Press Release

FEMSA Announces Fourth Quarter and Full Year 2019 Results


Monterrey, Mexico, February 27, 2020 — 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 2019.


  • 5.7% revenue growth (3.9% on an organic basis) at FEMSA Consolidated (FY, 7.9%; 5.7%)
  • 40 basis points gross margin expansion at FEMSA Comercio’s Proximity Division (FY, 150 bps)
  • 12.5% revenue growth (-4.8% on an organic basis) at FEMSA Comercio’s Health Division (FY, 13.9%; 0.9%)
  • 5.2% income from operations growth at FEMSA Comercio’s Fuel Division (FY, 19.4%)
  • 3.1% revenue growth at Coca-Cola FEMSA (FY, 6.7%; 5.0%)
  • Total Capital Expenditures to reach approximately US$1,500 million in 2020; with more than 60% to be invested in Mexico

Eduardo Padilla, FEMSA’s CEO, commented:

“The fourth quarter was an eventful one. OXXO continued to grow at a steady pace in Mexico, and the international operations again performed well. The Health division had a complex quarter driven by disruptions in Chile, but we saw solid progress in every other market, while the Fuel division again delivered profitability gains in a challenging environment. For its part, Coca-Cola FEMSA continued to see good volume trends in Brazil and Central America, and healthy pricing across most of its markets, including Mexico.

As we look at 2020, we see a consumer in Mexico that remains resilient, particularly in the northern part of the country. We are optimistic about Brazil, where we are seeing good performance in our existing operations and have high expectations for our new ventures. And on the strategic front, we are pleased with the opportunities we are being able to invest in, focused always on our operational capabilities and exercising discipline with a view to create long-term value for all our stakeholders.”


Total revenues increased 5.7% in 4Q19 compared to 4Q18, reflecting growth across most of our business units. On an organic basis,1 total revenues grew 3.9%.

Gross profit grew 6.1%. Gross margin expanded 10 basis points, mainly driven by strong expansion at FEMSA Comercio’s Proximity Division, partially offset by a contraction at Coca-Cola FEMSA and FEMSA Comercio’s Health and Fuel Divisions.

Income from operations decreased 0.5%. On an organic basis, income from operations decreased 1.2%. Consolidated operating margin decreased 60 basis points to 10.3% of total revenues, reflecting a margin contraction at Coca-Cola FEMSA and FEMSA Comercio’s Health Division. These were partially offset by stable margins at FEMSA Comercio’s Proximity Division and margin expansion at FEMSA Comercio’s Fuel Division.

Income tax was Ps. 2,985 million in 4Q19.

Net consolidated income decreased 56.7% to Ps. 6,075 million, mainly driven 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, higher operating expenses at Coca-Cola FEMSA coupled with a demanding comparison base in 4Q18, driven by the results of discontinued operations related to the sale of the operations of Coca-Cola FEMSA’s Philippines business.

Net majority income was Ps. 1.34 per FEMSA Unit2 and US$0.71 per FEMSA ADS.

Capital expenditures amounted to Ps. 8,617 million, reflecting higher investments at most of our business units.

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