EconomyFinancialSell more drinks and at higher prices, Coca-Cola Femsa's...

Sell more drinks and at higher prices, Coca-Cola Femsa's formula to increase profits

Sell more beverages and at higher prices, the winning formula for Coca-Cola Femsa to record a positive second quarter in which all the markets in which it operates recorded an increase in sales volume.

In the second quarter, the largest bottler in the Coca-Cola system registered an increase in sales of 16% to 57,311 million pesos; an increase of 2.4% to 10,607 in its operating flow (Ebitda), both in comparable terms, and a consolidated net profit of 4,576 million pesos, which represents an increase of 25%.

“I am proud of our strong second quarter results. We continue to build on our positive momentum despite the inflationary environment that is affecting industries around the world. The resilience of our business, coupled with our revenue optimization capabilities, enabled us to achieve strong sales growth in all of our territories,” John Santa Maria, CEO of Coca-Cola Femsa, said in the report.

From April to June, Coca-Cola Femsa’s consolidated volumes increased 11.9% compared to the second quarter of 2021, mainly driven by Brazil, Colombia, Argentina and Central America.

In Colombia and Argentina, sales volume increased 25%; in Brazil and Central America (not counting Guatemala), the rise was 16%; followed by Guatemala, with 15%; Uruguay, with 9%; and Mexico, with an increase of 7.2%.

Added to this increase in volume is a 16% increase in the average price per unit case.

However, the increase in revenues is not reflected to the same extent in operating income, which -in comparable terms- increased 1.8%.

Operating income increased 5.6%, while comparable operating income increased 1.8%, as raw material hedging strategies and operating expense efficiencies were partially offset by higher PET costs (the plastic used for the production of bottles) and sweeteners.

“Going into the second half of the year, we will continue to leverage our revenue optimization capabilities, actively working to bring affordability to our consumers, making sure we offer them the right product at the right price,” Santa Maria said.

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