MEXICO: Coca-Cola FEMSA sees purchases lead in H1
- Half-year net profits fall by 3.9% to MXN5.08bn (US$392.1m)
- Sales in six months to end of June jump by 14.9% to MXN81.41bn
- Operating profits in half-year increase by 15.1% to MXN10.70bn
- Q2 net profits fall by 4.6% to MXN2.68bn
- Sales in three months to end of June leap by 14.3% to MXN41.43bn
- Operating profits in quarter climb by 11.7% to MXN5.74bn
Coca-Cola FEMSA has seen sales in its half-year receive a boost from last year's purchases in Brazil and Mexico.
Stripping out the numbers from the 2013 acquisitions Spaipa Industria Brasileira de Bebidas, Companhia Fluminense de Refrigerantes and Grupo Yoli, sales in the first six months of this year rose by a more modest 2.6%. Volumes excluding the integration of these purchases actually fell, by 1.5% in the half-year.
The company has had to deal with the introduction late last year of an excise tax on sugar-sweetened soft drinks in its home market of Mexico. Consequently, its volumes in the market were down in Q2, resulting in total volumes - excluding the Brazil and Mexico integrations - falling by 2.8%.
"Despite weak volume performance in Mexico, resulting from the new tax environment as well as bad weather conditions, our operation stayed the course to improve its profitability thanks to our revenue management initiatives, our lower raw material costs, our ability to restructure our operations, and our relentless focus on generating operating efficiencies," said CEO John Santa Maria Otazua.
"In South America, we are successfully integrating Spaipa and Fluminense in our Brazilian operation and delivering on our targets for top- and bottom-line organic growth in every country."
The company did not provide a forecast for the full-year.
Coca-Cola FEMSA's share price rose this morning following the release of the results, before returning to within US$0.50 of last night's closing price: At 1438 today, shares were trading on the NYSE at $116.16.
To read the company's official statement, click here.
For coverage of Coca-Cola FEMSA's Q1 results, click here.
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