FEMSA Grows Operating Income High Single Digit in 2Q13
July 25 2013 - 9:10AM
Marketwired
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 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.
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.
Media Contact: (52) 81-8328-6046 Email Contact www.femsa.com
Investor Contact: (52) 81-8328-6167 Email Contact
www.femsa.com/investor
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