Net majority income up 47.7% in 2009
MONTERREY, Mexico, Feb.12 -- Fomento Economico Mexicano, S.A.B. de C.V. ("FEMSA") announced today its operational and financial results for the fourth quarter and full year 2009.
Fourth Quarter 2009 Highlights:
-- Consolidated total revenues and income from operations grew 19.8% and
21.5%, respectively, compared to the fourth quarter 2008. In spite of
a challenging economic environment, FEMSA again delivered a quarter of
strong growth in revenues and income from operations, mainly driven by
double-digit performance at Coca-Cola FEMSA and FEMSA Comercio.
-- Coca-Cola FEMSA total revenues and income from operations increased
27.6% and 19.1%, respectively. Driven by double-digit income from
operations growth in Latincentro and Mercosur operations.
-- FEMSA Cerveza total revenues increased 7.6%. Top-line growth mainly
due to higher price per hectoliter in Mexican pesos, combined with
operating expense containment offsetting raw material cost pressures
due to year-over-year increases, resulting in growth of 8.6% in income
from operations.
-- FEMSA Comercio continued its pace of strong growth and margin
expansion. Income from operations increased 45.3%, resulting in an
operating margin expansion of 240 basis points to reach an all-time
high of 11.7% during 4Q09.
2009 Full Year Highlights:
-- Consolidated total revenues increased 17.3%. All operating units
contributed to this top-line growth.
-- Consolidated income from operations increased 19.1%, driven by
double-digit growth at Coca-Cola FEMSA and FEMSA Comercio.
-- Coca-Cola FEMSA total revenue and income from operations increased
23.9% and 15.6%, respectively. Strong growth in Latincentro and
Mercosur, as well as more tempered growth in Mexico drove these
results.
-- FEMSA Cerveza total revenues increased 9.3%, mainly as a result of
increases in average price per hectoliter across all our operations in
local currencies. Income from operations increased 9.3%, as a result
of top-line growth combined with operating expense containment
offsetting continued raw material cost pressures.
-- FEMSA Comercio income from operations increased 44.8%, reaching an
all-time-high operating margin of 8.3% and resulting in 180 basis
points of expansion. For the 8th consecutive year, income from
operations increased over 25%, driven by the opening of 960 new stores
during the year and a 1.3% increase in same store sales.
-- Ordinary dividend of Ps. 2.600 billion proposed by FEMSA's Board of
Directors, to be paid in 2010 and subject to approval at the annual
shareholders meeting in April, 2010, representing a 60% increase over
the prior year.
Jose Antonio Fernandez, Chairman and CEO of FEMSA, commented: "At the outset of 2010, we should highlight the benefit of having not one, but two distinct reasons to be very optimistic about FEMSA. On the operating front, we closed a very challenging 2009 that nevertheless saw us grow, improve, and ultimately succeed in delivering a very robust set of results. On the strategic front, as you know, we announced a definitive agreement under which we are exchanging FEMSA's beer operations for a 20% economic interest in Heineken, which will allow our shareholders to participate in the value creation we believe will come from aligning FEMSA Cerveza with Heineken. At the same time, we increase FEMSA's operational and financial flexibility, and we will be able to focus our attention and resources on the significant opportunities for Coca-Cola FEMSA and FEMSA Comercio. We are confident that FEMSA has the right skill set and the right people to continue its path of growth and operational excellence in soft drinks and convenience retail, two businesses that hold tremendous promise and opportunities for growth and value creation, while also adding value to Heineken as we move forward."
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 the leading beverage company in Latin America. It controls an integrated beverage platform that comprises Coca-Cola FEMSA, the largest Coca-Cola bottler in the region; FEMSA Cerveza, one of the leading brewers in Mexico, with presence in Brazil, and an important beer exporter to the United States and other countries; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 7,300 stores.
Source: Fomento Economico Mexicano, S.A.B. de C.V.