The income dip came despite double-digit growth in Coca-Cola FEMSA’s South American division and proceeds from the integration of three large Mexican acquisitions from 2011, but CEO Carlos Lomelin hailed positive results in the face of bad weather and ongoing currency and commodity volatility.
Mexico
Still beverage volume sales grew 6% (driven by Jugos del Valle, Fuze Tea and Estrella Azul lines) and sparkling water 1%, but FEMSA suffered an 8% decline in its regional bottled water portfolio.
Dairy diversity beyond carbonates
South America operating income rose 12.2% to Ps. 2,058m, with still beverage sales soaring 21% – driven by the launch of Jugos del Valle lines in Venezuala and continued success in
“Consistent with our strategic framework, we continue to pursue growth through accretive mergers and acquisitions,” Lomelin said, adding that FEMSA was still evaluating whether to buy a controlling stake in The Coca-Cola Company’s bottling franchise in The Philippines.
He added: “Furthermore, through Jugos del Valle – our JV for non-carbonated products with partner The Coca-Cola Company – we reinforced our portfolio with the acquisition of
Discussing Coca-Cola FEMSA’s Q2 results with analysts in a Tuesday all, CFO Hector Trevino was asked how comfortable the firm felt about taking price across its regions, particularly in
PepsiCo price aggression
Trevino said that, in eight of the nine countries where it operated, Coca-Cola FEMSA was confident it could push through slight increases based upon competitor activity, and that in
“In
“But I would like to remind everyone that in areas of The
The only country he felt cautious about pricing was
