Fomento Economico Mexicano SAB de CV : FEMSA Announces Third Quarter 2015 Results
October 28, 2015 at 05:07 pm EDT
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MONTERREY, MEXICO--(Marketwired - Oct 28, 2015) - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX) (BMV: FEMSAUBD) (BMV: FEMSAUB) announced today its operational and financial results for the third quarter of 2015.
THIRD QUARTER 2015 HIGHLIGHTS:
FEMSA consolidated total revenues increased 8.8% and income from operations grew 2.3% compared to the third quarter of 2014, driven by solid growth at FEMSA Comercio. On an organic basis(1) total revenues increased 0.7% and income from operations grew 1.9%.
FEMSA Comercio achieved total revenues growth of 37.4% and income from operations growth of 27.4% compared to the third quarter of 2014, mainly driven by the incorporation of OXXO Gas operations and by 9.1% growth in OXXO same-store sales. On an organic basis1 total revenues and income from operations grew 17.1% and 26.6%, respectively.
Coca-Cola FEMSA total revenues decreased 9.9% and income from operations decreased 6.1% compared to the third quarter of 2014, reflecting the negative currency translation effect from the Venezuelan operation as well as the devaluation of the Brazilian real and the Colombian peso. On a currency neutral basis and excluding Venezuela, total revenues and income from operations grew 10.2% and 16.4%, respectively.
Carlos Salazar Lomelín, FEMSA's CEO, commented: "During the third quarter, we continued to see gradual improvement in consumer demand in our key Mexico market: At FEMSA Comercio, the trend of same-store sales growth for OXXO reached high-single digit levels and again reflected a better mix of ticket and traffic. Activity was especially strong in the north of Mexico, consistent with perceived higher levels of manufacturing-led economic activity in that part of the country. At Coca-Cola FEMSA we are still facing difficult environments in several of our key markets, but we continue to work on the variables that we can control such as pricing and packaging and we are seeing positive results, especially in terms of market shares and profitability gains. Margin expansion in particular was remarkable in light of the foreign exchange and operational challenges we are facing in most of our markets, and we have no doubt that we will eventually emerge from this difficult macroeconomic period stronger and leaner than before.
On the strategic front, during the quarter we announced and closed the acquisition of a majority stake in Socofar. As you know, this is an exciting transaction that creates a number of opportunities for our drugstore business, adding a leadership position in Chile and a meaningful presence in Colombia, while providing a solid platform to explore and grow in other related formats in that part of our continent."
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
1 Excludes non-comparable results from gasoline operations and acquisitions at FEMSA Comercio in the last twelve months. The balance sheet of Socofar is included as of September 30 2015. (see "Recent Developments").
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'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 store chains including OXXO. Additionally, through its Strategic Businesses unit, it provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA's business units and third-party clients.
Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA) is a holding company. The Company's segments are Coca-Cola FEMSA, FEMSA Comercio-Retail Division and FEMSA Comercio-Fuel Division. The Company conducts its operations through holding companies, such as Coca-Cola FEMSA, S.A.B. de C.V. and subsidiaries (Coca-Cola FEMSA), which produces, distributes and sells beverages; FEMSA Comercio, S.A. de C.V. and subsidiaries (FEMSA Comercio), which consists of a Retail Division operating various small-format chain stores, and CB Equity LLP, which holds its equity investment in Heineken N.V., and Heineken Holding N.V. The Company's Coca-Cola FEMSA produces, markets, sells and distributes Coca-Cola trademark beverages through standard bottler agreements in certain territories in the countries, in which it operates. Coca-Cola FEMSA also sells bottled water products. FEMSA participates in the retail sector primarily through FEMSA Comercio.
FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V. 
