The past year was not a particularly strong one in the consumer
sectors of Latin American countries like Mexico and Brazil, and that was
not good news for FEMSA (NYSE: FMX ) . One of Mexico's largest corporations, FEMSA has a significant presence in the retail/consumer world with its stake in Coca-Cola FEMSA (NYSE: KOF ) , a large Latin American Coca-Cola bottler, a 20% stake in brewer Heineken, and ownership of Oxxo, the third-largest retailer in Mexico.
The challenge for investors is weighing out the short-term challenges
presented by a possibly improving (but not yet strong) Mexican economy,
new taxes, economic problems in Argentina and Venezuela, and
competition against the long-term opportunity of growing Coca-Cola FEMSA
and leveraging the retail operations into new areas like pharmacies and
fast food that are still underpenetrated in Mexico.
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FEMSA Hopes to Put a Tough Year Behind It
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