• 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

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.