FEMSA Announces Fourth Quarter and Full Year 2018 Results - FEMSA
Press Release

FEMSA Announces Fourth Quarter and Full Year 2018 Results

Monterrey, Mexico, February 27, 2019 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the fourth quarter and full year of 2018.


  • 7.5% revenue growth (6.0% on an organic1 basis) at FEMSA Consolidated (FY, 6.8%; 6.6%)
  • 300 bps gross margin expansion at FEMSA Comercio’s Proximity Division (FY, 160 bps)
  • 6.1% income from operations growth at FEMSA Comercio’s Health Division (FY, 30.7%)
  • 3.4% operative cash flow growth at FEMSA Comercio’s Fuel Division (FY, 53.2%)
  • 2.0% revenue growth (-0.9% on an organic1 basis) at Coca-Cola FEMSA (FY, -0.5%; -0.9%)
  • Ordinary dividend of Ps. 9,692 million proposed by FEMSA’s Board of Directors, to be paid in 2019 subject to approval at the annual shareholders meeting to be held on March 22, 2019.

Eduardo Padilla, FEMSA’s CEO, commented:

“The fourth quarter results were generally consistent with the performance trends set earlier in the year. FEMSA Comercio’s Proximity Division achieved double-digit growth up and down its income statement, delivering stable operating margins on the back of strong expansion at the gross level. The Health Division generated mid-single digit growth and stable operating margins, as the Mexico operations continued to improve sequentially. The Fuel Division delivered solid growth in revenues and gross margin, but we were unable to carry that strength down to the bottom line. For its part, Coca-Cola FEMSA delivered top line and volume growth in several markets, with particularly encouraging trends coming out of Brazil.

2018 was an interesting year, with our two main markets going through major electoral processes and the changes that come with new administrations. We continue to see a resilient, confident consumer in Mexico, and a resurgent one in Brazil. And we are optimistic about most of the markets where we operate, across businesses. Most of all, we are optimistic about our platform, about the progress we made in 2018, and about the opportunities we have ahead of us.”

Results are compared to the same period of previous year.


Total revenues increased 7.5% in 4Q18 compared to 4Q17, reflecting growth across all operations. On an organic basis, total revenues grew 6.0%.

Gross profit grew 8.1%. Gross margin expanded 20 basis points, driven by strong gross margin expansion at FEMSA Comercio’s Proximity and Fuel Divisions, partially offset by contractions at Coca-Cola FEMSA and FEMSA Comercio’s Health Division.

Income from operations increased 2.3%. On an organic basis,1 income from operations decreased 4.4% reflecting a decline at Coca-Cola FEMSA. Consolidated operating margin decreased 60 basis points to 10.4% of total revenues, reflecting margin contractions at Coca-Cola FEMSA and FEMSA Comercio’s Fuel Division.

Income tax was Ps. 3,570 million in 4Q18.

Net consolidated income increased significantly to Ps. 14,318 million, reflecting an undemanding comparison base caused by the change in the accounting method for Coca-Cola FEMSA’s Venezuela operation, which resulted in a non-cash, onetime impact to the Other non-operative expenses line of the income statement during 4Q17, coupled with higher interest income during the quarter. This was partially offset by a decrease in foreign exchange gains related to FEMSA’s U.S. dollar denominated cash position.

Net majority income was Ps. 2.96 per FEMSA Unit2 and US$ 1.51 per FEMSA ADS.

Capital expenditures amounted to Ps. 7,703 million, reflecting lower investments at Coca-Cola FEMSA and FEMSA Comercio’s Health Division.


About the Company

FEMSA is a leading company that participates in the beverage industry through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume; and in the beer industry, through its ownership of the second largest equity stake in Heineken, one of the world`s leading brewers with operations in over 70 countries. In the retail industry it participates through FEMSA Comercio, comprising a Proximity Division operating OXXO, a small-format store chain, a Health Division, which includes all drugstores and related operations, and a Fuel Division, which operates the OXXO GAS chain of retail service stations. Additionally, through its Strategic Businesses unit, it provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA`s business units and third-party clients.

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