Femsa's shares dive after weather-hit second-quarter results

By Aida Pelaez-Fernandez

MEXICO CITY, July 28 (Reuters) - Shares in Femsa fell by about 5% on Monday to their lowest since January, after the company reported that adverse weather in its main market, Mexico, had dented second-quarter net profits.

The company, which controls one of the largest Coca-Cola bottlers and a network of convenience stores, said its net profit was nearly a third of the level in the same quarter a year earlier, at 5.59 billion pesos ($298 million).

Apart from the impact of weather on profits, Femsa also cited negative foreign-exchange conditions.

"Femsa's results were below expectations, given pressures from weak consumption and the weather," analysts at Ve Por Mas said in a note.

Looking ahead, the company remains cautiously optimistic for the second half of the year but acknowledges potential volatility given the weak macroeconomic environment, Femsa's CFO Martin Arias said during a conference with analysts.

Revenue for the second quarter reached 211.36 billion pesos, a 6.3% increase from revenues of 198.74 billion pesos in the same period a year earlier.

Monday's share price fall wiped 30 billion pesos ($1.60 billion) from the company's market capitalization, according to LSEG data.

($1 = 18.7531 Mexican pesos)