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 July 2009
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
|
||
|
Chief
Financial Officer
|
||
Date: July
28, 2009
 |
Latin
America’s Beverage Leader
 FEMSA
Delivers Robust Revenues and Operating Income Growth in 2Q09
Monterrey, Mexico, July 28,
2009 —
Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) announced today its
operational and financial results for the second quarter of
2009.
Second
Quarter 2009 Highlights:
· Consolidated
total revenues and income from operations grew 18.8% and 16.1%,
respectively, compared to the second quarter 2008.
-
In spite of an extremely challenging economic environment, FEMSA
again delivered a quarter of strong growth in revenues and income from
operations, driven mainly by double-digit performance at Coca-Cola FEMSA
and FEMSA Comercio.
-
Net Majority Income for the second quarter was stable relative to
the same period in 2008, however for the first half of 2009 Net Majority
Income contracted by 14.2%.
· Coca-Cola
FEMSA total revenues and income from operations increased 30.4% and 16.0%,
respectively.
-
Driven by double-digit growth in income from operations in its
Latincentro and Mercosur divisions, combined with a more modest increase
in its Mexico division.
· FEMSA
Cerveza total revenues increased 6.7%, while income from operations
decreased slightly by 0.7%.
- Sales
volume in Mexico decreased 5.9% and 8.4% in Brazil, but strong pricing in
both markets compensated for the soft volume trends resulting in revenue
growth of 3.2% and 0.5%, respectively. Export sales volume grew 2.4%,
despite a sustained decline in the US import category.
- Top-line
growth combined with operating expense containment partially offset raw
material pressures, resulting in a slight decrease of 0.7% in income from
operations.
· FEMSA
Comercio continued its pace of strong growth and margin
expansion.
- Income
from operations increased by 40.9% resulting in an operating margin
expansion of 150 basis points compared to the second quarter of 2008, to
reach 8.0%.
José
Antonio Fernández, Chairman and CEO of FEMSA, commented: “During the
second quarter we were able to extend the performance trends set during
the first quarter, as some of our international results managed to offset
the more complex environment experienced in our Mexico beverage
operations, and FEMSA Comercio had another strong quarter. However, our
net income for the first semester was still well into negative territory,
in spite of the healthier dynamics of our operations outside of Mexico.
And so, while there are encouraging signs for a mild recovery in the
coming months, we remain cautious of the risks that lie ahead as we
continue to execute on our strategy.”
|
FEMSA
Consolidated
Our
results of operations have been affected by the depreciation of local currencies
in our major operations against the US dollar, particularly beginning in the
fourth quarter of 2008, and continuing through the second quarter of 2009.
Relative to the comparable date in 2008, as of June 30 2009 the Mexican Peso
depreciated approximately 28% and the depreciation of the Brazilian Real was
approximately 23%.
Total revenues increased 18.8%
compared to 2Q08, to Ps. 48.179 billion. Coca-Cola FEMSA accounted for
approximately 74% of the incremental consolidated revenues, while FEMSA Comercio
and FEMSA Cerveza provided the balance. For the first half of 2009, consolidated
total revenues increased 18.7% to Ps. 91.251 billion.
Gross profit increased 18.0%
compared to 2Q08 to Ps. 22.495 billion in 2Q09. Gross margin decreased 30 basis
points compared to the same period in 2008 to 46.7% of total revenues. FEMSA
Comercio’s gross profit improvement partially offset raw-material cost pressures
at Coca-Cola FEMSA and FEMSA Cerveza, as well as the depreciation of local
currencies as applied to our US dollar-denominated costs.
For the
first half of 2009, gross profit increased 17.6% to Ps. 41.633 billion. Gross
margin decreased 50 basis points compared to the same period in 2008 to 45.6% of
total revenues. As was the case during the second quarter of 2009, FEMSA
Comercio’s gross profit improvement partially offset raw-material cost pressures
at Coca-Cola FEMSA and FEMSA Cerveza, as well as the depreciation of the local
currencies as applied to our US dollar- denominated costs.
Income from operations
increased 16.1% to Ps. 6.787 billion in 2Q09 as compared to the same period in
2008, driven by double-digit income growth in Coca-Cola FEMSA and FEMSA
Comercio. Consolidated operating margin decreased 30 basis points as compared to
2Q08 at 14.1%, as operating margin improvement and expense containment
initiatives at FEMSA Comercio offset operating margin pressure at Coca-Cola
FEMSA and gross margin pressure at FEMSA Cerveza.
For the
first half of 2009, income from operations increased 17.2% to Ps. 11.525
billion. Our consolidated operating margin year-to-date was 12.6% as a
percentage of total revenues, a decrease of 20 basis points as compared to the
same period of 2008, due to raw material pressures, which were almost fully
offset by robust top-line growth and expense containment
initiatives.
Net income increased
6.7% compared to 2Q08 to Ps. 3.730 billion in 2Q09, as higher income from
operations more than offset an increase in the integral result of financing
during the quarter. This increase resulted from the appreciation of the US
dollar against our local currencies as applied to our liability position, and
higher interest expenses. The effective tax rate was 29.6% in 2Q09 compared with
27.6% in 2Q08.
For the
first half of 2009, in spite of the growth in income from operations, net income
decreased 6.7% to Ps. 5.167 billion, compared to the same period of 2008,
primarily as a result of a higher integral result of financing during the
period, as described above.
Net majority income increased
0.3% over 2Q08, resulting in Ps. 0.70 per FEMSA Unit1 in 2Q09. Net majority income per FEMSA ADS was
US$ 0.53 for the quarter. For the first half of 2009, net majority income per
FEMSA Unit1 was Ps.
0.91 (US$ 0.69 per ADS).
Capital expenditures decreased
2.1% over 2Q08 to Ps. 2.787 billion in 2Q09, mainly driven by the
rationalization and deferral of investments in FEMSA Cerveza, which partially
offset manufacturing investments at Coca-Cola FEMSA and the accelerated
expansion in store openings at FEMSA Comercio.
|
1
|
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 June 30, 2009 was 3,578,226,270
equivalent to the total number of FEMSA Shares outstanding as of the same
date, divided by 5.
|
July 28,
2009
2
Our consolidated balance sheet as of June 30, 2009, recorded a cash balance of Ps. 17.702 billion (US$ 1.344 billion), an increase of Ps. 8.243 billion (US$ 625.9 million) compared to the same period in 2008, reflecting the cash earmarked to pay down certain of FEMSA’s local-currency bonds (certificados bursátiles) and Coca-Cola FEMSA’s Yankee bond and certain other debt, which came due in early July. Short-term debt was Ps. 13.052 billion (US$ 991 million) while long-term debt was Ps. 35.637 billion (US$ 2.706 billion). Our net debt decreased by Ps. 1.328 billion (US$100.8 million) for a net debt balance of Ps. 30.987 billion (US$ 2.353 billion).
Consistent
with what we believe to be FEMSA’s conservative approach, as of June 30, 2009,
our ratio of net debt to EBITDA2 was only 0.9x, while our mix of US
dollar-denominated debt represented 17.5% and our mix of fixed interest rate
represented 47.6% of this debt. In terms of our debt profile, we had
approximately Ps. 7.0 billion (US$ 535 million) coming due in the remaining
months of 2009, which have been fully refinanced. As of the date of this press
release and as described in the previous paragraph, in early July FEMSA retired
local bonds for Ps. 1,250 million and Coca-Cola FEMSA retired its Yankee bond
for US$ 265 million and other debt for Ps. 500 million. For 2010 and 2011, we
have minor debt maturities, and our debt profile currently extends as far out as
2017.
As a
matter of policy, FEMSA follows what it considers to be a conservative approach
with respect to its leverage position and seeks to maintain low leverage ratios.
FEMSA also seeks to manage risk through derivative instruments, through which it
aims to minimize the volatility and uncertainty of operating results by hedging
interest rates, foreign exchange rates and the prices of certain of our raw
materials.
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.
Beer
– FEMSA Cerveza
Mexico sales volume decreased 5.9% to 7.017
million hectoliters in 2Q09, during what we believe will turn out to be the most
challenging quarter in 2009 from an economic environment perspective,
particularly in the hard-hit manufacturing hubs in the north of the country and
compounded by the H1N1 flu outbreak. However, Mexico price per hectoliter
showed robust growth of 9.7% over 2Q08 to Ps. 1,159.0 in 2Q09, resulting from
price increases implemented during the second quarter of 2009, in addition to
the increases carried out in late 2008. As a result, Mexico beer revenues were up
3.2% over 2Q08.
For the
first half of 2009, Mexico sales volume decreased 4.6% to 12.895 million
hectoliters.
Brazil sales volume decreased
8.4% in 2Q09, which reflects a tough comparable of 12.8% volume growth in 2Q08,
to 2.070 million hectoliters. However, Brazil price per hectoliter
calculated in Mexican pesos increased 9.7% to Ps. 699.0 compared to the same
period in 2008. Price per hectoliter in local currency was 8.0% higher as a
result of price increases implemented over the last twelve months. As a result,
Brazil beer revenues
were up 0.5% over 2Q08.
For the
first half of 2009, Brazil sales volume decreased 3.1% to 4.522 million
hectoliters.
Export sales volume increased
2.4% in 2Q09 to 1.034 million hectoliters, despite a challenging economic
environment across export markets. This increase was mainly driven by our Dos Equis brand in the US.
Export price per
hectoliter in Mexican pesos increased 33.5% to Ps. 1,304.8 in 2Q09 as
compared with 2Q08, reflecting the Mexican peso depreciation against the US
dollar. In US dollar terms, price per hectoliter increased 3.7% mainly due to
moderate price increases implemented for our Tecate brand, as well as a
favorable brand mix shift from Tecate to higher-priced Dos Equis. As a result, Export beer revenues were up
36.7% over 2Q08.
For the
first half of 2009, export sales volume increased 2.3% to 1.820 million
hectoliters.
|
2
|
As
used herein, Net debt/EBITDA is calculated by dividing net debt at the end
of the quarter by the EBITDA for the last twelve months, as reported in
Mexican pesos and converted to US dollars with the period-end exchange
rate.
|
July 28,
2009
3
Total revenues increased 6.7%
over 2Q08 to Ps. 11.880 billion in 2Q09. Higher average price per hectoliter in
all of our operations drove these results. Mexican beer sales represented 74.4%
of total beer revenues, while Brazil and Export beer sales reached 13.2% and
12.3% of total beer revenues, respectively in 2Q09.
For the
first half of 2009, total revenues increased 8.3% to Ps. 21.934 billion mainly
driven by a 7.7% increase in beer revenues due to higher average unit price in
local currency across our operations. Mexican beer revenues reached 72.3% of
total beer revenues, down from 75.5% in the comparable period in 2008. Brazil
beer revenues represented 15.5% of total beer revenues, up from 15.1% in the
same period of 2008. Export beer revenues were 12.2% of total beer revenues, up
from 9.4% in the comparable period in 2008.
Cost of sales was Ps. 5.525
billion in 2Q09, an increase of 12.1% compared with 2Q08, which was above the
6.7% growth in total revenues. Cost per hectoliter increased by 18.8% over 2Q08,
maintaining the sequential trend of the previous quarter, as a result of
year-over-year increases in the cost of raw materials across all regions,
particularly in grains and to a lesser extent aluminum, as well as of continuous
pressure from the effect of the depreciation of the Mexican peso and the
Brazilian Real of approximately 28% and 23%, respectively, as applied to the
unhedged portion of our dollar-denominated inputs. Gross profit increased 2.4%
over 2Q08 to Ps. 6.355 billion in 2Q09, however as a percentage of revenues,
gross margin declined 220 basis points from 55.7% in 2Q08 to 53.5% in 2Q09 as a
result of these cost increases.
For the
first half of 2009, cost of sales increased 15.4% to Ps. 10.632 billion. Gross
margin year-to-date contracted by 300 basis points to 51.5% of total revenues as
a result of these cost increases.
Income from operations
decreased 0.7% compared with 2Q08 to Ps. 1.740 billion in 2Q09, as continued
rationalization and containment efforts at the selling expense level in Mexico
and Brazil helped to partially offset gross margin pressures as described above,
as well as the effect of the peso depreciation as applied to higher marketing
expenses in the US. Operating expenses increased by only 3.6%, approximately
half of revenue growth and continuing the trend of 1Q09, and as a result
operating margin contracted by 110 basis points, half the contraction
experienced at the gross margin level.
For the
first half of 2009, income from operations increased 3.4% to Ps. 2.508 billion,
reaching 11.4% of total revenues, 60 basis points below the comparable period of
2008.
FEMSA
Comercio
Total revenues increased 13.3%
compared to 2Q08 to Ps. 13.554 billion in 2Q09 mainly driven by the opening of
269 net new stores in the quarter, for a total increase of 960 net new stores in
the last twelve months. As of June 30, 2009, there were a total of 6,811 OXXO
convenience stores in Mexico, well on track to meet the objective for the year.
Same-store sales increased an average of 0.5% for the quarter over 2Q08, due to
the 5.5% increase in store traffic, which more than offset a 4.6% decline in the
average customer ticket. This decrease reflects the effects seen in 2008 and
1Q09 on same-store sales, ticket and traffic dynamics, which reflect the
continued mix shift from prepaid wireless phone cards to the sale of electronic
air-time, for which only the margin is recorded, not the full amount of the
air-time recharge. On a comparable basis excluding this change, the average
ticket would have grown in the low-single-digits in 2Q09.
For the
first half of 2009, total revenues increased 11.9% to Ps. 25.355 billion. FEMSA
Comercio´s same-store sales decreased an average of 0.6%, which reflects the mix
shift from prepaid wireless phone cards to the sale of electronic air-time, as
described above.
Gross profit increased by
19.7% in 2Q09 compared to 2Q08, resulting in a 170 basis point gross margin
expansion reaching 31.9% of revenues. As was the case in previous quarters, this
increase reflects the continued shift towards electronic air-time recharges as
described above and to a similar extent, more effective collaboration and
execution with our key supplier partners. For the first half of 2009, gross
margin expanded by 220 basis points to 31.1% of total revenues.
July 28,
2009
4
Income from operations increased 40.9% over
2Q08 to Ps. 1.088 billion in 2Q09. Operating expenses increased 14.0% to Ps.
3,233 million, reflecting the growing number of stores as well as broad
expense-containment initiatives at the store level. Operating margin expanded
150 basis points over 2Q08 reaching 8.0% of total revenues.
For the
first half of 2009, income from operations increased 37.3% to Ps. 1.569 billion,
resulting in an operating margin of 6.2%, a 120 basis point expansion from the
prior year.
CONFERENCE CALL INFORMATION:
Our
Second Quarter 2009 Conference Call will be held on: Tuesday July 28, 2009,
11:00 AM Eastern Time (10:00 AM Mexico City Time). To participate in the
conference call, please dial: Domestic US: (1-866) 293-8968, International:
(1-913) 981-5522. 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.
We are a
holding company whose principal activities are grouped under the following
sub-holding companies and carried out by their respective operating
subsidiaries: Coca-Cola FEMSA, S.A.B. de C.V., which engages in the production,
distribution and marketing of non-alcoholic beverages; FEMSA Cerveza, S.A. de
C.V., which engages in the production, distribution and marketing of beer and
flavored alcoholic beverages; and FEMSA Comercio, S.A. de C.V., which engages in
the operation of convenience stores.
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 June 30, 2009, which was 13.17
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.
Six pages
of tables and Coca-Cola FEMSA’s press release to follow
July 28,
2009
5
Consolidated
Income Statement
Millions
of Pesos
For
the second quarter of:
|
For the second quarter of:
|
For the six months of:
|
|||||||||||||||||||||||||||||||||||||||
|
2009(A)
|
% of rev.
|
2008(A)
|
% of rev.
|
% Increase
|
2009(A)
|
% of rev.
|
2008(A)
|
% of rev.
|
% Increase
|
|||||||||||||||||||||||||||||||
|
Total
revenues
|
48,179 | 100.0 | 40,564 | 100.0 | 18.8 | 91,251 | 100.0 | 76,852 | 100.0 | 18.7 | ||||||||||||||||||||||||||||||
|
Cost
of sales
|
25,684 | 53.3 | 21,497 | 53.0 | 19.5 | 49,618 | 54.4 | 41,442 | 53.9 | 19.7 | ||||||||||||||||||||||||||||||
|
Gross
profit
|
22,495 | 46.7 | 19,067 | 47.0 | 18.0 | 41,633 | 45.6 | 35,410 | 46.1 | 17.6 | ||||||||||||||||||||||||||||||
|
Administrative
expenses
|
2,773 | 5.8 | 2,315 | 5.7 | 19.8 | 5,133 | 5.6 | 4,555 | 5.9 | 12.7 | ||||||||||||||||||||||||||||||
|
Selling
expenses
|
12,935 | 26.8 | 10,905 | 26.9 | 18.6 | 24,975 | 27.4 | 21,021 | 27.4 | 18.8 | ||||||||||||||||||||||||||||||
|
Operating
expenses
|
15,708 | 32.6 | 13,220 | 32.6 | 18.8 | 30,108 | 33.0 | 25,576 | 33.3 | 17.7 | ||||||||||||||||||||||||||||||
|
Income
from operations
|
6,787 | 14.1 | 5,847 | 14.4 | 16.1 | 11,525 | 12.6 | 9,834 | 12.8 | 17.2 | ||||||||||||||||||||||||||||||
|
Other
expenses
|
(657 | ) | (535 | ) | 22.7 | (1,181 | ) | (856 | ) | 38.0 | ||||||||||||||||||||||||||||||
|
Interest
expense
|
(1,316 | ) | (1,240 | ) | 6.1 | (2,793 | ) | (2,433 | ) | 14.8 | ||||||||||||||||||||||||||||||
|
Interest
income
|
116 | 199 | (41.8 | ) | 230 | 377 | (38.9 | ) | ||||||||||||||||||||||||||||||||
|
Interest
expense, net
|
(1,200 | ) | (1,041 | ) | 15.3 | (2,563 | ) | (2,056 | ) | 24.7 | ||||||||||||||||||||||||||||||
|
Foreign
exchange (loss) gain
|
89 | 558 | (84.1 | ) | (346 | ) | 669 |
N.S.
|
||||||||||||||||||||||||||||||||
|
(Loss)
gain on monetary position
|
108 | 147 | (26.5 | ) | 193 | 258 | (25.3 | ) | ||||||||||||||||||||||||||||||||
|
Gain (loss) on
financial instrument(6)
|
175 | (152 | ) |
N.S.
|
(22 | ) | (29 | ) | (22.4 | ) | ||||||||||||||||||||||||||||||
|
Integral
results of financing
|
(828 | ) | (488 | ) | 69.7 | (2,738 | ) | (1,158 | ) |
N.S.
|
||||||||||||||||||||||||||||||
|
Income
before income tax
|
5,302 | 4,824 | 9.9 | 7,606 | 7,820 | (2.7 | ) | |||||||||||||||||||||||||||||||||
|
Income
tax
|
(1,572 | ) | (1,330 | ) | 18.2 | (2,439 | ) | (2,285 | ) | 6.8 | ||||||||||||||||||||||||||||||
|
Net
income
|
3,730 | 3,494 | 6.7 | 5,167 | 5,535 | (6.7 | ) | |||||||||||||||||||||||||||||||||
|
Net
majority income
|
2,505 | 2,496 | 0.3 | 3,254 | 3,791 | (14.2 | ) | |||||||||||||||||||||||||||||||||
|
Net
minority income
|
1,225 | 998 | 22.8 | 1,913 | 1,744 | 9.7 | ||||||||||||||||||||||||||||||||||
(A)
Average Mexican Pesos of each year.
|
EBITDA
& CAPEX
|
||||||||||||||||||||||||||||||||||||||||
|
Income
from operations
|
6,787 | 14.1 | 5,847 | 14.4 | 16.1 | 11,525 | 12.6 | 9,834 | 12.8 | 17.2 | ||||||||||||||||||||||||||||||
|
Depreciation
|
1,408 | 2.9 | 1,195 | 2.9 | 17.8 | 2,777 | 3.0 | 2,362 | 3.1 | 17.6 | ||||||||||||||||||||||||||||||
|
Amortization &
other(5)
|
1,033 | 2.2 | 981 | 2.5 | 5.3 | 2,194 | 2.5 | 1,972 | 2.5 | 11.3 | ||||||||||||||||||||||||||||||
|
EBITDA
|
9,228 | 19.2 | 8,023 | 19.8 | 15.0 | 16,496 | 18.1 | 14,168 | 18.4 | 16.4 | ||||||||||||||||||||||||||||||
|
CAPEX
|
2,787 | 2,846 | (2.1 | ) | 5,010 | 4,817 | 4.0 | |||||||||||||||||||||||||||||||||
|
FINANCIAL
RATIOS
|
2009
|
2008
|
Var.
p.p.
|
|||||||||||||||||||||||||||||||||||||
|
Liquidity(1)
|
1.04 | 1.10 | (0.06 | ) | ||||||||||||||||||||||||||||||||||||
|
Interest
coverage(2)
|
7.69 | 7.71 | (0.02 | ) | ||||||||||||||||||||||||||||||||||||
|
Leverage(3)
|
0.92 | 0.82 | 0.10 | |||||||||||||||||||||||||||||||||||||
|
Capitalization(4)
|
35.24 | % | 32.40 | % | 2.84 | |||||||||||||||||||||||||||||||||||
(1) Total
current assets / total current liabilities.
(2) Income
from operations + depreciation + amortization & other / interest expense,
net.
(3) Total
liabilities / total stockholders' equity.
(4) Total
debt / long-term debt + stockholders' equity.
Total
debt = short-term bank loans + current maturities long-term debt + long-term
bank loans and notes payable.
(5)
Includes returnable bottle breakage expense.
(6)
Includes solely derivative instruments that do not meet hedging criteria for
accounting purposes
July 28,
2009
6
FEMSA
Consolidated
Balance Sheet
As
of June 30:
Millions
of Pesos
|
ASSETS
|
2009(A)
|
2008(A)
|
|
% Increase
|
||||||||
|
Cash
and cash equivalents
|
17,702 | 9,459 | 87.1 | |||||||||
|
Accounts
receivable
|
8,911 | 8,887 | 0.3 | |||||||||
|
Inventories
|
13,400 | 11,554 | 16.0 | |||||||||
|
Prepaid
expenses and other
|
6,353 | 4,990 | 27.3 | |||||||||
|
Total
current assets
|
46,366 | 34,890 | 32.9 | |||||||||
|
Property,
plant and equipment, net
|
66,496 | 59,576 | 11.6 | |||||||||
|
Intangible
assets(1)
|
67,763 | 62,698 | 8.1 | |||||||||
|
Other
assets
|
15,816 | 14,521 | 8.9 | |||||||||
|
TOTAL
ASSETS
|
196,441 | 171,685 | 14.4 | |||||||||
|
LIABILITIES
& STOCKHOLDERS´ EQUITY
|
||||||||||||
|
Bank
loans
|
3,538 | 2,492 | 42.0 | |||||||||
|
Current
maturities long-term debt
|
9,514 | 4,662 |
N.S.
|
|||||||||
|
Interest
payable
|
346 | 406 | (14.8 | ) | ||||||||
|
Operating
liabilities
|
31,243 | 24,073 | 29.8 | |||||||||
|
Total
current liabilities
|
44,641 | 31,633 | 41.1 | |||||||||
|
Long-term
debt (2)
|
35,637 | 34,620 | 2.9 | |||||||||
|
Labor
liabilities
|
3,125 | 2,495 | 25.3 | |||||||||
|
Other
liabilities
|
10,516 | 8,624 | 21.9 | |||||||||
|
Total
liabilities
|
93,919 | 77,372 | 21.4 | |||||||||
|
Total
stockholders’ equity
|
102,522 | 94,313 | 8.7 | |||||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
196,441 | 171,685 | 14.4 | |||||||||
(1)
Includes mainly the intangible assets generated by acquisitions.
(A)
Mexican Pesos for the end of each year.
(2)
Includes the effect of assigned and non assigned derivative financial
instruments on long-term debt, for accountig purposes
|
|
June 30, 2009
|
|||||||||||
|
DEBT MIX
|
Ps.
|
% Integration
|
Average Rate
|
|||||||||
|
Denominated
in:
|
||||||||||||
|
Mexican
pesos
|
36,936 | 75.9 | % | 8.2 | % | |||||||
|
Dollars
|
8,511 | 17.5 | % | 4.2 | % | |||||||
|
Colombian
pesos
|
1,936 | 4.0 | % | 11.2 | % | |||||||
|
Argentinan
pesos
|
1,137 | 2.3 | % | 23.0 | % | |||||||
|
Venezuelan
bolivars
|
169 | 0.3 | % | 19.0 | % | |||||||
|
Total
debt
|
48,689 | 100.0 | % | 8.2 | % | |||||||
|
Fixed
rate(1)
|
23,176 | 47.6 | % | |||||||||
|
Variable
rate(1)
|
25,513 | 52.4 | % | |||||||||
|
% of Total Debt
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015 | + | ||||||||||||||||||||
|
DEBT
MATURITY PROFILE
|
14.5 | % | 16.4 | % | 15.0 | % | 24.4 | % | 16.0 | % | 2.9 | % | 10.8 | % | ||||||||||||||
(1)
Includes the effect of interest rate swaps.
July 28,
2009
7
Coca-Cola FEMSA
Results
of Operations
Millions
of Pesos
For
the second quarter of:
|
For the second quarter
of:
|
For the six months
of:
|
|||||||||||||||||||||||||||||||||||||||
|
2009(A)
|
% of rev.
|
2008(A)
|
% of rev.
|
% Increase
|
2009(A)
|
% of rev.
|
2008(A)
|
% of rev.
|
% Increase
|
|||||||||||||||||||||||||||||||
|
Total
revenues
|
24,184 | 100.0 | 18,544 | 100.0 | 30.4 | 46,339 | 100.0 | 35,864 | 100.0 | 29.2 | ||||||||||||||||||||||||||||||
|
Cost
of sales
|
12,757 | 52.7 | 9,598 | 51.8 | 32.9 | 24,631 | 53.2 | 18,625 | 51.9 | 32.2 | ||||||||||||||||||||||||||||||
|
Gross
profit
|
11,427 | 47.3 | 8,946 | 48.2 | 27.7 | 21,708 | 46.8 | 17,239 | 48.1 | 25.9 | ||||||||||||||||||||||||||||||
|
Administrative
expenses
|
1,344 | 5.6 | 948 | 5.1 | 41.8 | 2,385 | 5.1 | 1,862 | 5.2 | 28.1 | ||||||||||||||||||||||||||||||
|
Selling
expenses
|
6,406 | 26.5 | 4,829 | 26.0 | 32.7 | 12,384 | 26.7 | 9,385 | 26.2 | 32.0 | ||||||||||||||||||||||||||||||
|
Operating
expenses
|
7,750 | 32.1 | 5,777 | 31.1 | 34.2 | 14,769 | 31.8 | 11,247 | 31.4 | 31.3 | ||||||||||||||||||||||||||||||
|
Income
from operations
|
3,677 | 15.2 | 3,169 | 17.1 | 16.0 | 6,939 | 15.0 | 5,992 | 16.7 | 15.8 | ||||||||||||||||||||||||||||||
|
Depreciation
|
717 | 3.0 | 580 | 3.1 | 23.6 | 1,414 | 3.1 | 1,143 | 3.2 | 23.7 | ||||||||||||||||||||||||||||||
|
Amortization
& other
|
155 | 0.6 | 170 | 0.9 | (8.8 | ) | 411 | 0.8 | 361 | 1.0 | 13.9 | |||||||||||||||||||||||||||||
|
EBITDA
|
4,549 | 18.8 | 3,919 | 21.1 | 16.1 | 8,764 | 18.9 | 7,496 | 20.9 | 16.9 | ||||||||||||||||||||||||||||||
|
Capital
expenditures
|
1,041 | 663 | 57.0 | 1,743 | 1,184 | 47.2 | ||||||||||||||||||||||||||||||||||
(A)
Average Mexican Pesos of each year.
|
Sales volumes
|
||||||||||||||||||||||||||||||||||||||||
|
(Millions of unit cases)
|
||||||||||||||||||||||||||||||||||||||||
|
Mexico
|
329.2 | 54.2 | 308.9 | 55.9 | 6.6 | 601.6 | 51.8 | 573.0 | 53.5 | 5.0 | ||||||||||||||||||||||||||||||
|
Latincentro
|
142.4 | 23.5 | 129.5 | 23.4 | 10.0 | 275.1 | 23.7 | 259.7 | 24.3 | 5.9 | ||||||||||||||||||||||||||||||
|
Mercosur
|
135.4 | 22.3 | 114.5 | 20.7 | 18.3 | 284.5 | 24.5 | 237.9 | 22.2 | 19.6 | ||||||||||||||||||||||||||||||
|
Total
|
607.0 | 100.0 | 552.9 | 100.0 | 9.8 | 1,161.2 | 100.0 | 1,070.6 | 100.0 | 8.5 | ||||||||||||||||||||||||||||||
July 28,
2009
8
FEMSA Cerveza
Results
of Operations
Millions
of Pesos
For
the second quarter of:
|
For
the second quarter of:
|
For
the six months of:
|
|||||||||||||||||||||||||||||||||||||||
|
2009(A)
|
% of
rev.
|
2008(A)
|
% of
rev.
|
%
Increase
|
2009(A)
|
% of
rev.
|
2008(A)
|
% of
rev.
|
%
Increase
|
|||||||||||||||||||||||||||||||
|
Sales:
|
||||||||||||||||||||||||||||||||||||||||
|
Mexico
|
8,133 | 68.5 | 7,878 | 70.7 | 3.2 | 14,510 | 66.2 | 14,070 | 69.5 | 3.1 | ||||||||||||||||||||||||||||||
|
Brazil
|
1,447 | 12.2 | 1,440 | 12.9 | 0.5 | 3,108 | 14.2 | 2,818 | 13.9 | 10.3 | ||||||||||||||||||||||||||||||
|
Export
|
1,349 | 11.3 | 987 | 8.9 | 36.7 | 2,447 | 11.1 | 1,751 | 8.7 | 39.7 | ||||||||||||||||||||||||||||||
|
Beer
sales
|
10,929 | 92.0 | 10,305 | 92.5 | 6.1 | 20,065 | 91.5 | 18,639 | 92.1 | 7.7 | ||||||||||||||||||||||||||||||
|
Other
revenues
|
951 | 8.0 | 830 | 7.5 | 14.6 | 1,869 | 8.5 | 1,607 | 7.9 | 16.3 | ||||||||||||||||||||||||||||||
|
Total
revenues
|
11,880 | 100.0 | 11,135 | 100.0 | 6.7 | 21,934 | 100.0 | 20,246 | 100.0 | 8.3 | ||||||||||||||||||||||||||||||
|
Cost
of sales
|
5,525 | 46.5 | 4,929 | 44.3 | 12.1 | 10,632 | 48.5 | 9,217 | 45.5 | 15.4 | ||||||||||||||||||||||||||||||
|
Gross
profit
|
6,355 | 53.5 | 6,206 | 55.7 | 2.4 | 11,302 | 51.5 | 11,029 | 54.5 | 2.5 | ||||||||||||||||||||||||||||||
|
Administrative
expenses
|
1,083 | 9.1 | 1,040 | 9.3 | 4.1 | 2,051 | 9.4 | 2,038 | 10.1 | 0.6 | ||||||||||||||||||||||||||||||
|
Selling
expenses
|
3,532 | 29.8 | 3,414 | 30.7 | 3.5 | 6,743 | 30.7 | 6,566 | 32.4 | 2.7 | ||||||||||||||||||||||||||||||
|
Operating
expenses
|
4,615 | 38.9 | 4,454 | 40.0 | 3.6 | 8,794 | 40.1 | 8,604 | 42.5 | 2.2 | ||||||||||||||||||||||||||||||
|
Income
from operations
|
1,740 | 14.6 | 1,752 | 15.7 | (0.7 | ) | 2,508 | 11.4 | 2,425 | 12.0 | 3.4 | |||||||||||||||||||||||||||||
|
Depreciation
|
466 | 3.9 | 422 | 3.8 | 10.4 | 922 | 4.2 | 838 | 4.1 | 10.0 | ||||||||||||||||||||||||||||||
|
Amortization
& other
|
721 | 6.1 | 674 | 6.1 | 7.0 | 1,466 | 6.7 | 1,334 | 6.6 | 9.9 | ||||||||||||||||||||||||||||||
|
EBITDA
|
2,927 | 24.6 | 2,848 | 25.6 | 2.8 | 4,896 | 22.3 | 4,597 | 22.7 | 6.5 | ||||||||||||||||||||||||||||||
|
Capital
expenditures
|
1,034 | 1,519 | (31.9 | ) | 2,071 | 2,579 | (19.7 | ) | ||||||||||||||||||||||||||||||||
(A)
Average Mexican Pesos of each year.
|
Sales volumes
|
||||||||||||||||||||||||||||||||||||||||
|
(Thousand hectoliters)
|
||||||||||||||||||||||||||||||||||||||||
|
Mexico
|
7,017.0 | 69.3 | 7,455.9 | 69.5 | (5.9 | ) | 12,894.7 | 67.0 | 13,518.0 | 67.7 | (4.6 | ) | ||||||||||||||||||||||||||||
|
Brazil
|
2,070.2 | 20.5 | 2,259.3 | 21.1 | (8.4 | ) | 4,521.6 | 23.5 | 4,665.0 | 23.4 | (3.1 | ) | ||||||||||||||||||||||||||||
|
Exports
|
1,033.9 | 10.2 | 1,009.5 | 9.4 | 2.4 | 1,819.9 | 9.5 | 1,778.3 | 8.9 | 2.3 | ||||||||||||||||||||||||||||||
|
Total
|
10,121.1 | 100.0 | 10,724.7 | 100.0 | (5.6 | ) | 19,236.2 | 100.0 | 19,961.3 | 100.0 | (3.6 | ) | ||||||||||||||||||||||||||||
|
Price
per hectoliter
|
||||||||||||||||||||||||||||||||||||||||
|
Mexico
|
1,159.0 | 1,056.6 | 9.7 | 1,125.3 | 1,040.8 | 8.1 | ||||||||||||||||||||||||||||||||||
|
Brazil
|
699.0 | 637.4 | 9.7 | 687.4 | 604.1 | 13.8 | ||||||||||||||||||||||||||||||||||
|
Exports
|
1,304.8 | 977.7 | 33.5 | 1,344.6 | 984.6 | 36.6 | ||||||||||||||||||||||||||||||||||
|
Total
|
1,079.8 | 960.9 | 12.4 | 1,043.1 | 933.8 | 11.7 | ||||||||||||||||||||||||||||||||||
|
Price
per hectoliter in local
currency
|
||||||||||||||||||||||||||||||||||||||||
|
Brazil
(Brazilian
Real)
|
108.8 | 100.8 | 8.0 | 109.0 | 96.4 | 13.1 | ||||||||||||||||||||||||||||||||||
|
Exports
(USD)
|
97.2 | 93.7 | 3.7 | 96.9 | 93.0 | 4.2 | ||||||||||||||||||||||||||||||||||
July 28,
2009
9
Results
of Operations
Millions
of Pesos
For
the second quarter of:
|
For the second quarter of:
|
For the six months of:
|
||||||||||||||||||||||||||||||||||||||
|
2009(A)
|
% of rev.
|
2008(A)
|
% of rev.
|
% Increase
|
2009(A)
|
% of rev.
|
2008(A)
|
% of rev.
|
% Increase
|
||||||||||||||||||||||||||||||
|
Total
revenues
|
13,554 | 100.0 | 11,968 | 100.0 | 13.3 | 25,355 | 100.0 | 22,655 | 100.0 | 11.9 | |||||||||||||||||||||||||||||
|
Cost
of sales
|
9,233 | 68.1 | 8,359 | 69.8 | 10.5 | 17,479 | 68.9 | 16,099 | 71.1 | 8.6 | |||||||||||||||||||||||||||||
|
Gross
profit
|
4,321 | 31.9 | 3,609 | 30.2 | 19.7 | 7,876 | 31.1 | 6,556 | 28.9 | 20.1 | |||||||||||||||||||||||||||||
|
Administrative
expenses
|
226 | 1.7 | 212 | 1.8 | 6.6 | 451 | 1.8 | 416 | 1.8 | 8.4 | |||||||||||||||||||||||||||||
|
Selling
expenses
|
3,007 | 22.2 | 2,625 | 21.9 | 14.6 | 5,856 | 23.1 | 4,997 | 22.1 | 17.2 | |||||||||||||||||||||||||||||
|
Operating
expenses
|
3,233 | 23.9 | 2,837 | 23.7 | 14.0 | 6,307 | 24.9 | 5,413 | 23.9 | 16.5 | |||||||||||||||||||||||||||||
|
Income
from operations
|
1,088 | 8.0 | 772 | 6.5 | 40.9 | 1,569 | 6.2 | 1,143 | 5.0 | 37.3 | |||||||||||||||||||||||||||||
|
Depreciation
|
205 | 1.5 | 162 | 1.4 | 26.5 | 400 | 1.6 | 319 | 1.4 | 25.4 | |||||||||||||||||||||||||||||
|
Amortization
& other
|
127 | 1.0 | 107 | 0.8 | 18.7 | 254 | 1.0 | 219 | 1.0 | 16.0 | |||||||||||||||||||||||||||||
|
EBITDA
|
1,420 | 10.5 | 1,041 | 8.7 | 36.4 | 2,223 | 8.8 | 1,681 | 7.4 | 32.2 | |||||||||||||||||||||||||||||
|
Capital
expenditures
|
675 | 630 | 7.1 | 1,172 | 998 | 17.4 | |||||||||||||||||||||||||||||||||
(A)
Average Mexican Pesos of each year.
|
Information of Convenience
Stores
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Total
stores
|
6,811 | 5,851 | 16.4 | ||||||||||||||||||||||||
|
Net
new convenience stores
|
269 | 215 | 25.1 | 960 | 754 | 27.3 | |||||||||||||||||||||
|
Same store data:
(1)
|
|||||||||||||||||||||||||||
|
Sales
(thousands of pesos)
|
646.6 | 643.4 | 0.5 | 615.1 | 618.6 | (0.6 | ) | ||||||||||||||||||||
|
Traffic
|
26.1 | 24.7 | 5.5 | 24.3 | 23.4 | 4.0 | |||||||||||||||||||||
|
Ticket
|
24.8 | 26.0 | (4.6 | ) | 25.3 | 26.4 | (4.2 | ) | |||||||||||||||||||
(1)
Monthly average information per store, considering same stores with at least 13
months of operations.
July 28,
2009
10
Macroeconomic
Information
|
Exchange Rate
|
||||||||||||||||||||||||||||
|
Inflation
|
as of June 30, 2009
|
as of June 30, 2008
|
||||||||||||||||||||||||||
|
June 08 -
|
December 08 -
|
|||||||||||||||||||||||||||
| 2Q 2009 |
June 09
|
June 09
|
Per USD
|
Per Mx. Peso
|
Per USD
|
Per Mx. Peso
|
||||||||||||||||||||||
|
Mexico
|
0.24 | % | 5.74 | % | 1.27 | % | 13.20 | 1.0000 | 10.28 | 1.0000 | ||||||||||||||||||
|
Colombia
|
0.27 | % | 3.81 | % | 2.22 | % | 2,158.67 | 0.0061 | 1,923.02 | 0.0053 | ||||||||||||||||||
|
Venezuela
|
5.71 | % | 26.08 | % | 10.86 | % | 2.15 | 6.1406 | 2.15 | 4.7833 | ||||||||||||||||||
|
Brazil
|
1.58 | % | 4.94 | % | 2.75 | % | 1.95 | 6.7649 | 1.59 | 6.4603 | ||||||||||||||||||
|
Argentina
|
1.09 | % | 5.27 | % | 2.72 | % | 3.80 | 3.4770 | 3.03 | 3.3997 | ||||||||||||||||||
July 28,
2009
11
 |
 |
|||||||||||||||||||
|
2009
SECOND-QUARTER AND FIRST SIX MONTHS RESULTS
|
||||||||||||||||||||
|
Second
Quarter
|
YTD
|
|||||||||||||||||||
|
2009
|
2008
|
Δ%
|
2009
|
2008
|
Δ%
|
|||||||||||||||
|
Total
Revenues
|
24,184
|
18,544
|
30.4
|
%
|
46,339
|
35,864
|
29.2
|
% | ||||||||||||
|
Gross
Profit
|
11,427
|
8,946
|
27.7
|
%
|
21,708
|
17,239
|
25.9
|
% | ||||||||||||
|
Operating
Income
|
3,677
|
3,169
|
16.0
|
%
|
6,939
|
5,992
|
15.8
|
% | ||||||||||||
|
Majority
Net Income
|
2,161
|
1,844
|
17.2
|
%
|
3,499
|
3,444
|
1.6
|
% | ||||||||||||
|
EBITDA(1)
|
4,549
|
3,919
|
16.1
|
%
|
8,764
|
7,496
|
16.9
|
% | ||||||||||||
|
Net
Debt (2)
|
9,418
|
12,382
|
-23.9
|
%
|
||||||||||||||||
|
LTM
EBITDA/ Interest Expense, net
|
10.00
|
9.91
|
||||||||||||||||||
|
LTM
EBITDA/ Interest Expense
|
8.72
|
7.18
|
||||||||||||||||||
|
LTM
Earnings per Share
|
3.03
|
3.96
|
||||||||||||||||||
|
Capitalization(3)
|
28.8
|
%
|
26.5
|
%
|
||||||||||||||||
|
Expressed
in million 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)
Total debt / (long-term debt + stockholders' equity)
|
||||||||||||||||||||
 Total revenues reached Ps. 24,184 million in
the second quarter of 2009, an increase of 30.4% compared to the second
quarter of 2008; increased revenues from acquisitions we made in 2008 and
2009 contributed approximately 20% of this growth. |
||||||||||||||||||||
|
Consolidated operating income grew 16.0% to
Ps. 3,677 million for the second quarter of 2009, mainly driven by
double-digit operating income growth recorded in our Latincentro and
Mercosur divisions. Our operating margin was 15.2% in the second quarter
of 2009. |
||||||||||||||||||||
|
Consolidated majority net income increased
17.2% to Ps. 2,161 million in the second quarter of 2009, mainly
reflecting higher operating income, resulting in earnings per share of Ps.
1.17 in the second quarter of 2009. |
||||||||||||||||||||
|
Mexico
City (July 24, 2009), Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL, NYSE:
KOF) (“Coca-Cola FEMSA” or the “Company”), the largest Coca-Cola bottler
in Latin America and the second-largest Coca-Cola bottler in the world in
terms of sales volume, announces results for the second quarter of
2009.
"In
the middle of a tough operating environment, our company continued to
achieve strong top- and bottom-line results for the quarter, growing
revenues, operating income, and EBITDA by 30%, 16%, and 16%, respectively.
Among other factors, we benefited from the growth of our sparkling
beverages category, particularly in Mexico; the consolidation of our REMIL
franchise territory in Brazil; and the strong performance of the Jugos del
Valle line of juice-based beverages throughout our operations along with
our ability to improve our pricing architecture. Our portfolio of products
continued to outperform macroeconomic conditions across our territories,
demonstrating its defensiveness. Also, as of June 1st,
2009, we took over the sales and distribution functions of the Brisa water
business in Colombia. Furthermore, we believe our company is in a very
strong financial position as exemplified by the debt maturities that we
met during July—US$265 million of a Yankee bond and Certificados
Bursátiles in the amount of MXN$500 million." said Carlos Salazar Lomelin,
Chief Executive Officer of the
Company.
|
||||||||||||||||||||
|
July
24, 2009
|
 |
Page
12
|
CONSOLIDATED
RESULTS
Our
consolidated total revenues increased 30.4% to Ps. 24,184 million in the second
quarter of 2009, compared to the second quarter of 2008, as a result of revenue
increases in all of our divisions. Revenue growth was driven by (i) organic
growth, driven both by pricing and volumes, which accounted for more than 50% of
incremental revenues, (ii) a positive exchange rate translation effect
contributing less than 30% of incremental revenues and (iii) the consolidation
of Refrigerantes Minas Gerais, Ltda. (“REMIL”) in Brazil and Brisa in Colombia,
which contributed approximately 20% of incremental revenues, providing the
balance. Excluding the positive exchange rate translation effect and the
acquisitions of REMIL and Brisa, our consolidated total revenues would have
increased more than 16%.
Total
sales volume increased 9.8% to reach 607.0 million unit cases in the second
quarter of 2009 as compared to the same period in 2008. Excluding REMIL, total
sales volume increased 6.8%, mainly driven by increases in sparkling beverages
across all divisions, accounting for almost 40% of incremental volumes. Still
beverages sales volume, mainly driven by the Jugos del Valle line of
business in our Mexico and Latincentro divisions, grew almost 100%, which
accounted for approximately 40% of incremental sales volumes. Our bottled water
business, driven by the acquisitions of Agua de Los Angeles in Mexico and Brisa
in Colombia, grew almost 10% and represented the balance.
Our gross
profit increased 27.7% to Ps. 11,427 million in the second quarter of 2009,
compared to the second quarter of 2008. Cost of goods sold increased 32.9%
mainly driven by (i) higher year-over-year sweetener costs, (ii) the devaluation
of the local currencies in our main operations as applied to our U.S.
dollar-denominated raw material cost and (iii) the integration of REMIL; which
were partially offset by a lower cost of resin. Gross margin reached 47.3% in
the second quarter of 2009 as compared to 48.2% in the same period in
2008.
Our
consolidated operating income increased 16.0% to Ps. 3,677 million in the second
quarter of 2009, mainly driven by double-digit operating income growth in our
Latincentro and Mercosur divisions. Our operating margin was 15.2% in the second
quarter of 2009, a decrease of 190 basis points compared to the same period in
2008 as a result of higher operating expenses and cost of goods sold, which were
partially offset by revenue growth.
During
the second quarter of 2009, we recorded Ps. 453 million in other expenses. These
expenses were mainly driven by the loss on sale of certain fixed assets and
employee profit sharing recorded in the other expenses line, in accordance with
Mexican Financial Reporting Standards.
Our
comprehensive financing result in the second quarter of 2009 recorded a gain of
Ps. 23 million as compared to an expense of Ps. 51 million in the same period of
2008, mainly due to lower interest expenses as a result of lower net
debt.
During
the second quarter of 2009, income tax, as a percentage of income before taxes,
was 29.9% compared to 28.3% in the same period of 2008.
Our
consolidated majority net income increased by 17.2% to Ps. 2,161 million in the
second quarter of 2009 as compared to the second quarter of 2008, mainly as a
result of higher operating income. Earnings per share (EPS) were Ps. 1.17 (Ps.
11.70 per ADR) computed on the basis of 1,846.5 million shares outstanding (each
ADR represents 10 local shares).
|
July
24, 2009
|
|
Page
13
|
BALANCE
SHEET
As of
June 30, 2009, we had a cash balance of Ps. 11,364 million, including US$ 458
million denominated in US dollars, an increase of Ps. 5,172 million compared to
December 31, 2008, as a result of cash generated by our operations and financing
during the first half of the year.
Total
short-term debt was Ps. 10,130 million and long-term debt was Ps. 10,652
million. Total debt increased Ps. 2,208 million compared with year-end 2008
mainly due to the issuance of Ps. 2,000 million in “Certificados Bursátiles”,
with a 13-month maturity, in January 2009. Net debt decreased Ps. 2,964 million
compared to year-end 2008, mainly as a result of cash generated during the first
half of the year. KOF’s total debt balance includes U.S. dollar-denominated debt
in the amount of US$ 642 million (1).
The
weighted average cost of debt for the quarter was 7.1%. The following charts set
forth the Company’s debt profile by currency and interest rate type and by
maturity date as of June 30, 2009:
|
Currency
|
%
Total Debt(1)
|
%
Interest Rate
Floating(1)(2)
|
||||||
|
Mexican
pesos
|
44.3 | % | 46.4 | % | ||||
|
U.S.
dollars
|
40.1 | % | 38.6 | % | ||||
|
Colombian
pesos
|
9.3 | % | 100.0 | % | ||||
|
Venezuelan
bolivars
|
0.8 | % | 0.0 | % | ||||
|
Argentine
pesos
|
5.5 | % | 29.3 | % | ||||
|
|
(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
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014 + | ||||||||||||||||||
|
%
of Total Debt
|
27.3 | % | 22.1 | % | 0.3 | % | 18.9 | % | 11.1 | % | 20.3 | % | ||||||||||||
On July 1
and July 10, 2009, we paid, using cash from our balance, the maturities of our
Yankee bond in the amount of US$ 265 million and our “Certificados Bursátiles”
in the amount of Ps. 500 million.
Consolidated
Cash Flow
Expressed in million of
Mexican pesos (Ps.) as of June 30, 2009
|
Jun-09
|
||||
|
Ps.
|
||||
|
Income
before taxes
|
5,239 | |||
|
Non cash charges to net
income
|
3,073 | |||
| 8,312 | ||||
|
Change in working capital
|
(254 | ) | ||
|
Resources Generated by Operating
Activities
|
8,058 | |||
|
Investments
|
(2,375 | ) | ||
|
Debt
Increase
|
2,457 | |||
|
Other
|
(2,793 | ) | ||
|
Increase in cash and cash
equivalents
|
5,347 | |||
|
Cash
and cash equivalents at begining of period
|
6,192 | |||
|
Translation
Effect
|
(175 | ) | ||
|
Cash and cash equivalents at end of
period
|
11,364 | |||
The
difference between the debt increase of the balance sheet and the debt increase
in nominal terms presented in the cash flow is related to the foreign exchange
impact, presented separately as a part of the translation effect, in accordance
with the Mexican Financial Reporting Standards.
|
July
24, 2009
|
|
Page
14
|
MEXICO
DIVISION OPERATING RESULTS
Revenues
Total
revenues from our Mexico division increased 7.8% to Ps. 9,749 million in the
second quarter of 2009, as compared to the same period in 2008. Increased sales
volumes accounted for close to 90% of incremental revenues during the quarter.
Average price per unit case reached Ps. 29.42, an increase of 0.7%, as compared
to the second quarter of 2008, reflecting higher average prices per unit case
from the cola category that were partially offset by lower average prices per
unit case in flavored sparkling beverages. Excluding bulk water under the brands
Ciel and Agua de Los Angeles, our
average price per unit case was Ps. 34.67, a 1.0% increase as compared to the
same period in 2008.
Total
sales volume increased 6.6% to 329.2 million unit cases in the second quarter of
2009, as compared to the second quarter of 2008, mainly driven by (i) a 2.9%
volume growth in sparkling beverages supported by incremental volumes from the
Coca-Cola brand in
multiserve presentations that compensated for a decline in flavored sparkling
beverages, (ii) incremental volumes in the still beverage category, increasing
more than two times, driven by the Jugos del Valle product line and (iii) volume
growth in our bottled water business by almost 7%.
Operating
Income
Our gross
profit increased 5.0% to Ps. 4,888 million in the second quarter of 2009 as
compared to the same period in 2008. Cost of goods sold increased 10.7% as a
result of (i) the third and final yearly stage of the scheduled Coca-Cola
Company concentrate price increase announced in 2006, (ii) the higher costs of
sweeteners and (iii) the devaluation of the Mexican peso as applied to our U.S.
dollar-denominated raw material cost; all of which were partially offset by the
lower year-over-year cost of resin. Gross margin decreased from 51.5% in the
second quarter of 2008 to 50.1% in the same period of 2009.
Operating
income increased 2.4% to Ps. 1,902 million in the second quarter of 2009,
compared to Ps. 1,858 million in the same period of 2008. Our operating margin
was 19.5% in the second quarter of 2009, a decrease of 100 basis points as
compared to the same period of 2008, mainly due to gross margin
pressures.
|
July
24, 2009
|
|
Page
15
|
LATINCENTRO
DIVISION OPERATING RESULTS (Colombia, Venezuela, Guatemala, Nicaragua, Costa
Rica and Panama)
As
of June 1st, 2009,
Coca-Cola FEMSA started to distribute the Brisa portfolio in
Colombia.
Revenues
Total
revenues reached Ps. 8,666 million in the second quarter of 2009, an increase of
63.9% as compared to the same period of 2008. Higher average price per unit case
and volume growth accounted for approximately 55% of incremental revenues. A
positive currency translation effect and the integration of Brisa represented
the balance. Excluding this positive currency translation effect and the
acquisition of Brisa, our Latincentro division’s revenues would have increased
approximately 35%.
Total
sales volume in our Latincentro division increased 10.0% to 142.4 million unit
cases in the second quarter of 2009 as compared to the same period of 2008.
Volume growth was mainly driven by (i) increases in sparkling beverages in
Venezuela, (ii) the strong performance of the Jugos del Valle line of business
in Colombia and Central America and (iii) the consolidation of the Brisa water
brand in Colombia.
Operating
Income
Gross
profit reached Ps. 4,091 million, an increase of 68.1% in the second quarter of
2009, as compared to the same period of 2008. Cost of goods sold increased 60.4%
mainly driven by higher sweetener costs across the division and the depreciation
of the Colombian peso as applied to our U.S. dollar-denominated packaging costs,
which were compensated by a lower cost of resin. Gross margin increased 120
basis points to 47.2% in the second quarter of 2009.
Our
operating income increased 38.7% to Ps. 1,036 million in the second quarter of
2009, compared to the second quarter of 2008, as a result of operating leverage
achieved by higher revenues that more than compensated for higher labor and
maintenance costs in Venezuela and Colombia respectively. Our operating margin
reached 12.0% in the second quarter of 2009, resulting in a 210 basis points
decline as compared to the same period of 2008.
|
July
24, 2009
|
|
Page
16
|
MERCOSUR
DIVISION OPERATING RESULTS (Brazil and Argentina)
As
of June 1st, 2008,
Coca-Cola FEMSA includes the REMIL operation in its Mercosur division. Volume
and average price per unit case exclude beer results.
Revenues
Net
revenues increased 36.7% to Ps. 5,686 million in the second quarter of 2009, as
compared to the same period of 2008. Excluding beer, which accounted for Ps. 614
million during the quarter, net revenues increased 34.6% to Ps. 5,072 million,
compared to the same period of 2008. The acquisition of REMIL accounted for
approximately 65% of net revenue growth, while higher average prices per unit
case and volume growth accounted for approximately 30% of incremental net
revenues. A positive translation effect represented the balance.
Excluding this positive currency translation effect, our Mercosur division’s net
revenues would have increased approximately 35%.
Sales
volume, excluding beer, increased 18.2% to 135.4 million unit cases in the
second quarter of 2009, as compared to the second quarter of 2008, mainly driven
by the acquisition of REMIL. Sales volume, excluding REMIL and beer, increased
3.4% to reach 110.6 million unit cases mainly driven by (i) sparkling beverages
in Brazil and Argentina, (ii) the Jugos del Valle portfolio in Brazil and (iii)
Aquarius flavored water in Argentina.
Operating
Income
In the
second quarter of 2009, our gross profit increased 31.9% to Ps. 2,448 million,
as compared to the same period in 2008. Cost of goods sold increased 41.0%
driven by (i) the integration of REMIL in Brazil, (ii) higher sweetener cost in
the division and (iii) the devaluation of the local currencies as applied to our
U.S. dollar-denominated raw material cost; all of which were partially
compensated by the lower cost of resin. Our Mercosur division gross margin
decreased 170 basis points to 42.4% in the second quarter of 2009.
Operating
income increased 31.0%, reaching Ps. 739 million in the second quarter of 2009,
as compared to Ps. 564 million in the same period of 2008. Operating leverage
achieved by higher revenues more than compensated for higher labor and freight
costs in Argentina. Our operating margin was 12.8% in the second quarter of
2009, a decrease of 60 basis points as compared to the second quarter of
2008.
|
July
24, 2009
|
|
Page
17
|
SUMMARY
OF SIX-MONTH RESULTS
Our
consolidated total revenues increased 29.2% to Ps. 46,339 million in the first
half of 2009, as compared to the first half of 2008, as a result of revenue
growth in all of our divisions. Organic growth across our operations contributed
almost 50% of incremental revenues; a positive exchange rate translation effect
accounted for more than 25% and the acquisitions of REMIL in Brazil and Brisa in
Colombia contributed approximately 25%, representing the balance. Excluding this
positive currency exchange rate translation effect and the acquisitions of REMIL
and Brisa, our consolidated revenues for the first six months would have
increased approximately 14%.
Total
sales volume increased 8.5% to 1,161.2 million unit cases in the first half of
2008, as compared to the same period in 2008. Excluding Remil, total sales
volume increased 4.3% to reach 1,108.9 million unit cases. The still beverage
category, mainly driven by the performance of the Jugos del Valle line of
business across our territories, contributed to more than 60% of incremental
volumes; water, including bulk water, represented approximately 30% of
incremental volumes and the sparkling beverage category, driven by brand Coca-Cola, contributed less
than 10% representing the balance.
Our gross
profit increased 25.9% to Ps. 21,708 million in the first half of 2009, as
compared to the same period of 2008, driven by gross profit growth across all of
our divisions. Cost of goods sold increased 32.2% as a result of (i) the higher
cost of sweetener across our operations, (ii) the devaluation of local
currencies in our main operations as applied to our U.S. dollar-denominated raw
material costs and (iii) the integration of REMIL, all of which were partially
compensated by the lower cost of resin. Gross margin reached 46.8% for the first
six months of 2009, a decrease of 130 basis points as compared to the same
period of 2008.
Our
consolidated operating income increased 15.8% to Ps. 6,939 million in the first
half 2009, as compared to 2008. Our Mercosur and Latincentro divisions accounted
for more than 90% of this growth. Our operating margin was 15.0% for the first
half of 2009, a 170 basis points decline as compared to the same period of
2008.
Our
consolidated majority net income was Ps. 3,499 million in the first six months
of 2009, an increase of 1.6% compared to the same period in 2008, mainly
reflecting higher operating income. EPS was Ps. 1.89 (Ps. 18.95 per ADR) in the
first half of 2009, computed on the basis of 1,846.5 million shares outstanding
(each ADR represents 10 local shares).
|
July
24, 2009
|
|
Page
18
|
RECENT
DEVELOPEMENTS
|
|
·
|
As
of June 1st,
2009, pursuant to the transition agreement with Bavaria, a subsidiary of
SABMiller, we started to sell and distribute the Brisa portfolio in
Colombia.
|
|
|
·
|
In
July, 2009 we paid down the maturities related to the Yankee Bond
inherited with the acquisition of Panamco for an amount of US$ 265 million
and the Certificado Bursátil for an amount of Ps. 500 million, both with
cash generated from our operations.
|
CONFERENCE
CALL INFORMATION
Our
second-quarter 2009 Conference Call will be held on: July 24, 2009, 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 July 31, 2009. To listen to the replay, please dial: Domestic
U.S.: 888-286-8010 or International: 617-801-6888. Pass code:
27948902.
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 and 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
that 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)
|
July
24, 2009
|
|
Page
19
|
Consolidated
Income Statement
Expressed
in million of Mexican pesos(1)
| 2Q 09 |
%
Rev
|
2Q 08 |
%
Rev
|
Δ%
|
YTD
09
|
%
Rev
|
YTD
08
|
%
Rev
|
Δ%
|
||||||||||||||||||||||||||||||||
|
Volume
(million unit cases) (2)
|
607.0 | 552.9 | 9.8 | % | 1,161.2 | 1,070.6 | 8.5 | % | |||||||||||||||||||||||||||||||||
|
Average
price per unit case (2)
|
38.58 | 32.69 | 18.0 | % | 38.61 | 32.66 | 18.2 | % | |||||||||||||||||||||||||||||||||
|
Net
revenues
|
24,033 | 18,463 | 30.2 | % | 46,062 | 35,678 | 29.1 | % | |||||||||||||||||||||||||||||||||
|
Other
operating revenues
|
151 | 81 | 86.4 | % | 277 | 186 | 48.9 | % | |||||||||||||||||||||||||||||||||
|
Total
revenues
|
24,184 | 100 | % | 18,544 | 100 | % | 30.4 | % | 46,339 | 100 | % | 35,864 | 100 | % | 29.2 | % | |||||||||||||||||||||||||
|
Cost
of Goods Sold
|
12,757 | 52.7 | % | 9,598 | 51.8 | % | 32.9 | % | 24,631 | 53.2 | % | 18,625 | 51.9 | % | 32.2 | % | |||||||||||||||||||||||||
|
Gross
profit
|
11,427 | 47.3 | % | 8,946 | 48.2 | % | 27.7 | % | 21,708 | 46.8 | % | 17,239 | 48.1 | % | 25.9 | % | |||||||||||||||||||||||||
|
Operating
expenses
|
7,750 | 32.0 | % | 5,777 | 31.2 | % | 34.2 | % | 14,769 | 31.9 | % | 11,247 | 31.4 | % | 31.3 | % | |||||||||||||||||||||||||
|
Operating
income
|
3,677 | 15.2 | % | 3,169 | 17.1 | % | 16.0 | % | 6,939 | 15.0 | % | 5,992 | 16.7 | % | 15.8 | % | |||||||||||||||||||||||||
|
Other
expenses, net
|
453 | 496 | -8.7 | % | 787 | 683 | 15.2 | % | |||||||||||||||||||||||||||||||||
|
Interest
expense
|
405 | 622 | -34.9 | % | 1,033 | 1,132 | -8.7 | % | |||||||||||||||||||||||||||||||||
|
Interest
income
|
50 | 149 | -66.4 | % | 121 | 285 | -57.5 | % | |||||||||||||||||||||||||||||||||
|
Interest
expense, net
|
355 | 473 | -24.9 | % | 912 | 847 | 7.7 | % | |||||||||||||||||||||||||||||||||
|
Foreign
exchange (gain) loss
|
(68 | ) | (158 | ) | -57.0 | % | 304 | (207 | ) | -246.9 | % | ||||||||||||||||||||||||||||||
|
Gain
on monetary position in Inflationary
subsidiries
|
(109 | ) | (148 | ) | -26.4 | % | (193 | ) | (260 | ) | -25.8 | % | |||||||||||||||||||||||||||||
|
Fair
value (gain) on derivative financial
instruments
|
(201 | ) | (116 | ) | 73.3 | % | (110 | ) | (108 | ) | 1.9 | % | |||||||||||||||||||||||||||||
|
Comprehensive
financing result
|
(23 | ) | 51 | -145.1 | % | 913 | 272 | 235.7 | % | ||||||||||||||||||||||||||||||||
|
Income
before taxes
|
3,247 | 2,622 | 23.8 | % | 5,239 | 5,037 | 4.0 | % | |||||||||||||||||||||||||||||||||
|
Income
taxes
|
972 | 742 | 31.0 | % | 1,586 | 1,495 | 6.1 | % | |||||||||||||||||||||||||||||||||
|
Consolidated
net income
|
2,275 | 1,880 | 21.0 | % | 3,653 | 3,542 | 3.1 | % | |||||||||||||||||||||||||||||||||
|
Majority
net income
|
2,161 | 8.9 | % | 1,844 | 9.9 | % | 17.2 | % | 3,499 | 7.6 | % | 3,444 | 9.6 | % | 1.6 | % | |||||||||||||||||||||||||
|
Minority
net income
|
114 | 36 | 216.7 | % | 154 | 98 | 57.1 | % | |||||||||||||||||||||||||||||||||
|
Operating
income
|
3,677 | 15.2 | % | 3,169 | 17.1 | % | 16.0 | % | 6,939 | 15.0 | % | 5,992 | 16.7 | % | 15.8 | % | |||||||||||||||||||||||||
|
Depreciation
(3)
|
717 | 580 | 23.6 | % | 1,414 | 1,143 | 23.7 | % | |||||||||||||||||||||||||||||||||
|
Amortization
and other operative non-cash charges (4)
|
155 | 170 | -8.8 | % | 411 | 361 | 13.9 | % | |||||||||||||||||||||||||||||||||
|
EBITDA
(5)
|
4,549 | 18.8 | % | 3,919 | 21.1 | % | 16.1 | % | 8,764 | 18.9 | % | 7,496 | 20.9 | % | 16.9 | % | |||||||||||||||||||||||||
(1) Except
volume and average price per unit case figures.
(2) Sales
volume and average price per unit case exclude beer
results
(3) Amortization
of coolers has been reclassified into the depreciation line for accounting
purposes
(4) Includes
returnable bottle breakage expense.
(5) EBITDA
= Operating Income + depreciation, amortization & other operative non-cash
charges.
As of
June 1st, 2008,
we integrated the operation of Minas Gerais (REMIL) in the results of
Brazil.
As of
June 1st, 2009,
we integrated the operation of Brisa in the results of
Colombia.
|
July
24, 2009
|
|
Page
20
|
Expressed in million of Mexican pesos.
|
Assets
|
Jun
09
|
Dec
08
|
|||||
|
Current
Assets
|
|||||||
|
Cash
and cash equivalents
|
Ps.
|
11,364 |
Ps.
|
6,192 | |||
|
Total
accounts receivable
|
4,011 | 5,240 | |||||
|
Inventories
|
4,855 | 4,313 | |||||
|
Prepaid
expenses and other current assets
|
2,296 | 2,247 | |||||
|
Total
current assets
|
22,526 | 17,992 | |||||
|
Property,
plant and equipment
|
|||||||
|
Bottles
and cases
|
1,602 | 1,622 | |||||
|
Property,
plant and equipment
|
52,836 | 50,925 | |||||
|
Accumulated
depreciation
|
(25,757 | ) | (24,388 | ) | |||
|
Total
property, plant and equipment, net
|
28,681 | 28,159 | |||||
|
Other
non-current assets
|
53,446 | 51,807 | |||||
|
Total
Assets
|
Ps.
|
104,653 |
Ps.
|
97,958 | |||
|
Liabilities
and Stockholders' Equity
|
Jun
09
|
Dec
08
|
|||||
|
Current
Liabilities
|
|||||||
|
Short-term
bank loans and notes
|
Ps.
|
10,130 |
Ps.
|
6,119 | |||
|
Interest
payable
|
220 | 267 | |||||
|
Suppliers
|
7,425 | 7,790 | |||||
|
Other
current liabilities
|
7,124 | 7,157 | |||||
|
Total
Current Liabilities
|
24,899 | 21,333 | |||||
|
Long-term
bank loans
|
10,652 | 12,455 | |||||
|
Pension
plan and seniority premium
|
1,011 | 936 | |||||
|
Other
long term liabilities
|
6,621 | 5,618 | |||||
|
Total
Liabilities
|
43,183 | 40,342 | |||||
|
Stockholders'
Equity
|
|||||||
|
Minority
interest
|
1,973 | 1,703 | |||||
|
Majority
interest:
|
|||||||
|
Capital
stock
|
3,116 | 3,116 | |||||
|
Additional
paid in capital
|
13,220 | 13,220 | |||||
|
Retained
earnings of prior years
|
38,189 | 33,935 | |||||
|
Net
income for the period
|
3,499 | 5,598 | |||||
|
Other
comprehensive income
|
1,473 | 44 | |||||
|
Total
majority interest
|
59,497 | 55,913 | |||||
|
Total
stockholders' equity
|
61,470 | 57,616 | |||||
|
Total
Liabilities and Equity
|
Ps.
|
104,653 |
Ps.
|
97,958 | |||
|
July
24, 2009
|
|
Page
21
|
Expressed
in million of Mexican pesos(1)
|
2Q 09
|
%
Rev
|
2Q 08
|
%
Rev
|
Δ%
|
YTD
09
|
%
Rev
|
YTD
08
|
%
Rev
|
Δ%
|
||||||||||||||||||||||||||||||||
|
Volume
(million unit cases)
|
329.2 | 308.9 | 6.6 | % | 601.6 | 573.0 | 5.0 | % | |||||||||||||||||||||||||||||||||
|
Average
price per unit
case
|
29.42 | 29.20 | 0.7 | % | 29.58 | 29.24 | 1.1 | % | |||||||||||||||||||||||||||||||||
|
Net
revenues
|
9,684 | 9,020 | 7.4 | % | 17,794 | 16,755 | 6.2 | % | |||||||||||||||||||||||||||||||||
|
Other
operating revenues
|
65 | 27 | 140.7 | % | 95 | 61 | 55.7 | % | |||||||||||||||||||||||||||||||||
|
Total
revenues
|
9,749 | 100.0 | % | 9,047 | 100.0 | % | 7.8 | % | 17,889 | 100.0 | % | 16,816 | 100.0 | % | 6.4 | % | |||||||||||||||||||||||||
|
Cost
of goods sold
|
4,861 | 49.9 | % | 4,391 | 48.5 | % | 10.7 | % | 8,925 | 49.9 | % | 8,201 | 48.8 | % | 8.8 | % | |||||||||||||||||||||||||
|
Gross
profit
|
4,888 | 50.1 | % | 4,656 | 51.5 | % | 5.0 | % | 8,964 | 50.1 | % | 8,615 | 51.2 | % | 4.1 | % | |||||||||||||||||||||||||
|
Operating
expenses
|
2,986 | 30.6 | % | 2,798 | 30.9 | % | 6.7 | % | 5,729 | 32.0 | % | 5,435 | 32.3 | % | 5.4 | % | |||||||||||||||||||||||||
|
Operating
income
|
1,902 | 19.5 | % | 1,858 | 20.5 | % | 2.4 | % | 3,235 | 18.1 | % | 3,180 | 18.9 | % | 1.7 | % | |||||||||||||||||||||||||
|
Depreciation,
amortization & other operative non-cash charges (2)
|
382 | 3.9 | % | 411 | 4.5 | % | -7.1 | % | 814 | 4.6 | % | 842 | 5.0 | % | -3.3 | % | |||||||||||||||||||||||||
|
EBITDA
(3)
|
2,284 | 23.4 | % | 2,269 | 25.1 | % | 0.7 | % | 4,049 | 22.6 | % | 4,022 | 23.9 | % | 0.7 | % | |||||||||||||||||||||||||
(1) Except
volume and average price per unit case figures.
(2) Includes
returnable bottle breakage expense.
(3) EBITDA
= Operating Income + Depreciation, amortization & other operative non-cash
charges.
Latincentro
Division
Expressed
in million of Mexican pesos(1)
|
2Q
09
|
%
Rev
|
2Q
08
|
%
Rev
|
Δ%
|
YTD
09
|
%
Rev
|
YTD
08
|
%
Rev
|
Δ%
|
||||||||||||||||||||||||||||||||
|
Volume
(million unit
cases)
|
142.4 | 129.5 | 10.0 | % | 275.1 | 259.7 | 5.9 | % | |||||||||||||||||||||||||||||||||
|
Average
price per unit
Case
|
60.84 | 40.80 | 49.1 | % | 59.92 | 41.03 | 46.1 | % | |||||||||||||||||||||||||||||||||
|
Net
revenues
|
8,663 | 5,283 | 64.0 | % | 16,484 | 10,655 | 54.7 | % | |||||||||||||||||||||||||||||||||
|
Other
operating revenues
|
3 | 3 | 0.0 | % | 2 | 7 | -71.4 | % | |||||||||||||||||||||||||||||||||
|
Total
revenues
|
8,666 | 100.0 | % | 5,286 | 100.0 | % | 63.9 | % | 16,486 | 100.0 | % | 10,662 | 100.0 | % | 54.6 | % | |||||||||||||||||||||||||
|
Cost
of goods
sold
|
4,575 | 52.8 | % | 2,852 | 54.0 | % | 60.4 | % | 8,827 | 53.5 | % | 5,776 | 54.2 | % | 52.8 | % | |||||||||||||||||||||||||
|
Gross
profit
|
4,091 | 47.2 | % | 2,434 | 46.0 | % | 68.1 | % | 7,659 | 46.5 | % | 4,886 | 45.8 | % | 56.8 | % | |||||||||||||||||||||||||
|
Operating
expenses
|
3,055 | 35.3 | % | 1,687 | 31.9 | % | 81.1 | % | 5,604 | 34.0 | % | 3,346 | 31.4 | % | 67.5 | % | |||||||||||||||||||||||||
|
Operating
income
|
1,036 | 12.0 | % | 747 | 14.1 | % | 38.7 | % | 2,055 | 12.5 | % | 1,540 | 14.4 | % | 33.4 | % | |||||||||||||||||||||||||
|
Depreciation,
amortization & other operative non-cash charges (2)
|
306 | 3.5 | % | 205 | 3.9 | % | 49.3 | % | 624 | 3.8 | % | 397 | 3.7 | % | 57.2 | % | |||||||||||||||||||||||||
|
EBITDA
(3)
|
1,342 | 15.5 | % | 952 | 18.0 | % | 41.0 | % | 2,679 | 16.3 | % | 1,937 | 18.2 | % | 38.3 | % | |||||||||||||||||||||||||
(1) Except
volume and average price per unit case figures.
(2) Includes
returnable bottle breakage expense.
(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.
|
July
24, 2009
|
|
Page
22
|
Expressed
in million of Mexican pesos(1)
Financial
figures include beer results
|
|
2Q
09
|
%
Rev
|
2Q
08
|
%
Rev
|
Δ%
|
YTD
09
|
%
Rev
|
YTD
08
|
%
Rev
|
Δ%
|
|||||||||||||||||||||||||||||||
|
Volume
(million unit cases) (2)
|
135.4 | 114.5 | 18.2 | % | 284.5 | 237.9 | 19.6 | % | |||||||||||||||||||||||||||||||||
|
Average
price per unit case (2)
|
37.46 | 32.93 | 13.8 | % | 37.12 | 31.76 | 16.9 | % | |||||||||||||||||||||||||||||||||
|
Net
revenues
|
5,686 | 4,160 | 36.7 | % | 11,784 | 8,268 | 42.5 | % | |||||||||||||||||||||||||||||||||
|
Other
operating revenues
|
83 | 51 | 62.7 | % | 180 | 118 | 52.5 | % | |||||||||||||||||||||||||||||||||
|
Total
revenues
|
5,769 | 100.0 | % | 4,211 | 100.0 | % | 37.0 | % | 11,964 | 100.0 | % | 8,386 | 100.0 | % | 42.7 | % | |||||||||||||||||||||||||
|
Cost
of goods
sold
|
3,321 | 57.6 | % | 2,355 | 55.9 | % | 41.0 | % | 6,879 | 57.5 | % | 4,648 | 55.4 | % | 48.0 | % | |||||||||||||||||||||||||
|
Gross
profit
|
2,448 | 42.4 | % | 1,856 | 44.1 | % | 31.9 | % | 5,085 | 42.5 | % | 3,738 | 44.6 | % | 36.0 | % | |||||||||||||||||||||||||
|
Operating
expenses
|
1,709 | 29.6 | % | 1,292 | 30.7 | % | 32.3 | % | 3,436 | 28.7 | % | 2,466 | 29.4 | % | 39.3 | % | |||||||||||||||||||||||||
|
Operating
income
|
739 | 12.8 | % | 564 | 13.4 | % | 31.0 | % | 1,649 | 13.8 | % | 1,272 | 15.2 | % | 29.6 | % | |||||||||||||||||||||||||
|
Depreciation,
Amortization & Other operative non-cash charges (2)
|
184 | 3.2 | % | 134 | 3.2 | % | 37.3 | % | 387 | 3.2 | % | 265 | 3.2 | % | 46.0 | % | |||||||||||||||||||||||||
|
EBITDA
(4)
|
923 | 16.0 | % | 698 | 16.6 | % | 32.2 | % | 2,036 | 17.0 | % | 1,537 | 18.3 | % | 32.5 | % | |||||||||||||||||||||||||
(1) Except
volume and average price per unit case figures.
(2) Sales
volume and average price per unit case exclude beer
results
(3) Includes
returnable bottle breakage expense.
(4) EBITDA
= Operating Income + Depreciation, amortization & other operative non-cash
charges.
As of
June 1st, 2008,
we integrated the operation of Minas Gerais (REMIL) in the results of
Brazil.
|
July
24, 2009
|
|
Page
23
|
SELECTED
INFORMATION
For
the three months ended June 30, 2009 and 2008
Expressed
in million of Mexican pesos.
|
2Q
09
|
2Q
08
|
||||||||||
|
Capex
|
1,041.3 |
Capex
|
662.7 | ||||||||
|
Depreciation
|
717.0 |
Depreciation
|
580.0 | ||||||||
|
Amortization
& Other non-cash charges
|
155.0 |
Amortization
& Other non-cash charges
|
170.0 |
VOLUME
Expressed
in million unit cases
|
2Q
09
|
2Q
08
|
||||||||||||||||||||||||||||||||||||||||
|
Sparkling
|
Water (1)
|
Bulk Water
(2)
|
Still (3)
|
Total
|
Sparkling
|
Water (1)
|
Bulk Water
(2)
|
Still (3)
|
Total
|
||||||||||||||||||||||||||||||||
|
Mexico
|
237.1 | 15.2 | 60.1 | 16.8 | 329.2 | 230.5 | 15.4 | 55.1 | 7.9 | 308.9 | |||||||||||||||||||||||||||||||
|
Central
America
|
29.8 | 1.5 | 0.1 | 3.0 | 34.4 | 29.9 | 1.3 | 0.0 | 2.4 | 33.6 | |||||||||||||||||||||||||||||||
|
Colombia
|
41.3 | 3.7 | 3.7 | 4.4 | 53.1 | 41.5 | 2.1 | 2.6 | 0.6 | 46.8 | |||||||||||||||||||||||||||||||
|
Venezuela
|
50.5 | 2.1 | 0.6 | 1.7 | 54.9 | 44.8 | 2.8 | 0.0 | 1.5 | 49.1 | |||||||||||||||||||||||||||||||
|
Latincentro
|
121.6 | 7.3 | 4.4 | 9.1 | 142.4 | 116.2 | 6.2 | 2.6 | 4.5 | 129.5 | |||||||||||||||||||||||||||||||
|
Brazil
|
85.4 | 4.0 | 0.5 | 3.2 | 93.1 | 68.6 | 4.3 | 0.0 | 1.4 | 74.3 | |||||||||||||||||||||||||||||||
|
Argentina
|
39.2 | 0.4 | 0.1 | 2.6 | 42.3 | 38.2 | 0.6 | 0.0 | 1.4 | 40.2 | |||||||||||||||||||||||||||||||
|
Mercosur
|
124.6 | 4.4 | 0.6 | 5.8 | 135.4 | 106.8 | 4.9 | 0.0 | 2.8 | 114.5 | |||||||||||||||||||||||||||||||
|
Total
|
483.3 | 26.9 | 65.1 | 31.7 | 607.0 | 453.5 | 26.5 | 57.7 | 15.2 | 552.9 | |||||||||||||||||||||||||||||||
(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
|
|
·
|
Volume
of Brazil, Mercosur division, and Consolidated includes three months of
REMIL’s operation, accounting for 24.8 million unit cases. Of this volume,
sparkling beverages represented close to
95%.
|
SELECTED
INFORMATION
For
the six months ended June 30, 2009 and 2008
Expressed
in million of Mexican pesos.
|
YTD
09
|
YTD
08
|
||||||||||
|
Capex
|
1,742.6 |
Capex
|
1,184.1 | ||||||||
|
Depreciation
|
1,414.0 |
Depreciation
|
1,143.0 | ||||||||
|
Amortization
& Other non-cash charges
|
411.0 |
Amortization
& Other non-cash charges
|
361.0 | ||||||||
VOLUME
Expressed
in million unit cases
|
YTD
09
|
YTD
08
|
||||||||||||||||||||||||||||||||||||||||
|
Sparkling
|
Water (1)
|
Bulk
Water (2)
|
Still (3)
|
Total
|
Sparkling
|
Water (1)
|
Bulk
Water (2)
|
Still (3)
|
Total
|
||||||||||||||||||||||||||||||||
|
Mexico
|
433.2 | 27.3 | 110.0 | 31.1 | 601.6 | 433.9 | 29.1 | 97.1 | 12.9 | 573.0 | |||||||||||||||||||||||||||||||
|
Central
America
|
56.8 | 3.0 | 0.1 | 5.4 | 65.3 | 59.4 | 2.8 | 0.0 | 4.4 | 66.6 | |||||||||||||||||||||||||||||||
|
Colombia
|
81.7 | 6.0 | 6.0 | 8.0 | 101.7 | 82.7 | 4.9 | 5.1 | 1.3 | 94.0 | |||||||||||||||||||||||||||||||
|
Venezuela
|
99.5 | 4.1 | 1.2 | 3.3 | 108.1 | 90.6 | 5.5 | 0.0 | 3.0 | 99.1 | |||||||||||||||||||||||||||||||
|
Latincentro
|
238.0 | 13.1 | 7.3 | 16.7 | 275.1 | 232.7 | 13.2 | 5.1 | 8.7 | 259.7 | |||||||||||||||||||||||||||||||
|
Brazil
|
179.2 | 9.6 | 1.1 | 6.2 | 196.1 | 137.6 | 9.7 | 0.0 | 2.5 | 149.8 | |||||||||||||||||||||||||||||||
|
Argentina
|
82.1 | 0.8 | 0.3 | 5.2 | 88.4 | 83.9 | 1.1 | 0.0 | 3.1 | 88.1 | |||||||||||||||||||||||||||||||
|
Mercosur
|
261.3 | 10.4 | 1.4 | 11.4 | 284.5 | 221.5 | 10.8 | 0.0 | 5.6 | 237.9 | |||||||||||||||||||||||||||||||
|
Total
|
932.5 | 50.8 | 118.7 | 59.2 | 1,161.2 | 888.1 | 53.1 | 102.2 | 27.2 | 1,070.6 | |||||||||||||||||||||||||||||||
(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
|
|
·
|
Volume
of Brazil, Mercosur division, and Consolidated includes six months of
REMIL’s operation, accounting for 52.3 million unit cases. Of this volume,
sparkling beverages represented close to
95%.
|
|
July
24, 2009
|
|
Page
24
|
June
2009
Macroeconomic
Information
|
Inflation
(1)
|
Foreign
Exchange Rate (local currency per US Dollar) (2)
|
|||||||||||||||||||||||
|
LTM
|
2Q 2009
|
YTD
|
Jun
09
|
Dec
08
|
Jun
08
|
|||||||||||||||||||
|
Mexico
|
5.74 | % | 0.24 | % | 1.27 | % | 13.2023 | 13.5383 | 10.2841 | |||||||||||||||
|
Colombia
|
3.81 | % | 0.27 | % | 2.22 | % | 2,158.67 | 2,243.59 | 1,923.02 | |||||||||||||||
|
Venezuela
(3)
|
26.08 | % | 5.71 | % | 10.86 | % | 2.1500 | 2 | 2 | |||||||||||||||
|
Brazil
|
4.94 | % | 1.58 | % | 2.75 | % | 1.9516 | 2.3370 | 1.5919 | |||||||||||||||
|
Argentina
|
5.27 | % | 1.09 | % | 2.72 | % | 3.7970 | 3.4530 | 3.0250 | |||||||||||||||
(1)
Source: Mexican inflation is published by Banco de México (Mexican
Central Bank).
(2)
Exchange rates at the end of period are the official exchange rates published by
the Central Bank of each country.
(3) In
Venezuela since January 1, 2008, the local currency is 'Bolivar Fuerte',
'Bolivar' the former currency, was divided by one thousand.
|
July
24, 2009
|
|
Page
25
|