“Despite the challenging environment, the figures surprised positively with solid growth in volumes despite price increases, excluding the one-off effect in Brazil,” Grupo Financiero Banorte analysts said in a note to clients.
Regarding the consensus of analysts for the second quarter, KOF sales had an increase of 11.4% compared to expectations. On the other hand, the operating flow (Ebitda) and the consolidated net income exceeded the estimates with 3.7 and 24.4%, respectively.
“We reiterate our vision of recovery in the issuer, since despite the difficult start of the year and the issue of commodities, the issuer maintains an attractive volume. Towards 2022, our attention will be on the issuer’s strategies (price/volume), greater consumption in the context of the pandemic, considering as a factor the economic and social reactivation that this could imply (in addition to the effect of inflation on the consumer )”, indicated Monex analysts.
In the second quarter, the bottler registered an increase in its sales of 16% to reach a value of 57,311 million pesos; a rise of 2.4% to 10,607 in its operating flow (Ebitda) and a consolidated net profit of 4,576 million pesos, which represents an increase of 25%.
Richard Horbach, an analyst at Intercam, mentioned that the issuer continues to face higher raw material costs, which keeps profit margins under pressure, even implementing strong pricing strategies. He added that the stock is already discounting the good performance of earnings, which is why he recommends holding at a theoretical price of 125.6 pesos.
With information from Reuters