MEXICO: Tough Q1 drags on FEMSA in H1
Fomento Económico Mexicano (FEMSA) has posted a lift in second quarter net profits on the back of rising sales.
The Mexican drinks company, which also owns the soft drinks unit Coca-Cola FEMSA, said today (28 July) that net profits in the three months to the end of June increased by 6.7% year-on-year, to MXN3.73bn (US$280.9m). Total sales in the quarter also rose, by 18.8% to MXN48.18bn.
Operating profits were up by 16.1%, coming in at MXN6.79bn.
For the first six months of the year, however, net profits totalled MXN5.17bn, a 6.7% slip on H1 last year. Sales were up, meanwhile, by 18.7% to MXN91.25bn. Operating profits in 2009 so far were up by 17.2% at MXN11.53bn.
"During the second quarter we were able to extend the performance trends set during the first quarter, as some of our international results managed to offset the more complex environment experienced in our Mexico beverage operations," said FEMSA's chairman and CEO, José Antonio Fernández.
" However, our net income for the first semester was still well into negative territory, in spite of the healthier dynamics of our operations outside of Mexico.
"While there are encouraging signs for a mild recovery in the coming months, we remain cautious of the risks that lie ahead as we continue to execute on our strategy."
For the official statement from FEMSA, click here.
An update, with further comments following the company's webcast, is available here.
When it came to the crunch, Heineken simply wanted FEMSA Cerveza more than SABMiller....
Heineken surprised many observers with the timing and swiftness of its deal to acquire FEMSA Cerveza, announced this week. Here's what analysts and other media have been saying about the deal....
Mergers and acquisitions are likely to be back on the agenda around the world in 2010 as the business climate improves, leading consultancy group KPMG has said....
Heineken's deal to acquire FEMSA Cerveza puts more pressure on rival Mexican brewer Grupo Modelo to resolve its dispute with Anheuser-Busch InBev, analysts believe....
- The end is nigh for Global Travel Retail - Comment
- Five ways small brands can beat big players
- Interview, Bulldog Gin founder Anshuman Vohra
- Pernod Ricard's Q1 results - Preview
- Pernod Ricard Q1 2017 results by region, brand
- Diageo most at risk to Thai alcohol ban - analyst
- Jobs at new India hub won't affect staff - Diageo
- Stumbling UK Pound prompts Conviviality price hike
- Constellation sells Canadian wine unit for US$761m
- US craft spirits could be as big as craft beer
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020