FEMSA Q2 Net Profit Slips, But Revenues Up 14.4% - Quick Facts

(RTTNews) - Fomento Económico Mexicano, S.A.B. de C.V. or FEMSA (FMX) said its second-quarter net consolidated income dropped by 12.1% to Ps. 4.46 billion, from Ps. 5.08 billion a year ago, hurt by higher financing expenses on bonds issued recently by Coca-Cola FEMSA, a decline in FEMSA's reported 20% participation in Heineken's results, and a tough comparison related to a foreign exchange gain at FEMSA in 2Q13. These effects were partially offset by the growth in income from operations.

During the latest period, income from operations increased 9.0% year-on-year to Ps. 7.953 billion; and up by 5.5% on an organic basis.

In the second quarter of 2014, consolidated total revenues, however, rose 14.4% year-over-year to Ps. 70.96 billion, from Ps. 62.05 billion, driven by Coca-Cola FEMSA and FEMSA Comercio. On an organic basis, total revenues improved by 7.3% from last year.