Weather Woes: Femsa Profits Tumble Amid Economic Challenges
Femsa shares dropped 5% after second-quarter profits were hit by adverse weather in Mexico and unfavorable foreign-exchange conditions. The company's net profits fell to 5.59 billion pesos from last year's figures. Despite revenue growth, Femsa remains wary of economic volatility for the year's second half.
Shares in Femsa saw a significant 5% decline on Monday, marking their lowest point since January. This followed the company's announcement that adverse weather conditions in Mexico severely impacted second-quarter profits.
Femsa, a major player in Coca-Cola bottling and convenience stores, reported a steep decrease in net profit to 5.59 billion pesos, nearly one-third of last year's comparable quarter. Additionally, the company cited negative foreign-exchange conditions as a further dent in its financial performance.
Despite a 6.3% increase in revenue to 211.36 billion pesos, analysts from Ve Por Mas noted that the results fell short of expectations due to economic pressures. Femsa's CFO, Martin Arias, stated that the company is cautiously optimistic about the second half, although wary of ongoing macroeconomic challenges.
(With inputs from agencies.)
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