MEXICO: Profits dip at FEMSA in Q1
FEMSA has posted a slight lift in sales, but a dip in net profit for the first three months of 2007.
The Mexican company, which operates as a brewer and a Coca-Cola bottler in Latin America, said today (30 April) that consolidated total revenues for the quarter were up by 8.7% year-on-year, to MXN31.57bn (US$2.89bn) with all operating units contributing to the rise. Net profit for the quarter, however, was down by 12% at MXN1.05bn. The slip was blamed on higher prices for aluminum and increased marketing costs in Brazil.
The company's FEMSA Cerveza unit saw revenues lift by 3.6%, with Mexico sales volume up by 2.6%, Brazil sales volume up by 14.4%, and export sales volume up 5.8%. A combination of external and internal factors, however, mainly in Brazil and Mexico, resulted in a 57.6% decrease in income from operations.
At the Coca-Cola unit, sales volumes were up by 7% with income from operations up by 10.8%. Strongest growth came from all international operations, which combined grew at a double-digit pace.
"FEMSA delivered mixed results in a very tough first quarter," said Jose Antonio Fernandez, chairman and CEO of FEMSA. "Most notable was the weakness at the beer division due to a softer demand environment in Mexico, a seasonal increase in marketing expenses in Brazil, and increased raw material pressure, as expected. Additionally, negative weather trends and a weak pricing environment further complicated matters.
"While we are not pleased with the first quarter results, we are as confident as ever that we are executing on the right strategy to maximise value creation over the long-term."
Coca-Cola FEMSA has posted a healthy set of third-quarter results with its domestic market providing operating income growth for the first quarter in over a year....
Coca Cola FEMSA and the Coca-Cola Co. have launched a tender public offering to buy 100% of the shares of the juice company Jugos del Valle....
Heineken has appointed a new president and CEO for its US arm as its current boss will step down after locking horns on how to run the company....
Beer appears to be the alcoholic drink of choice in the developing BRIC markets, according to a series of recent reports....
Heineken has posted a strong set of H1 figures, although net profit took a hammering from an anti-cartel fine earlier this year....
Fomento Economico Mexicano (FEMSA) has posted flat operating income for its second quarter....
Coca-Cola FEMSA has posted a strong lift in second quarter operating profit....
Coors has launched a consumer campaign to reinforce the brand's heritage in the UK....
- Why Scotch must drop the 'malts good, blends bad'
- Pernod's mood darkens over India - Analysis
- Heineken Q1 2017 by region - results data
- Remy Cointreau Fiscal-2017 sales - results data
- Soft drinks is losing the recycling game
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- Edrington shifts innovation to US in shake-up
- TWE's Beringer Main & Vine Dry Rosé - NPD
- Pernod Ricard posts solid YTD sales jump - results
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Top Trends in Hot Drinks 2017