FEMSA Reports 3Q13 Total Revenues Growth of 7.2% in a Challenging Environment
MONTERREY, MEXICO--(Marketwired - Oct 25, 2013) - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX) (BMV: FEMSAUB) (BMV: FEMSAUBD) announced today its operational and financial results for the third quarter of 2013.
Third Quarter 2013 Highlights:
- FEMSA consolidated total revenues grew 7.2% compared to the third quarter of 2012, reflecting growth at Femsa Comercio and Coca-Cola FEMSA. On an organic basis(1) total revenues grew 3.7%.
- Coca-Cola FEMSA total revenues increased 3.6% compared to the third quarter of 2012. On an organic basis(1) total revenues grew 0.4% despite a negative translation effect resulting from the devaluation of currencies in our South America division. On a currency neutral basis and excluding the non-comparable effect of the integrations, total revenues grew 14.8%.
- FEMSA Comercio achieved total revenues growth of 12.5%, compared to the third quarter of 2012, driven by 1,043 net new store openings and 1.6% growth in same-store sales. On an organic basis(1) total revenues grew 9.3%.
José Antonio Fernández Carbajal, Chairman and CEO of FEMSA, commented: "In many ways, the third quarter results showed a continuation of trends that have been present since the beginning of the year. For Coca-Cola FEMSA, its diversified geographical footprint again allowed the company to deliver top-line results that, in the aggregate, show some resilience in light of the very challenging environments that remain in its main markets, particularly Brazil and to a lesser extent, Mexico and Colombia. For FEMSA Comercio, sequential trends improved slightly and expenses were contained in the midst of soft consumer demand that has yet to show meaningful signs of a recovery. Importantly, both businesses were negatively impacted by a month of September that brought torrential rains across Mexico, particularly during the key Independence holiday weekend.
And yet, we are convinced that the short-term challenges are more than offset by the long-term opportunities. In that vein, during the quarter we announced Coca-Cola FEMSA's acquisition of Spaipa, a key bottling franchise in Southern Brazil that fits perfectly with our existing territories, and FEMSA Comercio announced the acquisition of a majority stake in Doña Tota, a strong regional player in the quick service restaurant segment with high consumer preference in Northern Mexico. We will continue to invest, through acquisitions as well as capital projects, because we believe our evolving business platform has very compelling growth avenues ahead."
To obtain the full text of this earnings release, please visit our Investor Relations website at www.femsa.com/investor under the Financial Reports section.
This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.
FEMSA is a leading company that participates in the beverage industry through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world; and in the beer industry, through its ownership of the second largest equity stake in Heineken, one of the world's leading brewers with operations in over 70 countries. In the retail industry it participates with FEMSA Comercio, operating various small-format chain stores, including OXXO, the largest and fastest-growing chain of stores in Latin America. All of which is supported by a Strategic Business unit.
(1) Excludes non-comparable results from Coca-Cola FEMSA and FEMSA Comercio acquisitions in the last twelve months.