Apr. 30, 2009 (Xinhua News Agency) -- -- Financing -- costs -- bash -- profits -- for -- L. -- America's -- largest -- drinks -- maker

MEXICO -- CITY, -- April -- 30 -- (Xinhua) -- -- -- Rising -- financing -- and -- raw -- materials -- costs, -- triggered -- by -- weakening -- Latin -- American -- currencies, -- bashed -- net -- earnings -- 27.9 -- percent -- at -- Fomento -- Economico -- Mexicano -- SA -- (FEMSA), -- the -- region's -- largest -- bottler -- of -- coca-cola -- and -- Mexico's -- second -- largest -- brewer.

"The -- cost -- of -- raw -- materials -- and -- exchange -- rates -- continue -- to -- impact -- our -- results," -- the -- firm's -- president -- Jose -- Antonio -- Fenandez -- Carbajar -- said -- in -- a -- Thursday -- statement, -- "We -- are -- being -- cautious, -- (because -- of) -- signals -- that -- the -- deceleration -- in -- economic -- activity -- will -- continue -- for -- some -- time."

Mexico's -- peso, -- at -- 13.78 -- to -- the -- dollar -- on -- Thursday, -- is -- around -- 40 -- percent -- lower -- than -- its -- August -- peak -- of -- 9.86 -- to -- the -- dollar. -- The -- real, -- the -- currency -- in -- FEMSA -- other -- large -- market, -- has -- declined -- about -- 32 -- percent. -- FEMSA -- imports -- key -- raw -- materials -- from -- the -- United -- States, -- but -- only -- has -- a -- tiny -- percentage -- of -- its -- sales -- there.

At -- the -- firm's -- soft -- drinks -- division, -- volume -- increased -- 7.1 -- percent -- to -- 554.2 -- million -- cases -- because -- of -- the -- acquisition -- of -- Brazilian -- drinks -- firm -- Referigerantes -- Minas -- Gerais -- Ltd. -- However, -- the -- cost -- of -- goods -- rose -- 34.5 -- percent -- and -- financing -- costs -- rose -- around -- 4.2 -- times -- to -- 938 -- million -- pesos. -- As -- a -- result -- net -- income -- in -- this -- division -- was -- 18.1 -- percent -- lower -- at -- 1.3 -- billion -- pesos.

Costs -- also -- rose -- at -- the -- company's -- beer -- and -- convenience -- store -- divisions, -- but -- in -- both -- cases -- there -- were -- modest -- net -- profit -- increases. --