Coca-Cola Femsa improves its results thanks to a more relaxed confinement

Business

By CAPosts 26 October, 2020 - 09:06pm 31 views

Coca-Cola Femsa has begun to improve its sales in Latin America, especially in Central and South America, however, the confinement caused by the health emergency continues to affect the company's revenues in the region. During the third quarter of this year, consolidated volume decreased 4% year-on-year mainly due to a 7% decrease in Mexico and Central America, offset by a less than 1% increase in South America. This volume decrease also led to a 4% decrease in consolidated sales in the company's revenues, to 46,734 million pesos.

The third quarter result, although it was worse than in 2019, was better than that registered in the last quarter, when sales fell 10.4% amid widespread and stricter lockdown. The company attributes this recovery in its results, compared with the results obtained between April, May and June, to a gradual relaxation of the containment measures, in countries such as Brazil, Guatemala and Uruguay. Results in Mexico and Central America were mixed. The company's total revenues decreased 4.8%, to 26,807 million pesos, mainly due to a drop in the volume of operations of 6.9%, derived from the weakness in Mexico, but partially offset by better volume growth in Guatemala ( a trend similar to previous quarters, with a good performance of Guatemala in the current environment). In South America, the results were finally better as the volume increased slightly. In Brazil it rose 6.5% and was exceptionally strong and more than offset the falls in Colombia (-11.5%) and Argentina (-7.0%). “In the face of what is still a very complex operating environment, it is encouraging to see sequential improvements in most of our markets. These trends are not only driven by a gradual recovery in consumer mobility, but also by our portfolio initiatives, improvements in execution at the point of sale and the tireless effort and commitment of all collaborators ”, the company explains in the report. Between January and September, Coca-Cola Femsa accumulated revenues of 135,014 million pesos, 5.3% less than in the first nine months of 2019.

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