FEMSA Reports Second Quarter 1999 and First Half 1999 Results
MONTERREY, Mexico--(BUSINESS WIRE)--July 28, 1999-- Fomento Economico Mexicano S.A. ("FEMSA" or the "Company")
(NYSE:FMX) reported today consolidated net sales of Ps. 9.5 billion
for the second quarter and Ps. 17.5 billion for the first half ended
June 30, 1999, an increase of 3.6% and 5.5%, respectively, over the
comparable periods last year.
Consolidated revenue growth was driven by revenue growth in three
of FEMSA's principal divisions -- FEMSA Cerveza, Coca-Cola FEMSA and
FEMSA Comercio. Revenue growth in the beverage divisions is primarily
a consequence of volume growth and price improvement, particularly for
the Company's Mexican operations. In the retail division, revenue
growth resulted from growth in the number of stores and in same store
sales.
The Company recorded consolidated operating income of Ps. 1.7
billion for the second quarter and Ps. 2.5 billion for the first half
of 1999, an increase of 9.9% and 10.0%, respectively, each over the
comparable periods last year. The Company registered a record high
operating margin for the second quarter of 1999 of 17.5%, a 1.0
percentage point improvement over the 16.5% operating margin achieved
in the second quarter of 1998. The Company's operating margin for the
first half of 1999 reached 14.5%, 0.7 percentage points above the
first half of 1998.
Jose Antonio Fernandez, chief executive officer of the Company,
said, "I am pleased with FEMSA's financial and operating
performance achieved so far in 1999. The second quarter results
reflect a better than expected performance of the Mexican economy and,
consequently, increased consumer confidence, stable raw material
costs, a strong currency environment and, most importantly, our
continuous efforts and commitment to improve the Company's
profitability. Over the past four years, we have focused on improving
the operating profitability of all of our businesses with very
encouraging results. We believe, however, that we have important
opportunities to continue improving and we will pursue them with the
same commitment and consistency demonstrated so far."
Net majority income increased by 119.0% to Ps. 690 million for
the second quarter of 1999, and by 298.8% to Ps. 1.34 billion for the
first half of 1999, each compared to the same period last year.
Earnings per Unit for the second quarter and for the first half of
1999 amounted to Ps. 0.646 and Ps. 1.254, respectively. Earnings per
ADR for the second quarter and for the first half of 1999 amounted to
0.684 dollars and 1.328 dollars, respectively.
This is a summary of the Company's report of the results for the
second quarter and first half of 1999. We encourage you to read the
full text of the report, which has been filed with the U.S. Securities
and Exchange Commission on form 6-K. If you would like a copy of the
report you can contact FEMSA's Investor Relations department at the
numbers above or visit our Web site at www.femsa.com.
All of the figures in this report have been restated in constant
Mexican pesos ("Pesos" or "Ps.") with purchasing power as of June 30,
1999, and were prepared in accordance with Mexican generally accepted
accounting principles ("Mexican GAAP"); therefore, all the percentage
changes are expressed in real terms.
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CONTACT: FEMSA, Monterrey
Investor Relations
Laura E. Solano, 011/528-328-6150
lsolmar@femsa.com.mx
or
Maria Elena Gutierrez, 011/528-328-6245
megutsan@femsa.com.mx
KEYWORD: NEW YORK INTERNATIONAL LATIN AMERICA
INDUSTRY KEYWORD: FOODS/BEVERAGES EARNINGS