This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

FEMSA Grows Operating Income 9.8% In 1Q10

MONTERREY, Mexico, April 26 /PRNewswire-FirstCall/ -- Fomento Economico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX) announced today its operational and financial results for the first quarter.

First Quarter 2010 Highlights:

  • Consolidated total revenues and income from operations grew 6.2% and 9.8%, respectively, compared to the first quarter 2009, in spite of a challenging economic environment.
  • Coca-Cola FEMSA total revenues and income from operations increased 4.7% and 6.4%, respectively. Double-digit income from operations growth in Latincentro and Mercosur divisions drove these results.
  • FEMSA Cerveza income from operations increased 12.7%. Top-line growth mainly due to higher price per hectoliter in Mexico and strong volume growth in Brazil, combined with lower cost pressures, resulted in an operating margin expansion of 70 basis points.
  • FEMSA Comercio continued its pace of strong growth and margin expansion. Income from operations increased 28.7%, resulting in an operating margin expansion of 50 basis points.

Jose Antonio Fernandez, Chairman and CEO of FEMSA, commented: "The first quarter of 2010 demonstrated once again the strength of our diversified platform. While beverage consumers in Mexico were pressured by prevailing macroeconomic challenges, compounded by incremental taxes and affected by cold weather, we saw very solid numbers come out of our South American operations. While comparable sales growth was negative in FEMSA Comercio's northern border Mexican markets, we saw healthy trends in the center and south. And so, today we are able to report a solid set of numbers, with meaningful growth in operating income as well as margin expansion at every one of our businesses.

"In addition to that, today we are well on our way to closing the strategic Heineken transaction. Heineken shareholders have already voted in favor of the operation, most relevant regulators have signaled the green light as well, and later today we expect the shareholders of FEMSA to approve the transaction. And so, we are almost at the starting point of a new stage for our company, one that fills us with optimism and enthusiasm. We stand ready and energized to continue driving FEMSA along a path of long-term growth and value creation. And we hope you come along for the ride."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FMX $93.68 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs