profits slide, but sales boosted
- First-quarter net profits fall 5.1% to MXN2.3bn (US$175.6m)
- Net sales up 15.3% to MXN38.7bn
- Operating profits rise 18% to MXN4.8bn
- Volumes up 12.1% to 819.2m unit cases
The bottler has seen sales rise despite "challenging" markets
Coca-Cola FEMSA has reported a drop in first-quarter net profits, but sales were boosted by the integration of acquisitions.
Net profits were down 5.1% to MXN2.31bn (US$176m) in the three months to the end of last month, the Mexico-based bottler said today (30 April). Net sales increased 15.3% to MXN38.71bn over the same period while operating profits were up by 18% to MXN4.81bn.
The quarter included figures from 2013 acquisitions such as bottlers Spaipa Industria Brasileira de Bebidas and Grupo Yoli. Without the acquisitions, Coca-Cola FEMSA's sales increased by 1% and operating profits were up by 7%.
Coca-Cola FEMSA CEO John Santa Maria Otazua said the quarter had seen challenges, particularly in Mexico, where a sugar tax has been implemented.
“In response to the new tax environment in Mexico, our operation continues to emphasise returnable, low-calorie, and single-serve sparkling beverages as compelling alternatives to connect more closely with our consumers’ needs,” Otazua said. “Moreover, to navigate this tough environment, we have restructured our operations, are reducing costs and scaling back investments.”
Overall volumes were up 12%, with South America increasing 28%. Mexico and Central America saw volumes stay flat in the quarter.
Coca-Cola FEMSA's share price was up 1.7% in morning trading on the New York Stock Exchange.
To read the company's official statement, click here.
- Comment - Diageo Spins the Guinness Wheel... Again
- Diageo's Labels Give Industry Something to Digest
- Comment - 'Craft' and the Danger of 'Romance Copy'
- Is A-B InBev/SABMiller 'Mega-Merger' Off?
- Pernod takes positives from China Cognac bounce
- Craft is an 'abused' term - Pernod Ricard exec
- Diageo lines up UK innovations push
- SPI Group 'disappointed' over Stolichnaya ruling
- Edrington names European Travel Retail head
- Kraft Foods agrees Heinz merger
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Champagne: Less Than Bubbly
- Beer Market Insights Africa 2014
- ALDI 2015: Radically transforming Anglo Saxon grocery markets