Packaging

FEMSA Grows Operating Income Across Operations in 4Q10 and 2010

Friday 25. February 2011 - Fomento Economico Mexicano, S.A.B. de C.V. ("FEMSA") announced today its operational and financial results for the fourth quarter and full year 2010.

Fourth Quarter 2010 Highlights:
— FEMSA comparable consolidated total revenues and income from operations
grew 3.8% and 7.5%, respectively, compared to the fourth quarter of
2009.
— Coca-Cola FEMSA income from operations increased 5.2%. Solid results
from the Latincentro division drove these results.
— FEMSA Comercio achieved total revenues growth of 18.9% and income from
operations increased 19.5%.
2010 Full Year Highlights:
— FEMSA comparable consolidated total revenues and income from operations
grew 5.9% and 6.6%, respectively, compared to 2009, against a backdrop
of soft consumer demand. FEMSA Comercio and the Mercosur division of
Coca-Cola FEMSA were the main drivers of this performance. Excluding
one-time Heineken transaction-related expenses, comparable consolidated
income from operations would have grown 8.7%.
— Coca-Cola FEMSA income from operations increased 7.9%. Strong growth in
the Mercosur and Latincentro divisions drove these results.
— FEMSA Comercio continued its pace of strong floor space growth by
opening 1,092 net new stores in 2010. Income from operations increased
16.7%.
— Ordinary dividend of Ps. 4.6 billion proposed by FEMSA’s Board of
Directors, to be paid in 2011 subject to approval at the annual
shareholders meeting in March 2011, representing an increase of 76.9 %
over the prior year and 183.9 % over the dividend paid in 2009.
Jose Antonio Fernandez Carbajal, Chairman and CEO of FEMSA, commented: “We were able to wrap up an exciting 2010 on a solid note. This was a unique year for FEMSA, one that saw us take big steps in the strategic journey of our Company. From the signing of our agreement with Heineken in January, to the closing of the transaction in late April -making us the second largest shareholder in Heineken-, to the tremendous work carried out by all those involved in making sure a smooth transition took place, and last but certainly not least, to the current process of strategic analysis that we are thoroughly carrying out as we plot the future path for FEMSA. And all the while, having our operators navigate a challenging consumer environment across our territories to deliver yet another strong set of results.
“On the operational front, we are encouraged by what seems to be a fledgling sequential improvement in consumer sentiment in Mexico, evidenced by the strong performance of FEMSA Comercio during the fourth quarter. At Coca-Cola FEMSA, we were able to improve our profitability in 2010 even in the face of tough demand dynamics across markets. Certainly, challenges abound, but more than ever we are optimistic. Our capabilities, our team, and our financial flexibility put us in an enviable position to pursue and capture the many growth opportunities that lie ahead of us.”