Femsa Shares Tumble Amid Slumping Profits
Femsa's shares plummeted 5.9% after the company reported a significant drop in net profit for the second quarter. Despite a 6.3% increase in revenue, profits fell to nearly a third of last year's figures due to adverse currency conditions and lower interest rates, affecting market capitalization.
In a notable market shift, Femsa's shares dropped by 5.9% on Monday following the announcement of a steep decline in net profit for the second quarter.
The company, known for managing one of the largest Coca-Cola bottlers and an extensive convenience store chain, disclosed a net profit decrease to 5.59 billion pesos, markedly lower than the same period last year. This downturn has been attributed to adverse foreign exchange conditions and diminished interest rates impacting its financial products.
Despite a revenue increase to 211.36 billion pesos, up by 6.3% from the previous year, Femsa's market position weakened, with shares hitting their lowest since January. This decline led to a significant loss in market capitalization, amounting to 35.1 billion pesos or $1.88 billion.
(With inputs from agencies.)
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