Mexico's Femsa posts third-quarter profit dip on peso strength, discontinued ops (updated)

Heineken Holding NV

27/10/2023 14:43

(Updates with additional detail)
       MEXICO CITY, Oct 27 (Reuters) - Mexican bottler and
retailer Femsa  FEMSAUBD.MX  posted a 9% year-on-year fall in
its third-quarter net profit on Friday, which it attributed to
the strength of the Mexican peso and a decrease in income from
discontinued operations.
   Net income attributable to the owner came down to 9.74
billion pesos ($558.9 million) from 10.75 billion pesos a year
earlier.
    Femsa said profits were boosted by higher operational
income, an exchange-rate bump and a decrease in net interest
expenses. However, they were offset by the appreciation of the
Mexican peso compared to the dollar and a drop in income from
discontinued operations, which included Femsa's previous stake
in Heineken.
        Quarterly revenue rose 19% to 188.1 billion pesos
($10.79 billion) in the July-to-September period, nevertheless
missing the LSEG consensus of 199.7 billion pesos.
  
        Femsa's earnings before interest, tax, depreciation and
amortization (EBITDA), or core earnings, for the quarter rose
15% to 25.37 billion pesos.
  
        Same-store sales in FEMSA's Oxxo stores across Latin
America grew 15%.
  

    ($1 = 17.4279 Mexican pesos at end-September)
  

 (Reporting by Kylie Madry; Editing by Sarah Morland)
 ((Kylie.Madry@thomsonreuters.com;))