FEMSA Posts Higher Revenues But Lower Profits

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Mexico-based soft drinks firm Coca-Cola FEMSA has reported a 30.5% increase in net sales for the first quarter of 2009. Sales reached MXN22.5bn, with 40% of incremental revenues accounted for by organic growth, 25% attributed to the June acquisition of Brazil's Refrigerantes Minas Gerais and the rest attributed to a positive currency effect. The firm's ability to expand sales at a time when the Mexican economy is contracting is impressive. However, it also reported an 18% drop in net profits, largely due to the increased cost of servicing US dollar denominated debts following a fall in the value of the