MONTERREY, Mexico, July 27 /PRNewswire/ --
Fomento Economico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX) today announced its operational and financial results for the second quarter of 2007.
Second Quarter 2007 Highlights: -- Consolidated total revenues increased 7.4%. All operating units contributed to this top-line growth. -- Coca-Cola FEMSA total sales volume increased 5.9% and income from operations increased 10.5%. Strongest growth again came from international operations. -- FEMSA Cerveza total revenues increased 2.7%; Mexico sales volume increased 3.2%, Brazil sales volume increased 8.1% and export sales volume increased 27.1%. - Income from operations decreased 16.8%, however our full-year outlook is still expected to be in-line with 2006 levels. -- Oxxo total revenues increased 12.3%, driven by 159 net new stores for a total of 5,097 stores. Operating margin expanded by 90 basis points.
"The trends continue to improve gradually across our businesses after a rocky start to the year. At Coca-Cola FEMSA, pricing dynamics in Mexico are stabilizing and the business outside Mexico continues to deliver outstanding results. At Oxxo, we keep finding ways to expand our margins even as we continue to build a world-class convenience retailing system. Meanwhile, at FEMSA Cerveza we are setting the conditions for a stronger second half of the year as the variables that drive our business, internal and external, gradually move in the right direction. Most importantly and beyond any short-term results, as we continue to execute our strategy and strengthen our competitive position in all our businesses, we are putting FEMSA in a position to pursue sustainable profitable growth, across operations and across territories," commented Jose Antonio Fernandez, Chairman and CEO of FEMSA.
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 the leading beverage company in Latin America. It controls an integrated beverage platform that comprises Coca-Cola FEMSA, the largest Coca-Cola bottler in the region; FEMSA Cerveza, one of the leading brewers in Mexico and important beer exporter to the United States; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 5,000 stores.
Web site: http://www.femsa.com
