MONTERREY, MEXICO--(Marketwired - Apr 24, 2013) - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") (
First Quarter 2013 Highlights:
- FEMSA consolidated total revenues increased 4.6% compared to the first quarter of 2012, driven by strong results at FEMSA Comercio that offset mixed results at Coca-Cola FEMSA. On an organic basis total revenues increased 3.2%.
- Coca-Cola FEMSA total revenues remained stable and organically decreased 2.2% as compared to the first quarter of 2012, mainly as a result of high single-digit revenue growth in our Mexico & Central America Division which compensated for a mid-single-digit contraction in our South America Division. This contraction was largely driven by the negative translation effect from the devaluation of several local currencies as well as a volume decline in Brazil, coupled with increased marketing spending and labor cost pressures in certain markets. On a currency-neutral basis and excluding the non-comparable effect of Grupo Fomento Queratano in Mexico, total revenues increased 10.8%.
- FEMSA Comercio achieved total revenues growth of 14.0% and income from operations growth of 21.5% compared to the first quarter of 2012, driven by new store openings and 4.8% growth in same-store sales.
José Antonio Fernández Carbajal, Chairman and CEO of FEMSA, commented: "We operate across many different markets, and sometimes the diverse economic environments we face manifest themselves with particular clarity in our results. This was the case during the first quarter, with our operations in Mexico performing solidly -- both Coca-Cola FEMSA and especially FEMSA Comercio -- but some of our operations in South America reflecting not only challenging operating conditions, but also the impact of currencies that weakened significantly against the US dollar and, importantly, against a strong Mexican peso.
We cannot influence the way currencies move or economies grow, but our objectives for the year remain in place and we will strive to achieve them. And so, we continue to push forward with great expectations. We share the optimism that surrounds Mexico, our most important market, and we fully expect the business trends in the rest of our territories to continue to support long-term value creation."
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; in the retail industry through FEMSA Comercio, operating OXXO, the largest and fastest-growing chain of small-format stores in Latin America, 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.