FEMSA Grows Operating Income High Single Digit in 2Q13
MONTERREY, MEXICO -- (Marketwired) -- 07/25/13 -- Fomento Economico
Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX) (BMV: FEMSAUBD) (BMV:
FEMSAUB) announced today its operational and financial results for
the second quarter of 2013.
Second Quarter 2013 Highlights:
-- FEMSA income from operations grew 9.1% compared to the second quarter
of 2012, reflecting growth at Coca-Cola FEMSA and FEMSA Comercio. On
an organic basis(1) income from operations grew 8.0%.
-- Coca-Cola FEMSA income from operations increased 9.1% compared to the
second quarter of 2012, mainly driven by lower sugar prices combined
with the appreciation of the Mexican peso as applied to Coca-Cola
FEMSA's U.S. dollar-denominated raw material costs. On an organic
basis(1) income from operations increased 7.6%.
-- FEMSA Comercio achieved total revenues growth of 11.7% and income from
operations growth of 6.7% compared to the second quarter of 2012,
driven by 1,026 net new store openings in the last twelve months.
Jose Antonio Fernandez Carbajal, Chairman and CEO of FEMSA, commented:
"As is sometimes the case, our quarterly results include reasons to
be optimistic, but also a few challenging areas. At Coca-Cola FEMSA,
in spite of sluggish macro growth, again it was Mexico that provided
the positive momentum on the back of improved profitability, driven
by strong execution and a favorable raw material environment.
Performance in South America remained muted, particularly in Brazil.
And FEMSA Comercio had results that reflect tough comparisons, a soft
consumer environment in Mexico, and some continued pressure from the
telephony category. It is too soon to tell whether the second half
will show a meaningful improvement, however the level of economic
activity is expected to gradually increase and we are cautiously
optimistic about the rest of the year. Most importantly, the
long-term structural advantages across our businesses continue to
strengthen and we will continue to execute our strategy and will keep
investing to improve and expand our competitive position across our
operations. On that note, during the quarter we closed the
s of Farmacias Yza and Farmacias Moderna on the retail
front in Mexico, and we announced the acquisition of Fluminense on
the bottling front in Brazil. So we keep moving forward at a solid,
To obtain the full text of this earnings release, please visit our
Investor Relations website at www.femsa.com/investor under the
Financial Reports section
This report may contain certain forward-looking statements concerning
our future performance that should be considered as good faith
estimates made by us. These forward-looking statements reflect
management's expectations and are based upon currently available
data. Actual results are subject to future events and uncertainties,
which could materially impact our actual performance.
FEMSA is a leading company that participates in the beverage industry
through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola
products in the world; and in the beer industry, through its
ownership of the second largest equity stake in Heineken, one of the
world's leading brewers with operations in over 70 countries. In the
retail industry it participates with FEMSA Comercio, operating
various small-format chain stores, including OXXO, the largest and
fastest-growing chain of stores in Latin America. All of which is
supported by a Strategic Business area.
(1) Excludes non-comparable results from Coca-Cola FEMSA acquisitions
in the last twelve months.
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