E-Malt.com News article: 675

Mexican brewer and bottler Femsa, Latin America's largest drinks company, said on February 19 its fourth quarter operating income rose 10.3 percent but net profit slumped as a depreciation in the country's currency dented the bottom line. Femsa, also known as Fomento Economico Mexicano, said its net in the period fell 39% to 725 million pesos ($69.7 million) compared with the year-ago period.

"Non-operating charges that affected the results are mainly a foreign exchange loss of 41 million pesos compared to a foreign exchange gain of 219 million pesos in the fourth quarter of 2001," said Femsa, which brews Tecate, Sol and Dos Equis beers and also has a 51% stake in Coca-Cola Femsa (KOF), Mexico's biggest Coke bottler.

Fourth quarter revenues increased 6.7% to 13.615 billion pesos as Femsa's retail business -- a chain of stores that sells its soft drinks and beers -- drove growth with the unit opening 216 new stores and KOF also shining.

Femsa said its beer volumes dropped 1.3 percent in the quarter as demand dipped across Mexico because of the sluggishness of the economy. Operating income came in at 2.443 billion pesos, lower than expectations. Earnings before interest, taxes, depreciation and amortization (EBITDA) were 3.463 billion pesos, up 9% from the year ago period and also below the Reuters poll average forecast of 3.670 billion pesos.


20 February, 2003