Coca-Cola FEMSA, the largest bottler of Coca-Cola products in the world by sales volume, increased its operating cash flow by 11.6% in the first quarter of 2022, compared to the same period a year earlier, a result of 7.4% higher than expected by the Infosel consensus.
The company benefited in the quarter from higher volumes, favorable price mix and currency translation effects, which were partially offset by a decrease in beer revenues due to the transition in its portfolio in Brazil, where it made changes in that business after months of disputes with Heineken, the world’s second largest brewer, which sought to terminate the agreement it had with the bottlers of the Coca-Cola system in that country.
By contrast, total profits fell 8.3% from January to March this year, 10% below what analysts estimated.
The company attributed the decrease to effects related to a loss in the market value of financial instruments and a foreign exchange loss.
“In the context of what continues to be a volatile environment, we are building on the positive momentum with which we closed last year by also achieving a solid start to the year,” John Santa Maria, CEO of Coca-Cola FEMSA, was quoted as saying. company financial report.
“In terms of profitability, despite rising raw material costs and the challenging supply chain environment affecting industries around the world, we managed to mitigate pressures to protect our margins.”
Revenues increased 14.6% in the first quarter of the year compared to the same period in 2021, 8.7% more than estimated by experts.
In the period, the company faced higher costs of PET and sweeteners, which it tried to offset with favorable coverage of raw materials and efficiency in operating expenses.
Positive
Monex Casa de Bolsa reiterated its positive view of the issuer, “because despite the complicated start of the year with closures by Omicron and the issue of commodities, the company maintains an attractive volume,” reads its analysis.
Monex added that in the remainder of 2022, its attention will be on the issuer’s strategies (price/volume), greater consumption in the context of the pandemic, considering as a factor the economic and social reactivation that this could imply, in addition to the effect of inflation on the consumer.
The stock broker recommended “Buy” and a Target Price of 128 pesos per share for the end of the year. At the close of the Mexican stock market, the firm’s titles were placed at a level of 112.83 dollars each, which represented an increase of 2.03% intraday.