FEMSA Delivers Solid Growth in Second Quarter 2006
Monterrey, Mexico, July 28, 2006 Fomento Económico Mexicano, S.A. de C.V. ("FEMSA") today announced its operational and financial results for the second quarter and first half of 2006.
Second Quarter 2006 Highlights
FEMSA
- Consolidated total revenues increased 13%, reaching Ps. 31.869 billion.
- Income from operations increased 9%, reaching Ps. 4.846 billion. All operating units contributed to this growth.
- Net majority income increased 22%, reaching Ps. 1.820 billion.
Business Units
- FEMSA Cerveza (excluding Kaiser) revenues increased 10% and income from operations increased 19%. Domestic sales volume grew 7.6% and domestic price per hectoliter increased 4.8%.
- Coca-Cola FEMSA total revenues increased 4% driven largely by Brazil and Central America. Strong volume growth in Mexico was offset by pricing pressure in the Valley of Mexico.
- Oxxo increased its revenues by 23% driven by 152 net new stores and 10% growth in same-store sales. There are now 4,366 Oxxo stores throughout Mexico.
"A robust consumer environment continued through the second quarter in our main markets, particularly Mexico, and we capitalized on it as our beer operations delivered compelling volume growth with strong pricing. We continued to open Oxxo stores at a rapid pace, surpassing 700 net new stores opened in the past twelve months, and Coca-Cola FEMSA delivered solid growth in the face of tough year-on-year comparisons. Specific events such as the FIFA World Cup and the run-up to Mexican elections helped spur demand for all our businesses. The FEMSA team continues to execute on our strategy, and we are well on our way to achieving another banner year for our company," commented José Antonio Fernández, Chairman and CEO of FEMSA.
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 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 and important beer exporter to the United States; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 4,000 stores.