Mexico City, July 23, 2008 - Coca-Cola FEMSA, S.A.B. de C.V., the largest Coca-Cola bottler in Latin America and the second-largest Coca-Cola bottler in the world in terms of sales volume, announces results for the second quarter of 2008.
-- Total revenues reached Ps. 18,544 million in the second quarter of
2008, an increase of 6.7% compared to the second quarter of 2007; excluding
the positive effect of one month of Refrigerantes Minas Gerais ("Remil"),
total revenues would have increased 4.6% compared to the second quarter of
2007.
-- Driven by double digit operating income growth from our Latincentro
and Mercosur divisions, combined with a cost and expense control across our
territories, consolidated operating income increased 8.9% to Ps. 3,169
million for the second quarter of 2008. Without giving effect to the
acquisition of Remil, operating income would have increased 7.9% to Ps.
3,138 million and our operating margin would have been 17.3% for the second
quarter of 2008.
-- Consolidated majority net income increased 3.9% to Ps. 1,844 million
in the second quarter of 2008, resulting in earnings per share of Ps. 1.00
in the second quarter of 2008. Excluding non-recurring expenses recorded in
our Mexico division during the quarter, consolidated majority net income
grew 10.8%.
"Supported by our execution across our territories and our ability to keep costs under control, we were able to increase operating income for the second quarter, despite one-time events such as unusually bad weather in Mexico in June and operating disruptions in Venezuela. Also, during the second quarter of 2008, we have closed the acquisition of The Coca-Cola Company's Refrigerantes Minas Gerais Ltda. ("Remil") franchise territory. This transaction will enable us to increase the number of clients and customers that we serve in Brazil through a complete and balanced portfolio of high-quality beverages. Through our joint venture, with The Coca-Cola Company, we continued to distribute Jugos del Valle beverages in Mexico as planned, and also began to distribute these products in Costa Rica," said Carlos Salazar Lomelin, Chief Executive Officer of the company.