February 27, 2018 / 11:29 PM / a year ago

UPDATE 1-Mexico's Femsa sees profits down 70 pct on Venezuela hit

(Adds background, details on retail unit)

MEXICO CITY, Feb 27 (Reuters) - Mexican bottler and retailer Fomento Economico Mexicano (Femsa) on Tuesday said its net profit fell more than 70 percent in the fourth quarter, hit by the revaluation of assets in its Venezuelan Coca-Cola bottling operation.

Net profit in the October-December period was more than 1.83 billion pesos ($93 million), down from nearly 6.7 billion pesos in the same period of 2016. Revenues rose more than 11 percent to 122.5 billion pesos from nearly 110 billion pesos in the last quarter of 2016.

Femsa controls Coca-Cola Femsa, the world’s largest Coke bottler, which reported a $1.2 billion net loss in the fourth quarter, hampered by a change in the reporting of its results in Venezuela.

Higher fuel costs in Mexico, higher labor costs and depreciation in Central America also took a toll on Coke Femsa’s results.

Femsa said its retail division, which operates OXXO convenience stores, saw revenues rise 10 percent, but it noted that sales at stores open for at least a year had slowed.

$1=19.6595 pesos Reporting by Sheky Espejo; Editing by Sandra Maler

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