MONTERREY, MEXICO--(Marketwired - Apr 30, 2015) - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") (
- Given current operating conditions in Venezuela, and in order to more accurately reflect the contribution of this operation to Coca-Cola FEMSA and FEMSA's consolidated financial results, we are now using the SIMADI exchange rate to translate this operation's first quarter 2015 results into our reporting currency, the Mexican peso. For this period, the SIMADI rate was 192.95 bolivars per US dollar, compared to an exchange rate of 10.70 bolivars per US dollar used for the comparable quarter of 2014. Consequently, Venezuela's contribution to our reported results adjusted importantly. Despite the difficult operating environment in Venezuela, Coca-Cola FEMSA remains committed to the market and will continue producing, selling and distributing the products that its Venezuelan consumers enjoy on a daily basis.
First Quarter 2015 Highlights:
- FEMSA consolidated total revenues increased 1.5% compared to the first quarter of 2014, driven by solid growth at FEMSA Comercio. On an organic basis 1 total revenues and income from operations decreased 1.0% and 1.9%, respectively.
- FEMSA Comercio achieved total revenues growth of 18.9% and income from operations growth of 26.0% compared to the first quarter of 2014, reflecting 154 net new store openings and same-store sales growth of 4.3%. On an organic basis 1 total revenues and income from operations grew 12.5% and 25.3%, respectively.
- Coca-Cola FEMSA total revenues decreased 11.2% and income from operations decreased 6.3% compared to the first quarter of 2014, reflecting the negative translation effect from the Venezuelan operation as well as the devaluation of the Brazilian real and the Colombian peso. On a currency neutral basis and excluding Venezuela total revenues and income from operations grew 5.5% and 10.6%, respectively.
Carlos Salazar Lomelín, FEMSA's CEO, commented: "The first quarter results give us reasons to be optimistic. At FEMSA Comercio, we continued to see an improving trend in comparable sales, which together with strong expense containment drove healthy profitability gains. We are also encouraged by the performance of the drugstore operations and by the new opportunity of our recently incorporated gas station business. At Coca-Cola FEMSA, increased efficiency and execution also generated improved operating margins even in the face of a tough foreign exchange environment, challenging weather dynamics in Mexico and soft consumer demand in Brazil. And we now have both our new state-of-the-art bottling plants up and running in Brazil and Colombia, which will further increase our flexibility and capabilities in those key territories. So as you can imagine, we are excited by what lies ahead for our company, and we appreciate your continued interest in FEMSA".
1 Excludes non-comparable results from gasoline operations at FEMSA Comercio for the last twelve months.
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 store chains including OXXO, the largest and fastest-growing in the Americas. Additionally, through FEMSA Strategic Businesses, it provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA's business units and third-party clients.
Media Contact: (52) 81-8328-6046 Email Contact www.femsa.com Investor Contact: (52) 81-8328-6167 Email Contact www.femsa.com/investor
