FEMSA Reports First Quarter Ended March 31, 2000
MONTERREY, Mexico--(BUSINESS WIRE)--April 24, 2000--Fomento Economico Mexicano S.A. ("FEMSA" or the "Company") (NYSE:FMX) (BMV:FEMSA UBD), Mexico's largest and one of Latin America's leading beverage companies, reported today consolidated net sales of Ps. 9.347 billion for the first quarter, an increase of 10.7% over the first quarter of 1999.
Consolidated revenue growth was driven by revenue growth in three of FEMSA's principal divisions -- FEMSA Cerveza, Coca-Cola FEMSA and FEMSA Comercio.
In line with the trends experienced in the fourth quarter of 1999, revenue growth in the beverage businesses for the first quarter of 2000 reflects both volume growth and an improvement in the real prices of FEMSA Cerveza and Coca-Cola FEMSA's domestic beverage products. In the Company's retail business, revenue growth is attributable both to same store sales growth, reflecting steady growth in traffic and ticket per store, and to an increase in the number of stores.
The Company recorded consolidated operating income of Ps. 1.110 billion for the first quarter of 2000, an increase of 23.1% over the comparable period last year. The Company registered an operating margin for the first quarter of 2000 of 11.8%, a 1.1 percentage point improvement over the 10.7% operating margin achieved in the first quarter of 1999.
Jose Antonio Fernandez, chief executive officer of the Company, stated, "The salient feature of the first quarter of 2000 is an acceleration in the growth rate of consolidated operating earnings for the Company. Underpinning this performance, we have witnessed a remarkable strengthening of the pricing leverage of our Mexican operations, which has translated into a healthy increase in profitability. Looking ahead, against the background of an upbeat macroeconomic outlook, this development augurs well for the prospects of the summer quarters, which traditionally have been the strongest in the year."
Net majority income decreased by 42.3% to Ps. 402 million for the first quarter of 2000, compared to the same period last year. Earnings per FEMSA Unit for the first quarter of 2000 amounted to Ps. 0.376. Earnings per ADR for the first quarter 2000 amounted to US$0.405.
This report may contain certain forward-looking statements concerning FEMSA's future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact the Company's actual performance.