In 2011, our portfolio of franchise territories across Latin America delivered double-digit top- and bottom-line growth in the face of a challenging commodity cost environment and global market volatility. For the year, our total revenues rose 20.5% to Ps. 124.715 billion. Our gross profit increased 19.4% to Ps. 57.227 billion, and our income from operations increased 18.0% to Ps. 20.152 billion.
Growth
In 2011, we generated solid organic growth. For the year, our organic sales volumes and revenues rose 4% and 19%, respectively. The main drivers of our positive performance for the year were our revenue management initiatives—implemented over the past 12 months throughout our franchise territories—and our volume growth, mainly in Mexico, Argentina, Brazil, and Colombia. The sparkling beverage category, led by the brand Coca-Cola, accounted for the majority of our incremental volumes during 2011.
On top of our business’ organic growth, 2011 marked a historic year in which we firmly advanced on our strategy to play an important role in the consolidation of the Coca-Cola system in our region through accretive mergers and acquisitions—from our incursion into the dairy category through our joint acquisition of Grupo Industrias Lácteas in Panama with our partner, The Coca-Cola Company, to our mergers with the beverage divisions of Grupo Tampico, Grupo CIMSA, and Grupo Fomento Queretano in Mexico. The aggregate value of these transactions is more than Ps. 28 billion, which represents a record investment for our company since our acquisition of Panamco in 2003.
In March 2011, to further leverage our capability set and our beverage platform, together with our partner, The Coca-Cola Company, we successfully closed the acquisition of Grupo Industrias Lácteas, a leading company with a more than 50-year tradition in the Panamanian dairy and juice-based beverage categories. This transaction, which marked our first foray into dairy products, began a beneficial learning journey into marketing, selling, and distributing dairy and value-added dairy products—one of the most dynamic segments in terms of growth, scale, and value in the worldwide non-alcoholic beverage industry.
In Mexico, we moved faster than ever to reach three merger agreements with prominent and respected, family-owned Coca-Cola bottling operations—with whom we share an aligned entrepreneurial vision for economic and social value creation—creating an even larger and stronger beverage company. In October 2011, we successfully completed our merger with Grupo Tampico’s beverage division, one of the oldest private bottlers in Mexico. In December 2011, we successfully closed our merger with the strategically contiguous Grupo CIMSA, one of Mexico’s largest private Coca-Cola bottlers. Furthermore, in December 2011, we reached an agreement to integrate Grupo Fomento Queretano’s beverage division, an important family-owned beverage player in Mexico, which represents another key geographic link for our organization. As a result of these mergers, in addition to creating opportunities to capture significant synergies, we will increase our Mexican operations’ volume by more than 425 million unit cases of beverages, revenue by more than Ps. 12 billion, and EBITDA by approximately Ps. 2.75 billion.
As we continue to expand our business organically, our strong cash position and high credit ratings provide us with the flexibility to pursue the global beverage industry’s continued opportunities for growth through acquisitions, mergers, joint ventures, and other transaction structures that leverage our beverage platform even further.
In 2011, we generated solid organic growth. For the year, our organic sales volumes and revenues rose 4% and 19%, respectively. The main drivers of our positive performance for the year were our revenue management initiatives—implemented over the past 12 months throughout our franchise territories—and our volume growth, mainly in Mexico, Argentina, Brazil, and Colombia. The sparkling beverage category, led by the brand Coca-Cola, accounted for the majority of our incremental volumes during 2011.
On top of our business’ organic growth, 2011 marked a historic year in which we firmly advanced on our strategy to play an important role in the consolidation of the Coca-Cola system in our region through accretive mergers and acquisitions—from our incursion into the dairy category through our joint acquisition of Grupo Industrias Lácteas in Panama with our partner, The Coca-Cola Company, to our mergers with the beverage divisions of Grupo Tampico, Grupo CIMSA, and Grupo Fomento Queretano in Mexico. The aggregate value of these transactions is more than Ps. 28 billion, which represents a record investment for our company since our acquisition of Panamco in 2003.
In March 2011, to further leverage our capability set and our beverage platform, together with our partner, The Coca-Cola Company, we successfully closed the acquisition of Grupo Industrias Lácteas, a leading company with a more than 50-year tradition in the Panamanian dairy and juice-based beverage categories. This transaction, which marked our first foray into dairy products, began a beneficial learning journey into marketing, selling, and distributing dairy and value-added dairy products—one of the most dynamic segments in terms of growth, scale, and value in the worldwide non-alcoholic beverage industry.
In Mexico, we moved faster than ever to reach three merger agreements with prominent and respected, family-owned Coca-Cola bottling operations—with whom we share an aligned entrepreneurial vision for economic and social value creation—creating an even larger and stronger beverage company. In October 2011, we successfully completed our merger with Grupo Tampico’s beverage division, one of the oldest private bottlers in Mexico. In December 2011, we successfully closed our merger with the strategically contiguous Grupo CIMSA, one of Mexico’s largest private Coca-Cola bottlers. Furthermore, in December 2011, we reached an agreement to integrate Grupo Fomento Queretano’s beverage division, an important family-owned beverage player in Mexico, which represents another key geographic link for our organization. As a result of these mergers, in addition to creating opportunities to capture significant synergies, we will increase our Mexican operations’ volume by more than 425 million unit cases of beverages, revenue by more than Ps. 12 billion, and EBITDA by approximately Ps. 2.75 billion.
As we continue to expand our business organically, our strong cash position and high credit ratings provide us with the flexibility to pursue the global beverage industry’s continued opportunities for growth through acquisitions, mergers, joint ventures, and other transaction structures that leverage our beverage platform even further.
Responding to our consumers' growing desire for anti-oxidant beverages, we launched Reserva del Valle, a premium line of cranberry flavored "super fruit" juices.
