MONTERREY, Mexico, Oct. 22 /PRNewswire-FirstCall/ -- Fomento Economico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX) announced today its operational and financial results for the third quarter of 2010.
Third Quarter 2010 Highlights:
- FEMSA comparable consolidated total revenues and income from operations grew 4.3% and 2.5%, respectively, compared to the third quarter 2009, in spite of a prevailing soft consumer demand environment. Excluding one-time Heineken transaction-related expenses, comparable consolidated income from operations would have grown 5.2%.
- Coca-Cola FEMSA income from operations increased 7.3%. Double-digit income from operations growth in the Mercosur division drove these results.
- FEMSA Comercio achieved total revenues growth of 15.2% aided by the opening of over 1,000 net new stores in the last twelve months. Income from operations increased 9.0%.
Jose Antonio Fernandez Carbajal, Chairman and CEO of FEMSA, commented: "During the third quarter, a fledgling consumer recovery in Mexico was hindered by extreme rainfall and low temperatures, first in the Northeast in the form of Hurricane Alex, which caused significant mayhem in and around Monterrey and the border region, and later in the Southeast of the country as massive rain precipitation covered large parts of the state of Veracruz and others under several feet of water. In spite of this, same-store-sales at FEMSA Comercio grew ahead of the industry, while the demand pressure on Coca-Cola FEMSA Mexico was offset by strong volume performance in Mercosur. And so, nine months into the year and facing challenging macroeconomic and weather-driven dynamics, as well as very tough comparable bases after a strong 2009, our results can be described as solid. We are focused on closing strong for the year and we are already setting aggressive internal targets for what we expect will be an even stronger 2011."
To obtain the full text of this earnings release, please visit our Investor Relations website at www.femsa.com/investor under the Financial Reports section
This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.
FEMSA is a leading company that participates in the non-alcoholic beverage industry through Coca-Cola FEMSA, the largest independent bottler of Coca-Cola products in the world in terms of sales volume; in the retail industry through FEMSA Comercio, operating the largest and fastest-growing chain of convenience stores in Latin America, 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.