Femsa Profit Beats Estimates as Acquisitions Bolster Salesby
Fomento Economico Mexicano SAB posted profit that topped analysts’ estimates, breaking a streak of four consecutive quarters of missing expectations.
Second-quarter adjusted earnings rose to 4.87 billion pesos ($260 million), the retailer and bottler company known as Femsa said in a statement Wednesday. That exceeded the profit of 4.39 billion pesos that was the average estimate of analysts. Sales rose 26 percent to 94.5 billion pesos, compared with an average estimate of 92.4 billion pesos.
Femsa got a boost from the integration of its drugstore business Socofar, which is seeing better margins, the company said. The Oxxo convenience chain, which is drawing more customers and increasing each shopper’s average purchase, saw same-store sales increase 5.1 percent.
The company’s bottling unit, Coca-Cola Femsa, posted net income of 2 billion pesos. Analysts had estimated adjusted earnings of 2.85 billion pesos.