MONTERREY, Mexico, Feb. 25, 2011 /PRNewswire/ -- Fomento Economico Mexicano, S.A.B. de C.V. ("FEMSA") announced today its operational and financial results for the fourth quarter and full year 2010.
Fourth Quarter 2010 Highlights:
- FEMSA comparable consolidated total revenues and income from operations grew 3.8% and 7.5%, respectively, compared to the fourth quarter of 2009.
- Coca-Cola FEMSA income from operations increased 5.2%. Solid results from the Latincentro division drove these results.
- FEMSA Comercio achieved total revenues growth of 18.9% and income from operations increased 19.5%.
2010 Full Year Highlights:
- FEMSA comparable consolidated total revenues and income from operations grew 5.9% and 6.6%, respectively, compared to 2009, against a backdrop of soft consumer demand. FEMSA Comercio and the Mercosur division of Coca-Cola FEMSA were the main drivers of this performance. Excluding one-time Heineken transaction-related expenses, comparable consolidated income from operations would have grown 8.7%.
- Coca-Cola FEMSA income from operations increased 7.9%. Strong growth in the Mercosur and Latincentro divisions drove these results.
- FEMSA Comercio continued its pace of strong floor space growth by opening 1,092 net new stores in 2010. Income from operations increased 16.7%.
- Ordinary dividend of Ps. 4.6 billion proposed by FEMSA's Board of Directors, to be paid in 2011 subject to approval at the annual shareholders meeting in March 2011, representing an increase of 76.9 % over the prior year and 183.9 % over the dividend paid in 2009.
Jose Antonio Fernandez Carbajal, Chairman and CEO of FEMSA, commented: "We were able to wrap up an exciting 2010 on a solid note. This was a unique year for FEMSA, one that saw us take big steps in the strategic journey of our Company. From the signing of our agreement with Heineken in January, to the closing of the transaction in late April –making us the second largest shareholder in Heineken–, to the tremendous work carried out by all those involved in making sure a smooth transition took place, and last but certainly not least, to the current process of strategic analysis that we are thoroughly carrying out as we plot the future path for FEMSA. And all the while, having our operators navigate a challenging consumer environment across our territories to deliver yet another strong set of results."On the operational front, we are encouraged by what seems to be a fledgling sequential improvement in consumer sentiment in Mexico, evidenced by the strong performance of FEMSA Comercio during the fourth quarter. At Coca-Cola FEMSA, we were able to improve our profitability in 2010 even in the face of tough demand dynamics across markets. Certainly, challenges abound, but more than ever we are optimistic. Our capabilities, our team, and our financial flexibility put us in an enviable position to pursue and capture the many growth opportunities that lie ahead of us." 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. SOURCE Fomento Economico Mexicano, S.A.B. de C.V.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV