FEMSA to invest USD$1.3 billion in 2018

Even though the Mexican multinational beverage and retail company had a 72.6% drop in net profits from October to December 2017
FEMSA to invest USD$1.3 billion in 2018
The logo of Coca-Cola Femsa, the largest Coke bottler in the world, is pictured at its headquarters in Monterrey, Mexico – Photo: Daniel Becerril/REUTERS
03/03/2018
08:40
Miguel Pallares
Mexico City
-A +A

The Mexican multinational beverage and retail company Fomento Económico Mexicano (FEMSA), owner of the largest franchise bottler of Coca-Cola trademark beverages in the world by volume Coca-Cola FEMSA (KOF), the Oxxo chain of convenience stores in Mexico, and a series of drugstores, will invest USD$1.3 billion for the expansion of their different businesses in 2018, disclosed FEMSA's CEO Eduardo Padilla.

"Regarding the capital expenditure (capex), we are expecting to invest the same figure this year, in line with last year's capex, for both Coca-Cola FEMSA and our other retail businesses," said Eduardo Padilla, adding that those resources will be allocated mainly to distribution.

In 2017, FEMSA assigned almost USD$770 million to KOF, USD$390 million for their retail division, USD$60 million for their drugstore chains, USD$40 million for their fuel division, and USD$75 million for overall logistics and refrigeration.

However, it should be noted that FEMSA had a 72.6% drop in net profits from October to December 2017, despite the partial sale of their Heineken shares, resulting in an overall profit amounted to MXN$1,828 million compared to MXN$6,672 million in the same period of 2016.

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