FEMSA Announces First Quarter 2019 Results - FEMSA
Press Release

FEMSA Announces First Quarter 2019 Results

Monterrey, Mexico, April 29, 2019 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the first quarter of 2019.


  • 5.6% revenue growth (3.7% on an organic1 basis) at FEMSA Consolidated
  • 270 basis points gross margin expansion at FEMSA Comercio’s Proximity Division
  • 2.4% revenue growth at FEMSA Comercio’s Health Division
  • 2.5% revenue growth at FEMSA Comercio’s Fuel Division
  • 9.2% volume growth at Coca-Cola FEMSA’s operations in Brazil

Eduardo Padilla, FEMSA’s CEO, commented:

“During the first quarter we were able to leverage the resilience and confidence of the consumer in Mexico to deliver a robust set of numbers at FEMSA Comercio’s Proximity Division, despite a difficult comparison base driven by the Holy Week calendar shift. The Health Division delivered strong growth in Colombia and a steadily improving operation in Mexico even as it faced a soft quarter in Chile and foreign exchange headwinds across South America, and the Fuel Division faced supply disruptions early in the quarter that put some pressure on revenue growth. For its part, Coca-Cola FEMSA delivered top-and-bottom line growth in Mexico and Central America, as well as particularly encouraging volume growth in Brazil. All in all, it was a solid start to the year across the FEMSA business platform.”

As of the first quarter of 2019, we have adopted the International Financial Reporting Standard 16 – “Leases” (“IFRS 16”) across all our business units. Therefore, in order to provide a more useful base of comparison for investors and other market participants, we have included a set of numbers which estimate the retroactive effect that the adoption of IFRS 16 would have had on FEMSA’s 2018 financial results (the “Comparable Results”). The actual application of IFRS 16 to FEMSA’s 2018 financial results may yield different results. The performance comparisons expressed in this document will be made relative to the Comparable figures unless stated otherwise.


Total revenues increased 5.6% in 1Q19 compared to 1Q18, reflecting growth across all business units. On an organic basis1 total revenues grew 3.7%.

Gross profit grew 7.8%. Gross margin expanded 70 basis points, mainly driven by strong gross margin expansion at FEMSA Comercio’s Proximity Division, partially offset by a contraction at Coca-Cola FEMSA and FEMSA Comercio’s Health Division.

Income from operations increased 0.4%. On an organic basis1 income from operations decreased 1.9%.

Consolidated operating margin decreased 40 basis points to 7.7% of total revenues, reflecting margin contractions at Coca-Cola FEMSA and FEMSA Comercio’s Health Division.

Income tax was Ps. 1,930 million in 1Q19.

Net consolidated income increased significantly to Ps. 3,849 million, mainly reflecting an undemanding comparison base in 1Q18 caused by a non-cash foreign exchange loss related to FEMSA’s U.S. dollar-denominated cash position as impacted by the appreciation of the Mexican peso, coupled with lower interest expenses and an increase in other financial products during this quarter.

Net majority income was Ps. 0.62 per FEMSA Unit2 and US$ 0.32 per FEMSA ADS.

Capital expenditures amounted to Ps. 4,077 million, reflecting higher investments at FEMSA Comercio’s Proximity and Fuel Divisions.


FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through FEMSA Comercio, comprising a Proximity Division operating OXXO, a small-format store chain, a Health Division, which includes drugstores and related activities, and a Fuel Division, which operates the OXXO GAS chain of retail service stations. In the beverage industry, it participates through Coca-Cola FEMSA, a public bottler of Coca-Cola products; and in the beer industry, as a shareholder of Heineken, a brewer with operations in over 70 countries. Additionally, through its Strategic Businesses unit, it provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA`s business units and thirdparty clients. Through its business units, FEMSA has approximately 300,000 employees in 12 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index, among other indexes that evaluate is sustainability performance.

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