FEMSA Achieves 27.2% Operating Income Growth in 3Q09

MONTERREY, Mexico, October 28 /PRNewswire/ -- Fomento Economico Mexicano, S.A.B. de C.V. ("FEMSA") today announced its operational and financial results for the third quarter of 2009.

    
    Third Quarter 2009 Highlights:

      - Consolidated total revenues and income from operations grew
        21.4% and 27.2%, respectively, compared to the third quarter 2008.
        - In spite of a challenging economic environment, FEMSA again
          delivered a quarter of strong growth in revenues and income from
          operations, driven by double-digit performance in all of our
          operations.

      - Coca-Cola FEMSA total revenues and income from operations
        increased 31.5% and 24.0%, respectively.
        - Driven by double-digit growth in income from operations in
          its Latincentro and Mercosur divisions, combined with stable 
          results in its Mexico division.

      - FEMSA Cerveza total revenues increased 13.1%, while income from
        operations increased 19.4%.
        - Sales volume in Mexico increased 1.5% and price per
          hectoliter grew 6.4%. Brazil sales volume decreased 3.9% and Export
          sales volume rose a solid 12.3%.
        - Top-line growth combined with operating expense containment
          offset raw material cost pressures, resulting in an increase of 
          19.4% in income from operations and 70 basis points of operating 
          margin expansion.

      - FEMSA Comercio continued its pace of strong growth and margin
        expansion.
        - Income from operations increased by 55.0% resulting in an
          operating margin expansion of 230 basis points compared to the 
          third quarter of 2008, to reach 8.8%.

Jose Antonio Fernandez, Chairman and CEO of FEMSA, commented: "This year is providing one of the most challenging economic environments we have faced in a long time, and yet our team keeps finding ways to leverage our platform to grow, to improve, and ultimately to thrive. This quarter we are again delivering double-digit growth in operating income, in-line with the first half of the year, as our international operations more than offset the prolonged weakness of the Mexican market. Going forward, we are faced with even more hurdles, including potential incremental taxation in Mexico in 2010. The long-awaited recovery in the US has yet to materialize and as a result, employment in our key northern hubs remains soft. However, we are confident that we can continue to meet and exceed our objectives as we have up until this point."

    
         To obtain the full text of this earnings release, please visit
                      our Investor Relations website a
           www.femsa.com/investor under the Financial Reports section.

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.

FEMSA is the leading beverage company in Latin America. It controls an integrated beverage platform that comprises Coca-Cola FEMSA, the largest Coca-Cola bottler in the region; FEMSA Cerveza, one of the leading brewers in Mexico, with presence in Brazil, and an important beer exporter to the United States and other countries; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 7,000 stores.