Full Year 2007 Revenues Reach US$13.5 billion
Tuesday, 02/19/2008, 8:48:29 am
Monterrey, Mexico, February 19, 2008 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) today announced its operational and financial results for the fourth quarter and full year 2007.
Fourth Quarter 2007 Highlights:
2007 Full Year Highlights:
- Consolidated total revenues increased 8.4%. All operating units contributed to this top-line growth.
Consolidated income from operations increased 6.0%, driven by strong results at Coca-Cola FEMSA and Oxxo, which more than offset weakness at FEMSA Cerveza.
Consolidated net income increased 21.1% to Ps. 11.936 billion.
Coca-Cola FEMSA total revenue and income from operations increased 8.1% and 11.7% respectively, due to strong growth across its operations.
FEMSA Cerveza total revenues increased 4.3%. Income from operations decreased 11.7%, reflecting continued pressure on raw materials, lower average price per hectoliter and sustained investment in our brand portfolio.
Oxxo income from operations increased 39.1%, resulting in an operating margin expansion of 100 basis points to 5.5%. This is Oxxo’s 6th consecutive year of delivering income from operations growth above 20% in real terms, driven by 716 net new stores in the last twelve months.
José Antonio Fernández, Chairman and CEO of FEMSA, commented “Our full-year 2007 results provide a compelling example of the strength of our unique continental integrated platform. While FEMSA Cerveza faced significant headwinds from high raw material costs and intensified competition in Mexico, particularly in the first half of the year, our operations in Brazil continued to grow according to plan and our export volumes again grew in the double digits, driven by continued strong performance in the United States. For its part, Coca-Cola FEMSA delivered a strong set of numbers aided by growing profitability in Mexico and in most of its Central and South American markets. And Oxxo continued to grow at a rapid pace in every aspect of the business, recording its strongest year ever. All told, FEMSA delivered operating income growth of six percent in real terms for the year, a good outcome given the challenging environment. Just as importantly, the fourth quarter evidenced strong momentum at all of our operations, and we enter this new year with optimism that we will be able to successfully navigate what may turn out to be another challenging year, while we continue to build the unique system that is FEMSA”.
To obtain the full text of this earnings release, please visit our Investor Relations website a 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 5,500 stores.