MONTERREY, MEXICO--(Marketwired - Apr 30, 2014) - Fomento Económico Mexicano, S.A.B. de C.V. (NYSE: FMX) (BMV: FEMSAUBD) (BMV: FEMSAUB) ("FEMSA") announced today its operational and financial results for the first quarter of 2014.
First Quarter 2014 Highlights:
- FEMSA consolidated total revenues increased 14.3% and income from operations grew 16.2% compared to the first quarter of 2013, reflecting growth at Coca-Cola FEMSA and FEMSA Comercio. On an organic basis1 total revenues and income from operations increased 4.2% and 7.2%, respectively.
- Coca-Cola FEMSA total revenues increased 15.3% and income from operations grew 18.0% compared to the first quarter of 2013, mainly driven by the integration of Fluminense, Spaipa and Yoli combined with revenue growth in the Venezuelan operation. On an organic basis1 total revenues and income from operations grew 1.2% and 7.4%, respectively.
- FEMSA Comercio achieved total revenues growth of 12.3% and income from operations growth of 6.6% compared to the first quarter of 2013, reflecting 1,120 net new store openings and stable same-store sales. On an organic basis1 total revenues and income from operations grew 8.2% and 3.8%, respectively.
Carlos Salazar Lomelín, FEMSA CEO, commented: "Our first quarter performance was encouraging, even as consumer sentiment in Mexico remained sluggish. At Coca-Cola FEMSA, our team in this key market has been hard at work adjusting our price-package architecture to offer the best alternatives to our consumers in light of the new tax environment. We also put in place major cost rationalization efforts and scaled back investments in order to mitigate the negative impact on our results. Volumes suffered during the quarter, as expected, but we continue to work on optimizing our portfolio and are optimistic about our ability to adapt. Elsewhere, we observed some good growth trends, particularly in Brazil and Venezuela. For its part, FEMSA Comercio navigated the weak demand dynamics in Mexico and was still able to deliver stable same-store-sales, even against a very tough calendar comparison reflecting the timing of Semana Santa.
"On the more strategic front, we again made solid progress. The integration of Coca-Cola FEMSA's recently acquired territories in Mexico, Brazil and the Philippines keeps moving forward, as do the new businesses entered by FEMSA Comercio in the drugstore and Quick Service Restaurant segments. As we have mentioned before, this year presents some short-term challenges, driven largely by external factors, but it is also a period in which we aim to keep pursuing opportunities and advancing our long-term growth strategy."
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 for the last twelve months.