SOURCE: FEMSA Servicios SA de CV

FEMSA Servicios SA de CV

October 28, 2014 09:25 ET

FEMSA Delivers Double Digit Operating Income Growth in 3Q14

MONTERREY, MEXICO--(Marketwired - Oct 28, 2014) - 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 third quarter of 2014.

Third Quarter 2014 Highlights:

  • FEMSA consolidated total revenues increased 13.2% and income from operations grew 15.8% compared to the third quarter of 2013, reflecting growth at FEMSA Comercio and Coca-Cola FEMSA. On an organic basis(1) total revenues and income from operations increased 7.9% and 10.8%, respectively.

  • Coca-Cola FEMSA total revenues increased 11.4% and income from operations increased 15.1% compared to the third quarter of 2013, reflecting the integration of Fluminense, and Spaipa combined with revenue growth in most markets.  On an organic basis1 total revenues and income from operations grew 2.5% and 7.9%, respectively.

  • FEMSA Comercio achieved total revenues growth of 12.7% and income from operations growth of 17.6% compared to the third quarter of 2013, driven by 1,185 net new store openings in the last twelve months and 3.1% growth in same-store sales. On an organic basis1 total revenues and income from operations grew 12.2% and 18.0%, respectively.

Carlos Salazar Lomelín, FEMSA CEO, commented: "During the third quarter, we saw improving trends in certain operations and certain geographies, but there remain some headwinds ahead of us in the short term. We are encouraged, for example, by the moderate improvement in comparable sales at FEMSA Comercio, but they are still below the growth levels that we aspire to generate. Volume performance at Coca-Cola FEMSA Mexico was strong in the face of significant tax-driven price increases carried out earlier in the year, but it belies the general softness still present in the Mexican consumer environment. And we continue to face challenging demand dynamics in some markets like Brazil.

Having said that, as we approach the end of the year, we are optimistic that the favorable macro data that we are seeing in Mexico will eventually make its way to the pocket of our consumers, and that once we turn the page on 2014, we will cycle the pressures brought about by incremental taxation. And together with the hard work and continued excellent execution delivered daily by our more than 200,000 colleagues across the 10 countries where we operate, we have every confidence that we are moving in the right direction."

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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