July 24, 2017 / 2:38 PM / a year ago

UPDATE 2-Coke Femsa profit rises, says Heineken to end Brazil distribution

(Updates share price, adds comments from analyst and company, paragraph 3-6)

MEXICO CITY, July 24 (Reuters) - Mexico’s Coca-Cola Femsa , the world’s largest Coke bottler, said on Monday its second-quarter net profit rose 11.5 percent, boosted by higher revenue and growth in the company’s South American operations.

Coke Femsa also said Dutch brewer Heineken, which holds a stake in its parent company Femsa, had told the company it would be ending its distribution of products with bottlers of the Coca-Cola system in Brazil from Oct. 31.

Shares in Coke Femsa fell 3.55 percent in morning trading and were the biggest drag on Mexico’s benchmark stock index.

Negative currency fluctuations in Venezuela and higher interest rates in Mexico took a toll on Coke Femsa’s results, Credit Suisse wrote in a note to investors.

Saying it expected the shares to react negatively, Credit Suisse described the performance in Mexico and South America as weak and also saw the Heineken announcement as negative.

“We are analyzing possible actions to take while we seek to hold a constructive dialogue with Heineken,” Coke Femsa said in its statement to the Mexican stock exchange.

The company said that net income was 2.232 billion pesos ($123 million) compared to 2.001 billion pesos in the same quarter last year. Revenue for the quarter at Coke Femsa rose 25.5 percent to 50.1 billion pesos.

Earnings per share were 1.07 pesos, the company said. (Reporting by Mexico City and Bangalore Newsrooms; Editing by Meredith Mazzilli and David Gregorio)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below