FEMSA Q4 Revenues Up 19.8%

Fomento Economico Mexicano (FEMSA) has reported that consolidated total revenues and income from operations for the fourth quarter of 2009 grew 19.8% and 21.5%, respectively, compared to the same quarter previous year. FEMSA's growth in revenues and income from operations was mainly driven by double-digit performance at Coca-Cola FEMSA and FEMSA Comercio.

For the quarter, Coca-Cola FEMSA total revenues and income from operations increased 27.6% and 19.1%, respectively, which was driven by double-digit income from operations growth in Latincentro and Mercosur operations.

FEMSA Cerveza total revenues for the fourth quarter increased 7.6%. The company said that top-line growth mainly due to higher price per hectoliter in Mexican pesos, combined with operating expense containment offsetting raw material cost pressures due to year-over-year increases, resulting in growth of 8.6% in income from operations. For the quarter, FEMSA Comercio's income from operations increased 45.3%

For the full year 2009 consolidated total revenues increased 17.3%. Consolidated income from operations increased 19.1%, driven by double-digit growth at Coca-Cola FEMSA and FEMSA Comercio.

For the full year 2009, Coca-Cola FEMSA total revenue and income from operations increased 23.9% and 15.6%, respectively. FEMSA Cerveza total revenues increased 9.3%, mainly as a result of increases in average price per hectoliter across all our operations in local currencies.

Income from operations increased 9.3%, as a result of growth combined with operating expense containment offsetting continued raw material cost pressures. FEMSA Comercio income from operations increased 44.8% for the year.

Jose Antonio Fernandez, chairman and CEO of FEMSA, said: At the outset of 2010, we should highlight the benefit of having not one, but two distinct reasons to be very optimistic about FEMSA. On the operating front, we closed a very challenging 2009 that nevertheless saw us grow, improve, and ultimately succeed in delivering a very robust set of results.

“On the strategic front, as you know, we announced a definitive agreement under which we are exchanging FEMSA's beer operations for a 20% economic interest in Heineken, which will allow our shareholders to participate in the value creation we believe will come from aligning FEMSA Cerveza with Heineken.

He added, At the same time, we increase FEMSA's operational and financial flexibility, and we will be able to focus our attention and resources on the significant opportunities for Coca-Cola FEMSA and FEMSA Comercio.”