(Adds details on bottling business, share movement)
MEXICO CITY, July 25 Mexico's Femsa reported on
Friday a jump in operating profit in the second quarter, boosted
by double-digit sales increases at its convenience-store chain
Oxxo and Coke bottling business, but its net profit fell on
higher debt costs.
Femsa reported an operating profit of 7.953
billion pesos in the period, up 9 percent from 7.294 billion
pesos in the year-earlier period.
The beverage company's Oxxo stores reported revenue jumped
12.4 percent, while bottler Coca-Cola Femsa saw a 14.3 percent
increase in quarterly revenue.
Femsa's net profit, however, fell 15 percent to 3.018
billion pesos ($232 million), from 3.565 billion pesos in the
second quarter of 2013.
Shares in the company were down 0.11 percent at 129.51 in
Femsa's bottling business Coke Femsa on Wednesday reported a
lower second-quarter profit and said a new sales tax on sugary
beverages in Mexico is causing sales to slow.
Coke Femsa makes around half its revenue in Mexico, Latin
America's No.2 economy, even after a string of acquisitions
abroad in recent years.
Mexican consumer spending has been weak this year, adding to
difficulties for retailers.
Mexico's central bank has cut interest rates to a record low
of 3 percent, but its board members have warned that domestic
spending "still hasn't shown clear signals of recovery."
($1 = 12.9865 pesos at end June)
(Reporting by Elinor Comlay; Editing by Paul Simao and Nick