Mexico's Femsa net profit doubles in fourth quarter, shares surge

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MEXICO CITY, Feb 27 (Reuters) - Mexico's FEMSA FEMSAUBD.MX, which controls one of the largest Coca-Cola bottlers and a network of convenience store chains, reported on Thursday a more than double increase in net profit for its fourth quarter compared to the same period last year.

The company posted a net profit of 6.79 billion pesos ($325 million), up from the 3.12 billion pesos in the October-December 2023 period, driven by strong performance across its business operations and favorable foreign-exchange conditions.

Chief financial officer, Jose Antonio Fernandez Carbajal, said in a conference call that FEMSA has successfully completed most of its planned divestments as part of its strategy.

As a result, the company will propose a capital return to shareholders through a 4.2% increase in ordinary dividends, an additional extraordinary dividend, and share repurchases representing 2.9% of its market capitalization in 2025.

Revenue for the quarter reached 208.31 billion pesos, a 12% increase from 184.73 billion pesos in the same period a year earlier.

Shares of Mexico's Femsa gained about 6.5% in morning trading adding 37.2 billion pesos to company's market cap.

($1 = 20.8829 pesos at end-December)