Wednesday, 10/27/2004, 12:00:00 am
Monterrey, Mexico, October 27, 2004 – Fomento Económico Mexicano, S.A. de C.V. ("FEMSA") (NYSE: FMX; BMV: FEMSA UBD, FEMSA UB), the largest integrated beverage company in Latin America, today reported its operational and financial results for the third quarter and first nine months of 2004.
- FEMSA Consolidated total revenues increased 6.8% and income from operations was up 6.6% during 3Q04 driven by steady performance at our main business units.
- FEMSA Cerveza domestic volume increased 4.3% during 3Q04 and income from operations rose 4.6%. We continued to experience positive sales trends throughout all our Mexican territories by leveraging our new business model.
- Coca-Cola FEMSA's income from operations increased 9.0% during the quarter. Operating margin expanded year-over-year in all international operations and sequentially in Mexico.
- FEMSA Comercio added 173 net new Oxxo stores during the quarter, now totaling 3,259 locations nationwide, 718 more stores than a year ago.
Jose Antonio Fernandez, Chairman and CEO of FEMSA, commented, "I am pleased to report another quarter where we made solid progress in the implementation of our beverage strategy. As you know, in late August we finalized the transaction whereby we repurchased 30% of FEMSA Cerveza and unwound our business relationship with Interbrew. We are moving swiftly to leverage our renewed flexibility and are making progress in the design of the business plan for our U.S. exports together with Heineken USA. In the key domestic beer market, we are on track in our transformation efforts with very positive results.
At Coca-Cola FEMSA, we achieved operating margin expansion in most of our territories. It is increasingly evident that the acquisition of our new territories is supporting our growth through the diversification of revenues and profit sources throughout Latin America.
Finally, FEMSA Comercio advanced in the consolidation of Oxxo's leadership position in the market while continuing to improve the value proposition in its stores, with a view to continue increasing same-store sales performance by better identifying and serving customers' needs.
We are optimistic about the road ahead and we will keep the pace. There is much work to be done in our pursuit to create long-term shareholder value."