Fomento Economico Mexicano, S.A. de C.V. (FEMSA), the Mexican drinks company, the Leader in Latin Beverages, has posted a 4.7% rise of its consolidated total revenues and operating income for the first quarter ending 31 March 2003 in comparison with the same period 2002 reaching Ps. 12.530 billion and Ps. 1.707 billion respectively. “Our operating subsidiaries extended their steady growth trends into the first quarter of 2003, with the exception of FEMSA Cerveza, whose revenues declined by 2.4% reflecting continued weak demand in its core territories,” the company said in a statement.

For the first quarter of 2003, FEMSA Cerveza.s total revenues amounted to Ps. 4.542 billion, a 2.4% decrease compared to the same period last year, resulting from a decline of 1.8% in total sales volume and a decline of 0.8% in total real revenue per hectoliter. Domestic sales volume fell by 1.8% to 4.841 million hectoliters, reflecting demand weakness during January and February partially offset by an important recovery in March. Export sales volume decreased by 1.8%, reflecting a moderate increase in volume sold in the United States upset by seasonal declines in other regions of the world.

"Once again, our consolidated results were positive in terms of revenue and operating income growth. Beyond short-term metrics, however, we continue to invest in the transformation to improve our core businesses going forward. The sustained effort to strengthen our operations and financial structure is now bearing fruit with the acquisition of Panamco. This transaction will consolidate FEMSA as one of the most successful companies in Mexico, as well as the leader in beverages in Latin America. We have managed FEMSA with a long-term vision, results orientation and operational and financial discipline. Today we have a solid track record, but the real challenge lies ahead. We will not be satisfied until we have realized the potential that this new stage in our company offers to us," said Jose Antonio Fernandez, Chairman and CEO of FEMSA.

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 and operates by means of the following subsidiaries: FEMSA Cerveza, which produces, distributes and exports various brands of beer such as Tecate, Carta Blanca, Superior, Sol, XX Lager, Dos Equis, and Bohemia.

06 May, 2003