FEMSA Grows Operating Income High Single Digit in 2Q13
MONTERREY, MEXICO--(Marketwired - Jul 25, 2013) - Fomento Económico 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 basis1 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 basis1 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.
José Antonio Fernández 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 acquisitions 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, steady pace."
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.
