SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2006
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FOMENTO ECONÓMICO MEXICANO, S.A. DE C.V. |
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(Exact name of Registrant as specified in its charter) |
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Mexican Economic Development, Inc. |
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(Translation of Registrant’s name into English) |
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United Mexican States |
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(Jurisdiction of incorporation or organization) |
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General Anaya No. 601 Pte. |
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Colonia Bella Vista |
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Monterrey, Nuevo León 64410 |
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México |
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(Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
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Form 20-F |
x |
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Form 40-F |
o |
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _______
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
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Yes |
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No |
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If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____________
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf of the undersigned, thereunto duly authorized.
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FOMENTO ECONÓMICO MEXICANO, S.A. DE C.V. |
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By: |
/s/ Javier Astaburuauga |
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Javier Astaburuauga |
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Chief Financial Officer |
Date: February 27, 2006
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Latin America´s Beverage Leader |
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FEMSA Reports US$ 9.9 billion |
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Monterrey, Mexico, February 27, 2006 — Fomento Económico Mexicano, S.A. de C.V. (“FEMSA”) today announced its operational and financial results for the fourth quarter and full year 2005. |
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Fourth Quarter Highlights: |
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Domestic beer sales increased 8.4%, reflecting a 5.8% increase in sales volume and a 2.5% increase in real price per hectoliter. |
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Export beer volumes increased 9.9%, rounding off a solid year of top-line growth driven by our sales in the United States. |
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Coca-Cola FEMSA increased its total revenues by 2.9% and increased its operating income by 4.5%. |
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Oxxo continued its pace of double-digit growth, increasing revenues by 17.9% driven by 359 net new stores and an 8.6% increase in same-store sales. Operating margin expanded 130 basis points. |
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2005 Full Year Highlights: |
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Consolidated total revenues increased 9.0% and operating income increased 9.5%, reflecting solid top-line results across the businesses. |
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Coca-Cola FEMSA increased its total revenues by 5.0% while expanding its operating margin 60 basis points to reach 17.3% of revenues. |
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FEMSA Cerveza achieved strong domestic volume growth of 4.9% and U.S. export volume growth of 8.8%, which outpaced the import category. |
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Oxxo again grew its store base by a record number of openings: 675 net new stores, to finish the year with 4,141 Oxxos. |
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Consolidated net debt of Ps. 26.475 billion (US$ 2.5 billion), a reduction of US$ 1.026 billion from the previous year largely due to the US$ 700 million obtained from the equity offering completed in May 2005. |
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José Antonio Fernández, Chairman and CEO of FEMSA, commented, “Our strong performance in 2005 – and over the last decade – capitalizes on the advantages of our integrated beverage strategy. Coca-Cola FEMSA consolidated its position as Latin America’s bottling leader and one of the most profitable bottlers in the world. I am particularly proud of the achievements in Mexico and Brazil where, in a challenging environment, we grew our top line while improving profitability. FEMSA Cerveza grew its total beer sales volume by almost 5%, which is twice the global beer growth average, while it expanded its operating margin for the 10th consecutive year. Finally, Oxxo finished another record-year of store openings, doubling its size since 2002. While there is much work to do, we have a strong team that is committed to continue generating value for the long-term.”
FEMSA Consolidated
Total revenues increased 7.8% to Ps. 27.392 billion in 4Q05, reflecting solid top-line growth in all of our business units. This increase is primarily due to 17.9% total revenue growth at the Oxxo retail chain followed by an 8.5% increase at FEMSA Cerveza, and a 2.9% increase at Coca-Cola FEMSA.
For full year 2005, total revenues increased 9.0% to Ps. 105.582 billion. All of FEMSA’s operations – soft drinks, beer and retail – contributed positively to this high single-digit pace. The Oxxo retail chain’s total revenues increased 21.8% to Ps. 28.734 billion, due in large part to the 675 net new stores opened during the year. Coca-Cola FEMSA’s total revenues increased 5.0% to Ps. 50.198 billion, mainly due to increased prices and volume growth in Mexico and Brazil. Beer operations also contributed positively with total revenue growth of 6.9% to Ps. 27.573 billion, due to a 5.2% increase in total sales volume and a 2.3% increase in real price per hectoliter.
Gross margin improved 20 basis points to Ps. 12.929 billion, or 47.2% of total revenues in 4Q05. This was primarily due to gross margin improvements throughout all of the business units.
For full year 2005, gross margin slightly decreased compared to 2004 levels reaching Ps. 49.387 billion, or 46.8% of total revenues.
Income from operations increased 9.5% to Ps. 4.236 billion in 4Q05, resulting in an operating margin of 15.5%, 30 basis points above 2004 levels.
For full year 2005, income from operations increased 9.5% to Ps. 15.587 billion. The consolidated operating margin remained in-line with 2004 levels at 14.8% of total revenues.
Net income decreased 8.7% to Ps. 2.513 billion in 4Q05. This decline primarily resulted from a lower monetary gain and higher taxes, which more than offset a reduction in interest expense. The lower monetary gain resulted from a lower inflationary impact on reduced liabilities. In 2004, Coca-Cola FEMSA recognized a one-time deferred income tax benefit, which primarily explains the relative increase in taxes during 4Q05.
For full year 2005, net income decreased 14.6% to Ps. 8.158 billion primarily due to higher taxes as explained in the previous paragraph, in addition to higher interest expense as we continued to convert our dollar denominated debt into pesos, and a lower monetary gain. The effective tax rate for the year was 36.0%.
Net majority income per FEMSA Unit1 was Ps. 1.392 in 4Q05 and Ps. 4.652 for full year 2005. Net majority income per FEMSA ADS, considering an exchange rate of Ps. 10.711 per dollar, was US$ 4.34 in 2005. Consolidated net majority income amounted to Ps. 5.549 billion for the year, down 7.9% from 2004.
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1 |
FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of December 31, 2005 was 1,192,742,090 equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5. |
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February 27, 2006 |
2
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Capital expenditures for full year 2005 decreased 6.8% to Ps. 6.663 billion, due to reduced investment at FEMSA Cerveza and FEMSA Comercio. FEMSA Cerveza’s lower level of investment reflects de-bottlenecking and continuous improvement of processes. Relative to 2004, FEMSA Comercio’s investment level decreased in 2005 due to investments made during 2004 in our direct distribution infrastructure, including distribution centers in Chihuaua and Merida, and in ERP, which is no longer capitalized and now directly expenses in the income statement.
Consolidated net debt. As of December 31, 2005, FEMSA recorded a cash balance of Ps. 8.140 billion (US$ 760 million), short-term debt of Ps. 663 million (US$ 62 million) and long-term debt of Ps. 33.952 billion (US$ 3.170 billion), for a net debt of Ps. 26.475 billion (US$ 2.472 billion), a reduction of US$ 1.026 billion from one year ago, largely due to the US$ 700 million obtained from the equity offering completed in May 2005.
Soft Drinks – Coca-Cola FEMSA
Coca-Cola FEMSA’s financial results and discussion are incorporated by reference from Coca-Cola FEMSA’s press release attached to this press release.
Beer – FEMSA Cerveza
Domestic sales volume increased 5.8% to 6.35 million hectoliters in 4Q05. The strong performance in domestic sales volume resulted from increased demand during November and December combined with volume growth throughout all of Mexico led by our Sol, Indio, and Tecate Light brands.
For full year 2005, domestic sales volume increased 4.9% to 24.58 million hectoliters. The product innovation, broader availability of our beers, successful execution at the point of sale, and revenue management initiatives produced this top-line growth. During the year we rolled out an unprecedented amount of new products and presentations, launching 200 new SKUs throughout the country.
Export sales volume increased 9.9% to 497 thousand hectoliters in 4Q05 thanks to broader availability and increased demand for our Tecate, Sol and Dos Equis brands outside of Mexico.
For full year 2005, export sales volume grew 8.8%, slightly above our expectations, to 2.43 million hectoliters thanks to the strong work of Heineken USA, which enabled us to outpace import category growth in the United States. It has been one full year since Heineken USA became our U.S. importer, and we believe that the continued focus towards increasing the overall availability of our brands and improving our performance across the entire country will continue to be important for 2006.
Total revenues increased 8.5% to Ps. 6.897 billion in 4Q05, resulting from a 9.9% increase in total beer sales. Both sales volume and price per hectoliter growth positively contributed to overall revenue growth, increasing 6.1% and 3.6%, respectively.
For full year 2005, total revenues increased by 6.9% to Ps. 27.573 billion, resulting from total sales volume growth of 5.2% and a 2.3% increase in real price per hectoliter. Domestic sales volume represented 91% of the total, while the remaining 9% came from exports.
Cost of sales increased 6.8% to Ps. 2.774 billion in 4Q05. The growth in cost of sales remained in-line with the increase in sales volumes. Gross profit reached Ps. 4.123 billion for the quarter, up 9.7% from 4Q04, achieving a gross margin of almost 60%. The 70 basis points of gross margin expansion mainly resulted from increased volumes, a higher price per hectoliter, and a strong peso on US dollar-denominated raw materials, which compensated for an increase in raw material prices.
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February 27, 2006 |
3
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For full year 2005, cost of sales increased 4.7%, slightly below the volume increase. Gross profit reached Ps. 16.451 billion, an 8.3% increase from 2004 resulting in a gross margin of 59.7%. The 90 basis points of gross margin expansion resulted from a higher price per hectoliter in exports due to the new Heineken agreement structure, which did not apply in 2004, the strength of the peso on US dollar-denominated raw materials, and operating efficiencies.
Income from operations increased 12.9% to Ps. 1.214 billion in 4Q05, achieving 70 basis points of margin expansion. This increase reflects solid revenue growth and stable cost of sales and operating expenses. Operating expenses increased 8.4% to Ps. 2.909 billion reaching 42.2% of total revenues. Specifically, administrative expenses increased 3.2% to Ps. 926 million in 4Q05. Administrative expenses now include the corporate management fee, which is no longer reported as a separate line item for consistency with our 20-F SEC disclosure. Selling expenses increased 11.0% to Ps. 1.983 billion due to increased expenses related to the new agreement with Heineken USA and increased advertising expenses for new products and presentations.
Full year 2005 operating income increased 9.2% to Ps. 5.353 billion. The year over year growth reflects an increase in revenues and stable cost of sales combined with higher operating expenses. Operating expenses increased 7.9%, ahead of total revenue growth, due to important marketing efforts, related to the roll-out and advertising of new products and packages, that were initiated in the first half of 2005, and to the new agreement for our beer exports with Heineken USA. Operating margin increased 40 basis points to 19.4% of total revenues.
Recent Developments – FEMSA Cerveza
Acquisition of Kaiser
On January 16, 2006, FEMSA announced the acquisition of 68% of Kaiser for US$68 million. As previously announced, Kaiser is managed by a seven-member Board of Directors with FEMSA electing five directors and Molson and Heineken each electing one director. We are optimistic about the profitability potential of this new business.
Domestic price increase
During January 2006, we implemented a domestic price increase, of an average of approximately 3.5% in nominal peso terms, by brand, package, and point of sale. This pricing move reflects the overall strength of industry volumes. As of early February, this price increase was deployed in all of our domestic volume.
Oxxo Stores – FEMSA Comercio
Total revenues increased 17.9% to Ps. 7.642 billion in 4Q05. The primary reason for the increase was the opening of a record number of 359 net new Oxxo stores, which resulted from unprecedented new store growth during the month of December, a month normally focused on existing store sales. This past December we were able to continue to rapidly open new stores while focusing on in-store promotions and driving sales during the Holiday season. For the quarter, same store sales grew 8.6%. This increase reflects the rapid pace of expansion as well as stronger promotional activity and category management practices that are enabling Oxxo to improve the mix of products within the store.
For full year 2005, total revenues increased 21.8% to Ps. 28.734 billion. As of December 31, 2005, we had 4,141 Oxxos nationwide, 675 more than in 2004. This is Oxxo’s 10th consecutive year of increasing the number of new store openings. For the full year 2005, Oxxo same-store sales increased an average of 8.7%, reflecting an increase in the average ticket of 1.3% and an increase in store traffic of 7.2%.
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February 27, 2006 |
4
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Income from operations increased 46.6% to Ps. 503 million resulting in a 130 basis point improvement in the operating margin, which reached 6.6% of total revenues in 4Q05. This improvement is primarily due to a decrease in cost of sales as a percentage of total revenue. Unlike previous years, we achieved several supplier sales targets well before year-end and subsequently collected the expansion related incentives during the fourth quarter instead of during the first quarter of 2006. This resulted in gross margin expansion of 90 basis points, from 27.3% of sales in 4Q04 to 28.4% of sales in 4Q05.
Operating expenses increased 16.7% to Ps. 1.669 billion in 4Q05. Administrative expenses now include the management fee, which is no longer reported as a separate line item for consistency with our 20-F SEC disclosure.
For the full year, operating income increased 33.8% to Ps. 1.259 billion. This increase was above revenue growth, and contributed to a 40 basis point improvement in the operating margin, which reached 4.4% in 2005.
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CONFERENCE CALL INFORMATION: |
Set forth in this press release is certain unaudited financial information for FEMSA for the fourth quarter and audited financial information for the full year ended December 31, 2005, compared to the fourth quarter and full year ended December 31, 2004. We are a holding company whose principal activities are grouped under the following sub-holding companies and carried out by their respective operating subsidiaries: Coca-Cola FEMSA, S.A. de C.V., which engages in the production, distribution and marketing of non-alcoholic beverages; FEMSA Cerveza, S.A. de C.V., which engages in the production, distribution and marketing of beer; and FEMSA Comercio, S.A. de C.V., which engages in the operation of convenience stores.
All of the figures in this report were prepared in accordance with Mexican Generally Accepted Accounting Principles (“Mexican GAAP”) and have been restated in constant Mexican pesos (“Pesos” or “Ps.”) with purchasing power as of December 31, 2005. As a result, all percentage changes are expressed in real terms.
The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the exchange rate provided by the company in the tables that accompany this release. The exchange rate used for this purpose is 10.7109 Mexican pesos per US dollar, which is as of the end of the reporting period.
FORWARD LOOKING STATEMENTS
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 expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.
Six pages of tables and Coca-Cola FEMSA’s press release to follow
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February 27, 2006 |
5
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FEMSA
Consolidated Income Statement
Expressed in Millions of Pesos
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For the fourth quarter of: |
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For the twelve months of: |
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2005 |
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% of sales |
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2004 |
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% of sales |
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% Increase |
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2005 |
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% of sales |
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2004 |
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% of sales |
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% Increase |
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Net sales |
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27,242 |
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99.5 |
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25,069 |
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98.7 |
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8.7 |
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105,045 |
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99.5 |
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96,201 |
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99.3 |
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9.2 |
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Other operating revenues |
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150 |
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0.5 |
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341 |
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1.3 |
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(56.0 |
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537 |
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0.5 |
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632 |
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0.7 |
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(15.0 |
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Total revenues |
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27,392 |
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100.0 |
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25,410 |
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100.0 |
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7.8 |
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105,582 |
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100.0 |
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96,833 |
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100.0 |
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9.0 |
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Cost of sales |
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14,463 |
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52.8 |
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13,456 |
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53.0 |
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7.5 |
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56,195 |
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53.2 |
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51,222 |
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52.9 |
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9.7 |
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Gross profit |
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12,929 |
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47.2 |
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11,954 |
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47.0 |
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8.2 |
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49,387 |
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46.8 |
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45,611 |
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47.1 |
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8.3 |
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Administrative expenses |
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1,956 |
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7.1 |
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1,740 |
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6.8 |
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12.4 |
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7,085 |
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6.7 |
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6,873 |
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7.1 |
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3.1 |
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Selling expenses |
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6,737 |
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24.6 |
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6,346 |
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25.0 |
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6.2 |
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26,715 |
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25.3 |
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24,502 |
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25.3 |
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9.0 |
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Operating expenses |
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8,693 |
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31.7 |
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8,086 |
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31.8 |
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7.5 |
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33,800 |
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32.0 |
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31,375 |
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32.4 |
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7.7 |
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Income from operations |
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4,236 |
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15.5 |
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3,868 |
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15.2 |
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9.5 |
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15,587 |
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14.8 |
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14,236 |
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14.7 |
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9.5 |
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Interest expense |
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(1,016 |
) |
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(1,162 |
) |
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(12.6 |
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(4,520 |
) |
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(3,894 |
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16.1 |
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Interest income |
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175 |
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83 |
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N.S. |
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638 |
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572 |
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11.5 |
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Interest expense, net |
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(841 |
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(1,079 |
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(22.1 |
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(3,882 |
) |
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(3,322 |
) |
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16.9 |
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Foreign exchange (loss) gain |
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(38 |
) |
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97 |
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N.S. |
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357 |
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(14 |
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N.S. |
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Gain (loss) on monetary position |
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493 |
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820 |
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(39.9 |
) |
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1,117 |
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|
2,004 |
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(44.3 |
) |
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Integral result of financing |
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(386 |
) |
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(162 |
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N.S. |
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(2,408 |
) |
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(1,332 |
) |
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80.8 |
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Other (expenses) income |
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(101 |
) |
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(413 |
) |
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(75.5 |
) |
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(437 |
) |
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|
|
(813 |
) |
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(46.2 |
) |
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Income before taxes |
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3,749 |
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3,293 |
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13.8 |
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12,742 |
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|
|
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|
12,091 |
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5.4 |
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Taxes |
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(1,236 |
) |
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(541 |
)(1) |
|
|
|
|
N.S. |
|
|
(4,584 |
) |
|
|
|
|
(2,533 |
) |
|
|
|
|
81.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
2,513 |
|
|
|
|
|
2,752 |
|
|
|
|
|
(8.7 |
) |
|
8,158 |
|
|
|
|
|
9,558 |
|
|
|
|
|
(14.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net majority income |
|
|
1,661 |
|
|
|
|
|
1,929 |
|
|
|
|
|
(13.9 |
) |
|
5,549 |
|
|
|
|
|
6,027 |
|
|
|
|
|
(7.9 |
) |
|
Net minority income |
|
|
852 |
|
|
|
|
|
823 |
|
|
|
|
|
3.5 |
|
|
2,609 |
|
|
|
|
|
3,531 |
|
|
|
|
|
(26.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA & CAPEX |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
4,236 |
|
|
15.5 |
|
|
3,868 |
|
|
15.2 |
|
|
9.5 |
|
|
15,587 |
|
|
14.8 |
|
|
14,236 |
|
|
14.7 |
|
|
9.5 |
|
|
Depreciation |
|
|
933 |
|
|
3.4 |
|
|
892 |
|
|
3.5 |
|
|
4.6 |
|
|
3,596 |
|
|
3.4 |
|
|
3,419 |
|
|
3.5 |
|
|
5.2 |
|
|
Amortization & other |
|
|
834 |
|
|
3 |
|
|
796 |
|
|
3.2 |
|
|
4.8 |
|
|
3,338 |
|
|
3.1 |
|
|
3,178 |
|
|
3.3 |
|
|
5.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
6,003 |
|
|
21.9 |
|
|
5,556 |
|
|
21.9 |
|
|
8.0 |
|
|
22,521 |
|
|
21.3 |
|
|
20,833 |
|
|
21.5 |
|
|
8.1 |
|
|
CAPEX |
|
|
2,489 |
|
|
|
|
|
2,206 |
|
|
|
|
|
12.8 |
|
|
6,663 |
|
|
|
|
|
7,147 |
|
|
|
|
|
(6.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
2005 |
|
|
|
|
2004 |
|
|
|
|
Var. p.p. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
FINANCIAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity(2) |
|
|
1.15 |
|
|
|
|
|
0.87 |
|
|
|
|
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest coverage(3) |
|
|
5.80 |
|
|
|
|
|
6.27 |
|
|
|
|
|
(0.47 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage(4) |
|
|
0.88 |
|
|
|
|
|
1.32 |
|
|
|
|
|
(0.45 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization(5) |
|
|
35.71 |
% |
|
|
|
|
51.82 |
% |
|
|
|
|
(16.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes the norecurrent tax benefit of Ps. 1,355 million of Coca-Cola FEMSA, obtained in the second quater of 2004. |
|
(2) |
Total current assets / total current liabilities. |
|
(3) |
Income from operations + depreciation + amortization & other / interest expense, net. |
|
(4) |
Total liabilities / total stockholders’ equity. |
|
(5) |
Total debt / long-term debt + stockholders´ equity. |
|
|
Total debt = short-term bank loans + current maturities long-term debt + long-term bank loans and notes payable. |
|
|
Long-term debt = long-term bank loans and notes payable. |
February 27, 2006 |
6
|
|
|
|
FEMSA
Consolidated Balance Sheet
As of December 31:
(Expressed in Millions of Pesos as of December 31, 2005)
|
|
|
2005 |
|
2004 |
|
% Increase |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
8,140 |
|
|
7,111 |
|
|
14.5 |
|
|
Accounts receivable |
|
|
5,202 |
|
|
4,713 |
|
|
10.4 |
|
|
Inventories |
|
|
7,696 |
|
|
7,777 |
|
|
(1.0 |
) |
|
Prepaid expenses and other |
|
|
1,702 |
|
|
1,662 |
|
|
2.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
22,740 |
|
|
21,263 |
|
|
6.9 |
|
|
Property, plant and equipment, net |
|
|
44,730 |
|
|
46,292 |
|
|
(3.4 |
) |
|
Intangible assets (1) |
|
|
48,937 |
|
|
48,456 |
|
|
1.0 |
|
|
Deferred assets |
|
|
6,914 |
|
|
5,964 |
|
|
15.9 |
|
|
Other assets |
|
|
2,677 |
|
|
3,100 |
|
|
(13.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
125,998 |
|
|
125,075 |
|
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS´ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Bank loans |
|
|
663 |
|
|
6,186 |
|
|
(89.3 |
) |
|
Current maturities long-term debt |
|
|
4,220 |
|
|
3,665 |
|
|
15.1 |
|
|
Interest payable |
|
|
401 |
|
|
407 |
|
|
(1.5 |
) |
|
Operating liabilities |
|
|
14,555 |
|
|
14,135 |
|
|
3.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
19,839 |
|
|
24,393 |
|
|
(18.7 |
) |
|
Long-term debt |
|
|
29,732 |
|
|
37,502 |
|
|
(20.7 |
) |
|
Deferred income taxes |
|
|
3,275 |
|
|
4,300 |
|
|
(23.8 |
) |
|
Other liabilities |
|
|
5,960 |
|
|
5,002 |
|
|
19.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
58,806 |
|
|
71,197 |
|
|
(17.4 |
) |
|
Total stockholders’ equity |
|
|
67,192 |
|
|
53,878 |
|
|
24.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
125,998 |
|
|
125,075 |
|
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes mainly the intangible assets generated by the acquisition of Panamco and 30% of FEMSA Cerveza. |
|
|
|
December 31, 2005 |
|
|||||||
|
|
|
|
|
|||||||
|
DEBT MIX |
|
Ps. |
|
% Integration |
|
Average Rate |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Nominated in: |
|
|
|
|
|
|
|
|
|
|
|
Mexican pesos |
|
|
26,950 |
|
|
77.8 |
% |
|
9.8 |
% |
|
Dollars |
|
|
6,655 |
|
|
19.2 |
% |
|
7.3 |
% |
|
Colombian pesos |
|
|
372 |
|
|
1.1 |
% |
|
8.7 |
% |
|
Argentine pesos |
|
|
224 |
|
|
0.7 |
% |
|
9.4 |
% |
|
Guatemalan Quetzals |
|
|
25 |
|
|
0.1 |
% |
|
6.5 |
% |
|
Venezuelan bolivars |
|
|
389 |
|
|
1.1 |
% |
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
|
34,615 |
|
|
100.0 |
% |
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed rate (1) |
|
|
30,963 |
|
|
89.4 |
% |
|
|
|
|
Variable rate (1) |
|
|
3,652 |
|
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Total Debt |
|
2006 |
|
2007 |
|
2008 |
|
2009 |
|
2010 |
|
2011 |
|
2012+ |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
DEBT MATURITY PROFILE |
|
|
14.1 |
% |
|
7.0 |
% |
|
20.5 |
% |
|
19.6 |
% |
|
14.2 |
% |
|
3.5 |
% |
|
21.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes the effect of interest rate swaps. |
February 27, 2006 |
7
|
|
|
|
Coca-Cola FEMSA
Results of Operations
Expressed in Millions of Pesos
|
|
|
For the fourth quarter of: |
|
For the twelve months of: |
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
|
2005 |
|
% of sales |
|
2004 |
|
% of sales |
|
% Increase |
|
2005 |
|
% of sales |
|
2004 |
|
% of sales |
|
% Increase |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales |
|
|
13,005 |
|
|
99.2 |
|
|
12,635 |
|
|
99.2 |
|
|
2.9 |
|
|
49,840 |
|
|
99.3 |
|
|
47,442 |
|
|
99.3 |
|
|
5.1 |
|
|
Other revenues |
|
|
102 |
|
|
0.8 |
|
|
98 |
|
|
0.8 |
|
|
4.1 |
|
|
358 |
|
|
0.7 |
|
|
344 |
|
|
0.7 |
|
|
4.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
13,107 |
|
|
100.0 |
|
|
12,733 |
|
|
100.0 |
|
|
2.9 |
|
|
50,198 |
|
|
100.0 |
|
|
47,786 |
|
|
100.0 |
|
|
5.0 |
|
|
Cost of sales |
|
|
6,611 |
|
|
50.4 |
|
|
6,440 |
|
|
50.6 |
|
|
2.6 |
|
|
25,486 |
|
|
50.8 |
|
|
24,351 |
|
|
51.0 |
|
|
4.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
6,496 |
|
|
49.6 |
|
|
6,293 |
|
|
49.4 |
|
|
3.2 |
|
|
24,712 |
|
|
49.2 |
|
|
23,435 |
|
|
49.0 |
|
|
5.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses |
|
|
768 |
|
|
5.9 |
|
|
719 |
|
|
5.6 |
|
|
6.7 |
|
|
2,819 |
|
|
5.6 |
|
|
2,824 |
|
|
5.9 |
|
|
(0.2 |
) |
|
Sales expenses |
|
|
3,278 |
|
|
25.0 |
|
|
3,230 |
|
|
25.4 |
|
|
1.5 |
|
|
13,210 |
|
|
26.3 |
|
|
12,624 |
|
|
26.4 |
|
|
4.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
4,046 |
|
|
30.9 |
|
|
3,949 |
|
|
31.0 |
|
|
2.5 |
|
|
16,029 |
|
|
31.9 |
|
|
15,448 |
|
|
32.3 |
|
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
2,450 |
|
|
18.7 |
|
|
2,344 |
|
|
18.4 |
|
|
4.5 |
|
|
8,683 |
|
|
17.3 |
|
|
7,987 |
|
|
16.7 |
|
|
8.7 |
|
|
Depreciation |
|
|
349 |
|
|
2.7 |
|
|
318 |
|
|
2.5 |
|
|
9.7 |
|
|
1,308 |
|
|
2.6 |
|
|
1,284 |
|
|
2.7 |
|
|
1.9 |
|
|
Amortization & other |
|
|
359 |
|
|
2.7 |
|
|
302 |
|
|
2.4 |
|
|
18.9 |
|
|
1,219 |
|
|
2.4 |
|
|
1,124 |
|
|
2.4 |
|
|
8.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
3,158 |
|
|
24.1 |
|
|
2,964 |
|
|
23.3 |
|
|
6.5 |
|
|
11,210 |
|
|
22.3 |
|
|
10,395 |
|
|
21.8 |
|
|
7.8 |
|
|
Capital expenditures |
|
|
971 |
|
|
|
|
|
707 |
|
|
|
|
|
37.3 |
|
|
2,062 |
|
|
|
|
|
2,009 |
|
|
|
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales volumes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
|
256.4 |
|
|
52.1 |
|
|
248.2 |
|
|
51.8 |
|
|
3.3 |
|
|
1,025.0 |
|
|
54.3 |
|
|
989.9 |
|
|
54.6 |
|
|
3.5 |
|
|
Central America |
|
|
28.4 |
|
|
5.8 |
|
|
29.8 |
|
|
6.2 |
|
|
(4.7 |
) |
|
109.4 |
|
|
5.8 |
|
|
110.6 |
|
|
6.1 |
|
|
(1.1 |
) |
|
Colombia |
|
|
47.8 |
|
|
9.7 |
|
|
45.1 |
|
|
9.4 |
|
|
6.0 |
|
|
179.7 |
|
|
9.5 |
|
|
167.1 |
|
|
9.2 |
|
|
7.5 |
|
|
Venezuela |
|
|
42.6 |
|
|
8.7 |
|
|
46.0 |
|
|
9.6 |
|
|
(7.4 |
) |
|
172.5 |
|
|
9.1 |
|
|
172.7 |
|
|
9.5 |
|
|
(0.1 |
) |
|
Brazil |
|
|
72.8 |
|
|
14.8 |
|
|
68.1 |
|
|
14.2 |
|
|
6.9 |
|
|
252.5 |
|
|
13.4 |
|
|
227.5 |
|
|
12.6 |
|
|
11.0 |
|
|
Argentina |
|
|
44.6 |
|
|
9.1 |
|
|
41.8 |
|
|
8.7 |
|
|
6.7 |
|
|
150.1 |
|
|
7.9 |
|
|
144.3 |
|
|
8.0 |
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Coca-Cola FEMSA |
|
|
492.6 |
|
|
100.0 |
|
|
479.0 |
|
|
99.9 |
|
|
2.8 |
|
|
1,889.2 |
|
|
100.0 |
|
|
1,812.1 |
|
|
100.0 |
|
|
4.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 27, 2006 |
8
|
|
|
|
FEMSA Cerveza
Results of Operations
Expressed in Millions of Pesos
|
|
|
For the fourth quarter of: |
|
For the twelve months of: |
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
|
2005 |
|
% of sales |
|
2004 |
|
% of sales |
|
% Increase |
|
2005 |
|
% of sales |
|
2004 |
|
% of sales |
|
% Increase |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Domestic beer sales |
|
|
5,715 |
|
|
82.9 |
|
|
5,272 |
|
|
82.9 |
|
|
8.4 |
|
|
22,226 |
|
|
80.6 |
|
|
21,121 |
|
|
81.9 |
|
|
5.2 |
|
|
Export beer sales |
|
|
485 |
|
|
7.0 |
|
|
369 |
|
|
5.9 |
|
|
31.4 |
|
|
2,515 |
|
|
9.1 |
|
|
1,860 |
|
|
7.2 |
|
|
35.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beer sales |
|
|
6,200 |
|
|
89.9 |
|
|
5,641 |
|
|
88.8 |
|
|
9.9 |
|
|
24,741 |
|
|
89.7 |
|
|
22,981 |
|
|
89.1 |
|
|
7.7 |
|
|
Packaging sales |
|
|
647 |
|
|
9.4 |
|
|
647 |
|
|
10.1 |
|
|
0.0 |
|
|
2,670 |
|
|
9.7 |
|
|
2,594 |
|
|
10.0 |
|
|
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
6,847 |
|
|
99.3 |
|
|
6,288 |
|
|
98.9 |
|
|
8.9 |
|
|
27,411 |
|
|
99.4 |
|
|
25,575 |
|
|
99.1 |
|
|
7.2 |
|
|
Other revenues |
|
|
50 |
|
|
0.7 |
|
|
68 |
|
|
1.1 |
|
|
(26.5 |
) |
|
162 |
|
|
0.6 |
|
|
227 |
|
|
0.9 |
|
|
(28.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
6,897 |
|
|
100.0 |
|
|
6,356 |
|
|
100.0 |
|
|
8.5 |
|
|
27,573 |
|
|
100.0 |
|
|
25,802 |
|
|
100.0 |
|
|
6.9 |
|
|
Cost of sales |
|
|
2,774 |
|
|
40.2 |
|
|
2,597 |
|
|
40.9 |
|
|
6.8 |
|
|
11,122 |
|
|
40.3 |
|
|
10,618 |
|
|
41.2 |
|
|
4.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
4,123 |
|
|
59.8 |
|
|
3,759 |
|
|
59.1 |
|
|
9.7 |
|
|
16,451 |
|
|
59.7 |
|
|
15,184 |
|
|
58.8 |
|
|
8.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses |
|
|
926 |
|
|
13.4 |
|
|
897 |
|
|
14.1 |
|
|
3.2 |
|
|
3,455 |
|
|
12.5 |
|
|
3,355 |
|
|
13.0 |
|
|
3.0 |
|
|
Sales expenses |
|
|
1,983 |
|
|
28.8 |
|
|
1,787 |
|
|
28.1 |
|
|
11.0 |
|
|
7,643 |
|
|
27.8 |
|
|
6,927 |
|
|
26.8 |
|
|
10.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
2,909 |
|
|
42.2 |
|
|
2,684 |
|
|
42.2 |
|
|
8.4 |
|
|
11,098 |
|
|
40.3 |
|
|
10,282 |
|
|
39.8 |
|
|
7.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
1,214 |
|
|
17.6 |
|
|
1,075 |
|
|
16.9 |
|
|
12.9 |
|
|
5,353 |
|
|
19.4 |
|
|
4,902 |
|
|
19.0 |
|
|
9.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
361 |
|
|
5.2 |
|
|
385 |
|
|
6.1 |
|
|
(6.2 |
) |
|
1,476 |
|
|
5.4 |
|
|
1,519 |
|
|
5.9 |
|
|
(2.8 |
) |
|
Amortization & other |
|
|
536 |
|
|
7.8 |
|
|
516 |
|
|
8.1 |
|
|
3.9 |
|
|
2,142 |
|
|
7.7 |
|
|
2,099 |
|
|
8.1 |
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
2,111 |
|
|
30.6 |
|
|
1,976 |
|
|
31.1 |
|
|
6.8 |
|
|
8,971 |
|
|
32.5 |
|
|
8,520 |
|
|
33.0 |
|
|
5.3 |
|
|
Capital expenditures |
|
|
914 |
|
|
|
|
|
982 |
|
|
|
|
|
(6.9 |
) |
|
2,939 |
|
|
|
|
|
3,276 |
|
|
|
|
|
(10.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales volumes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousand hectoliters) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
6,346.1 |
|
|
92.7 |
|
|
5,999.0 |
|
|
93.0 |
|
|
5.8 |
|
|
24,580.1 |
|
|
91.0 |
|
|
23,442.0 |
|
|
91.3 |
|
|
4.9 |
|
|
Exports |
|
|
496.7 |
|
|
7.3 |
|
|
452.0 |
|
|
7.0 |
|
|
9.9 |
|
|
2,437.5 |
|
|
9.0 |
|
|
2,240.0 |
|
|
8.7 |
|
|
8.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
6,842.8 |
|
|
100.0 |
|
|
6,451.0 |
|
|
100.0 |
|
|
6.1 |
|
|
27,017.6 |
|
|
100.0 |
|
|
25,682.0 |
|
|
100.0 |
|
|
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price per hectoliter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
900.6 |
|
|
|
|
|
878.8 |
|
|
|
|
|
2.5 |
|
|
904.2 |
|
|
|
|
|
901.0 |
|
|
|
|
|
0.4 |
|
|
Exports |
|
|
976.4 |
|
|
|
|
|
816.4 |
|
|
|
|
|
19.6 |
|
|
1,031.8 |
|
|
|
|
|
830.4 |
|
|
|
|
|
24.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
906.1 |
|
|
|
|
|
874.4 |
|
|
|
|
|
3.6 |
|
|
915.7 |
|
|
|
|
|
894.8 |
|
|
|
|
|
2.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total presentation mix (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Returnable |
|
|
4,172.2 |
|
|
61.0 |
|
|
4,222.2 |
|
|
65.5 |
|
|
(1.2 |
) |
|
16,779.6 |
|
|
62.1 |
|
|
16,810.4 |
|
|
65.5 |
|
|
(0.2 |
) |
|
Non Returnable |
|
|
636.3 |
|
|
9.3 |
|
|
600.5 |
|
|
9.3 |
|
|
6.0 |
|
|
2,682.4 |
|
|
9.9 |
|
|
2,474.7 |
|
|
9.6 |
|
|
8.4 |
|
|
Cans |
|
|
2,034.3 |
|
|
29.7 |
|
|
1,628.3 |
|
|
25.2 |
|
|
24.9 |
|
|
7,555.6 |
|
|
28.0 |
|
|
6,396.9 |
|
|
24.9 |
|
|
18.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
6,842.8 |
|
|
100.0 |
|
|
6,451.0 |
|
|
100.0 |
|
|
6.1 |
|
|
27,017.6 |
|
|
100.0 |
|
|
25,682.0 |
|
|
100.0 |
|
|
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 27, 2006 |
9
|
|
|
|
|
|
|
|
FEMSA Comercio
Results of Operations
Expressed in Millions of Pesos
|
|
|
For the fourth quarter of: |
|
For the twelve months of: |
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
|
2005 |
|
% of sales |
|
2004 |
|
% of sales |
|
% Increase |
|
2005 |
|
% of sales |
|
2004 |
|
% of sales |
|
%Increase |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
7,642 |
|
|
100.0 |
|
|
6,484 |
|
|
100.0 |
|
|
17.9 |
|
|
28,734 |
|
|
100.0 |
|
|
23,599 |
|
|
100.0 |
|
|
21.8 |
|
|
Other revenues |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
7,642 |
|
|
100.0 |
|
|
6,484 |
|
|
100.0 |
|
|
17.9 |
|
|
28,734 |
|
|
100.0 |
|
|
23,599 |
|
|
100.0 |
|
|
21.8 |
|
|
Cost of sales |
|
|
5,470 |
|
|
71.6 |
|
|
4,711 |
|
|
72.7 |
|
|
16.1 |
|
|
21,111 |
|
|
73.5 |
|
|
17,334 |
|
|
73.5 |
|
|
21.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
2,172 |
|
|
28.4 |
|
|
1,773 |
|
|
27.3 |
|
|
22.5 |
|
|
7,623 |
|
|
26.5 |
|
|
6,265 |
|
|
26.5 |
|
|
21.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses |
|
|
147 |
|
|
1.9 |
|
|
135 |
|
|
2.1 |
|
|
8.9 |
|
|
585 |
|
|
2.0 |
|
|
558 |
|
|
2.4 |
|
|
4.8 |
|
|
Sales expenses |
|
|
1,522 |
|
|
19.9 |
|
|
1,295 |
|
|
19.9 |
|
|
17.5 |
|
|
5,779 |
|
|
20.1 |
|
|
4,766 |
|
|
20.1 |
|
|
21.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
1,669 |
|
|
21.8 |
|
|
1,430 |
|
|
22.0 |
|
|
16.7 |
|
|
6,364 |
|
|
22.1 |
|
|
5,324 |
|
|
22.5 |
|
|
19.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
503 |
|
|
6.6 |
|
|
343 |
|
|
5.3 |
|
|
46.6 |
|
|
1,259 |
|
|
4.4 |
|
|
941 |
|
|
4.0 |
|
|
33.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
82 |
|
|
1.1 |
|
|
68 |
|
|
1.0 |
|
|
20.6 |
|
|
323 |
|
|
1.1 |
|
|
223 |
|
|
0.9 |
|
|
44.8 |
|
|
Amortization & other |
|
|
63 |
|
|
0.8 |
|
|
67 |
|
|
1.1 |
|
|
(6.0 |
) |
|
281 |
|
|
1.0 |
|
|
242 |
|
|
1.1 |
|
|
16.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
648 |
|
|
8.5 |
|
|
478 |
|
|
7.4 |
|
|
35.6 |
|
|
1,863 |
|
|
6.5 |
|
|
1,406 |
|
|
6.0 |
|
|
32.5 |
|
|
Capital expenditures |
|
|
576 |
|
|
|
|
|
413 |
|
|
|
|
|
39.5 |
|
|
1,415 |
|
|
|
|
|
1,703 |
|
|
|
|
|
(16.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information of Convenience Stores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,141 |
|
|
|
|
|
3,466 |
|
|
|
|
|
19.5 |
|
|
Net new convenience stores: |
|
|
359 |
|
|
|
|
|
207 |
|
|
|
|
|
73.4 |
|
|
675 |
|
|
|
|
|
668 |
|
|
|
|
|
1.0 |
|
|
Same store data: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (thousands of pesos) |
|
|
593.9 |
|
|
|
|
|
546.7 |
|
|
|
|
|
8.6 |
|
|
594.6 |
|
|
|
|
|
547.1 |
|
|
|
|
|
8.7 |
|
|
Traffic |
|
|
21.3 |
|
|
|
|
|
20.1 |
|
|
|
|
|
6.1 |
|
|
21.7 |
|
|
|
|
|
20.3 |
|
|
|
|
|
7.2 |
|
|
Ticket |
|
|
27.8 |
|
|
|
|
|
27.2 |
|
|
|
|
|
2.4 |
|
|
27.3 |
|
|
|
|
|
27.0 |
|
|
|
|
|
1.3 |
|
(1) Monthly average information per store, considering same stores with at least 13 months of operations. |
|
|
|
February 27, 2006 |
10
|
|
|
|
FEMSA
Other Financial Information
MACROECONOMIC INFORMATION
|
|
|
Inflation |
|
Exchange Rate |
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
December 04 - |
|
September 05 - |
|
Per USD |
|
Per Mx. Peso |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
|
3.33 |
% |
|
1.59 |
% |
|
10.7109 |
|
|
1.0000 |
|
|
Colombia |
|
|
5.08 |
% |
|
0.45 |
% |
|
2,284.2200 |
|
|
0.0047 |
|
|
Venezuela |
|
|
14.36 |
% |
|
2.50 |
% |
|
2,150.0000 |
|
|
0.0050 |
|
|
Brazil |
|
|
5.35 |
% |
|
1.51 |
% |
|
2.3407 |
|
|
4.5759 |
|
|
Argentina |
|
|
13.00 |
% |
|
3.22 |
% |
|
3.0320 |
|
|
3.5326 |
|
|
|
|
February 27, 2006 |
11
|
|
|
|
|
|
|
|
|
FOURTH-QUARTER AND FULL-YEAR RESULTS |
|
|
|
|
|
Fourth quarter |
|
|
|
|
Full Year |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
2005 |
|
|
2004 |
|
|
(Delta)% |
|
|
2005 |
|
|
2004 |
|
|
(Delta)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
|
13,107 |
|
|
12,733 |
|
|
2.9 |
% |
|
50,198 |
|
|
47,786 |
|
|
5.0 |
% |
|
Gross Profit |
|
|
6,496 |
|
|
6,293 |
|
|
3.2 |
% |
|
24,713 |
|
|
23,435 |
|
|
5.5 |
% |
|
Operating Income |
|
|
2,450 |
|
|
2,344 |
|
|
4.5 |
% |
|
8,684 |
|
|
7,987 |
|
|
8.7 |
% |
|
Majority Net Income |
|
|
1,428 |
|
|
1,453 |
|
|
-1.7 |
% |
|
4,586 |
|
|
5,580 |
|
|
-17.8 |
% |
|
EBITDA(1) |
|
|
3,158 |
|
|
2,964 |
|
|
6.5 |
% |
|
11,210 |
|
|
10,395 |
|
|
7.8 |
% |
|
Net Debt (2) |
|
|
18,144 |
|
|
22,083 |
|
|
|
|
|
18,144 |
|
|
22,083 |
|
|
|
|
|
EBITDA (1) / Interest Expense |
|
|
5.11 |
|
|
4.24 |
|
|
|
|
|
4.57 |
|
|
3.96 |
|
|
|
|
|
Earnings per Share |
|
|
0.77 |
|
|
0.79 |
|
|
|
|
|
2.48 |
|
|
3.02 |
|
|
|
|
|
Average Shares Outstanding |
|
|
1,846.5 |
|
|
1,846.5 |
|
|
|
|
|
1,846.5 |
|
|
1,846.5 |
|
|
|
|
|
|
|
|
Expressed in million of Mexican pesos with purchasing power as of December 31, 2005, except for per share amount. |
|
|
|
|
|
|
|
|
(1) |
EBITDA = Operating income + Depreciation + Amortization & Other Non-cash Charges. See reconciliation table on page 11. |
|
(2) |
Net Debt = Total Debt - Cash |
|
• |
Total revenues increased 2.9% to Ps. 13,107 million in the fourth quarter of 2005. |
|
|
|
|
• |
Consolidated operating income grew 4.5% to Ps. 2,450 million, an operating margin increase of 30 basis points to 18.7% in the fourth quarter of 2005. |
|
|
|
|
• |
Consolidated majority net income decreased 1.7% to Ps. 1,428 million, driven by a one-time tax benefit in 2004, resulting in earnings per share of Ps. 0.77 for the fourth quarter of 2005. Excluding the effect of this one time tax benefit majority net income would have increased by 12.0%. |
Mexico City (February 24, 2006), Coca-Cola FEMSA, S.A. de C.V. (BMV: KOFL, NYSE: KOF) (“Coca-Cola FEMSA” or the “Company”), the largest Coca-Cola bottler in Latin America and the second-largest Coca-Cola bottler in the world in terms of sales volume, announces results for the fourth quarter and full year 2005.
“This year we produced strong results, despite high raw material costs across most of our operations. We were able to tailor our portfolio of products and packages, as well as our business processes, to take advantage of the positive macroeconomic environment in the majority of our markets. Today, more than ever, we believe that our geographic diversification, along with our initial incursion into other beverage categories, offers a variety of opportunities for us to create value. We believe that our balanced market position—among countries with different industry cycles and seasons—will continue to help us to generate even stronger and more stable cash flow,” said Carlos Salazar, Chief Executive Officer of the Company.
|
|
|
February 27, 2006 |
12
|
Consolidated Results |
|
|
|
|
CONSOLIDATED RESULTS
Our consolidated revenues increased 2.9% to Ps. 13,107 million in the fourth quarter of 2005 as a result of increases in the majority of our territories. Over 90% of our revenues growth came from Mexico and Brazil. Consolidated average price per unit case remained stable in the fourth quarter of 2005 as compared to the same period of the previous year, at Ps. 26.40 (US$ 2.48).
Total sales volume increased 2.8% to 492.6 million unit cases in the fourth quarter of 2005 as compared to the same period of 2004. Sales volume growth in Mexico and Brazil more than compensated for volume decline in Venezuela and Central America. Carbonated soft drinks (“CSD”) sales volume grew 2.1% to 423.9 million unit cases, driven by incremental volume in the majority of our operations, with the exception of Central America and Venezuela.
Our gross profit rose 3.2% to Ps. 6,496 million in the fourth quarter of 2005, as compared with the same period of 2004; Mexico and Brazil represented the majority of our growth. Gross margin increased 20 basis points to 49.6% in the fourth quarter of 2005 from 49.4% in the same period of 2004, mainly driven by a decline in our sweetener costs in Mexico and the appreciation of the Mexican peso and the Brazilian real applied to our U.S. dollar denominated costs.
Our consolidated operating income grew 4.5% to Ps. 2,450 million in the fourth quarter of 2005, driven by operating income growth in the majority of our territories, which more than offset declines in Venezuela. Our operating margin increased 30 basis points to 18.7% in the fourth quarter of 2005 as compared with the same period of 2004.
During the fourth quarter of 2005, our integral cost of financing increased to Ps. 189 million from Ps. 86 million in the same period of 2004, reflecting a lower monetary gain driven by a decline in the inflation rate applied to our reduced monetary position, which more than offset lower interest expenses as a result of a reduction in our debt levels.
During the fourth quarter of 2005, income tax, tax on assets and employee profit sharing as a percentage of income before taxes were 33.6%, an increase of 220 basis points compared with the same period of the previous year. The effective tax rate in 2004 was positively affected by a one-time benefit in Mexico during the fourth quarter of 2004 in the amount of Ps. 178 million due to a reduction in deferred tax liabilities driven by a decline in Mexican income tax rate going forward.
Our consolidated majority net income was Ps. 1,428 million in the fourth quarter of 2005, a decline of 1.7% compared to the same period of 2004 due to the above mentioned tax benefit during 2004. Earnings per share (“EPS”) were Ps. 0.77 (US$ 0.73 per ADR) computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares). Excluding the above mentioned one-time tax benefit during 2004, net income would have increased by 12.0%.
|
|
|
February 27, 2006 |
13
|
Balance Sheet and Consolidated Statement of Changes in Financial Position |
|
|
|
|
BALANCE SHEET
As of December 31, 2005, Coca-Cola FEMSA had a cash balance of Ps. 1,958 million (US$ 184 million), a decrease of Ps. 1,824 million (US$ 172 million) compared with December 31, 2004, as a result of cash used to reduce debt levels.
Total short-term debt was Ps. 4,429 million (US$ 417 million) and long-term debt was Ps. 15,673 million (US$ 1,475 million). During 2005, the effective net debt reduction was Ps. 2,731 million (US$ 257 million). Gross debt payments amounted to Ps. 4,555 million (US$ 429 million), and our cash balance was reduced by Ps. 1,824 million (US$ 172 million).
The weighted average cost of debt for the fourth quarter was 8.57%, the following chart sets forth the Company’s debt profile by currency and interest rate type as of December 31, 2005:
|
Currency |
|
% Total Debt(2) |
|
% Interest Rate |
|
||
|
|
|
|
|
|
|
|
|
|
U.S. dollars |
|
|
33 |
% |
|
9 |
% |
|
Mexican pesos |
|
|
56 |
% |
|
0 |
% |
|
Colombian pesos |
|
|
8 |
% |
|
23 |
% |
|
Other (1) |
|
|
3 |
% |
|
28 |
% |
|
|
|||||||
|
|
|||||||
|
(1) Includes the equivalent to US$ 36.3 million denominated in Venezuelan bolivars, US$ 25.8 million denominated in Argentine pesos and US$ 2.2 million denominated in Guatemalan quetzales. |
|||||||
|
|
|||||||
|
(2) After giving effect to cross-currency swaps. |
|||||||
Consolidated Statement of Changes in Financial Position
Expressed in million of Mexican pesos and U.S. dollars as of December 31, 2005
|
|
|
Jan - Dec. 2005 |
|
||||
|
|
|
|
|
||||
|
|
|
Ps. |
|
USD |
|
||
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
4,704 |
|
|
443 |
|
|
Non cash charges to net income |
|
|
2,447 |
|
|
230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,151 |
|
|
673 |
|
|
Change in working capital |
|
|
(414 |
) |
|
(39 |
) |
|
|
|
|
|
|
|
|
|
|
NRGOA(1) |
|
|
6,737 |
|
|
634 |
|
|
|
|
|
|
|
|
|
|
|
Total investments |
|
|
(2,064 |
) |
|
(194 |
) |
|
Dividend payments |
|
|
(636 |
) |
|
(60 |
) |
|
Debt payment |
|
|
(4,555 |
) |
|
(429 |
) |
|
Other financial transactions |
|
|
(1,306 |
) |
|
(123 |
) |
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents |
|
|
(1,824 |
) |
|
(172 |
) |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at begining of period |
|
|
3,782 |
|
|
356 |
|
|
Cash and cash equivalents at end of period |
|
|
1,958 |
|
|
184 |
|
|
|
|||||||
|
|
|||||||
|
(1) Net Resources Generated by Operating Activities |
|||||||
|
|
|
February 27, 2006 |
14
|
Mexican Operating Results |
|
|
|
|
MEXICAN OPERATING RESULTS
Revenues
Total revenues from our Mexican territories increased 3.5% to Ps. 7,241 million in the fourth quarter of 2005, as compared with the same period of the previous year. Sales volume growth represented the majority of the incremental revenues. Average price per unit case grew 0.7% to Ps. 28.00 (US$ 2.63) during the fourth quarter of 2005. Higher average prices resulted from incremental volumes from the Coca-Cola brand and from single serve presentations, which carry a higher price per unit case. Our single serve presentations represented over 55% of the incremental volumes excluding jug water. Excluding Ciel water volume in 5.0, 19.0 and 20.0-liter packaging presentations, our average price per unit case was Ps. 32.01 (US$ 3.01) an increase of 1.0% in the fourth quarter of 2005, as compared to the same period of 2004.
Total sales volume increased 3.3% to 256.4 million unit cases in the fourth quarter of 2005, as compared with the fourth quarter of 2004. The increase in carbonated soft drinks sales volume and the non-carbonated beverage segment, including single-serve bottled water, represented around 80% of our incremental volume; the balance was mainly comprised of incremental jug water sales volume. Carbonated soft drinks sales volume grew 2.7% compared with the same period of the previous year, the Coca-Cola brand represented over 70% of this incremental sales volume. Excluding non-flavored bottled water, the non-carbonated beverage segment grew 47.6% in the fourth quarter of 2005 from a low base of comparison in 2004, as a result of volume growth of Ciel Aquarius and the Minute Maid brands.
Operating Income
Our gross profit grew 3.9% to Ps. 3,885 million in the fourth quarter of 2005, as compared with the same period of 2004, resulting in a 30 basis-point increase of our gross margin to 53.7%. Higher polyethylene terephtalate (“PET”) resin costs in U.S. dollars were offset by a reduction in our sweetener costs, as a result of lower sugar prices and the usage of high fructose corn syrup, and the appreciation of the Mexican peso year over year as applied to our U.S. dollar-denominated costs.
Operating expenses as a percentage of total revenues increased 40 basis points to 31.4% in the fourth quarter of 2005, from 31.0% in the same period of 2004, as a result of an increase in depreciation expenses driven by breakage expenses of returnable bottles and an increase in expenses in connection to our “go to market” and “market multi-segmentation” strategies. Operating income increased 2.6% to Ps. 1,610 million in the fourth quarter of 2005, resulting in a slight margin decline of 20 basis points to 22.2% in the quarter.
|
|
|
February 27, 2006 |
15
|
Central American and Colombian Operating Results |
|
|
|
|
CENTRAL AMERICAN OPERATING RESULTS (Guatemala, Nicaragua, Costa Rica and Panama)
Revenues
Net revenues declined 5.6% to Ps. 870 million in the fourth quarter of 2005, as compared with the same period of the previous year, mainly driven by declines in sales volume in Guatemala and Nicaragua. Average price per unit case decreased 0.9% to Ps. 30.65 (US$ 2.88), mainly as a result of a more competitive environment in the majority of our territories. Total revenues declined 1.4% to Ps. 910 million in the fourth quarter of 2005, as compared with the same period of the previous year despite a the one-time other operating revenues in the amount of Ps. 40 million. This one-time other operating revenues resulted from corporate services provided by our Latincentro division to the region during the year, and accounted for during the fourth quarter of 2005. Going forward revenues from these corporate services will be accounted for in each quarter.
Total sales volume in our Central American territories declined 4.7% to 28.4 million unit cases in the fourth quarter of 2005, as compared with the same period of 2004. Volume decline came from a 5.4% decrease in carbonated soft drinks due to difficult weather and operating conditions in connection with hurricanes in some of our Central American territories in October, and a tougher competitive environment in the majority of our territories.
Operating Income
Excluding the one-time other operating revenues mentioned above, our gross profit would have decreased 14.1% in the fourth quarter of 2005, resulting in a margin reduction of 450 basis points as compared to the fourth quarter of the previous year. This decrease was mainly driven by (i) a revenues decrease, driven by lower average prices per unit case and a reduction in sales volume, (ii) higher PET resin prices and (iii) a packaging mix shift towards non-returnable presentations, which represented 57.6% of our total sales volume in the fourth quarter of 2005 as compared to 51.4% in the same period of 2004.
Our operating expenses in absolute terms declined by 15.4% in the fourth quarter of 2005 as compared to the same period of 2004, as a result of lower marketing expenses and savings achieved through cost reduction efforts across the region. Excluding the one-time other operating revenues mentioned above, our operating income would have decreased 11.1% in the quarter, resulting in an operating income margin of 13.2%, a decline of 140 basis points, as compared with the same period of previous year.
COLOMBIAN OPERATING RESULTS
Revenues
Total revenues increased 3.1% to Ps. 1,256 million in the fourth quarter of 2005, as compared with the fourth quarter of 2004, driven by sales volume growth. Average price per unit case decreased 2.8% to Ps. 26.27 (US$ 2.47); price increases implemented during the third quarter partly compensated for last twelve months inflation.
Total sales volume grew 6.0% in the fourth quarter of 2005, as compared with the same period of 2004, to 47.8 million unit cases in the fourth quarter of 2005. Carbonated soft drinks sales volume grew 6.8%, mainly driven by the Crush brand, which represented more than 10% of our total sales volume in the quarter.
Operating Income
Gross profit decreased 2.0% to Ps. 583 million in the fourth quarter of 2005, as compared with the same period of the previous year, resulting in a gross margin of 46.4%. The gross margin decline of 250 basis points resulted from the combined effect of higher sugar prices and higher cost per unit case due to a packaging mix shift towards non-returnable presentations that accounted for 51.8% of our total sales in the fourth quarter of 2005, compared with 47.3% in the same period of the previous year.
|
|
|
February 27, 2006 |
16
|
Central American and Colombian Operating Results |
|
|
|
|
Our operating expenses decreased 8.1%, and as a percentage of total sales declined 390 basis points to 32.3%, in the fourth quarter of 2005, driven by a reduction in freight costs and lower breakage expenses. Our operating income increased 15.7% to Ps. 177 million, resulting in a margin expansion of 160 basis points from 12.5% in the fourth quarter of 2004 to 14.1% in the same period of 2005.
|
|
|
February 27, 2006 |
17
|
Venezuelan and Argentine Operating Results |
|
|
|
|
VENEZUELAN OPERATING RESULTS
Revenues
Revenues from our Venezuelan operations declined 5.2% to Ps. 1,265 million in the fourth quarter of 2005, as compared with the same period of 2004. This decline was driven by lower sales volume, which more than offset a higher average price per unit case. Our average price per unit case increased 2.1% to Ps. 29.62 (US$ 2.79) as a result of price increases implemented during the year.
Total sales volume decreased 7.4% to 42.6 million unit cases during the fourth quarter of 2005, as compared with the same quarter of 2004, driven by carbonated soft drinks volume decline in the Coca-Cola brand and the value protection brand Grapette.
Operating Income
Gross profit decreased 14.7% to Ps. 500 million in the fourth quarter of 2005, as compared with the same period of the previous year. As a percentage of sales, our gross margin decreased to 39.5% in the fourth quarter of 2005 from 43.9% in the same period of 2004. This decline was a result of lower revenues, higher raw material prices and a shift in packaging mix towards non-returnable presentations, which grew as a percentage of our total sales volume to 74.1% from 70.7% in the fourth quarter of 2004.
Operating expenses increased 5.9% to Ps. 449 million in the fourth quarter of 2005, driven by salary increases implemented during the last twelve months and higher maintenance expenses. Operating income was Ps. 51 million during the fourth quarter of 2005, resulting in an operating margin of 4.0%, driven by the above mentioned revenues decline and cost and operating expenses increases.
ARGENTINE OPERATING RESULTS
Revenues
In the fourth quarter of 2005, our total revenues increased by 7.6% to Ps. 834 million, as compared with the same period of 2004. Average price per unit case increased 2.1% to Ps. 18.07 (US$ 1.70), as a result of (i) incremental volume in single serve presentations, (ii) incremental volume in our carbonated soft drink premium and core segments, and (iii) price increases implemented during the quarter.
Total volume increased by 6.7% to 44.6 million unit cases, mainly driven by sales volume increase from the Coca-Cola brand and our non-carbonated beverage segment. Carbonated soft drinks increased 5.6% driven by the Coca-Cola brand and our core and premium flavored carbonated soft drinks, which more than offset volume decline of our value protection brands. Non-carbonated beverages and bottled water posted strong volume growth of 71%, driven by the brands Cepita, Kin and the recently introduced mineralized and functional waters under the Dasani brand.
Operating Income
Our gross profit increased 11.7% to Ps. 335 million, as compared with the fourth quarter of 2004. Gross margin was 40.1%, a margin expansion of 140 basis points, mainly as a result of higher revenues.
Operating expenses increased 12.2% due to higher freight costs and salaries in the fourth quarter of 2005 as compared to the same period of 2004. Despite the increase in operating expenses, operating income grew 10.8% to Ps. 133 million, as compared with the same period of 2004, resulting in an operating margin expansion of 40 basis points to 15.9%.
|
|
|
February 27, 2006 |
18
|
Brazilian Operating Results |
|
|
|
|
BRAZILIAN OPERATING RESULTS
Beginning with the second quarter of 2005, we do not include beer that we distribute in Brazil in our sales volumes and net sales. Instead, the amount we receive for distributing beer in Brazil is included in other revenues. We have reclassified prior periods presented in this press release for comparability purposes.
Revenues
Our total revenues improved by 6.6% to Ps. 1,678 million in the fourth quarter of 2005, as compared with the same period of 2004, driven by sales volume growth. Average price per unit case declined slightly to Ps. 22.40 (US$ 2.11) during the fourth quarter of 2005, mainly driven by a packaging shift mix towards returnable presentations, which carry a lower price per unit case.
Total sales volume increased 6.9% to 72.8 million unit cases in the fourth quarter of 2005. The increase included 5.0% growth in carbonated soft drinks, mainly driven by the Coca-Cola brand, accounting for over 85% of incremental volume during the quarter. Our non-carbonated beverage segment sales volume grew 33.3%, which increased as a percentage of our total sales volume to 8.2% from 6.6% in the fourth quarter of 2004.
Operating Income
In the fourth quarter of 2005, our gross profit increased 18.0% to Ps. 793 million, as compared with the same period of the previous year. Improvements in manufacturing efficiencies and the appreciation of the Brazilian real year over year as applied to our U.S. dollar-denominated costs, more than offset increases in raw material costs. Gross margin rose from 42.7% to 47.2%, a margin expansion of 450 basis points in the fourth quarter of 2005, as compared to the same period of 2004.
Our operating expenses as a percentage of total revenues increased 20 basis points in the fourth quarter of 2005 as compared to the same period of 2004 to 29.9% due to higher freight costs. Operating income was Ps. 290 million in the fourth quarter of 2005, an increase of 41.5%. Operating margin rose to 17.3% in the fourth quarter of 2005, as compared to the same period of 2004, resulting in a margin expansion of 430 basis points.
|
|
|
February 27, 2006 |
19
|
Summary of Full-Year Results and Recent Developments |
|
|
|
|
SUMMARY OF FULL-YEAR RESULTS
During 2005, our consolidated revenues increased 5.0% to Ps. 50,198 million, as compared with 2004, as a result of growth in all of our territories, with the exception of Central America. Consolidated average price per unit case increased 0.8% to Ps. 26.38 (US$ 2.48) during 2005, as a result of average price increases in all our territories with the exception of Central America.
Total sales volume increased 4.3% to 1,889.2 million unit cases during 2005, as compared with the same period of the previous year. Sales volume growth in Mexico and Brazil accounted for over 75% of our incremental volume. Carbonated soft drink sales volume grew 3.6% to 1,600.8 million unit cases, driven by incremental volume across all of our territories except for Central America.
Our gross profit increased 5.4% to Ps. 24,712 million in 2005, as compared with the previous year, driven by gross profit growth across all of our territories except Central America. Over 90% of this increase came from Brazil and Mexico. Gross margin increased to 49.2% during 2005 from 49.0% in 2004, driven by higher revenues in all of our territories except Central America.
Our consolidated operating income increased 8.7% to Ps. 8,683 million in 2005, as compared with 2004. Brazil and Mexico accounted for the majority of our growth. Our operating margin improved 60 basis points to 17.3% during 2005, mainly driven by revenues increases and lower costs as a percentage of total revenues.
Our consolidated majority net income was Ps. 4,586 million during 2005, a decrease of 17.8% compared to 2004, driven by two one-time effect that increased net income during 20042,3 and a one-time effect that decreased net income in the first quarter of 20054. EPS were Ps. 2.48 (US$ 2.33 per ADR) computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares). Excluding the above-mentioned effects of non-recurring items, majority net income would have grown by 13.8%.
RECENT DEVELOPMENTS
|
• |
On January 16, 2006, our affiliate Fomento Económico Mexicano, S.A. de C.V. (“FEMSA”) acquired a controlling stake in Cervejarias Kaiser from the Molson Coors Brewing Company. As of February, 2006, we have agreed to reassume the selling function of the Kaiser beer portfolio in Sao Paulo, Brazil, pursuant to the original agreements that regulate the relationship between Kaiser and the Coca-Cola bottlers in Brazil. |
|
|
|
2 During the second quarter of 2004, we obtained a tax reimbursement in connection with a deduction of losses arising from a sale of shares during 2002 in the amount of $ 1,355 million; additionally there was a charge to income in the amount of $ 89 million related to interests and adjustments resulting from a change in the tax deduction criteria on coolers in Mexico. The net effect of these two transactions was $ 1,266 million in 2004. |
|
3 During the fourth quarter of 2004, we obtained a one-time benefit in the amount of $ 178 million due to a reduction in deferred tax liabilities driven by a decline in the Mexican income tax rate going forward. |
|
4 As disclosed in the first quarter of 2005, the Mexican tax authorities reviewed payments we made in connection with the change in criteria that requires refrigerators to be treated as fixed assets with finite useful lives, which resulted in an additional one-time payment in Mexico in the amount of $ 121 million. |
|
|
|
February 27, 2006 |
20
|
Conference Call Information and Disclaimer |
|
|
|
|
CONFERENCE CALL INFORMATION
Our fourth-quarter 2005 Conference Call will be held on: February 24, 2006, 11:00 A.M. Eastern Time (10:00 A.M. Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: 800-561-2601 and International: 617-614-3518. We invite investors to listen to the live audiocast of the conference call on the Company’s website, www.coca-colafemsa.com
If you are unable to participate live, an instant replay of the conference call will be available through March 3, 2006. To listen to the replay, please dial: Domestic U.S.: 888-286-8010 or International: 617-801-6888. Pass code: 98344233.
* * *
Coca-Cola FEMSA, S.A. de C.V. produces and distributes Coca-Cola, Sprite, Fanta, Lift and other trademark beverages of The Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City and southeast Mexico), Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia (most of the country), Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state of Mato Grosso do Sul and part of the state of Goias) and Argentina (federal capital of Buenos Aires and surrounding areas), along with bottled water, beer and other beverages in some of these territories. The Company has 30 bottling facilities in Latin America and serves approximately 1,500,000 retailers in the region. The Coca-Cola Company owns a 39.6% equity interest in Coca-Cola FEMSA.
* * *
Figures for the Company’s operations in Mexico and its consolidated international operations were prepared in accordance with Mexican generally accepted accounting principles (Mexican GAAP). All figures are expressed in constant Mexican pesos with purchasing power at December 31, 2005. For comparison purposes, 2004 and 2005 figures from the Company’s operations have been restated taking into account local inflation of each country with reference to the consumer price index and converted from local currency into Mexican pesos using the exchange rate at the end of the period. In addition, all comparisons in this report for the fourth quarter of 2005, which ended on December 31, 2005, are made against the figures for the comparable period in 2004, unless otherwise noted.
This news release may contain forward-looking statements concerning Coca-Cola FEMSA’s future performance and should be considered as good faith estimates by Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA’s control, that could materially impact the Company’s actual performance.
References herein to “US$” are to United States dollars. This news release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations should not be construed as representations that Mexican peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated.
U.S. dollar amounts have been translated from Mexican pesos at the noon day buying rate for pesos as published by the Federal Reserve Bank of New York at December 31, 2005, which exchange rate was Ps. 10.6275 to $1.00.
* * *
(7 pages of tables to follow)
|
|
|
February 27, 2006 |
21
|
Consolidated Balance Sheet |
|
|
|
|
Consolidated Balance Sheet
Expressed in million of Mexican pesos with purchasing power as of December 31, 2005
|
Assets |
|
Dec 05 |
|
Dec 04 |
|
||
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
Ps. |
1,958 |
|
Ps. |
3,782 |
|
|
Total accounts receivable |
|
|
2,523 |
|
|
2,220 |
|
|
Inventories |
|
|
2,168 |
|
|
2,301 |
|
|
Prepaid expenses and other |
|
|
772 |
|
|
875 |
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
7,421 |
|
|
9,178 |
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
31,397 |
|
|
31,749 |
|
|
Accumulated depreciation |
|
|
(13,889 |
) |
|
(13,170 |
) |
|
Bottles and cases |
|
|
1,047 |
|
|
1,075 |
|
|
|
|
|
|
|
|
|
|
|
Total property, plant and equipment, net |
|
|
18,555 |
|
|
19,654 |
|
|
|
|
|
|
|
|
|
|
|
Investment in shares and other |
|
|
476 |
|
|
444 |
|
|
Deferred charges, net |
|
|
1,221 |
|
|
1,503 |
|
|
Intangibles |
|
|
39,474 |
|
|
38,839 |
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
Ps. |
67,147 |
|
Ps. |
69,618 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
Dec 05 |
|
Dec 04 |
|
||
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Short-term bank loans and notes |
|
Ps. |
4,429 |
|
Ps. |
3,390 |
|
|
Interest payable |
|
|
326 |
|
|
324 |
|
|
Suppliers |
|
|
4,615 |
|
|
4,294 |
|
|
Other current liabilities |
|
|
2,729 |
|
|
3,149 |
|
|
|
|
|
||||
|
Total Current Liabilities |
|
|
12,099 |
|
|
11,157 |
|
|
|
|
|
|
|
|
|
|
|
Long-term bank loans |
|
|
15,673 |
|
|
22,475 |
|
|
Pension plan and seniority premium |
|
|
779 |
|
|
669 |
|
|
Other liabilities |
|
|
3,868 |
|
|
4,162 |
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
32,419 |
|
|
38,463 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Minority interest |
|
|
959 |
|
|
740 |
|
|
Majority interest: |
|
|
|
|
|
|
|
|
Capital stock |
|
|
2,886 |
|
|
2,886 |
|
|
Additional paid in capital |
|
|
12,349 |
|
|
12,349 |
|
|
Retained earnings of prior years |
|
|
17,338 |
|
|
12,394 |
|
|
Net income for the period |
|
|
4,586 |
|
|
5,580 |
|
|
Cumulative results of holding non-monetary assets |
|
|
(3,390 |
) |
|
(2,794 |
) |
|
|
|
|
|
|
|
|
|
|
Total majority interest |
|
|
33,769 |
|
|
30,415 |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
34,728 |
|
|
31,155 |
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
|
Ps. |
67,147 |
|
Ps. |
69,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
February 27, 2006 |
22
|
Consolidated Income Statement |
|
|
|
|
Consolidated Income Statement
Expressed in million of Mexican pesos(1) with purchasing power as of December 31, 2005
|
|
|
4Q 05 |
|
4Q 04 |
|
YTD 05 |
|
YTD 04 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volume (million unit cases) |
|
|
492.6 |
|
|
479.0 |
|
|
1,889.2 |
|
|
1,812.1 |
|
|
Average price per unit case |
|
|
26.40 |
|
|
26.38 |
|
|
26.38 |
|
|
26.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
13,005 |
|
|
12,635 |
|
|
49,840 |
|
|
47,442 |
|
|
Other operating revenues |
|
|
102 |
|
|
98 |
|
|
358 |
|
|
344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
13,107 |
|
|
12,733 |
|
|
50,198 |
|
|
47,786 |
|
|
Cost of sales |
|
|
6,611 |
|
|
6,440 |
|
|
25,486 |
|
|
24,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
6,496 |
|
|
6,293 |
|
|
24,712 |
|
|
23,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
4,046 |
|
|
3,949 |
|
|
16,029 |
|
|
15,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
2,450 |
|
|
2,344 |
|
|
8,683 |
|
|
7,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
618 |
|
|
699 |
|
|
2,452 |
|
|
2,622 |
|
|
Interest income |
|
|
60 |
|
|
8 |
|
|
280 |
|
|
288 |
|
|
Interest expense, net |
|
|
558 |
|
|
691 |
|
|
2,172 |
|
|
2,334 |
|
|
Foreign exchange loss (gain) |
|
|
18 |
|
|
(71 |
) |
|
(222 |
) |
|
37 |
|
|
Loss (gain) on monetary position |
|
|
(387 |
) |
|
(534 |
) |
|
(813 |
) |
|
(1,537 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integral cost of financing |
|
|
189 |
|
|
86 |
|
|
1,137 |
|
|
834 |
|
|
Other (income) expenses, net |
|
|
(19 |
) |
|
124 |
|
|
281 |
|
|
408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
|
2,280 |
|
|
2,134 |
|
|
7,265 |
|
|
6,745 |
|
|
Taxes |
|
|
766 |
|
|
671 |
|
|
2,562 |
|
|
1,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income |
|
|
1,514 |
|
|
1,463 |
|
|
4,703 |
|
|
5,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Majority net income |
|
|
1,428 |
|
|
1,453 |
|
|
4,586 |
|
|
5,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority net income |
|
|
86 |
|
|
10 |
|
|
117 |
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
2,450 |
|
|
2,344 |
|
|
8,683 |
|
|
7,987 |
|
|
Depreciation |
|
|
349 |
|
|
318 |
|
|
1,308 |
|
|
1,284 |
|
|
Amortization and Other non-cash charges (2) |
|
|
359 |
|
|
302 |
|
|
1,219 |
|
|
1,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3) |
|
|
3,158 |
|
|
2,964 |
|
|
11,210 |
|
|
10,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Except volume and average price per unit case figures. |
|
(2) Includes returnable bottle breakage expense. |
|
(3) EBITDA = Operating Income + Depreciation +Amortization & Other non-cash charges. |
|
|
|
February 27, 2006 |
23
|
Mexican operations |
|
|
|
|
|
Mexican operations |
|
Expressed in million of Mexican pesos(1) with purchasing power as of December 31, 2005 |
|
|
|
4Q 05 |
|
% Rev |
|
4Q 04 |
|
% Rev |
|
|
YTD 05 |
|
% Rev |
|
YTD 04 |
|
% Rev |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volume (million unit cases) |
|
|
256.4 |
|
|
|
|
|
248.2 |
|
|
|
|
|
1,025.0 |
|
|
|
|
|
989.9 |
|
|
|
|
|
Average price per unit case |
|
|
28.00 |
|
|
|
|
|
27.81 |
|
|
|
|
|
27.77 |
|
|
|
|
|
27.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
7,180 |
|
|
|
|
|
6,902 |
|
|
|
|
|
28,464 |
|
|
|
|
|
27,440 |
|
|
|
|
|
Other operating revenues |
|
|
61 |
|
|
|
|
|
97 |
|
|
|
|
|
242 |
|
|
|
|
|
207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
7,241 |
|
|
100.0 |
% |
|
6,999 |
|
|
100.0 |
% |
|
28,706 |
|
|
100.0 |
% |
|
27,647 |
|
|
100.0 |
% |
|
Cost of sales |
|
|
3,356 |
|
|
46.3 |
% |
|
3,261 |
|
|
46.6 |
% |
|
13,396 |
|
|
46.7 |
% |
|
13,037 |
|
|
47.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
3,885 |
|
|
53.7 |
% |
|
3,738 |
|
|
53.4 |
% |
|
15,310 |
|
|
53.3 |
% |
|
14,610 |
|
|
52.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
2,275 |
|
|
31.4 |
% |
|
2,169 |
|
|
31.0 |
% |
|
9,187 |
|
|
32.0 |
% |
|
8,803 |
|
|
31.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
1,610 |
|
|
22.2 |
% |
|
1,569 |
|
|
22.4 |
% |
|
6,123 |
|
|
21.3 |
% |
|
5,807 |
|
|
21.0 |
% |
|
Depreciation, Amortization & Other non-cash charges (2) |
|
|
457 |
|
|
6.3 |
% |
|
356 |
|
|
5.1 |
% |
|
1,530 |
|
|
5.3 |
% |
|
1,371 |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3) |
|
|
2,067 |
|
|
28.5 |
% |
|
1,925 |
|
|
27.5 |
% |
|
7,653 |
|
|
26.7 |
% |
|
7,178 |
|
|
26.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Except volume and average price per unit case figures. |
|
(2) Includes returnable bottle breakage expense. |
|
(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges. |
|
|
|
4Q 05 |
|
% Rev |
|
4Q 04 |
|
% Rev |
|
YTD 05 |
|
% Rev |
|
YTD 04 |
|
% Rev |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volume (million unit cases) |
|
|
28.4 |
|
|
|
|
|
29.8 |
|
|
|
|
|
109.4 |
|
|
|
|
|
110.6 |
|
|
|
|
|
Average price per unit case |
|
|
30.65 |
|
|
|
|
|
30.94 |
|
|
|
|
|
30.95 |
|
|
|
|
|
31.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
870 |
|
|
|
|
|
922 |
|
|
|
|
|
3,385 |
|
|
|
|
|
3,510 |
|
|
|
|
|
Other operating revenues |
|
|
40 |
|
|
|
|
|
1 |
|
|
|
|
|
43 |
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
910 |
|
|
100.0 |
% |
|
923 |
|
|
100.0 |
% |
|
3,428 |
|
|
100.0 |
% |
|
3,515 |
|
|
100.0 |
% |
|
Cost of sales |
|
|
469 |
|
|
51.6 |
% |
|
456 |
|
|
49.4 |
% |
|
1,785 |
|
|
52.1 |
% |
|
1,820 |
|
|
51.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
441 |
|
|
48.4 |
% |
|
467 |
|
|
50.6 |
% |
|
1,643 |
|
|
47.9 |
% |
|
1,695 |
|
|
48.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
281 |
|
|
30.9 |
% |
|
332 |
|
|
35.9 |
% |
|
1,175 |
|
|
34.3 |
% |
|
1,274 |
|
|
36.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
160 |
|
|
17.6 |
% |
|
135 |
|
|
14.6 |
% |
|
468 |
|
|
13.6 |
% |
|
421 |
|
|
12.0 |
% |
|
Depreciation, Amortization & Other non-cash charges (2) |
|
|
40 |
|
|
4.4 |
% |
|
64 |
|
|
6.9 |
% |
|
202 |
|
|
5.9 |
% |
|
247 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3) |
|
|
200 |
|
|
22.0 |
% |
|
199 |
|
|
21.6 |
% |
|
670 |
|
|
19.5 |
% |
|
668 |
|
|
19.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Except volume and average price per unit case figures. |
|
(2) Includes returnable bottle breakage expense. |
|
(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges. |
|
|
|
February 27, 2006 |
24
|
Colombian and Venezuelan operations |
|
|
|
|
|
Colombian operations |
|
Expressed in million of Mexican pesos(1) with purchasing power as of December 31, 2005 |
|
|
4Q 05 |
|
% Rev |
|
4Q 04 |
|
% Rev |
|
|
YTD 05 |
|
% Rev |
|
YTD 04 |
|
% Rev |
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales Volume (million unit cases) |
|
|
256.4 |
|
|
|
|
|
248.2 |
|
|
|
|
|
1,025.0 |
|
|
|
|
|
989.9 |
|
|
|
|
Average price per unit case |
|
|
28.00 |
|
|
|
|
|
27.81 |
|
|
|
|
|
27.77 |
|
|
|
|
|
27.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenues |
|
|
7,180 |
|
|
|
|
|
6,902 |
|
|
|
|
|
28,464 |
|
|
|
|
|
27,440 |
|
|
|
|
Other operating revenues |
|
|
61 |
|
|
|
|
|
97 |
|
|
|
|
|
242 |
|
|
|
|
|
207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total revenues |
|
|
7,241 |
|
|
100.0 |
% |
|
6,999 |
|
|
100.0 |
% |
|
28,706 |
|
|
100.0 |
% |
|
27,647 |
|
|
100.0 |
% |
Cost of sales |
|
|
3,356 |
|
|
46.3 |
% |
|
3,261 |
|
|
46.6 |
% |
|
13,396 |
|
|
46.7 |
% |
|
13,037 |
|
|
47.2 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross profit |
|
|
3,885 |
|
|
53.7 |
% |
|
3,738 |
|
|
53.4 |
% |
|
15,310 |
|
|
53.3 |
% |
|
14,610 |
|
|
52.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating expenses |
|
|
2,275 |
|
|
31.4 |
% |
|
2,169 |
|
|
31.0 |
% |
|
9,187 |
|
|
32.0 |
% |
|
8,803 |
|
|
31.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating income |
|
|
1,610 |
|
|
22.2 |
% |
|
1,569 |
|
|
22.4 |
% |
|
6,123 |
|
|
21.3 |
% |
|
5,807 |
|
|
21.0 |
% |
Depreciation, Amortization & Other non-cash charges (2) |
|
|
457 |
|
|
6.3 |
% |
|
356 |
|
|
5.1 |
% |
|
1,530 |
|
|
5.3 |
% |
|
1,371 |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
EBITDA (3) |
|
|
2,067 |
|
|
28.5 |
% |
|
1,925 |
|
|
27.5 |
% |
|
7,653 |
|
|
26.7 |
% |
|
7,178 |
|
|
26.0 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
(1) Except volume and average price per unit case figures. |
|
(2) Includes returnable bottle breakage expense. |
|
(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges. |
|
|
|
|
|
Venezuelan operations |
|
Expressed in million of Mexican pesos(1) with purchasing power as of December 31, 2005 |
|
|
|
4Q 05 |
|
% Rev |
|
4Q 04 |
|
% Rev |
|
YTD 05 |
|
% Rev |
|
YTD 04 |
|
% Rev |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volume (million unit cases) |
|
|
42.6 |
|
|
|
|
|
46.0 |
|
|
|
|
|
172.5 |
|
|
|
|
|
172.7 |
|
|
|
|
|
Average price per unit case |
|
|
29.62 |
|
|
|
|
|
29.00 |
|
|
|
|
|
28.59 |
|
|
|
|
|
27.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
1,262 |
|
|
|
|
|
1,334 |
|
|
|
|
|
4,933 |
|
|
|
|
|
4,680 |
|
|
|
|
|
Other operating revenues |
|
|
3 |
|
|
|
|
|
1 |
|
|
|
|
|
13 |
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,265 |
|
|
100.0 |
% |
|
1,335 |
|
|
100.0 |
% |
|
4,946 |
|
|
100.0 |
% |
|
4,684 |
|
|
100.0 |
% |
|
Cost of sales |
|
|
765 |
|
|
60.5 |
% |
|
749 |
|
|
56.1 |
% |
|
2,952 |
|
|
59.7 |
% |
|
2,722 |
|
|
58.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
500 |
|
|
39.5 |
% |
|
586 |
|
|
43.9 |
% |
|
1,994 |
|
|
40.3 |
% |
|
1,962 |
|
|
41.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
449 |
|
|
35.5 |
% |
|
424 |
|
|
31.8 |
% |
|
1,761 |
|
|
35.6 |
% |
|
1,594 |
|
|
34.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
51 |
|
|
4.0 |
% |
|
162 |
|
|
12.1 |
% |
|
233 |
|
|
4.7 |
% |
|
368 |
|
|
7.8 |
% |
|
Depreciation, Amortization & Other non-cash charges (2) |
|
|
61 |
|
|
4.8 |
% |
|
53 |
|
|
4.0 |
% |
|
242 |
|
|
4.9 |
% |
|
224 |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3) |
|
|
111 |
|
|
8.8 |
% |
|
215 |
|
|
16.1 |
% |
|
475 |
|
|
9.6 |
% |
|
592 |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Except volume and average price per unit case figures. |
|
(2) Includes returnable bottle breakage expense. |
|
(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges. |
|
|
|
|
|
|
|
February 27, 2006 |
25
|
Argentine and Brazilian operations |
|
|
|
|
|
Argentine operations |
|
Expressed in million of Mexican pesos(1) with purchasing power as of December 31, 2005 |
|
|
|
4Q 05 |
|
% Rev |
|
4Q 04 |
|
% Rev |
|
YTD 05 |
|
% Rev |
|
YTD 04 |
|
% Rev |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volume (million unit cases) |
|
|
44.6 |
|
|
|
|
|
41.8 |
|
|
|
|
|
150.1 |
|
|
|
|
|
144.3 |
|
|
|
|
|
Average price per unit case |
|
|
18.07 |
|
|
|
|
|
17.69 |
|
|
|
|
|
17.97 |
|
|
|
|
|
17.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
806 |
|
|
|
|
|
739 |
|
|
|
|
|
2,697 |
|
|
|
|
|
2,494 |
|
|
|
|
|
Other operating revenues |
|
|
28 |
|
|
|
|
|
36 |
|
|
|
|
|
101 |
|
|
|
|
|
122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
834 |
|
|
100.0 |
% |
|
775 |
|
|
100.0 |
% |
|
2,798 |
|
|
100.0 |
% |
|
2,616 |
|
|
100.0 |
% |
|
Cost of sales |
|
|
499 |
|
|
59.9 |
% |
|
475 |
|
|
61.3 |
% |
|
1,699 |
|
|
60.7 |
% |
|
1,593 |
|
|
60.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
335 |
|
|
40.1 |
% |
|
300 |
|
|
38.7 |
% |
|
1,099 |
|
|
39.3 |
% |
|
1,023 |
|
|
39.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
202 |
|
|
24.2 |
% |
|
180 |
|
|
23.2 |
% |
|
677 |
|
|
24.2 |
% |
|
615 |
|
|
23.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
133 |
|
|
15.9 |
% |
|
120 |
|
|
15.5 |
% |
|
422 |
|
|
15.1 |
% |
|
408 |
|
|
15.6 |
% |
|
Depreciation, Amortization & Other non-cash charges (2) |
|
|
35 |
|
|
4.2 |
% |
|
37 |
|
|
4.8 |
% |
|
131 |
|
|
4.7 |
% |
|
134 |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3) |
|
|
168 |
|
|
20.1 |
% |
|
157 |
|
|
20.3 |
% |
|
553 |
|
|
19.8 |
% |
|
542 |
|
|
20.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Except volume and average price per unit case figures. |
|
(2) Includes returnable bottle breakage expense. |
|
(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges. |
|
|
|
|
|
Brazilian operations |
|
Expressed in million of Mexican pesos(1) with purchasing power as of December 31, 2005 |
|
|
|
4Q 05 |
|
% Rev |
|
4Q 04 |
|
% Rev |
|
YTD 05 |
|
% Rev |
|
YTD 04 |
|
% Rev |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volume (million unit cases) |
|
|
72.8 |
|
|
|
|
|
68.1 |
|
|
|
|
|
252.5 |
|
|
|
|
|
227.5 |
|
|
|
|
|
Average price per unit case |
|
|
22.40 |
|
|
|
|
|
22.48 |
|
|
|
|
|
22.43 |
|
|
|
|
|
22.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
1,631 |
|
|
|
|
|
1,531 |
|
|
|
|
|
5,663 |
|
|
|
|
|
5,043 |
|
|
|
|
|
Other operating revenues |
|
|
47 |
|
|
|
|
|
43 |
|
|
|
|
|
157 |
|
|
|
|
|
152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,678 |
|
|
100.0 |
% |
|
1,574 |
|
|
100.0 |
% |
|
5,820 |
|
|
100.0 |
% |
|
5,195 |
|
|
100.0 |
% |
|
Cost of sales |
|
|
885 |
|
|
52.7 |
% |
|
902 |
|
|
57.3 |
% |
|
3,085 |
|
|
53.0 |
% |
|
2,930 |
|
|
56.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
793 |
|
|
47.2 |
% |
|
672 |
|
|
42.7 |
% |
|
2,735 |
|
|
47.0 |
% |
|
2,265 |
|
|
43.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
503 |
|
|
29.9 |
% |
|
467 |
|
|
29.7 |
% |
|
1,829 |
|
|
31.4 |
% |
|
1,739 |
|
|
33.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
290 |
|
|
17.3 |
% |
|
205 |
|
|
13.0 |
% |
|
906 |
|
|
15.6 |
% |
|
526 |
|
|
10.1 |
% |
|
Depreciation, Amortization & Other non-cash charges (2) |
|
|
47 |
|
|
2.8 |
% |
|
30 |
|
|
1.9 |
% |
|
146 |
|
|
2.5 |
% |
|
117 |
|
|
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3) |
|
|
337 |
|
|
20.1 |
% |
|
235 |
|
|
15.0 |
% |
|
1,052 |
|
|
18.1 |
% |
|
644 |
|
|
12.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Except volume and average price per unit case figures. |
|
(2) Includes returnable bottle breakage expense. |
|
(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges. |
|
|
|
|
|
|
|
February 27, 2006 |
26
Selected Information |
|
For the three months ended December 31, 2005
Expressed in million of Mexican pesos as of December 31, 2005
|
|
|
4Q 04 |
|
4Q 05 |
|
||
|
|
|
|
|
|
|
|
|
|
Capex |
|
|
547.3 |
|
|
962.6 |
|
|
Depreciation |
|
|
318.2 |
|
|
349.0 |
|
|
Amortization & Other non-cash charges |
|
|
301.8 |
|
|
358.5 |
|
VOLUME
Expressed in million unit cases
|
|
|
4Q 04 |
|
4Q 05 |
|
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
CSD |
|
Water |
|
Other |
|
Total |
|
CSD |
|
Water |
|
Other |
|
Total |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
|
201.8 |
|
|
44.3 |
|
|
2.1 |
|
|
248.2 |
|
|
207.3 |
|
|
46.0 |
|
|
3.1 |
|
|
256.4 |
|
|
Central America |
|
|
28.0 |
|
|
1.2 |
|
|
0.6 |
|
|
29.8 |
|
|
26.5 |
|
|
1.2 |
|
|
0.7 |
|
|
28.4 |
|
|
Colombia |
|
|
39.6 |
|
|
5.4 |
|
|
0.1 |
|
|
45.1 |
|
|
42.3 |
|
|
5.4 |
|
|
0.1 |
|
|
47.8 |
|
|
Venezuela |
|
|
41.0 |
|
|
3.3 |
|
|
1.7 |
|
|
46.0 |
|
|
37.6 |
|
|
3.3 |
|
|
1.7 |
|
|
42.6 |
|
|
Brazil |
|
|
63.6 |
|
|
4.0 |
|
|
0.5 |
|
|
68.1 |
|
|
66.8 |
|
|
5.4 |
|
|
0.6 |
|
|
72.8 |
|
|
Argentina |
|
|
41.1 |
|
|
0.4 |
|
|
0.3 |
|
|
41.8 |
|
|
43.4 |
|
|
0.7 |
|
|
0.5 |
|
|
44.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
415.1 |
|
|
58.6 |
|
|
5.3 |
|
|
479.0 |
|
|
423.9 |
|
|
62.0 |
|
|
6.7 |
|
|
492.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACKAGE MIX BY PRESENTATION
Expressed as a Percentage of Total Volume
|
|
|
4Q 04 |
|
4Q 05 |
|
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
Ret |
|
Non-Ret |
|
Fountain |
|
Jug |
|
Ret |
|
Non-Ret |
|
Fountain |
|
Jug |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
|
28.0 |
|
|
57.1 |
|
|
1.3 |
|
|
13.6 |
|
|
25.6 |
|
|
59.3 |
|
|
1.2 |
|
|
13.9 |
|
|
Central America |
|
|
45.3 |
|
|
50.3 |
|
|
4.4 |
|
|
— |
|
|
37.5 |
|
|
58.7 |
|
|
3.8 |
|
|
— |
|
|
Colombia |
|
|
46.8 |
|
|
43.7 |
|
|
3.5 |
|
|
6.0 |
|
|
42.8 |
|
|
48.6 |
|
|
3.3 |
|
|
5.3 |
|
|
Venezuela |
|
|
27.0 |
|
|
67.2 |
|
|
3.5 |
|
|
2.3 |
|
|
23.1 |
|
|
70.6 |
|
|
3.5 |
|
|
2.8 |
|
|
Brazil |
|
|
5.4 |
|
|
90.9 |
|
|
3.7 |
|
|
— |
|
|
9.2 |
|
|
87.4 |
|
|
3.4 |
|
|
— |
|
|
Argentina |
|
|
25.8 |
|
|
71.5 |
|
|
2.7 |
|
|
— |
|
|
24.3 |
|
|
72.8 |
|
|
2.9 |
|
|
— |
|
For the twelve months ended December 31, 2005
Expressed in million of Mexican pesos as of December 31, 2005
|
|
|
YTD 04 |
|
YTD 05 |
|
||
|
|
|
|
|
|
|
|
|
|
Capex |
|
|
1,849.5 |
|
|
2,063.7 |
|
|
Depreciation |
|
|
1,284.1 |
|
|
1,307.5 |
|
|
Amortization & Other non-cash charges |
|
|
1,124.0 |
|
|
1,219.1 |
|
VOLUME
Expressed in million unit cases
|
|
|
YTD 04 |
|
YTD 05 |
|
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
CSD |
|
Water |
|
Other |
|
Total |
|
CSD |
|
Water |
|
Other |
|
Total |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
|
793.5 |
|
|
188.7 |
|
|
7.7 |
|
|
989.9 |
|
|
812.4 |
|
|
202.1 |
|
|
10.5 |
|
|
1,025.0 |
|
|
Central America |
|
|
104.1 |
|
|
4.6 |
|
|
1.9 |
|
|
110.6 |
|
|
102.4 |
|
|
4.7 |
|
|
2.3 |
|
|
109.4 |
|
|
Colombia |
|
|
144.5 |
|
|
22.1 |
|
|
0.5 |
|
|
167.1 |
|
|
158.0 |
|
|
21.5 |
|
|
0.2 |
|
|
179.7 |
|
|
Venezuela |
|
|
149.2 |
|
|
14.3 |
|
|
9.2 |
|
|
172.7 |
|
|
149.4 |
|
|
15.0 |
|
|
8.1 |
|
|
172.5 |
|
|
Brazil |
|
|
212.5 |
|
|
13.2 |
|
|
1.8 |
|
|
227.5 |
|
|
232.6 |
|
|
17.7 |
|
|
2.2 |
|
|
252.5 |
|
|
Argentina |
|
|
141.8 |
|
|
1.7 |
|
|
0.8 |
|
|
144.3 |
|
|
146.0 |
|
|
2.5 |
|
|
1.6 |
|
|
150.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
1,545.6 |
|
|
244.6 |
|
|
21.9 |
|
|
1,812.1 |
|
|
1,600.8 |
|
|
263.5 |
|
|
24.9 |
|
|
1,889.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACKAGE MIX BY PRESENTATION
Expressed as a Percentage of Total Volume
|
|
|
YTD 04 |
|
YTD 05 |
|
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
Ret |
|
Non-Ret |
|
Fountain |
|
Jug |
|
Ret |
|
Non-Ret |
|
Fountain |
|
Jug |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
|
28.4 |
|
|
55.9 |
|
|
1.3 |
|
|
14.4 |
|
|
26.6 |
|
|
57.2 |
|
|
1.2 |
|
|
15.0 |
|
|
Central America |
|
|
48.5 |
|
|
47.5 |
|
|
3.9 |
|
|
0.1 |
|
|
41.9 |
|
|
54.4 |
|
|
3.7 |
|
|
— |
|
|
Colombia |
|
|
50.7 |
|
|
39.6 |
|
|
3.3 |
|
|
6.4 |
|
|
46.2 |
|
|
44.5 |
|
|
3.3 |
|
|
6.0 |
|
|
Venezuela |
|
|
29.9 |
|
|
63.5 |
|
|
3.0 |
|
|
3.6 |
|
|
24.7 |
|
|
69.0 |
|
|
3.2 |
|
|
3.1 |
|
|
Brazil |
|
|
5.3 |
|
|
90.9 |
|
|
3.8 |
|
|
— |
|
|
8.0 |
|
|
88.5 |
|
|
3.5 |
|
|
— |
|
|
Argentina |
|
|
26.9 |
|
|
69.7 |
|
|
3.4 |
|
|
— |
|
|
25.9 |
|
|
70.7 |
|
|
3.4 |
|
|
— |
|
February 27, 2006 |
27
|
Macroeconomic Information |
|
|
|
|
December 2005
Macroeconomic Information
|
|
|
Inflation |
|
Foreign Exchange Rate |
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
LTM 05 |
|
4Q 05 |
|
Dec 05 |
|
Dec 04 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
|
3.33 |
% |
|
1.59 |
% |
|
10.7109 |
|
|
11.1460 |
|
|
Colombia |
|
|
5.08 |
% |
|
0.45 |
% |
|
2,284.2200 |
|
|
2,389.7500 |
|
|
Venezuela |
|
|
14.36 |
% |
|
2.50 |
% |
|
2,150.0000 |
|
|
1,920.0000 |
|
|
Brazil |
|
|
5.35 |
% |
|
1.51 |
% |
|
2.3407 |
|
|
2.6544 |
|
|
Argentina |
|
|
13.00 |
% |
|
3.22 |
% |
|
3.0320 |
|
|
2.9800 |
|
|
|
|
February 27, 2006 |
28