Femsa first-quarter net profit nearly doubles on merger gain
Updated
Updated · MarketWatch · Apr 30
Femsa first-quarter net profit nearly doubles on merger gain
5 articles · Updated · MarketWatch · Apr 30
The Mexican retailer and bottler reported 17.64 billion pesos ($1.01 billion) in quarterly profit, up 97%, after the March BradyPLUS-Imperial Dade merger left it with a 19% stake.
Excluding the one-off gain, profit fell 36% mainly because of higher financial expenses, while revenue rose 6.1% to 207.78 billion pesos and adjusted EBITDA increased 11%.
Oxxo Mexico sales rose 8.3% and 158 stores opened, but Coca-Cola Femsa's Mexico volumes declined amid soft consumer demand and higher soft-drink excise taxes.
With taxes hurting Coke sales in Mexico, will Femsa's Oxxo stores start prioritizing cheaper beverage alternatives?
Was Femsa's record profit a smart investment win or a mask for weakness in its core retail and beverage businesses?
Is Femsa's digital platform, Spin by OXXO, on track to replace traditional banking for millions of Mexican consumers?