UPDATE 3-Femsa's profit jumps on Mexico retail strength

miércoles 27 de julio de 2016 14:33 GYT

(Adds Heineken question from call)

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

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 in Femsa were down 0.84 percent at 174.13 pesos at about 1:15 p.m. local time, while Coke Femsa shares were down 2.85 percent at 143.39 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 beginning in July 2017, it said.   Continuación...