Fomento Económico Mexicano SA, better known as FEMSA, made a report to regulators of online trading and also to the Mexican securities market, where it expressed that, since the Financial Statements at the end of the third quarter of this year, there was a cut in the net earnings, which also highlights a clear exchange rate loss that may affect the sale of a share of the company in the Heineken beer and beverages giant.
FEMSA is one of the most important packaging companies in all of Latin America and it is also the most emblematic of Coca Cola, this is not a company that has only a regional presence, but also a global one in the bottled drinks industry, this is one of the most popular brands in the world. The company that also has a fairly diversified operation has an activity in the restaurant and commerce industry for the different fast food establishments and stores. One of the main plans of the company is to enter the Peruvian market through the OXXO brand, which is one of the most important stores in the country.
According to what was published in the Financial Statements bulletin, between January and September of this year, FEMSA had a total profit of 18,583 pesos which can mean about 955 million US dollars, this is a negative change of one -59.3% compared to the same period last year.
The total revenues had an advance for the same period in +5.1% year-on-year of 343,038 million pesos, which means some 17.627 million dollars, according to what was reported, in addition the company commented that this is due to a solid growth in the three divisions of FEMSA COMERCIO, which includes proximity, stores, health, pharmacies and fuels, gas stations.
So far this year, until the ninth month, the conglomerate obtained a pure business or a profit before EBITDA (taxes, interest, amortization and depreciation) of approximately 42,001 million pesos, which is about 2,158 million dollars, this it is an increase of +2.1% versus what was registered in the year 2017.
According to the different Financial Statements, on September 30 of this year, the liabilities of FEMSA were 10,121 million pesos, some 520 million dollars and the balance of long-term debt was 79,840 million pesos, about 4,102 million dollars.
FEMSA’s net profit had a collapse at the end of the period between July and September of this year, according to the data released to the different regulators of the country’s stock market, in 80.4% year-on-year it was denoted an amount of 6,598 million pesos, which means about 339 million dollars, when the same period, but the previous year was 1,732 million dollars.
In this reversal, considered quite strong for a company of this caliber, it was the same that highlighted the foreign exchange impact with respect to 2017 with respect to the sale of a portion of the company’s stake that the Mexican company had with Heineken.