FEMSA Delivers Double-Digit Operating Income Growth in 1Q08
Monterrey, Mexico, April 28, 2008 - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") today announced its operational and financial results for the first quarter of 2008.
First Quarter 2008 Highlights:
- Consolidated total revenues increased 8.4% and income from operations 19.6%.
- - Double-digit income from operations growth in all our business units contributed to these results.
- Coca-Cola FEMSA total revenues and income from operations increased 6.4% and 15.7%, respectively.
- - Double-digit income from operations growth in all divisions drove these results.
- FEMSA Cerveza total revenues increased 6.8% and income from operations increased 35.7% over a favorable comparison base.
- - Sales volume grew a robust 7.1% in Mexico, 12.6% in exports and 2.9% in Brazil. Strong top-line growth, combined with a decline in administrative expenses offset raw material pressures.
- OXXO continued its pace of strong growth and margin expansion.
- - Total revenues and income from operations increased 16.4% and 39.4%, respectively, resulting in an operating margin expansion of 60 basis points to 3.5%.
- - Strong growth within all product categories drove the positive results for the quarter.
José Antonio Fernández, Chairman and CEO of FEMSA, commented "Our first quarter 2008 results provide a compelling example of the strength of our unique continental integrated platform. Coca-Cola FEMSA delivered strong numbers aided by growing profitability in Mexico and in all of its divisions. FEMSA Cerveza results reflected a strong quarter, aided by positive weather conditions partially offsetting raw material pressures; our Brazilian operations started the year with some softness, however our export volumes again grew in the double digits, driven by continued strong performance in the United States. OXXO continued to deliver growth in every aspect of the business, recording a strong first quarter. We start this new year with strong first quarter results and conviction that we will be able to successfully navigate what may turn out to be a challenging year, while we continue to strengthen FEMSA's business platform."
To obtain the full text of this earnings release, please visit our Investor Relations website a 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 the leading beverage company in Latin America. It controls an integrated beverage platform that comprises Coca-Cola FEMSA, the largest Coca-Cola bottler in the region; FEMSA Cerveza, one of the leading brewers in Mexico, with presence in Brazil, and an important beer exporter to the United States and other countries; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 5,600 stores.