Mexico: FEMSA reports double-digit growth in top-line and in profitability for 1Q06
Fomento Econуmico Mexicano, S.A. de C.V. (“FEMSA”) announced on April 28 its operational and financial results for the first quarter of 2006.
1Q06 Highlights:
Consolidated total revenues increased 15%, income from operations increased 14.5%, and net majority income increased 45%. All operating units contributed to this growth.
Coca-Cola FEMSA total sales volume increased 6.4% and income from operations increased 8%. Brazil and Mexico stand out with 9% and 8% respective increases in sales volume.
FEMSA Cerveza (excluding Kaiser) total revenues increased 11% and income from operations increased 18%. Domestic sales volume increased 3.6% and export sales volume increased 42% due to strong sales growth in the U.S. and a favorable comparison.
Oxxo increased its revenues by 19% driven by 73 net new stores and a 7.4% increase in same-store sales. There are now over 4,200 Oxxo stores throughout Mexico.
“Driven by the focus and determination of our team, we delivered a quarter of solid growth in each one of our business units. We are facing positive trends in Mexico and Brazil and we are capitalizing on this by increasing innovation and enhancing execution. We continue to bring our soft drinks, beer, and Oxxo store operations closer together. We are confident that an integrated beverage strategy is the best way to grow in the region and I believe as a company we are in the best shape ever to face the challenges and opportunities going forward.”
“Kaiser represents an important addition to our total beverage strategy in the region, and we are already making progress in streamlining the operations, identifying and pursuing areas of opportunity, and developing market initiatives that will enable us to compete profitably in the Brazilian beer market for the long-term”, commented Josй Antonio Fernбndez, Chairman and CEO of FEMSA.
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 and important beer exporter to the United States; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 4,200 stores.
Torna
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