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UPDATE 2-Mexico's FEMSA net profit soars 69%, boosts expansion plans

UPDATE 2-Mexico's FEMSA net profit soars 69%, boosts expansion plans

Reuters · 07/28/2022 09:00
UPDATE 2-Mexico's FEMSA profit soars 69%, boosts expansion plans

Adds conference quotes and background

- Mexican bottler and retailer Femsa FMSAUBD.MX posted a 69.1% surge in second-quarter profit Thursday to 5.2 billion pesos ($259 million), driven largely by a drop in interest expenses and foreign exchange gains.

The company has been increasing the of stores it has across the main markets in Latin America and is expanding into Europe with a takeover bid for Swiss kiosk operator Valora MKRMF.

The Mexican firm has ramped up plans to expand Oxxo stores in Brazil with 250 openings per year, Chief Executive Daniel Rodriguez Cofre said during a conference call.

In February, Femsa said it hoped to open 200 Oxxo stores in Brazil in 2022, as well as 150 between Chile and Colombia.

"There is room for Oxxo to grow in Brazil, in the long term we should expect the there will be very different from the ones we have seen in Mexico" Rodriguez said.

Earlier this month, Femsa announced a $1.15 billion cash takeover bid for Swiss kiosk operator Valora in an effort to expand into the European market, spurring its shares to fall on concerns it may pay too much.

Revenue for the company, which controls the world's top Coca-Cola producer by volume, reached 167.5 billion pesos ($8.24 billion) in the second quarter, marking a 22.2% increase year-over-year, driven by growth in all of its business units.

($1 = 20.3320 Mexican pesos)


(Reporting by Valentine Hilaire, Noe Torres and Aida Pelaez-Fernandez; Writing by Kylie Madry; Editing by Andrea Ricci and Bernadette Baum)

((Valentine.Hilaire@thomsonreuters.com;))