MONTERREY, MEXICO--(Marketwired - Jul 27, 2016) - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") announced today its operational and financial results for the second quarter of 2016.
Second Quarter 2016 Highlights:
- FEMSA consolidated total revenues increased 25.9% and income from operations grew 13.0% compared to the second quarter of 2015, mainly driven by the integration of Socofar into FEMSA Comercio's Health Division and solid growth at FEMSA Comercio's Retail Division. On an organic basis(1) total revenues increased 12.6% and income from operations grew 8.1%.
- FEMSA Comercio - Retail Division achieved growth in total revenues of 12.6% and income from operations of 11.9% compared to the second quarter of 2015, reflecting solid growth in new store openings and a 5.1% increase in same-store sales.
- FEMSA Comercio - Health Division total revenues amounted to Ps. 10.413 billion compared to Ps. 1.181 billion in the second quarter of 2015, and income from operations increased from Ps. 27 million in the second quarter of 2015 to Ps. 327 million in the same period of 2016, mainly reflecting the integration of Socofar. On an organic basis1 total revenues grew 18.5%.
- FEMSA Comercio - Fuel Division total revenues increased 35.1% compared to the second quarter of 2015.
- Coca-Cola FEMSA total revenues increased 9.3% and income from operations grew 6.6% compared to the second quarter of 2015, reflecting growth in the average price per unit case across most operations and volume growth in Mexico and Central America. On a currency neutral basis and excluding Venezuela, total revenues and income from operations grew 9.1% and 12.0%, respectively.
Carlos Salazar Lomelín, FEMSA's CEO, commented: "We continued to make solid progress during the second quarter. FEMSA Comercio as a whole, including its three divisions, increased its revenues by 41 percent versus the second quarter of last year. At its Retail Division, we again saw strong comparable growth and profitability gains at OXXO, even after accounting for a slightly negative calendar effect in April, and we made a small acquisition in Chile that should allow us to build a relevant convenience store presence in that market over time. Our drugstore operations also performed well, allowing us to continue investing in the integration of a single operating platform in Mexico, while expanding our store base both organically and through a small bolt-on acquisition in Mexico. For its part, the Fuel Division saw some sequential improvements in profitability even as we continue with our sustained rapid expansion strategy and we begin the re-branding of our stations into the new OXXO GAS image. At Coca-Cola FEMSA we again achieved robust growth in Mexico as well as pricing, market share and profitability gains in several key markets, even against continued macroeconomic and foreign exchange pressure. So all in all, encouraging trends across our platform.
As we begin the second half, we remain cautiously optimistic. Particularly in Mexico, where we will be facing demanding comparison bases the rest of the year, and we need to redouble efforts to keep the strong growth going. But we believe we have more opportunities than challenges 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 by volume; 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 through FEMSA Comercio, comprising a Retail Division operating various small-format store chains including OXXO, a Fuel Division, operating the OXXO GAS chain of retail service stations, and a Health Division, which includes drugstores and related operations. Additionally, through its Strategic Businesses unit, it provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA's business units and third-party clients.
1 Excludes non-comparable results and significant acquisitions in the last twelve months.