MONTERREY, MEXICO--(Marketwired - Jul 25, 2014) - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") (
Second Quarter 2014 Highlights:
- FEMSA consolidated total revenues increased 14.4% and income from operations grew 9.0% compared to the second quarter of 2013, reflecting growth at Coca-Cola FEMSA and FEMSA Comercio. On an organic basis 1 total revenues and income from operations increased 7.3% and 5.5%, respectively.
- Coca-Cola FEMSA total revenues increased 14.3% and income from operations increased 11.7% compared to the second quarter of 2013, reflecting the integration of Fluminense, Spaipa and Yoli combined with revenue growth in most markets. On an organic basis 1 total revenues and income from operations grew 3.2% and 6.6%, respectively.
- FEMSA Comercio achieved total revenues growth of 12.4% and income from operations growth of 8.9% compared to the second quarter of 2013 , driven by strong net new store openings and 3.6% growth in same-store sales. On an organic basis 1 total revenues and income from operations grew 10.9% and 9.2%, respectively.
Carlos Salazar Lomelín, FEMSA CEO, commented: "In light of a continued challenging environment for our businesses, particularly in Mexico, our results for the quarter were solid. At Coca-Cola FEMSA, Mexican volumes again contracted reflecting the adverse backdrop of the excise tax, as well as extremely wet weather that this year seems to have arrived ahead of schedule, yet we continued to successfully implement pricing and packaging strategies that drove revenues and partially offset the negative pressure, together with our continued emphasis on efficiency and cost containment, as well as a generally benign raw material environment. Beyond Mexico, we are also facing challenging operating conditions in certain markets, such as Brazil, while other operations like Colombia are delivering more encouraging growth. At FEMSA Comercio comparable sales for the quarter showed some improvement, but once we adjust for the calendar effects of Semana Santa the growth year-to-date is just above 2 percent, more or less in line with the trend from last year but below our long term expectations. The opening of new stores has been strong, but clearly the Mexican consumer remains under pressure as the much awaited recovery remains elusive.
"As we look at the second half of the year, we remain confident on our team's ability to execute our strategy and overcome challenges, and we see more reasons to be optimistic than not. However, the improvement should be gradual as we do not yet see signs of a radically better environment in the months ahead."
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 unit.
1 Excludes non-comparable results from Coca-Cola FEMSA and FEMSA Comercio acquisitions in the last twelve months.
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