CORRECTED-UPDATE 2-Femsa's profit jumps on Mexico retail strength

miércoles 27 de julio de 2016 13:33 GYT
 

(Corrects to show that Coke Femsa's partner in new cooperation framework is Coca-Cola Co, not Femsa, paragraph 8)

MEXICO CITY, July 27 (Reuters) - Mexican bottler and retailer Fomento Economico Mexicano (Femsa) said on Wednesday that second-quarter net profit rose more than a quarter compared with the year-earlier period, helped by its fast-growing retail division.

Femsa said net majority income was up 25.9 percent to 4.873 billion pesos ($267 million) in the April to June period.

In its retail division the company opened 263 net new Oxxo convenience stores in the quarter. Retail revenue rose 12.6 percent, while Oxxo same-store sales grew more than 5 percent.

Retail sales in Mexico rose for the fourth time in five months in May, as consumer spending continued to support growth in the economy.

Revenue also jumped 25.9 percent to 94.543 billion pesos, driven by the integration of Chilean pharmacy operator Socofar, in which it acquired a majority stake last year.

Femsa subsidiary Coca-Cola Femsa, Latin America's largest Coke bottler, reported a 25 percent fall in second-quarter profit on Wednesday, hurt by lower margins and higher raw material costs.

Shares of Femsa were down 0.8 percent at 174.26 pesos at about noon local time, while Coke Femsa shares were down 2.3 percent at 144.13 pesos.

Coke Femsa said it had reached a new cooperation framework with Coca-Cola Co. Under the deal, concentrate prices for sparkling beverages in Mexico will gradually rise over three years from July 2017, it said.   Continuación...