Latin America provides welcome second-quarter relief for Citi, Coca-Cola and airlines.
BY CHRONICLE STAFF
U.S.-based Citigroup increased Latin America revenues in the second quarter by 12 percent to $3.4 billion, while net income fell by 16 percent to $658 million, it said in its earnings statement. The revenue growth marks a welcome contrast to North America (where revenues fell by 45 percent), Europe/Middle East and Africa (where revenues declined by 19 percent) and Asia (where they fell by 4 percent). Even the decline in Latin America net income was better than the results in other world regions, where the decreases were even bigger.
Latin American global cards revenue increased 24 percent to $1.2 billion, primarily driven by higher purchase sales and average loans, up 29 percent and 26 percent, respectively Meanwhile, Latin America consumer banking revenues increased 4 percent to $1.0 billion, driven by higher average loans and deposits, up 19 percent and 8 percent, respectively, partially offset by the absence of a gain on asset sales recorded in the prior-year period.
U.S.-based Coca-Cola, the world's largest soft-drink company, boosted Latin America sales in the second quarter by 23 percent to $960 million and operating income by 29 percent to $531 million, it said in its earnings statement. "Solid growth across Latin America and in key emerging markets ...continued to drive the results," the company said in its statement.
The Latin America Group boosted unit case volume by 7 percent in the quarter. "Solid unit case volume growth across the group and the benefit of acquisitions drove the results for the quarter and led to volume and value share gains in both sparkling and still beverages," Coca-Cola says.
The net revenue increase of 23 percent in the quarter, reflects a 5 percent increase in concentrate sales, positive pricing and mix and a low double-digit currency benefit, it says. Meanwhile, the 29 percent increase in operating income is the result of net revenue increase and continued investments in key marketing initiatives. Of the company's top markets, Mexico grow fastest - 10 percent in unit case volume, followed by Argentina, with 7 percent growth. Brazil only saw 1 percent growth in the quarter. "Performance in [Brazil in] the quarter was impacted by a volume decline in April resulting from a slowdown in industry growth as consumers used the availability of credit to drive durable goods growth," the company said.
But Citi and Coke weren't the only winners in the second quarter:
- US-based Schlumberger increased Latin America revenues in the second quarter by 15 percent to $1 billion, while pretax operating income grew 31 percent to $243 million, it said in its earnings statement.
- Votorantim, Brazil's third-largest pulp maker, said second-quarter net income was 135 million reais ($84.6 million), Bloomberg reports.
- Sweden-based Electrolux, the world's second-largest maker of household appliances, boosted Latin America sales in the second quarter by 17.9 percent to 2.5 billion Swedish kronor (U$417 million), while operating income grew by 29.1 percent to 133 million kronor, it said in its earnings statement.
- France-based Essilor, the world's largest manufacturer of lenses for eyeglasses, boosted first half sales in Latin America by 21 percent to 60.6 million euro (US$95.9 million), it said in a statement.
Companies like American Airlines, Continental Airlines and Finland-based Nokia did not release Latin America revenue figures for the quarter, but reported solid growth. Nokia, the world's largest wireless phone producer, boosted Latin American wireless sales by 39.1 percent to 15.1 million units in the second quarter, it said in its earnings statement.
© Copyright Latin Business Chronicle