Looking for a better carbonated alternative to the flat results at U.S. bottler Coca-Cola Enterprises
Through its three subholding companies, Formento Economico Mexicano
On the beer front, FEMSA's Cerveza unit improved real volume growth of 7.7% for the quarter. Raw-material costs are on the rise, particularly for grains, which have risen 30% in price year over year in Mexico, but operating efficiencies and a strong Brazilian currency have helped limit gross margin contraction to 40 basis points.
Following the trends we've seen from Anheuser-Busch's
Meanwhile, profitability at FEMSA's bottling segment and largest subsidiary, Coca-Cola FEMSA
In FEMSA's Oxxco convenience-store chain, comps rose 5%, with strong traffic growth offsetting a declining average ticket. Implementation of new pricing strategies, along with stronger sales in higher-margin categories, improved the gross profit by 20%. And by keeping expenses in check, operating margins expanded 130 basis points.
Refreshing double-digit earnings growth, washed down with a 0.98% dividend yield ... this is one company likely to add a pleasant flavor to your portfolio.
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