Coca Cola Femsa is consolidating more and more outside of Mexico. In the first quarter, it managed to register an increase in its sales and in its operating flow (Ebitda) thanks, especially, to the performance of the South American market.
In the first quarter, the company’s sales registered an increase of 14.6% to 51,195 million pesos, while its Ebitda increased 11.6% to 9,827 million pesos. On the other hand, the company’s net profit fell 8.3% due to a loss in the market value of financial instruments and an exchange loss, the firm detailed in its report.
“In the context of what continues to be a volatile environment, we are building on the positive momentum with which we closed last year, also achieving a solid start to the year,” John Santa Maria, CEO of Coca-Cola Femsa, said in the report.
The company recorded an increase in revenue from all the markets where it operates. However, the category of soft drinks, which represents 77% of the volume, in South America was the one that registered the greatest increase in terms of volume. From January to April, this category registered an increase of 12.8% in terms of volume.
“In South America, a very strong performance in all of our territories was especially evident by the strong volume growth achieved in Brazil and Colombia, where volumes increased 20.2% and 18.8%, respectively,” Santa Maria detailed.
The Mexico and Central America division (which contributes 56% of revenues) had an increase of 11% in revenues and 9% in Ebitda. While in South America, (which represents 44% of sales) the increase in income was 19% and 17% in Ebitda.
At an operational level, the exchange rate had a favorable effect on the company’s results; however, the effect was offset by higher raw material costs, mainly PET and sweeteners. In the quarter, operating expenses increased 14%.
“In terms of profitability, despite the increases in raw material costs and the challenging supply chain environment that affects industries around the world, we managed to mitigate the pressures to protect our margins,” said Santa María.
The company closed the quarter with an operating margin of 13.4% compared to 13.2% in the same period of 2021.
