E-Malt.com News article: 1722

Mexico brewing force, Fomento Economico Mexicano, S.A. de C.V., the Leader in Latin Beverages, reported on October 23 its operational and financial results for the third quarter and first nine months of 2003. FEMSA consolidated total revenues reached pesos 20.783 billion during the third quarter with a consolidated operating margin of 15.6%. Consolidated net income was pesos 1.045 billion, 18.1% higher than the same period last year.

FEMSA Cerveza's quarterly domestic and export beer sales volume increased 3.1% and 9.2% respectively, in large part due to the solid performance of Sol brand in the domestic market and Dos Equis and Tecate brands in the US.

FEMSA made several adjustments at the senior management levels to adapt its organizational structure to the increased scale and evolving nature of its beverage businesses.

Jose Antonio Fernandez, Chairman and CEO of FEMSA, commented, "We are very pleased with these results given the unfavorably rainy summer in Mexico and the increasingly competitive landscape in our soft drinks operations. Overall performance will benefit with the gradual recovery of demand for consumer products in the Mexican market.

With that same vision in mind, and after a thorough analysis of the new structural and managerial demands of our operations, we are announcing today a number of changes at the most senior executive levels of FEMSA and several of our operating subsidiaries. Utilizing the world-class management talent within our organization, we are modifying some structures and redeploying several key executives to new responsibilities. We are convinced that these adjustments will be instrumental as we guide FEMSA through the exciting new stage of growth that is now under way."

FEMSA is Latin America's largest beverage company in terms of sales. Founded in 1890 and headquartered in Monterrey, Mexico, FEMSA is strategically comprised of the following subsidiaries: FEMSA Cerveza, which produces, distributes and exports various brands of beer such as Tecate, Carta Blanca, Sol, and Dos Equis; Coca-Cola FEMSA, the largest bottler for The Coca-Cola Co. in Latin America, which produces and distributes carbonated beverages such as Coca-Cola, Coca-Cola Light, Fanta, Sprite, and Quatro; and the Strategic Businesses Division, which groups the packaging (FEMSA Empaques) and retail (FEMSA Comercio) operations, and whose main objective is to offer strategic competitive advantages to the beverage subsidiaries.


24 October, 2003