Mexico's Femsa 2Q Profit Jumps on Higher Sales, Exchange Gains

By Anthony Harrup

Mexican retail and beverages company Fomento Económico Mexicano posted a 76% increase in second-quarter net profit, boosted by higher sales and operating profit and a foreign exchange gain.

Femsa, as the company is known, reported profit of 15.67 billion Mexican pesos ($852.6 million), compared with 8.93 billion pesos in the year-earlier quarter. Femsa recorded a 6.13 billion-peso non-cash exchange gain related to its dollar-denominated cash position and the depreciation of the Mexican peso.

Sales in the quarter rose 12% to 198.75 billion pesos, and operating profit was up 16% at 17.63 billion pesos.

Femsa reported a slowdown in same-store sales in Mexico, caused by the shift in the Easter holiday week to March this year from April, as well as volatile weather and restrictions on alcohol sales ahead of the June 2 elections. That was partly offset by higher gross margin and store expansion, the company said.

Drug store sales slipped 0.4% from the year-earlier quarter, while service station sales rose 16% on higher sales volume and higher gasoline prices.

Beverages unit Coca-Cola Femsa reported double-digit increases in sales and net profit for the quarter.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

July 24, 2024 10:42 ET (14:42 GMT)

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