SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
6-K
REPORT OF
FOREIGN PRIVATE ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 UNDER
THE
SECURITIES EXCHANGE ACT OF 1934
For the
month of October 2010
.
FOMENTO
ECONÓMICO MEXICANO, S.A.B. DE
C.V.
(Exact
name of Registrant as specified in its charter)
Mexican
Economic Development, Inc.
(Translation
of Registrant’s name into English)
United
Mexican States
(Jurisdiction
of incorporation or organization)
General
Anaya No. 601 Pte.
Colonia
Bella Vista
Monterrey, Nuevo
León 64410
México
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports
under
cover of Form 20-F or Form 40-F:
Form
20-F x Form
40-F ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): _______
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7): _______
Indicate
by check mark whether by furnishing the information contained in this Form, the
registrant is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨
No x
If "Yes"
is marked, indicate below the file number assigned to the registrant in
connection
with Rule 12g3-2(b): 82-_____________
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf of the undersigned,
thereunto duly authorized.
.
|
FOMENTO ECONÓMICO MEXICANO, S.A.
DE C.V.
|
|
|
By:
|
/s/ Javier Astaburuaga
|
|
Javier
Astaburuaga
|
|
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Chief
Financial
Officer
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|
Date: October
22, 2010
FEMSA
Grows Operating Income
Across
Operations in 3Q10
Monterrey, Mexico, October 22, 2010
— Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) 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%.
|
José
Antonio Fernández 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.”
FEMSA
Consolidated
On
April 30, 2010, FEMSA announced the closing of the strategic transaction
pursuant to which FEMSA agreed to exchange 100% of its beer operations for a 20%
economic interest in the Heineken Group (“the transaction”). For more
information regarding this acquisition, please refer to the transaction filings
available at www.femsa.com/investor. FEMSA’s consolidated results for the third
quarter and for the first nine months of 2010 reflect the transaction effects
and are presented on a comparable basis.
Comparable total revenues
increased 4.3% compared to 3Q09 to Ps. 42.782 billion. FEMSA Comercio accounted
for the majority of the incremental consolidated revenues. For
the first nine months of 2010, comparable consolidated total revenues increased
6.8% to Ps. 123.650 billion.
Comparable gross profit
increased 3.7% compared to 3Q09 to Ps.18.013 billion in 3Q10 mainly driven by
FEMSA Comercio. Gross margin decreased 20 basis points compared to the same
period in 2009 to 42.1% of total revenues.
For the
first nine months of 2010, comparable gross profit increased 5.7% to Ps. 51.341
billion. Gross margin decreased 50 basis points compared to the same period in
2009 to 41.5% of total revenues. FEMSA Comercio’s gross profit improvement
partially offset raw-material-driven cost pressures at Coca-Cola
FEMSA.
Comparable income from operations
increased 2.5% to Ps. 5.567 billion in 3Q10 as compared to the same
period in 2009. Excluding one-time Heineken transaction-related expenses,
comparable consolidated income from operations would have grown 5.2% in
3Q10. Consolidated operating margin decreased 20 basis points
compared to 3Q09 to 13.0% of total revenues, largely driven by pressure on the
gross margin, one-time expenses related to the Heineken transaction, as well as
by margin contraction at FEMSA Comercio.
For the
first nine months of 2010, comparable income from operations increased 6.1% to
Ps. 15.364 billion. Excluding those one-time Heineken transaction-related
expenses, comparable consolidated income from operations would have grown 8.9%
in that period. Our consolidated operating margin year-to-date was
12.4% as a percentage of total revenues, a decrease of 10 basis points as
compared to the same period of 2009, driven by pressure on the gross margin as
well as by one-time expenses related to the Heineken transaction.
Net income from continuing operations
increased 66.7% to Ps. 5.057 billion in 3Q10 compared to 3Q09, reflecting
the fact that this line includes an estimate for three months of FEMSA’s 20%
participation in Heineken’s second quarter 2010 net income. The figures also
reflect modest growth in comparable income from operations as well as a shift
from other expenses in 3Q09, to other income in 3Q10. This shift was
largely driven by the net effect of non-recurring items, including income from
the sale of the Mundet
brand to The Coca-Cola Company, and the restructuring of certain compensation
plans at Coca Cola FEMSA. The other income line partially offset a
higher integral result of financing during the quarter. This increase in
integral result of financing resulted mostly from a higher foreign exchange
non-cash loss due to the sequential appreciation of the Mexican Peso and its
impact on the dollar-denominated portion of our cash balance. The effective
income tax rate on continuing operations was 29.8% in 3Q10 compared to 31.3% in
3Q09.
For the
first nine months of 2010, net income for continuing operations increased 52.0%
to Ps. 11.499 billion compared to the same period of 2009, primarily as a result
of the combination of (i) the inclusion of an estimate for five months of
FEMSA’s 20% participation in Heineken’s first half of 2010 net income, (ii)
growth in income from operations, and (iii) a reduction in the other expenses
line.
Net consolidated income
increased 35.1% compared to 3Q09 to 5.057 billion in 3Q10, reflecting the
double-digit increase in FEMSA’s net income from continuing operations. Net majority income for 3Q10
resulted in Ps. 1.10 per FEMSA Unit1. Net majority income per
FEMSA ADS was US$ 0.87 for the quarter. For the first nine months of 2010, net
majority income per FEMSA Unit1 was Ps.
9.84 (US$ 7.79 per ADS).
|
1
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FEMSA
Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is
comprised of one Series B Share, two Series D-B Shares and two Series D-L
Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number
of FEMSA Units outstanding as of September 30, 2010 was 3,578,226,270
equivalent to the total number of FEMSA Shares outstanding as of the same
date, divided by 5.
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2
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October
22, 2010
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Capital expenditures increased
to Ps. 3.141 billion in 3Q10, driven by higher capacity-related investments at
Coca-Cola FEMSA and incremental investments in FEMSA Comercio related to store
expansion.
Our consolidated balance sheet as
of September 30, 2010, recorded a cash balance of Ps. 25.842 billion (US$ 2.047
billion), an increase of Ps. 9.883 billion (US$ 782.7 million) compared to the
same period in 2009. Short-term debt was Ps. 3.763 billion (US$ 298.0 million),
while long-term debt was Ps. 20.882 billion (US$ 1.654 billion). Our
consolidated net cash balance was Ps. 1.197 billion (US$ 94.8
million).
Soft
Drinks – Coca-Cola FEMSA
Coca-Cola
FEMSA’s financial results and discussion are incorporated by reference from
Coca-Cola FEMSA’s press release, which is attached to this press release or
visit www.coca-colafemsa.com.
FEMSA
Comercio
Total revenues increased 15.2%
compared to 3Q09 to Ps. 16.219 billion in 3Q10 mainly driven by the opening of
180 net new stores in the quarter, reaching 1,017 total net new store openings
in the last twelve months. As of September 30, 2010, FEMSA Comercio had a total
of 8,011 convenience stores, which is slightly ahead of schedule relative to the
objective for the year. Same-store sales increased an average of 4.4% for the
quarter over 3Q09, reflecting a 2.5% increase in average customer ticket and a
1.9% increase in store traffic. During the quarter, the same-store sales, ticket
and traffic dynamics continued to reflect a small effect from the mix shift from
physical prepaid wireless air-time cards to the sale of electronic air-time, for
which only the margin is recorded, not the full amount of the electronic
recharge. On a comparable basis excluding this change, the average ticket would
have grown slightly more than the reported figure.
For the
first nine months of 2010, total revenues increased 15.3% to Ps. 45.478 billion.
FEMSA Comercio´s same-store sales increased an average of 4.3%, driven by a 3.3%
increase in store traffic, which still reflects a small effect from the mix
shift from physical prepaid wireless air-time cards to the sale of electronic
air-time, as described above.
Gross profit increased by
18.2% in 3Q10 compared to 3Q09, resulting in a 90 basis point gross margin
expansion to reach 33.8% of total revenues. This increase reflects a positive
mix shift due to the growth of higher margin categories, a more effective
collaboration and execution with our key supplier partners combined with a more
efficient use of promotion-related marketing resources, and to a lesser extent,
the continued mix shift towards electronic air-time recharges as described
above. For the first nine months of 2010, gross margin expanded by 100 basis
points to 32.7% of total revenues.
Income from operations
increased 9.0% over 3Q09 to Ps. 1.343 billion in 3Q10. Operating expenses
increased 21.5% to Ps. 4.136 billion, largely driven by the growing number of
stores as well as by incremental expenses such as (i) higher utility tariffs at
the store level, (ii) the strengthening of FEMSA Comercio’s organizational
structure, mainly IT-related, which was deferred last year in response to the
challenging economic environment that prevailed in Mexico, and (iii) one-time
expenses related to floods in the state of Veracruz and others. As a
result, operating margin contracted 50 basis points compared to 3Q09,
representing 8.3% of total revenues. For the first nine months of 2010, income
from operations increased 15.0% to Ps. 3.222 billion, resulting in an operating
margin of 7.1%, which is in line with the prior year.
|
3
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October
22, 2010
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Recent
Developments
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·
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During
the Third Quarter of 2010, FEMSA sold the Mundet brand to The
Coca-Cola Company. Mundet is a 100-plus
year old brand acquired by FEMSA in 2001, and its flagship, Sidral Mundet, is a
leading product with real apple
content.
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·
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On
September 16, 2010, FEMSA signed definitive agreements to sell its
flexible packaging operations, Grafo Regia. This transaction is
consistent with FEMSA’s strategy to divest non-core assets. The
operation is subject to certain conditions, including approval from the
corresponding regulatory authorities, and is expected to close during the
fourth quarter of 2010.
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·
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On
October 20, 2010 FEMSA’s Board of Directors approved the adoption of
International Financial Reporting Standards (IFRS) beginning on January 1,
2011, one year before the mandated
deadline.
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CONFERENCE
CALL INFORMATION:
Our
Third Quarter Conference Call will be held on: Friday October 22, 2010,
9:00 AM Eastern Time (8:00 AM Mexico City Time). To participate in the
conference call, please dial: Domestic US: (877) 573-3228 International:
(706) 679-0077, Conference Id 16869822. The conference call will be
webcast live through streaming audio. For details please visit www.femsa.com/investor.
If
you are unable to participate live, the conference call audio will be
available on http://ir.FEMSA.com/results.cfm
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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.
The
translations of Mexican pesos into US dollars are included solely for the
convenience of the reader, using the noon day buying rate for pesos as published
by the Federal Reserve Bank of New York at September 30, 2010, which was 12.6270
Mexican pesos per US dollar.
FORWARD
LOOKING STATEMENTS
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.
Five
pages of tables and Coca-Cola FEMSA’s press release to follow.
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4
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October
22, 2010
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Consolidated
Income Statement
Millions
of Pesos
For
the third quarter of:
|
For the third quarter
of:
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For the nine months
of:
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|||||||||||||||||||||||||||||||||||||||
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2010 (A)
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% of
rev.
|
2009 (A)
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% of
rev.
|
%
Increase
|
2010 (A)
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% of
rev.
|
2009 (A)
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% of
rev.
|
%
Increase
|
|||||||||||||||||||||||||||||||
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Total
revenues
|
42,782 | 100.0 | 41,037 | 100.0 | 4.3 | 123,650 | 100.0 | 115,829 | 100.0 | 6.8 | ||||||||||||||||||||||||||||||
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Cost
of sales
|
24,769 | 57.9 | 23,675 | 57.7 | 4.6 | 72,309 | 58.5 | 67,236 | 58.0 | 7.5 | ||||||||||||||||||||||||||||||
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Gross
profit
|
18,013 | 42.1 | 17,362 | 42.3 | 3.7 | 51,341 | 41.5 | 48,593 | 42.0 | 5.7 | ||||||||||||||||||||||||||||||
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Administrative
expenses
|
2,002 | 4.7 | 1,778 | 4.3 | 12.6 | 5,699 | 4.6 | 5,385 | 4.6 | 5.8 | ||||||||||||||||||||||||||||||
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Selling
expenses
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10,444 | 24.4 | 10,155 | 24.8 | 2.8 | 30,278 | 24.5 | 28,725 | 24.9 | 5.4 | ||||||||||||||||||||||||||||||
|
Operating
expenses
|
12,446 | 29.1 | 11,933 | 29.1 | 4.3 | 35,977 | 29.1 | 34,110 | 29.5 | 5.5 | ||||||||||||||||||||||||||||||
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Income
from operations
|
5,567 | 13.0 | 5,429 | 13.2 | 2.5 | 15,364 | 12.4 | 14,483 | 12.5 | 6.1 | ||||||||||||||||||||||||||||||
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Other
(expenses) income
|
224 | (396 | ) |
N.S.
|
(299 | ) | (1,264 | ) | (76.3 | ) | ||||||||||||||||||||||||||||||
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Interest
expense
|
(784 | ) | (916 | ) | (14.4 | ) | (2,263 | ) | (3,109 | ) | (27.2 | ) | ||||||||||||||||||||||||||||
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Interest
income
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154 | 291 | (47.1 | ) | 685 | 876 | (21.8 | ) | ||||||||||||||||||||||||||||||||
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Interest
expense, net
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(630 | ) | (625 | ) | 0.8 | (1,578 | ) | (2,233 | ) | (29.3 | ) | |||||||||||||||||||||||||||||
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Foreign
exchange (loss) gain
|
(238 | ) | (68 | ) |
N.S.
|
(599 | ) | (414 | ) | 44.7 | ||||||||||||||||||||||||||||||
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(Loss)
gain on monetary position
|
21 | 159 | (86.8 | ) | 282 | 370 | (23.8 | ) | ||||||||||||||||||||||||||||||||
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Gain (loss) on financial instrument(1)
|
49 | (83 | ) |
N.S.
|
151 | 32 |
N.S.
|
|||||||||||||||||||||||||||||||||
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Integral
result of financing
|
(798 | ) | (617 | ) | 29.3 | (1,744 | ) | (2,245 | ) | (22.3 | ) | |||||||||||||||||||||||||||||
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Participation in Heineken results(2)
|
2,214 | - |
N.S.
|
2,722 | - |
N.S.
|
||||||||||||||||||||||||||||||||||
|
Income
before income tax
|
7,207 | 4,416 | 63.2 | 16,043 | 10,974 | 46.2 | ||||||||||||||||||||||||||||||||||
|
Income
tax
|
2,150 | 1,382 | 55.6 | 4,544 | 3,407 | 33.4 | ||||||||||||||||||||||||||||||||||
|
Net
income from continuing operations
|
5,057 | 3,034 | 66.7 | 11,499 | 7,567 | 52.0 | ||||||||||||||||||||||||||||||||||
|
Gain from transaction with Heineken, net of
taxes(3)
|
- | - |
N.S.
|
26,465 | - |
N.S.
|
||||||||||||||||||||||||||||||||||
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Net Income from FEMSA's former beer operations(4)
|
- | 708 |
N.S.
|
706 | 1,390 | (49.2 | ) | |||||||||||||||||||||||||||||||||
|
Net
consolidated income
|
5,057 | 3,742 | 35.1 | 38,670 | 8,957 |
N.S.
|
||||||||||||||||||||||||||||||||||
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Net
majority income
|
3,940 | 2,520 | 56.3 | 35,194 | 5,823 |
N.S.
|
||||||||||||||||||||||||||||||||||
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Net
minority income
|
1,117 | 1,222 | (8.6 | ) | 3,476 | 3,134 | 10.9 | |||||||||||||||||||||||||||||||||
(A) This
information is presented on a comparable basis.
|
EBITDA &
CAPEX
|
||||||||||||||||||||||||||||||||||||||||
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Income
from operations
|
5,567 | 13.0 | 5,429 | 13.2 | 2.5 | 15,364 | 12.4 | 14,483 | 12.5 | 6.1 | ||||||||||||||||||||||||||||||
|
Depreciation
|
933 | 2.2 | 905 | 2.2 | 3.1 | 2,760 | 2.2 | 2,798 | 2.4 | (1.4 | ) | |||||||||||||||||||||||||||||
|
Amortization &
other(5)
|
540 | 1.3 | 479 | 1.2 | 12.7 | 1,506 | 1.3 | 1,217 | 1.1 | 23.7 | ||||||||||||||||||||||||||||||
|
EBITDA
|
7,040 | 16.5 | 6,813 | 16.6 | 3.3 | 19,630 | 15.9 | 18,498 | 16.0 | 6.1 | ||||||||||||||||||||||||||||||
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CAPEX
|
3,141 | 2,387 | 31.6 | 7,384 | 5,387 | 37.1 | ||||||||||||||||||||||||||||||||||
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FINANCIAL
RATIOS
|
2010
|
2009
|
Var.
p.p.
|
|||||||||||||||||||||||||||||||||||||
|
Liquidity(6)
|
1.58 | 1.06 | 0.52 | |||||||||||||||||||||||||||||||||||||
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Interest coverage(7)
|
11.17 | 10.90 | 0.27 | |||||||||||||||||||||||||||||||||||||
|
Leverage(8)
|
0.47 | 0.99 | (0.52 | ) | ||||||||||||||||||||||||||||||||||||
|
Capitalization(9)
|
14.36 | % | 22.22 | % | (7.86 | ) | ||||||||||||||||||||||||||||||||||
(1)
Includes solely derivative instruments that do not meet hedging criteria for
accounting purposes.
(2)
Represents the estimated equity-method participation in Heinekens June 2010 net
income, adjusted to reflect FEMSA's former beer operations.
(3)
Represents the difference between the market value of the Heineken shares (20%
equity interest) and the book value of FEMSA's former beer
operations, net of transaction tax, as of the closing
date.
(4)
Represents the net income of FEMSA's former beer operations for the period ended
April 30.
(5)
Includes returnable bottle breakage expense.
(6) Total
current assets / total current liabilities.
(7) Income
from operations + depreciation + amortization & other / interest expense,
net.
(8) Total
liabilities / total stockholders' equity.
(9) Total
debt / long-term debt + stockholders' equity.
Total
debt = short-term bank loans + current maturities long-term debt + long-term
bank loans.
|
5
|
October
22, 2010
|
Consolidated
Balance Sheet
Millions
of Pesos
As
of September 30:
|
ASSETS
|
2010 (A)
|
2009 (A)
|
% Increase
|
|||||||||
|
Cash
and cash equivalents
|
25,842 | 15,959 | 61.9 | |||||||||
|
Accounts
receivable
|
6,200 | 5,369 | 15.5 | |||||||||
|
Inventories
|
9,960 | 8,952 | 11.3 | |||||||||
|
Other
current assets
|
4,332 | 4,201 | 3.1 | |||||||||
|
Current
assests of Beer Operations
|
- | 20,515 |
N.S.
|
|||||||||
|
Total
current assets
|
46,334 | 54,996 | (15.8 | ) | ||||||||
|
Investments
in shares
|
73,626 | 2,130 |
N.S.
|
|||||||||
|
Property,
plant and equipment, net
|
41,320 | 39,289 | 5.2 | |||||||||
|
Intangible
assets(1)
|
52,399 | 52,245 | 0.3 | |||||||||
|
Other
assets
|
8,264 | 15,865 | (47.9 | ) | ||||||||
|
Non-Current
assests of Beer Operations
|
- | 54,923 |
N.S.
|
|||||||||
|
TOTAL
ASSETS
|
221,943 | 219,448 | 1.1 | |||||||||
|
LIABILITIES & STOCKHOLDERS´
EQUITY
|
||||||||||||
|
Bank
loans
|
2,023 | 3,021 | (33.1 | ) | ||||||||
|
Current
maturities long-term debt
|
1,740 | 5,240 | (66.8 | ) | ||||||||
|
Interest
payable
|
122 | 155 | (21.3 | ) | ||||||||
|
Operating
liabilities
|
25,369 | 32,579 | (22.1 | ) | ||||||||
|
Current
liabilities of Beer Operations
|
- | 10,772 |
N.S.
|
|||||||||
|
Total
current liabilities
|
29,254 | 51,767 | (43.5 | ) | ||||||||
|
Long-term
debt (2)
|
20,882 | 20,828 | 0.3 | |||||||||
|
Labor
liabilities
|
1,863 | 1,725 | 8.0 | |||||||||
|
Other
liabilities
|
19,227 | 8,296 |
N.S.
|
|||||||||
|
Non-Current
liabilities of Beer Operations
|
- | 26,754 |
N.S.
|
|||||||||
|
Total
liabilities
|
71,226 | 109,370 | (34.9 | ) | ||||||||
|
Total
stockholders’ equity
|
150,717 | 110,078 | 36.9 | |||||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
221,943 | 219,448 | 1.1 | |||||||||
(A) This
information is presented on a comparable basis.
(1)
Includes mainly the intangible assets generated by acquisitions.
(2)
Includes the effect of assigned and non assigned derivative financial
instruments on long-term debt, for accountig purposes.
|
September 30, 2010
|
||||||||||||
|
DEBT MIX
|
Ps.
|
% Integration
|
Average Rate
|
|||||||||
|
Denominated
in:
|
||||||||||||
|
Mexican
pesos
|
13,287 | 53.9 | % | 6.1 | % | |||||||
|
Dollars
|
8,292 | 33.7 | % | 4.5 | % | |||||||
|
Colombian
pesos
|
1,688 | 6.9 | % | 4.5 | % | |||||||
|
Argentinan
pesos
|
1,191 | 4.8 | % | 16.6 | % | |||||||
|
Venezuelan
bolivars
|
86 | 0.3 | % | 12.0 | % | |||||||
|
Brazilian
Reals
|
101 | 0.4 | % | 4.5 | % | |||||||
|
Total
debt
|
24,645 | 100.0 | % | 6.1 | % | |||||||
|
Fixed
rate(1)
|
12,093 | 49.1 | % | |||||||||
|
Variable
rate(1)
|
12,552 | 50.9 | % | |||||||||
|
% of Total Debt
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016+ | |||||||||||||||||||||
|
DEBT
MATURITY PROFILE
|
2.2 | % | 13.1 | % | 15.7 | % | 16.1 | % | 5.7 | % | 11.5 | % | 35.7 | % | ||||||||||||||
(1)
Includes the effect of interest rate swaps.
|
6
|
October
22, 2010
|
Results
of Operations
Millions
of Pesos
For
the third quarter of:
|
For the third quarter
of:
|
For the nine months
of:
|
|||||||||||||||||||||||||||||||||||||||
|
2010 (A)
|
% of
rev.
|
2009 (A)
|
% of rev.
|
%
Increase
|
2010 (A)
|
% of rev.
|
2009 (A)
|
% of
rev.
|
%
Increase
|
|||||||||||||||||||||||||||||||
|
Total
revenues
|
25,675 | 100.0 | 26,007 | 100.0 | (1.3 | ) | 75,097 | 100.0 | 73,358 | 100.0 | 2.4 | |||||||||||||||||||||||||||||
|
Cost
of sales
|
13,546 | 52.8 | 13,943 | 53.6 | (2.8 | ) | 40,307 | 53.7 | 39,128 | 53.3 | 3.0 | |||||||||||||||||||||||||||||
|
Gross
profit
|
12,129 | 47.2 | 12,064 | 46.4 | 0.5 | 34,790 | 46.3 | 34,230 | 46.7 | 1.6 | ||||||||||||||||||||||||||||||
|
Administrative
expenses
|
1,107 | 4.3 | 1,137 | 4.4 | (2.6 | ) | 3,181 | 4.2 | 3,582 | 4.9 | (11.2 | ) | ||||||||||||||||||||||||||||
|
Selling
expenses
|
6,773 | 26.4 | 6,968 | 26.8 | (2.8 | ) | 19,661 | 26.2 | 19,669 | 26.8 | 0.0 | |||||||||||||||||||||||||||||
|
Operating
expenses
|
7,880 | 30.7 | 8,105 | 31.2 | (2.8 | ) | 22,842 | 30.4 | 23,251 | 31.7 | (1.8 | ) | ||||||||||||||||||||||||||||
|
Income
from operations
|
4,249 | 16.5 | 3,959 | 15.2 | 7.3 | 11,948 | 15.9 | 10,979 | 15.0 | 8.8 | ||||||||||||||||||||||||||||||
|
Depreciation
|
642 | 2.5 | 672 | 2.6 | (4.5 | ) | 1,942 | 2.6 | 2,113 | 2.9 | (8.1 | ) | ||||||||||||||||||||||||||||
|
Amortization
& other
|
348 | 1.4 | 317 | 1.2 | 9.8 | 961 | 1.3 | 734 | 0.9 | 30.9 | ||||||||||||||||||||||||||||||
|
EBITDA
|
5,239 | 20.4 | 4,948 | 19.0 | 5.9 | 14,851 | 19.8 | 13,826 | 18.8 | 7.4 | ||||||||||||||||||||||||||||||
|
Capital
expenditures
|
2,231 | 1,542 | 44.7 | 4,947 | 3,321 | 48.9 | ||||||||||||||||||||||||||||||||||
(A)
Average Mexican Pesos of each year.
|
Sales
volumes
|
||||||||||||||||||||||||||||||||||||||||
|
(Millions
of unit cases)
|
||||||||||||||||||||||||||||||||||||||||
|
Mexico
|
315.6 | 51.2 | 321.4 | 52.2 | (1.8 | ) | 930.0 | 50.6 | 923.0 | 52.0 | 0.8 | |||||||||||||||||||||||||||||
|
Latincentro
|
143.8 | 23.3 | 151.8 | 24.7 | (5.3 | ) | 440.5 | 23.9 | 426.9 | 24.0 | 3.2 | |||||||||||||||||||||||||||||
|
Mercosur
|
157.0 | 25.5 | 142.4 | 23.1 | 10.2 | 469.1 | 25.5 | 426.9 | 24.0 | 9.9 | ||||||||||||||||||||||||||||||
|
Total
|
616.4 | 100.0 | 615.6 | 100.0 | 0.1 | 1,839.6 | 100.0 | 1,776.8 | 100.0 | 3.5 | ||||||||||||||||||||||||||||||
|
7
|
October
22, 2010
|
Results
of Operations
Millions
of Pesos
For
the third quarter of:
|
For the third quarter of:
|
For the nine months of:
|
|||||||||||||||||||||||||||||||||||||||
|
2010 (A)
|
% of rev.
|
2009 (A)
|
% of
rev.
|
%
Increase
|
2010 (A)
|
% of
rev.
|
2009 (A)
|
% of
rev.
|
%
Increase
|
|||||||||||||||||||||||||||||||
|
Total
revenues
|
16,219 | 100.0 | 14,080 | 100.0 | 15.2 | 45,478 | 100.0 | 39,435 | 100.0 | 15.3 | ||||||||||||||||||||||||||||||
|
Cost
of sales
|
10,740 | 66.2 | 9,443 | 67.1 | 13.7 | 30,596 | 67.3 | 26,921 | 68.3 | 13.7 | ||||||||||||||||||||||||||||||
|
Gross
profit
|
5,479 | 33.8 | 4,637 | 32.9 | 18.2 | 14,882 | 32.7 | 12,514 | 31.7 | 18.9 | ||||||||||||||||||||||||||||||
|
Administrative
expenses
|
316 | 1.9 | 232 | 1.6 | 36.2 | 876 | 1.9 | 682 | 1.7 | 28.4 | ||||||||||||||||||||||||||||||
|
Selling
expenses
|
3,820 | 23.6 | 3,173 | 22.5 | 20.4 | 10,784 | 23.7 | 9,031 | 22.9 | 19.4 | ||||||||||||||||||||||||||||||
|
Operating
expenses
|
4,136 | 25.5 | 3,405 | 24.1 | 21.5 | 11,660 | 25.6 | 9,713 | 24.6 | 20.0 | ||||||||||||||||||||||||||||||
|
Income
from operations
|
1,343 | 8.3 | 1,232 | 8.8 | 9.0 | 3,222 | 7.1 | 2,801 | 7.1 | 15.0 | ||||||||||||||||||||||||||||||
|
Depreciation
|
252 | 1.6 | 207 | 1.5 | 21.7 | 724 | 1.6 | 607 | 1.5 | 19.3 | ||||||||||||||||||||||||||||||
|
Amortization
& other
|
157 | 0.9 | 130 | 0.8 | 20.8 | 441 | 0.9 | 383 | 1.0 | 15.1 | ||||||||||||||||||||||||||||||
|
EBITDA
|
1,752 | 10.8 | 1,569 | 11.1 | 11.7 | 4,387 | 9.6 | 3,791 | 9.6 | 15.7 | ||||||||||||||||||||||||||||||
|
Capital
expenditures
|
822 | 701 | 17.3 | 2,188 | 1,872 | 16.9 | ||||||||||||||||||||||||||||||||||
|
(A)
Average Mexican Pesos of each
year.
|
||||||||||||||||||||||||||||||||||||||||
|
Information of OXXO
Stores
|
||||||||||||||||||||||||||||||||||||||||
|
Total
stores
|
8,011 | 6,994 | 14.5 | |||||||||||||||||||||||||||||||||||||
|
Net
new convenience stores
|
180 | 183 | (1.6 | ) | 1,017 | (2) | 906 | (2) | 12.3 | |||||||||||||||||||||||||||||||
|
Same store data: (1)
|
||||||||||||||||||||||||||||||||||||||||
|
Sales
(thousands of pesos)
|
648.2 | 620.8 | 4.4 | 628.4 | 602.5 | 4.3 | ||||||||||||||||||||||||||||||||||
|
Traffic
(thousands of transactions)
|
26.0 | 25.5 | 1.9 | 25.4 | 24.6 | 3.3 | ||||||||||||||||||||||||||||||||||
|
Ticket
(pesos)
|
24.9 | 24.3 | 2.5 | 24.7 | 24.5 | 0.9 | ||||||||||||||||||||||||||||||||||
(1)
Monthly average information per store, considering same stores with more than 12
months of operations.
(2) For
the last twelve months for each period.
|
8
|
October
22, 2010
|
Macroeconomic
Information
|
End of period, Exchange Rates
|
||||||||||||||||||||||||||||
|
Inflation
|
Sep-10
|
Sep-09
|
||||||||||||||||||||||||||
|
Sep- 09 -
|
December 09 -
|
|||||||||||||||||||||||||||
|
3Q 2010
|
Sep-10
|
Sep-10
|
Per USD
|
Per Mx. Peso
|
Per USD
|
Per Mx. Peso
|
||||||||||||||||||||||
|
Mexico
|
1.02 | % | 3.70 | % | 2.43 | % | 12.50 | 1.0000 | 13.50 | 1.0000 | ||||||||||||||||||
|
Colombia
|
-0.07 | % | 2.27 | % | 2.39 | % | 1,799.89 | 0.0069 | 1,922.00 | 0.0070 | ||||||||||||||||||
|
Venezuela
|
4.21 | % | 27.92 | % | 21.20 | % | 4.30 | 2.9072 | 2.15 | 6.2810 | ||||||||||||||||||
|
Brazil
|
0.40 | % | 4.68 | % | 3.80 | % | 1.69 | 7.3788 | 1.78 | 7.5947 | ||||||||||||||||||
|
Argentina
|
2.28 | % | 11.09 | % | 8.29 | % | 3.96 | 3.1568 | 3.84 | 3.5140 | ||||||||||||||||||
|
Euro
Zone
|
0.06 | % | 1.48 | % | 1.11 | % | 0.73 | 17.0617 | 0.71 | 19.0869 | ||||||||||||||||||
|
9
|
October
22, 2010
|
 |
 |
|||||||||||||||||
|
2010
THIRD-QUARTER AND FIRST NINE-MONTH RESULTS
|
||||||||||||||||||
|
|
||||||||||||||||||
|
Third
Quarter
|
YTD
|
|||||||||||||||||
|
2010
|
2009
|
Δ%
|
2010
|
2009
|
Δ%
|
|||||||||||||
|
Total
Revenues
|
25,675
|
26,007
|
-1.3
|
%
|
75,097
|
73,358
|
2.4
|
%
|
||||||||||
|
Gross
Profit
|
12,129
|
12,064
|
0.5
|
%
|
34,790
|
34,230
|
1.6
|
%
|
||||||||||
|
Operating
Income
|
4,249
|
3,959
|
7.3
|
%
|
11,948
|
10,979
|
8.8
|
%
|
||||||||||
|
Net
Controlling Interest Income
|
2,126
|
2,134
|
-0.4
|
%
|
6,758
|
5,679
|
19.0
|
%
|
||||||||||
|
EBITDA(1)
|
5,239
|
4,948
|
5.9
|
%
|
14,851
|
13,826
|
7.4
|
%
|
||||||||||
|
Net
Debt (2)
|
5,949
|
5,971
|
-0.4
|
%
|
||||||||||||||
|
Net
Debt / EBITDA (3)
|
0.29
|
0.31
|
||||||||||||||||
|
EBITDA/
Interest Expense, net
(3)
|
13.84
|
10.35
|
||||||||||||||||
|
Earnings
per Share
(3)
|
4.81
|
3.54
|
||||||||||||||||
|
Capitalization(4)
|
20.0
|
%
|
20.2
|
%
|
||||||||||||||
|
Expressed
in millions of Mexican pesos.
|
||||||||||||||||||
|
(1)
EBITDA = Operating income + Depreciation + Amortization & Other
operative Non-cash Charges.
|
||||||||||||||||||
|
See
reconciliation table on page 9 except for Earnings per
Share
|
||||||||||||||||||
|
(2)
Net Debt = Total Debt - Cash
|
||||||||||||||||||
|
(3)
LTM figures
|
||||||||||||||||||
|
(4)
Total debt / (long-term debt + shareholders' equity)
|
||||||||||||||||||
Total revenues reached Ps. 25,675 million in the third quarter of 2010, a
decrease of 1.3% compared to the third quarter of 2009 mainly as a result
of the devaluation of the Venezuelan bolivar, which was partially
compensated by double-digit total revenue growth in our Mercosur division
and a low single-digit total revenue growth in our Mexico division. On a
currency neutral basis, total revenues grew approximately
13%. |
||||||||||||||||||
|
Consolidated operating income grew 7.3% to Ps. 4,249 million for the third
quarter of 2010, driven by double-digit operating income growth recorded
in our Mercosur division. Our operating margin was 16.5% in the third
quarter of 2010. |
||||||||||||||||||
|
Consolidated
net controlling interest income remained stable reaching Ps. 2,126 million
in the third quarter of 2010, resulting in earnings per share of Ps. 1.15
in the third quarter of 2010. |
||||||||||||||||||
|
Mexico
City (October 21, 2010), Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL, NYSE:
KOF) (“Coca-Cola FEMSA” or the “Company”), the largest public Coca-Cola
bottler in the world in terms of sales volume, announces results for the
third quarter of 2010.
|
||||||||||||||||||
|
"Our
increased profitability for the quarter highlights the benefits of our
balanced, geographically diversified portfolio of franchise territories.
Despite tough weather conditions in our Mexico and Latincentro divisions,
strong performance from our Brazilian franchise, in combination with our
pricing initiatives across our territories, drove our local currency
top-line growth for the quarter. We are pleased to have successfully
integrated the “Matte Leao” product line in Brazil, adding a strong brand
in the tea category to our portfolio. This not only satisfies our
consumers’ preferences, but also reinforces the non-carbonated beverage
platform that we operate together with our partner, The Coca-Cola Company,
and the rest of the Brazilian Coca-Cola system. The financial flexibility
we have achieved over the past several years demonstrates our ability to
operate our business in challenging environments. As we continue to
analyze the opportunities in the beverage industry, we will maintain our
disciplined and efficient efforts to grow our business both organically
and through acquisitions that create value for our shareholders." said
Carlos Salazar Lomelin, Chief Executive Officer of the
Company.
|
||||||||||||||||||
|
October
21, 2010
|
 |
Page
10
|
CONSOLIDATED
RESULTS
Our
consolidated total revenues decreased 1.3% to Ps. 25,675 million in the third
quarter of 2010, compared to the third quarter of 2009 mainly as a result of the
devaluation of the Venezuelan bolivar. On a currency neutral basis, total
revenues grew approximately 13%, mainly driven by the strong performance of our
Mercosur division, in combination with average price per unit case growth across
our territories.
Total
sales volume increased 0.1% to reach 616.4 million unit cases in the third
quarter of 2010 as compared to the same period in 2009. Strong volume growth
across all categories in our Mercosur division, mainly driven by a 10% increase
in the Coca-Cola brand,
was compensated by volume declines in our Latincentro and Mexico
divisions.
Our gross
profit increased 0.5% to Ps. 12,129 million in the third quarter of 2010,
compared to the third quarter of 2009. Cost of goods sold decreased 2.8%, mainly
as a result of the devaluation of the Venezuelan bolivar. In local currency,
cost of goods sold increased mainly driven by higher year-over-year sweetener
costs across our territories, which were partially offset by the appreciation of
the Mexican peso,(1)
the Colombian peso(1)
and the Brazilian real
(1) as applied to our U.S. dollar-denominated raw material costs.
Leverage achieved through higher average prices per unit case in local currency
resulted in a gross margin expansion of 80 basis points to reach 47.2% in the
third quarter of 2010.
Our
consolidated operating income increased 7.3% to Ps. 4,249 million in the third
quarter of 2010, driven by double-digit operating income growth in our Mercosur
division. Operating expenses decreased 2.8% in the third quarter of 2010 mainly
as a result of the devaluation of the Venezuelan bolivar. In local currency,
operating expenses grew mainly as a result of (i) continued marketing investment
in our Mexico division to support our execution in the marketplace, widen our
cooler coverage and broaden our returnable base availability, (ii) higher labor
and freight costs in Argentina and (iii) higher labor costs in Venezuela. Our
operating margin was 16.5% in the third quarter of 2010, an expansion of 130
basis points compared to the same period in 2009.
During
the third quarter of 2010, we recorded Ps. 443 million in the other expense, net
line. These expenses mainly reflect the restructuring of certain compensation
plans and the recording of employee profit sharing.
Our
comprehensive financing result in the third quarter of 2010 recorded an expense
of Ps. 512 million as compared to an expense of Ps. 378 million in the same
period of 2009.
During
the third quarter of 2010, income tax, as a percentage of income before taxes,
was 31.7% compared to 30.9% in the same period of 2009.
Our
consolidated net controlling interest income(2)
remained stable at Ps. 2,126 million in the third quarter of 2010 as compared to
the third quarter of 2009. Earnings per share (EPS) in the third quarter of 2010
were Ps. 1.15 (Ps. 11.51 per ADS) computed on the basis of 1,846.5 million
shares outstanding (each ADS represents 10 local shares).
(1) See
page 14 for average and end of period exchange rates for the third
quarter.
(2)
Previously referred to as Majority Net Income; name changed in accordance with
Mexican Financial Reporting Standards.
|
October
21, 2010
|
|
Page
11
|
BALANCE
SHEET
As of
September 30, 2010, we had a cash balance of Ps. 11,235 million, including US$
591 million denominated in U.S. dollars, an increase of Ps. 1,281 million
compared to December 31, 2009, mainly as a result of cash generated by our
operations, net of debt and dividend payments made during the year.
As of
September 30, 2010, total short-term debt was Ps. 2,301 million and long-term
debt was Ps. 14,883 million. Total debt increased Ps. 1,259 million. During
February we issued a Yankee Bond in the amount of US$ 500 million. We used the
proceeds to pay the maturity of our Ps. 2,000 million and Ps. 1,000 million
Certificados Bursátiles
on February and April, respectively, and to prepay US$ 202 million of bilateral
loans. During the third quarter, we increased our debt denominated in Colombian
pesos by an amount equivalent to US$ 97 million. KOF’s total debt balance
includes U.S. dollar-denominated debt in the amount of US$ 673 million.(1)
The
weighted average cost of debt for the quarter was 5.8%. The following charts set
forth the Company’s debt profile by currency and interest rate type and by
maturity date as of September 30, 2010:
|
Currency
|
% Total Debt(1)
|
% Interest Rate
Floating(1)(2)
|
||||||
|
Mexican
pesos
|
33.8 | % | 38.0 | % | ||||
|
U.S.
dollars
|
48.4 | % | 4.6 | % | ||||
|
Colombian
pesos
|
9.8 | % | 100.0 | % | ||||
|
Venezuelan
bolivars
|
0.5 | % | 0.0 | % | ||||
|
Argentine
pesos
|
6.9 | % | 0.0 | % | ||||
|
(1)
|
After
giving effect to cross-currency swaps and interest rate
swaps.
|
|
(2)
|
Calculated
by weighting each year’s outstanding debt balance
mix.
|
Debt
Maturity Profile
|
Maturity
Date
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015+
|
||||||||||||||||||
|
%
of Total Debt
|
3.1 | % | 10.1 | % | 22.6 | % | 2.7 | % | 8.2 | % | 53.3 | % | ||||||||||||
Consolidated
Cash Flow
Expressed
in millions of Mexican pesos (Ps.) as of Septiembre 30, 2010
|
Sep-10
|
||||
|
Ps.
|
||||
|
Income
before taxes
|
10,011 | |||
|
Non
cash charges to net income
|
4,472 | |||
| 14,483 | ||||
|
Change
in working capital
|
(4,182 | ) | ||
|
Resources
Generated by Operating Activities
|
10,301 | |||
|
Investments
|
(5,243 | ) | ||
|
Debt
and notes
|
2,041 | |||
|
Dividends
declared and paid
|
(2,612 | ) | ||
|
Other
|
(1,529 | ) | ||
|
Increase
in cash and cash equivalents
|
2,958 | |||
|
Cash,
cash equivalents and marketable securities at begining of
period
|
9,954 | |||
|
Translation
Effect
|
(1,677 | ) | ||
|
Cash,
cash equivalents and marketable securities at end of
period
|
11,235 | |||
The
differences between the items presented in the balance sheet and the cash flow
are related to the fact that the cash flow is presented on a historical basis
and the balance sheet is presented in nominal terms. These differences are
presented separately as a part of the translation effect in the cash flow, in
accordance with the Mexican Financial Reporting Standards.
|
October
21, 2010
|
|
Page
12
|
MEXICO
DIVISION OPERATING RESULTS
Revenues
Total
revenues from our Mexico division increased 3.4% to Ps. 9,903 million in the
third quarter of 2010, as compared to the same period in 2009. Increased average
price per unit case accounted for incremental revenues during the quarter.
Average price per unit case reached Ps. 31.22, an increase of 5.0%, as compared
to the third quarter of 2009, mainly reflecting selective price increases across
our product portfolio implemented over the past several months. Excluding bulk
water under the Ciel
brand, our average price per unit case was Ps. 36.18, a 4.4% increase as
compared to the same period in 2009.
Total
sales volume decreased 1.8% to 315.6 million unit cases in the third quarter of
2010, as compared to the third quarter of 2009. Sparkling beverage volume
declined 1% and our bottled water and still beverage categories decreased almost
4%, each.
Operating
Income
Our gross
profit increased 3.8% to Ps. 4,886 million in the third quarter of 2010 as
compared to the same period in 2009. Cost of goods sold increased 2.9% as a
result of higher sweetener costs, which were partially compensated by the
appreciation of the Mexican peso(1) as
applied to our U.S. dollar-denominated raw material costs. Leverage achieved
through higher average prices per unit case resulted in a gross margin expansion
of 20 basis points to reach 49.3% in the third quarter of 2010.
Operating
income decreased 1.4% to Ps. 1,675 million in the third quarter of 2010,
compared to Ps. 1,699 million in the same period of 2009. Operating expenses
grew 6.7% mainly due to continued marketing investment to support our execution
in the marketplace, widen our cooler coverage and broaden our returnable base
availability. Our operating margin was 16.9% in the third quarter of 2010,
compared to 17.7% in the same period of 2009.
(1) See
page 14 for average and end of period exchange rates for the third
quarter.
|
October
21, 2010
|
|
Page
13
|
LATINCENTRO
DIVISION OPERATING RESULTS (Colombia, Venezuela, Guatemala, Nicaragua, Costa
Rica and Panama)
Revenues
Total
revenues reached Ps. 7,649 million in the third quarter of 2010, a decrease of
22.3% as compared to the same period of 2009 mainly as a result of the
devaluation of the Venezuelan bolivar. On a currency neutral basis, total
revenues increased approximately 16% due to selective pricing initiatives
implemented over the past several months across the division.
Total
sales volume in our Latincentro division decreased 5.3% to 143.8 million unit
cases in the third quarter of 2010 as compared to the same period of 2009.
Sparkling beverage volume declined 5% and our bottled water and still beverage
categories decreased 5% and 9%, respectively.
Operating
Income
Gross
profit reached Ps. 3,600 million, a decrease of 19.5% in the third quarter of
2010, as compared to the same period of 2009. Cost of goods sold decreased 24.6%
mainly as a result of the devaluation of the Venezuelan bolivar. In local
currency, cost of goods sold increased mainly as a result of higher
year-over-year sweetener costs across the division, which were partially
compensated by the appreciation of the Colombian peso(1)
as applied to our U.S. dollar-denominated raw material costs. Leverage achieved
by higher average prices per unit case in local currency resulted in a gross
margin expansion of 170 basis points to 47.1% in the third quarter of
2010.
Our
operating income decreased 3.4% to Ps. 1,257 million in the third quarter of
2010, compared to the third quarter of 2009. Operating expenses decreased 26.1%
mainly as a result of the devaluation of the Venezuelan bolivar. In local
currency, operating expenses grew as a result of higher labor costs in Venezuela
and continued marketing investments to support our still beverage platform in
Central America. Our operating margin reached 16.4% in the third quarter of
2010, as compared to 13.2% in the same period of 2009.
(1) See
page 14 for average and end of period exchange rates for the third
quarter.
|
October
21, 2010
|
|
Page
14
|
MERCOSUR
DIVISION OPERATING RESULTS (Brazil and Argentina)
Volume
and average price per unit case exclude beer results.
Revenues
Total
revenues increased 23.4% to Ps. 8,123 million in the third quarter of 2010, as
compared to the same period of 2009. Excluding beer, which accounted for Ps. 819
million during the quarter, revenues increased 23.0% to Ps. 7,304 million.
Higher average prices per unit case and volume growth accounted for the majority
of incremental revenues. On a currency neutral basis, our Mercosur division’s
revenues increased approximately 23%.
Total
sales volume in our Mercosur division increased 10.2% to 157.0 million unit
cases in the third quarter of 2010 as compared to the same period of 2009.
Volume growth was a result of (i) a 9% growth in sparkling beverages, mainly
driven by the strong performance of the Coca-Cola brand in Brazil and
Argentina, growing 12% and 5% respectively, accounting for approximately 80% of
incremental volumes, (ii) a 31% growth in the still beverage category, driven by
the Jugos del Valle line of business in Brazil and Aquarius flavored water in
Argentina, contributing more than 10% of incremental volumes, and (iii) a 20%
increase in our bottled water category, representing the balance.
Operating
Income
In the
third quarter of 2010, our gross profit increased 26.2% to Ps. 3,643 million, as
compared to the same period in 2009. Cost of goods sold increased 21.2% mainly
due to higher sweetener costs in the division and higher PET costs in Argentina,
which were partially compensated by the appreciation of the Brazilian real(1)
as applied to our U.S. dollar-denominated raw material costs. Leverage achieved
by higher revenues resulted in a gross margin expansion of 100 basis points to
reach 44.8% in the third quarter of 2010.
Operating
income increased 37.3%, reaching Ps. 1,317 million in the third quarter of 2010,
as compared to Ps. 959 million in the same period of 2009. Operating expenses
increased 20.7%, mainly driven by higher labor and freight costs in Argentina.
Our operating margin was 16.2% in the third quarter of 2010, an expansion of 160
basis points as compared to the third quarter of 2009.
(1) See
page 14 for average and end of period exchange rates for the third
quarter.
|
October
21, 2010
|
|
Page
15
|
SUMMARY
OF NINE-MONTH RESULTS
Our
consolidated total revenues increased 2.4% to Ps. 75,097 million in the first
nine months of 2010, as compared to the same period of 2009, as a result of
revenue growth in our Mercosur and Mexico divisions and despite the devaluation
of the Venezuelan bolivar. On a currency neutral basis and excluding the
acquisition of Brisa in Colombia, total revenues increased approximately 16% in
the first nine months of 2010.
Total
sales volume increased 3.5% to 1,839.6 million unit cases in the first nine
months of 2010, as compared to the same period in 2009. The sparkling beverage
category, driven by a 4% growth of the Coca-Cola brand, contributed
approximately 70% of incremental volumes. The consolidation of the Brisa water brand in Colombia
drove a 4% growth in our bottled water portfolio, accounting for more than 15%
of incremental volumes, and the still beverage category, mainly driven by the
performance of the Jugos del Valle line of business across our territories, grew
10%, representing the balance. Excluding the non-comparable effect of Brisa, total sales volume
increased 2.4% to reach 1,819.7 million unit cases.
Our gross
profit increased 1.6% to Ps. 34,790 million in the first nine months of 2010, as
compared to the same period of 2009. Cost of goods sold increased 3.0% as a
result of higher cost of sweetener across our operations, which was partially
offset by the appreciation of the Brazilian real,(1)
the Colombian peso(1)
and the Mexican peso
(1) as applied to our U.S. dollar-denominated raw material costs. Gross
margin reached 46.3% for the first nine months of 2010, a decrease of 40 basis
points as compared to the same period of 2009.
Our
consolidated operating income increased 8.8% to Ps. 11,948 million in the first
nine months of 2010, as compared to the same period of 2009. Our Mercosur and
Latincentro divisions accounted for this growth. Our operating margin was 15.9%
for the first nine months of 2010, a 90 basis points expansion as compared to
the same period of 2009.
Our
consolidated net controlling interest income(2)
increased by 19.0% to Ps. 6,758 million in the first nine months of 2010 as
compared to the same period of 2009, mainly as a result of higher operating
income. Earnings per share (EPS) in the first nine months of 2010 were Ps. 3.66
(Ps. 36.60 per ADS) computed on the basis of 1,846.5 million shares outstanding
(each ADS represents 10 local shares).
|
(1)
|
See
page 14 for average and end of period exchange rates for the third quarter
and nine months.
|
|
(2)
|
Previously
referred to as Majority Net Income; name changed in accordance with
Mexican Financial Reporting
Standards.
|
|
October
21, 2010
|
|
Page
16
|
RECENT
DEVELOPMENTS
|
|
During
the third quarter, Coca-Cola FEMSA completed a transaction with a
Brazilian subsidiary of The Coca-Cola Company to produce, sell and
distribute Matte Leao branded products. This transaction will reinforce
the Company’s non-carbonated product offering through the platform that is
operated by The Coca-Cola Company and its Bottling Partners in Brazil. As
a part of the agreement, Coca-Cola FEMSA has been selling and distributing
certain Matte Leao branded ready-to-drink products since the first quarter
of 2010.
|
|
|
On
October 14th, 2010 our Company announced that it signed a memorandum of
understanding by which it could acquire all of the shares of Grupo
Industrias Lácteas in Panama. This understanding provides Coca-Cola FEMSA
exclusivity for the purposes of this process, which will include the
completion of legal, financial, and operating due
diligence. Any resulting transaction would be subject to
customary government and regulatory approvals and corporate
authorizations. This transaction
would allow the Company to enter into the milk and dairy products
category. Assuming the transaction is approved and completed successfully,
this business would subsequently become part of the non-carbonated
beverage platform that Coca-Cola FEMSA shares with its partner, The
Coca-Cola Company
|
|
|
On
October 19, 2010 our Board of Directors approved the anticipated adoption
of International Financial Reporting Standards beginning on January 1,
2011.
|
CONFERENCE
CALL INFORMATION
Our
third-quarter 2010 Conference Call will be held on: October 21, 2010, at 11:00
A.M. Eastern Time (10:00 A.M. Mexico City Time). To participate in the
conference call, please dial: Domestic U.S.: 866-700-7477 or International:
617-213-8840. We invite investors to listen to the live audiocast of the
conference call on the Company’s website, www.coca-colafemsa.com
If you
are unable to participate live, an instant replay of the conference call will be
available through October 28, 2010. To listen to the replay, please dial:
Domestic U.S.: 888-286-8010 or International: 617-801-6888. Pass code:
96651005.
v v
v
Coca-Cola
FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola, Sprite, Fanta,
Lift and other trademark beverages of The Coca-Cola Company in Mexico (a
substantial part of central Mexico, including Mexico City and southeast Mexico),
Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa
Rica (nationwide), Panama (nationwide), Colombia (most of the country),
Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state
of Mato Grosso do Sul, part of the state of Goias and part of the state of Minas
Gerais) and Argentina (federal capital of Buenos Aires and surrounding areas),
along with bottled water, beer and other beverages in some of these territories.
The Company has 31 bottling facilities in Latin America and serves over
1,500,000 retailers in the region. The Coca-Cola Company owns a 31.6% equity
interest in Coca-Cola FEMSA.
v v
v
This news
release may contain forward-looking statements concerning Coca-Cola FEMSA’s
future performance, which should be considered as good faith estimates by
Coca-Cola FEMSA. These forward-looking statements reflect management’s
expectations and are based upon currently available data. Actual results are
subject to future events and uncertainties, many of which are outside Coca-Cola
FEMSA’s control, which could materially impact the Company’s actual
performance.
References
herein to “US$” are to United States dollars. This news release contains
translations of certain Mexican peso amounts into U.S. dollars for the
convenience of the reader. These translations should not be construed as
representations that Mexican peso amounts actually represent such U.S. dollar
amounts or could be converted into U.S. dollars at the rate
indicated.
v v
v
(6 pages
of tables to follow)
|
October
21, 2010
|
|
Page
17
|
Consolidated
Income Statement
Expressed
in millions of Mexican pesos(1)
| 3Q 10 |
%
Rev
|
3Q 09 |
%
Rev
|
Δ%
|
YTD
10
|
%
Rev
|
YTD
09
|
%
Rev
|
Δ%
|
|||||||||||||||||||||||||||||||
|
Volume (million unit
cases) (2)
|
616.4 | 615.6 | 0.1 | % | 1,839.6 | 1,776.8 | 3.5 | % | ||||||||||||||||||||||||||||||||
|
Average price per unit
case (2)
|
40.13 | 41.03 | -2.2 | % | 39.38 | 40.02 | -1.6 | % | ||||||||||||||||||||||||||||||||
|
Net
revenues
|
25,554 | 25,901 | -1.3 | % | 74,769 | 72,964 | 2.5 | % | ||||||||||||||||||||||||||||||||
|
Other
operating revenues
|
121 | 106 | 14.2 | % | 328 | 394 | -16.8 | % | ||||||||||||||||||||||||||||||||
|
Total
revenues
|
25,675 | 100 | % | 26,007 | 100 | % | -1.3 | % | 75,097 | 100 | % | 73,358 | 100 | % | 2.4 | % | ||||||||||||||||||||||||
|
Cost
of goods sold
|
13,546 | 52.8 | % | 13,943 | 53.6 | % | -2.8 | % | 40,307 | 53.7 | % | 39,128 | 53.3 | % | 3.0 | % | ||||||||||||||||||||||||
|
Gross
profit
|
12,129 | 47.2 | % | 12,064 | 46.4 | % | 0.5 | % | 34,790 | 46.3 | % | 34,230 | 46.7 | % | 1.6 | % | ||||||||||||||||||||||||
|
Operating
expenses
|
7,880 | 30.7 | % | 8,105 | 31.2 | % | -2.8 | % | 22,842 | 30.4 | % | 23,251 | 31.7 | % | -1.8 | % | ||||||||||||||||||||||||
|
Operating
income
|
4,249 | 16.5 | % | 3,959 | 15.2 | % | 7.3 | % | 11,948 | 15.9 | % | 10,979 | 15.0 | % | 8.8 | % | ||||||||||||||||||||||||
|
Other
expenses, net
|
443 | 341 | 29.9 | % | 866 | 1,158 | -25.2 | % | ||||||||||||||||||||||||||||||||
|
Interest
expense
|
506 | 455 | 11.2 | % | 1,302 | 1,496 | -13.0 | % | ||||||||||||||||||||||||||||||||
|
Interest
income
|
53 | 70 | -24.3 | % | 209 | 192 | 8.9 | % | ||||||||||||||||||||||||||||||||
|
Interest
expense, net
|
453 | 385 | 17.7 | % | 1,093 | 1,304 | -16.2 | % | ||||||||||||||||||||||||||||||||
|
Foreign
exchange loss
|
163 | 71 | 129.6 | % | 452 | 374 | 20.9 | % | ||||||||||||||||||||||||||||||||
|
Gain
on monetary position in Inflationary subsidiries
|
(23 | ) | (161 | ) | -85.7 | % | (285 | ) | (374 | ) | -23.8 | % | ||||||||||||||||||||||||||||
|
Market
value (gain) loss on ineffective portion of derivative
instruments
|
(81 | ) | 83 | -197.6 | % | (189 | ) | (27 | ) | 600.0 | % | |||||||||||||||||||||||||||||
|
Comprehensive
financing result
|
512 | 378 | 35.4 | % | 1,071 | 1,277 | -16.1 | % | ||||||||||||||||||||||||||||||||
|
Income
before taxes
|
3,294 | 3,240 | 1.7 | % | 10,011 | 8,544 | 17.2 | % | ||||||||||||||||||||||||||||||||
|
Income
taxes
|
1,045 | 1,002 | 4.3 | % | 2,907 | 2,606 | 11.6 | % | ||||||||||||||||||||||||||||||||
|
Consolidated
net income
|
2,249 | 2,238 | 0.5 | % | 7,104 | 5,938 | 19.6 | % | ||||||||||||||||||||||||||||||||
|
Net
controlling interest income
|
2,126 | 8.3 | % | 2,134 | 8.2 | % | -0.4 | % | 6,758 | 9.0 | % | 5,679 | 7.7 | % | 19.0 | % | ||||||||||||||||||||||||
|
Net
non-controlling interest income
|
123 | 104 | 18.3 | % | 346 | 259 | 33.6 | % | ||||||||||||||||||||||||||||||||
|
Operating
income
|
4,249 | 16.5 | % | 3,959 | 15.2 | % | 7.3 | % | 11,948 | 15.9 | % | 10,979 | 15.0 | % | 8.8 | % | ||||||||||||||||||||||||
|
Depreciation
|
642 | 672 | -4.5 | % | 1,942 | 2,113 | -8.1 | % | ||||||||||||||||||||||||||||||||
|
Amortization
and other operative non-cash charges
|
348 | 317 | 9.8 | % | 961 | 734 | 30.9 | % | ||||||||||||||||||||||||||||||||
|
EBITDA (3)
|
5,239 | 20.4 | % | 4,948 | 19.0 | % | 5.9 | % | 14,851 | 19.8 | % | 13,826 | 18.8 | % | 7.4 | % | ||||||||||||||||||||||||
(1) Except
volume and average price per unit case figures.
(2) Sales
volume and average price per unit case exclude beer results
(3) EBITDA
= Operating Income + depreciation, amortization & other operative non-cash
charges.
As of
June 1st, 2009,
we integrated the operation of Brisa in the results of Colombia.
|
October
21, 2010
|
|
Page
18
|
Consolidated
Balance Sheet
Expressed
in millions of Mexican pesos.
|
Assets
|
Sep 10
|
Dec 09
|
||||||
|
Current
Assets
|
||||||||
|
Cash,
cash equivalents and marketable securities
|
Ps. | 11,235 | Ps. | 9,954 | ||||
|
Total
accounts receivable
|
4,753 | 5,931 | ||||||
|
Inventories
|
5,052 | 5,002 | ||||||
|
Other
current assets
|
2,323 | 2,752 | ||||||
|
Total
current assets
|
23,363 | 23,639 | ||||||
|
Property,
plant and equipment
|
||||||||
|
Property,
plant and equipment
|
56,815 | 58,640 | ||||||
|
Accumulated
depreciation
|
(25,383 | ) | (27,397 | ) | ||||
|
Total
property, plant and equipment, net
|
31,432 | 31,243 | ||||||
|
Other
non-current assets
|
54,984 | 55,779 | ||||||
|
Total
Assets
|
Ps. | 109,779 | Ps. | 110,661 | ||||
|
Liabilities and Shareholders'
Equity
|
Sep 10
|
Dec 09
|
||||||
|
Current
Liabilities
|
||||||||
|
Short-term
debt and notes
|
Ps. | 2,301 | Ps. | 5,427 | ||||
|
Suppliers
|
8,222 | 9,368 | ||||||
|
Other
current liabilities
|
6,459 | 8,653 | ||||||
|
Total
Current Liabilities
|
16,982 | 23,448 | ||||||
|
Long-term
debt and notes
|
14,883 | 10,498 | ||||||
|
Other
long-term liabilities
|
6,943 | 8,243 | ||||||
|
Total
Liabilities
|
38,808 | 42,189 | ||||||
|
Shareholders'
Equity
|
||||||||
|
Non-controlling
interest
|
2,445 | 2,296 | ||||||
|
Total
controlling interest
|
68,526 | 66,176 | ||||||
|
Total
shareholders' equity
|
70,971 | 68,472 | ||||||
|
Liabilities
and Shareholders' Equity
|
Ps. | 109,779 | Ps. | 110,661 | ||||
|
October
21, 2010
|
|
Page
19
|
Mexico
Division
Expressed
in millions of Mexican pesos(1)
| 3Q 10 |
% Rev
|
3Q 09 |
% Rev
|
Δ%
|
YTD 10
|
% Rev
|
YTD 09
|
% Rev
|
Δ%
|
|||||||||||||||||||||||||||||||
|
Volume
(million unit cases)
|
315.6 | 321.4 | -1.8 | % | 930.0 | 923.0 | 0.8 | % | ||||||||||||||||||||||||||||||||
|
Average
price per unit case
|
31.22 | 29.74 | 5.0 | % | 30.95 | 29.63 | 4.4 | % | ||||||||||||||||||||||||||||||||
|
Net
revenues
|
9,853 | 9,559 | 3.1 | % | 28,781 | 27,353 | 5.2 | % | ||||||||||||||||||||||||||||||||
|
Other
operating revenues
|
50 | 22 | 127.3 | % | 80 | 118 | -32.2 | % | ||||||||||||||||||||||||||||||||
|
Total
revenues
|
9,903 | 100.0 | % | 9,581 | 100.0 | % | 3.4 | % | 28,861 | 100.0 | % | 27,471 | 100.0 | % | 5.1 | % | ||||||||||||||||||||||||
|
Cost
of goods sold
|
5,017 | 50.7 | % | 4,874 | 50.9 | % | 2.9 | % | 14,698 | 50.9 | % | 13,799 | 50.2 | % | 6.5 | % | ||||||||||||||||||||||||
|
Gross
profit
|
4,886 | 49.3 | % | 4,707 | 49.1 | % | 3.8 | % | 14,163 | 49.1 | % | 13,672 | 49.8 | % | 3.6 | % | ||||||||||||||||||||||||
|
Operating
expenses
|
3,211 | 32.4 | % | 3,008 | 31.4 | % | 6.7 | % | 9,418 | 32.6 | % | 8,740 | 31.8 | % | 7.8 | % | ||||||||||||||||||||||||
|
Operating
income
|
1,675 | 16.9 | % | 1,699 | 17.7 | % | -1.4 | % | 4,745 | 16.4 | % | 4,932 | 18.0 | % | -3.8 | % | ||||||||||||||||||||||||
|
Depreciation,
amortization & other operative non-cash charges
|
425 | 4.3 | % | 401 | 4.2 | % | 6.0 | % | 1,321 | 4.6 | % | 1,214 | 4.4 | % | 8.8 | % | ||||||||||||||||||||||||
|
EBITDA (2)
|
2,100 | 21.2 | % | 2,100 | 21.9 | % | 0.0 | % | 6,066 | 21.0 | % | 6,146 | 22.4 | % | -1.3 | % | ||||||||||||||||||||||||
(1) Except
volume and average price per unit case figures.
(2) EBITDA
= Operating Income + Depreciation, amortization & other operative non-cash
charges.
Latincentro
Division
Expressed
in millions of Mexican pesos(1)
| 3Q 10 |
% Rev
|
3Q 09 |
% Rev
|
Δ%
|
YTD 10
|
% Rev
|
YTD 09
|
% Rev
|
Δ%
|
|||||||||||||||||||||||||||||||
|
Volume
(million unit cases)
|
143.8 | 151.8 | -5.3 | % | 440.5 | 426.9 | 3.2 | % | ||||||||||||||||||||||||||||||||
|
Average
price per unit Case
|
53.13 | 64.81 | -18.0 | % | 52.14 | 63.82 | -18.3 | % | ||||||||||||||||||||||||||||||||
|
Net
revenues
|
7,640 | 9,838 | -22.3 | % | 22,966 | 27,244 | -15.7 | % | ||||||||||||||||||||||||||||||||
|
Other
operating revenues
|
9 | 6 | 50.0 | % | 33 | 12 | 175.0 | % | ||||||||||||||||||||||||||||||||
|
Total
revenues
|
7,649 | 100.0 | % | 9,844 | 100.0 | % | -22.3 | % | 22,999 | 100.0 | % | 27,256 | 100.0 | % | -15.6 | % | ||||||||||||||||||||||||
|
Cost
of goods sold
|
4,049 | 52.9 | % | 5,373 | 54.6 | % | -24.6 | % | 12,326 | 53.6 | % | 14,702 | 53.9 | % | -16.2 | % | ||||||||||||||||||||||||
|
Gross
profit
|
3,600 | 47.1 | % | 4,471 | 45.4 | % | -19.5 | % | 10,673 | 46.4 | % | 12,554 | 46.1 | % | -15.0 | % | ||||||||||||||||||||||||
|
Operating
expenses
|
2,343 | 30.6 | % | 3,170 | 32.2 | % | -26.1 | % | 6,863 | 29.8 | % | 9,123 | 33.5 | % | -24.8 | % | ||||||||||||||||||||||||
|
Operating
income
|
1,257 | 16.4 | % | 1,301 | 13.2 | % | -3.4 | % | 3,810 | 16.6 | % | 3,431 | 12.6 | % | 11.0 | % | ||||||||||||||||||||||||
|
Depreciation,
amortization & other operative non-cash charges
|
351 | 4.6 | % | 340 | 3.5 | % | 3.2 | % | 1,019 | 4.4 | % | 995 | 3.7 | % | 2.4 | % | ||||||||||||||||||||||||
|
EBITDA (2)
|
1,608 | 21.0 | % | 1,641 | 16.7 | % | -2.0 | % | 4,829 | 21.0 | % | 4,426 | 16.2 | % | 9.1 | % | ||||||||||||||||||||||||
(1) Except
volume and average price per unit case figures.
(2) EBITDA
= Operating Income + Depreciation, amortization & other operative non-cash
charges.
Since
June 2009, we integrated Brisa in the operations of Colombia.
|
October
21, 2010
|
|
Page
20
|
Mercosur
Division
Expressed
in millions of Mexican pesos(1)
Financial
figures include beer results
| 3Q 10 |
% Rev
|
3Q 09 |
% Rev
|
Δ%
|
YTD 10
|
% Rev
|
YTD 09
|
% Rev
|
Δ%
|
|||||||||||||||||||||||||||||||
|
Volume (million unit cases) (2)
|
157.0 | 142.4 | 10.2 | % | 469.1 | 426.9 | 9.9 | % | ||||||||||||||||||||||||||||||||
|
Average price per unit case
(2)
|
46.14 | 41.16 | 12.1 | % | 44.12 | 38.66 | 14.1 | % | ||||||||||||||||||||||||||||||||
|
Net
revenues
|
8,061 | 6,504 | 23.9 | % | 23,022 | 18,367 | 25.3 | % | ||||||||||||||||||||||||||||||||
|
Other
operating revenues
|
62 | 78 | -20.5 | % | 215 | 264 | -18.6 | % | ||||||||||||||||||||||||||||||||
|
Total
revenues
|
8,123 | 100.0 | % | 6,582 | 100.0 | % | 23.4 | % | 23,237 | 100.0 | % | 18,631 | 100.0 | % | 24.7 | % | ||||||||||||||||||||||||
|
Cost
of goods sold
|
4,480 | 55.2 | % | 3,696 | 56.2 | % | 21.2 | % | 13,283 | 57.2 | % | 10,627 | 57.0 | % | 25.0 | % | ||||||||||||||||||||||||
|
Gross
profit
|
3,643 | 44.8 | % | 2,886 | 43.8 | % | 26.2 | % | 9,954 | 42.8 | % | 8,004 | 43.0 | % | 24.4 | % | ||||||||||||||||||||||||
|
Operating
expenses
|
2,326 | 28.6 | % | 1,927 | 29.3 | % | 20.7 | % | 6,561 | 28.2 | % | 5,388 | 28.9 | % | 21.8 | % | ||||||||||||||||||||||||
|
Operating
income
|
1,317 | 16.2 | % | 959 | 14.6 | % | 37.3 | % | 3,393 | 14.6 | % | 2,616 | 14.0 | % | 29.7 | % | ||||||||||||||||||||||||
|
Depreciation,
Amortization & Other operative non-cash charges
|
214 | 2.6 | % | 248 | 3.8 | % | -13.7 | % | 563 | 2.4 | % | 638 | 3.4 | % | -11.8 | % | ||||||||||||||||||||||||
|
EBITDA (3)
|
1,531 | 18.8 | % | 1,207 | 18.3 | % | 26.8 | % | 3,956 | 17.0 | % | 3,254 | 17.5 | % | 21.6 | % | ||||||||||||||||||||||||
(1) Except
volume and average price per unit case figures.
(2) Sales
volume and average price per unit case exclude beer results
(3) EBITDA
= Operating Income + Depreciation, amortization & other operative non-cash
charges.
|
October
21, 2010
|
|
Page
21
|
SELECTED
INFORMATION
For
the three months ended September 30, 2010 and 2009
Expressed
in millions of Mexican pesos.
|
3Q 10
|
3Q 09
|
||||||||
|
Capex
|
2,230.9 |
Capex
|
1,541.5 | ||||||
|
Depreciation
|
642.0 |
Depreciation
|
672.0 | ||||||
|
Amortization
& Other non-cash charges
|
348.0 |
Amortization
& Other non-cash charges
|
317.0 | ||||||
VOLUME
Expressed
in million unit cases
|
3Q 10
|
3Q 09
|
|||||||||||||||||||||||||||||||||||||||
|
Sparkling
|
Water (1)
|
Bulk Water
(2)
|
Still (3)
|
Total
|
Sparkling
|
Water (1)
|
Bulk Water
(2)
|
Still (3)
|
Total
|
|||||||||||||||||||||||||||||||
|
Mexico
|
234.5 | 13.4 | 51.9 | 15.8 | 315.6 | 237.2 | 13.0 | 54.8 | 16.4 | 321.4 | ||||||||||||||||||||||||||||||
|
Central
America
|
27.6 | 1.4 | 0.1 | 3.0 | 32.1 | 29.4 | 1.4 | 0.1 | 3.1 | 34.0 | ||||||||||||||||||||||||||||||
|
Colombia
|
41.2 | 5.8 | 7.4 | 4.4 | 58.8 | 43.1 | 7.0 | 7.3 | 4.7 | 62.1 | ||||||||||||||||||||||||||||||
|
Venezuela
|
48.1 | 2.9 | 0.8 | 1.1 | 52.9 | 50.7 | 2.8 | 0.7 | 1.5 | 55.7 | ||||||||||||||||||||||||||||||
|
Latincentro
|
116.9 | 10.1 | 8.3 | 8.5 | 143.8 | 123.2 | 11.2 | 8.1 | 9.3 | 151.8 | ||||||||||||||||||||||||||||||
|
Brazil
|
102.7 | 5.5 | 0.5 | 4.5 | 113.2 | 91.8 | 4.3 | 0.5 | 3.1 | 99.7 | ||||||||||||||||||||||||||||||
|
Argentina
|
40.2 | 0.3 | 0.2 | 3.1 | 43.8 | 39.4 | 0.4 | 0.2 | 2.7 | 42.7 | ||||||||||||||||||||||||||||||
|
Mercosur
|
142.9 | 5.8 | 0.7 | 7.6 | 157.0 | 131.2 | 4.7 | 0.7 | 5.8 | 142.4 | ||||||||||||||||||||||||||||||
|
Total
|
494.3 | 29.3 | 60.9 | 31.9 | 616.4 | 491.6 | 28.9 | 63.6 | 31.5 | 615.6 | ||||||||||||||||||||||||||||||
(1)
Excludes water presentations larger than 5.0 Lt
(2) Bulk
Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging
presentations
(3) Still
Beverages include flavored water
SELECTED
INFORMATION
For
the nine months ended September 30, 2010 and 2009
Expressed
in millions of Mexican pesos.
|
YTD 10
|
YTD 09
|
||||||||
|
Capex
|
4,946.5 |
Capex
|
3,321.1 | ||||||
|
Depreciation
|
1,942.0 |
Depreciation
|
2,113.0 | ||||||
|
Amortization
& Other non-cash charges
|
961.0 |
Amortization
& Other non-cash charges
|
734.0 | ||||||
VOLUME
Expressed
in million unit cases
|
YTD 10
|
YTD 09
|
|||||||||||||||||||||||||||||||||||||||
|
Sparkling
|
Water (1)
|
Bulk Water (2)
|
Still (3)
|
Total
|
Sparkling
|
Water (1)
|
Bulk Water (2)
|
Still (3)
|
Total
|
|||||||||||||||||||||||||||||||
|
Mexico
|
682.1 | 41.6 | 156.7 | 49.6 | 930.0 | 670.1 | 40.7 | 164.8 | 47.4 | 923.0 | ||||||||||||||||||||||||||||||
|
Central
America
|
86.9 | 4.5 | 0.3 | 9.1 | 100.8 | 86.6 | 4.1 | 0.3 | 8.3 | 99.3 | ||||||||||||||||||||||||||||||
|
Colombia
|
128.1 | 18.2 | 22.3 | 13.2 | 181.8 | 124.7 | 13.0 | 13.3 | 12.8 | 163.8 | ||||||||||||||||||||||||||||||
|
Venezuela
|
143.9 | 8.8 | 1.6 | 3.6 | 157.9 | 150.2 | 7.2 | 2.0 | 4.4 | 163.8 | ||||||||||||||||||||||||||||||
|
Latincentro
|
358.9 | 31.5 | 24.2 | 25.9 | 440.5 | 361.5 | 24.3 | 15.6 | 25.5 | 426.9 | ||||||||||||||||||||||||||||||
|
Brazil
|
306.5 | 16.3 | 1.7 | 12.2 | 336.7 | 272.0 | 13.9 | 1.7 | 8.2 | 295.8 | ||||||||||||||||||||||||||||||
|
Argentina
|
120.4 | 0.9 | 0.7 | 10.4 | 132.4 | 121.5 | 1.3 | 0.4 | 7.9 | 131.1 | ||||||||||||||||||||||||||||||
|
Mercosur
|
426.9 | 17.1 | 2.5 | 22.6 | 469.1 | 393.5 | 15.2 | 2.1 | 16.1 | 426.9 | ||||||||||||||||||||||||||||||
|
Total
|
1,467.9 | 90.2 | 183.4 | 98.1 | 1,839.6 | 1,425.1 | 80.2 | 182.5 | 89.0 | 1,776.8 | ||||||||||||||||||||||||||||||
(1)
Excludes water presentations larger than 5.0 Lt
(2) Bulk
Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging
presentations
(3) Still
Beverages include flavored water
|
|
·
|
The
Brisa water business was first included in our operations on June 1, 2009.
The volume registered by this business in the months of January 2010
through May 2010 was 19.9 million unit cases and is presented separately
in this note for comparison purposes. This volume is included in the
results of Colombia, the Latincentro division, and Consolidated for the
first nine months of 2010.
|
|
October
21, 2010
|
|
Page
22
|
Macroeconomic
Information
|
Inflation (1)
|
||||||||||||
|
LTM
|
3Q 2010
|
YTD
|
||||||||||
|
Mexico
|
3.70 | % | 1.02 | % | 2.43 | % | ||||||
|
Colombia
|
2.27 | % | -0.07 | % | 2.39 | % | ||||||
|
Venezuela
|
27.92 | % | 4.21 | % | 21.20 | % | ||||||
|
Brazil
|
4.68 | % | 0.40 | % | 3.80 | % | ||||||
|
Argentina
|
11.09 | % | 2.28 | % | 8.29 | % | ||||||
|
(1)
Source: inflation is published by the Central Bank of each
country.
|
||||||||||||
Average
Exchange Rates for each Period
|
Quarterly Exchange Rate (local currency per USD)
|
YTD Exchange Rate (local currency per USD)
|
|||||||||||||||||||||||
|
3Q 10
|
3Q 09
|
Δ%
|
YTD 10
|
YTD 09
|
Δ%
|
|||||||||||||||||||
|
Mexico
|
12.8090 | 13.2628 | -3.4 | % | 12.7210 | 13.6610 | -6.9 | % | ||||||||||||||||
|
Guatemala
|
8.0312 | 8.2451 | -2.6 | % | 8.0733 | 8.1027 | -0.4 | % | ||||||||||||||||
|
Nicaragua
|
21.4851 | 20.4620 | 5.0 | % | 21.2253 | 20.2145 | 5.0 | % | ||||||||||||||||
|
Costa
Rica
|
520.5544 | 590.0153 | -11.8 | % | 536.3571 | 578.2441 | -7.2 | % | ||||||||||||||||
|
Panama
|
1.0000 | 1.0000 | 0.0 | % | 1.0000 | 1.0000 | 0.0 | % | ||||||||||||||||
|
Colombia
|
1,833.7947 | 2,014.9636 | -9.0 | % | 1,910.3794 | 2,219.0846 | -13.9 | % | ||||||||||||||||
|
Venezuela
|
4.3000 | 2.1500 | 100.0 | % | 4.2538 | 2.1500 | 97.8 | % | ||||||||||||||||
|
Brazil
|
1.7493 | 1.8659 | -6.3 | % | 1.7813 | 2.0840 | -14.5 | % | ||||||||||||||||
|
Argentina
|
3.9414 | 3.8304 | 2.9 | % | 3.8940 | 3.7008 | 5.2 | % | ||||||||||||||||
End of
Period Exchange Rates
|
Exchange
Rate (local currency per USD)
|
||||||||||||
|
Sep 10
|
Sep 09
|
Δ%
|
||||||||||
|
Mexico
|
12.5011 | 13.5042 | -7.4 | % | ||||||||
|
Guatemala
|
8.1352 | 8.3416 | -2.5 | % | ||||||||
|
Nicaragua
|
21.6151 | 20.5858 | 5.0 | % | ||||||||
|
Costa
Rica
|
512.9400 | 591.7300 | -13.3 | % | ||||||||
|
Panama
|
1.0000 | 1.0000 | 0.0 | % | ||||||||
|
Colombia
|
1,799.8900 | 1,922.0000 | -6.4 | % | ||||||||
|
Venezuela
|
4.3000 | 2.1500 | 100.0 | % | ||||||||
|
Brazil
|
1.6942 | 1.7781 | -4.7 | % | ||||||||
|
Argentina
|
3.9600 | 3.8430 | 3.0 | % | ||||||||
|
October
21, 2010
|
|
Page
23
|