Monterrey, Mexico, July 27, 2018 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the second quarter of 2018.
- 8.6% revenue growth at FEMSA Consolidated
- 130 basis points of gross margin expansion at FEMSA Comercio’s Retail Division
- 180 basis points of operating margin expansion at FEMSA Comercio’s Health Division
- Operating margin recovery to 0.7% of total revenues at FEMSA Comercio’s Fuel Division
- 2.7% volume growth at Coca-Cola FEMSA Brazil
Eduardo Padilla, FEMSA’s CEO, commented:
“Our results for the second quarter were solid. FEMSA Comercio’s Retail Division again showed healthy trends across its income statement, particularly considering the tough comparison base from the Holy Week calendar shift, as well as a record pace of expansion. The Health Division delivered encouraging results across its markets, reflecting improved commercial activity and more effective execution. For its part, the Fuel Division again faced a low comparison base and thus delivered another quarter of margin recovery, in spite of soft volumes, as well as an improved rate of unit growth. And at Coca-Cola FEMSA, we saw resilient top line performance in Mexico driven by strong pricing, as well as sustained positive volume trends in Brazil, despite the challenging macro environment. Furthermore, during the quarter we took a couple of important steps in our consolidation efforts in the region by announcing the expansion of our bottling operations in Guatemala and the addition of Uruguay to our platform.
In terms of macroeconomic trends, the consumer environment in our key Mexico market has been stable, as evidenced by OXXO’s six-month comparable sales growth of 5.1 percent, right in line with our long term expectations. Other variables such as the peso-dollar exchange rate, have improved slightly in recent weeks, which is encouraging. But Mexico is not immune to global concerns on international trade, and there are other macro questions to be answered in the near future. Beyond Mexico, we also face challenges and uncertainties in several markets, so we remain vigilant as ever as we continue to execute our strategy across businesses.”