Fomento Economico Mexicano SAB, owner of Latin America’s largest convenience store chain, said second-quarter profit rose 37 percent, helped by new store openings of Oxxo outlets.
Net income climbed to 3.89 billion pesos ($292 million) from 2.84 billion pesos a year earlier, the Monterrey, Mexico-based company said in a statement today. Revenue rose 23 percent to 59.6 billion pesos. Analysts projected 59.7 billion pesos, the average of seven estimates compiled by Bloomberg.
Femsa, majority-owner of soft-drinks company Coca-Cola Femsa SAB, has benefited from the expansion of the Oxxo chain, opening 290 net new stores in the second quarter. Revenue at Femsa’s retail unit rose 17 percent to 22.2 billion pesos as same-store sales increased 7.8 percent. Its store count was 9,989 as of June 30.
The shares increased 2.4 percent to 118.27 pesos in Mexico City, the largest gain since March 30.
Net income in the quarter for Femsa included 690 million pesos from its stake in Heineken NV, up from 540 million pesos a year earlier. Femsa holds a 20 percent share in the Amsterdam-based brewer after selling its beer business to the Dutch company in 2010.
Coca-Cola Femsa’s net income fell 1.3 percent to 2.71 billion pesos as the peso weakened and high-fructose corn syrup and labor costs rose, the company reported on July 24. Sales for the soft-drinks unit, which is partly owned by Atlanta-based Coca-Cola Co., rose 28 percent to 36.3 billion pesos after the company acquired three Mexican bottlers over the last year.