just On Call: Coca-Cola FEMSA sees rising costs
Coca-Cola FEMSA's CFO, Hector Treviño, said that 2010 proved to be “a very challenging year”
Coca-Cola FEMSA has said that it will implement price increases across its portfolio in Mexico this year in a bid to offset rising commodity costs.
Speaking on an earnings call today (22 February), Coca-Cola FEMSA's CFO, Hector Treviño, said that 2010 proved to be "a very challenging year" in the drinks bottler's native Mexico. He told analysts that high commodity costs and poor weather conditions damaged the business.
Looking ahead, Treviño said the firm continues to anticipate volatility in the commodity markets and the economic environment.
As a result, he said that the company will try to mitigate the pressures with price increases.
"We will continue to monitor the economic and consumer environment this year and return to the implementation of select price increases across our portfolio," Treviño said. "This will enable us to protect the business and to compensate for potential commodity price increases and an increase in inflation."
Despite the pressures, Treviño said Coca-Cola FEMSA "demonstrated the ability to adapt our business to successfully navigate these challenges" in 2010.
The soft drinks bottler today reported 15% rise in net profits for 2010, to MXN9.80bn (US$810m), despite volatile sugar prices throughout the year. Operating profits climbed by 7.9% to MXN17.08bn.
Sales in the 12-month period edged up by 0.7% to MXN103.46bn.
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