News

MEXICO: Coca-Cola FEMSA YTD profits fall as costs hit Q3

Most popular

Should Pernod dump wine, bunk up with Brown-Forman

Why Brown-Forman will be one of spirits' winners

Retaliatory tariffs "wild card" for Brown-Forman

Diageo in North America - Focus

MORE
  • YTD net profits down 7% to MXN8.29bn (US$628.4m)
  • Net sales up 3% to MXN109.7bn
  • Operating profits flat at MXN14.5bn
  • Q3 profits down 17% to MXN3bn

Coca-Cola FEMSA has blamed higher marketing and staff costs for a weak Q3 that saw year-to-date profits fall.

//i2.aroq.com/1/coca-cola-femsa.jpg

Net profits were down 7% to MXN8.29bn (US$628.4m) in the nine months to the end of September, the Mexico-based Coca-Cola bottler said yesterday (24 October). Net sales were up by 3% to MXN109.7bn in the same period, while operating profits stayed flat at MXN14.5bn.

Q3 profits were down by 17% to MXN3bn as operating expenses jumped by MXN1bn on a higher marketing spend as well as increased labour and freight costs.

The company, which yesterday said it is to replace CEO Carlos Salazar Lomelin with current COO John Santa María Otazua next year, pointed to recent acquisitions Grupo Yoli and Companhia Fluminense de Refrigerantes for increasing Q3 revenues and volumes, up 4% and 5% respectively. YTD volumes grew by 4%.

“In the face of a continued tough consumer environment mainly in Mexico and Brazil, our geographically balanced portfolio of franchises delivered mid-single digit volume growth, including the integration of Grupo Yoli in Mexico and Fluminense in Brazil,” Lomelin said.

“Our company continues to diversify and strengthen our competitive position with the acquisition of Spaipa in Brazil, while reinforcing our positive long-term view of the country.”

Coca-Cola FEMSA announced its acquisition of Spaipa Industria Brasileira de Bebidas last month.

Coca-Cola FEMSA's share price ended yesterday's trading down about 1%.

The weak Q3 exacerbated H1 struggles, when half-year net profits slipped by 2.1% to MXN5.28bn.

Coca-Cola FEMSA is a subsidiary of Mexico-based retailer FEMSA, which owns a 20% share in Heineken.

To view Coca-Cola FEMSA's official results, click here.


Related Content

Sugar shortage hits Coca-Cola Femsa in Venezuela as H1 profits fall - results

Sugar shortage hits Coca-Cola Femsa in Venezuela as H1 profits fall - results...

The Coca-Cola Co's Q3 2018 results - Preview

The Coca-Cola Co's Q3 2018 results - Preview...

The Coca-Cola Co's Q3/YTD 2016 results - Preview

The Coca-Cola Co's Q3/YTD 2016 results - Preview...

Why has The Coca-Cola Co ramped up its M&A? - Analysis

Why has The Coca-Cola Co ramped up its M&A? - Analysis...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?