FEMSA Reports Strong Top Line

In the middle of a tough operating environment, Fomento Economico Mexicano, S.A. de C.V., also known as FEMSA (FMX) delivered 18.8% year over year growth in revenues, 16.1% operating income, and15.0% in EBITDA driven mainly by its double-digit performance at Coca-Cola FEMSA (KOF) and FEMSA Comercio. However, net income increased just 0.3% to MXN$2,505 million (US$187.6 million) from MXN$2,496 million in the year-ago quarter.

KOF’s total revenue, which accounted for 74% of the FMX’s revenue, increased 30.4% to MXN$24,184 million (US$1,811.5 million) versus MXN$18,544 million in the year ago quarter, due to positive exchange rate translation effect and the consolidation of REMIL in Brazil and Brisa in Colombia, which contributed approximately 30% and 20% of incremental revenues in the quarter. Operating income grew 16.0% to MXN$3,677 million (US$275.4 million) from MXN$3,169 million in the second quarter of 2008, mainly driven by double-digit operating income growth in the Latincentro and Mercosur divisions. Thus, consolidated majority net income in the quarter reached MXN$2,161 million (US$161.9 million), up 17.2% from MXN$1,844 million in the second quarter of 2008.