Fomento Economico Mexicano SAB de CV
MEXICAN ECONOMIC DEVELOPMENT INC (Form: 6-K, Received: 03/30/2012 17:04:05)

  

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of March 2012

 

FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.

(Exact name of Registrant as specified in its charter)

 

Mexican Economic Development, Inc.

(Translation of Registrant’s name into English)

 

United Mexican States

(Jurisdiction of incorporation or organization)

 

General Anaya No. 601 Pte.
Colonia Bella Vista
Monterrey, Nuevo León 64410
México

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports

under cover of Form 20-F or Form 40-F:

 

Form 20-F x  Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(1): _______

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(7): _______

 

Indicate by check mark whether by furnishing the information contained in this

Form, the registrant is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ¨ No x

 

If "Yes" is marked, indicate below the file number assigned to the registrant in

connection with Rule 12g3-2(b): 82-_____________

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the

registrant has duly caused this report to be signed on its behalf of the

undersigned, thereunto duly authorized.

 

FOMENTO ECONÓMICO MEXICANO, S.A. DE C.V.
   
  By: /s/ Javier Astaburuaga
  Javier Astaburuaga
  Chief Financial Officer

 

Date: March 30, 2012

 

 
 

 

 

 

FEMSA Presents 2011 Financial Information under IFRS

 

Monterrey, Mexico, March 30, 2012 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or “the Company”) today presented its 2011 quarterly and full year financial information under International Financial Reporting Standards (IFRS). The purpose of this exercise is to provide investors and other market participants with a set of quarterly and full year information reflecting the application of International Financial Reporting Standards. This data set will also constitute a comparable basis for future reporting periods.

  

The information presented here is non-audited, however it is based on the audited results reported for the year ended December 31, 2011 under Mexican Financial Reporting Standards and has been converted to International Financial Reporting Standards (IFRS). For more details refer to the notes to the financial statements for 2011 contained in the annual report of FEMSA.

  

The transition date from Mexican Financial Reporting Standards to IFRS for the Company is January 1, 2011 and the Company applied the provisions of IFRS 1 “first time adoption” in the presentation of financial information. The adoption date is January 1, 2012.

  

###

 

FEMSA is a leading company that participates in the non-alcoholic beverage industry through Coca-Cola FEMSA, the largest independent bottler of Coca-Cola products in the world in terms of sales volume; in the retail industry through FEMSA Comercio, operating the largest and fastest-growing chain of convenience stores in Latin America, and in the beer industry, through its ownership of the second largest equity stake in Heineken, one of the world’s leading brewers with operations in over 70 countries.

  

Six pages of tables to follow.

  

 

 
 

 

FEMSA

Consolidated Income Statement

Millions of Pesos

 

    For the twelve months of:      
    2011
MX GAAP
    % of rev.     Adjustments     2011
IFRS
    % of rev.      
Total revenues     203,044       100.0       (1,504 )     201,540       100.0     (A)
Cost of sales     118,009       58.1       (773 )     117,236       58.2     (A) (B) (C) (D)
Gross profit     85,035       41.9       (731 )     84,304       41.8     (A)
Administrative expenses     8,249       4.1       (99 )     8,150       4.0     (A) (C) (E)
Selling expenses     49,882       24.5       724       50,606       25.1     (A) (B) (C) (F)
Other Operating expenses (income), net  (2)     -       -       654       654       0.4     (G) (H) (I)
Income from operations (1)     26,904       13.3       (2,010 )     24,894       12.4     (A) (B) (C) (D) (E) (F) (G) (H) (I)
Other Non Operating expenses (income)     2,830               (2,021 )     809             (C) (G) (H)
Interest expense     (2,934 )             687       (2,247 )           (F)
Interest income     999               (24 )     975              
Interest expense, net     (1,935 )             663       (1,272 )           (F)
Foreign exchange (loss) gain     1,165               (190 )     975             (I)
(Loss) gain on monetary position     146               (92 )     54             (A)
Gain (loss) on financial instrument     (159 )             48       (111 )           (J)
Integral result of financing     (783 )             429       (354 )           (A) (F) (I) (J)
Income before income tax     23,291               440       23,731             (A) (B) (D) (E) (J)
Income tax     7,687               (134 )     7,553             (A) (K)
Participation in Heineken results     5,080               (199 )     4,881             (L)
Net consolidated income     20,684               375       21,059             (A) (B) (D) (E) (J) (K)
Net majority income     15,133               291       15,424             (A)
Net minority income     5,551               84       5,635             (A)

 

(1) Income from operations = Gross profit - Administrative and selling expenses - Other operating expenses (income), net

(2) Other Operating expenses (income), net = Other operating expenses +(-) Equity method from operated associates

 

(A) Elimination of inflation effects recognized on non-hyperinflationary economies under IFRS (Argentina, Costa Rica and Nicaragua).

(B) Change on depreciation and amortization based on the IFRS Balance of Assets.

(C) Reclassification of employee profit sharing from “Other expenses to “Cost of sales” and “Administrative and Selling expenses”.

(D) Elimination of provisions for severance, labor cost of past services and actuarial gain or loss.

(E) Change on executive bonus reserve.

(F) Reclassification of commissions for cash in transit from “Interest expense” to “Selling expenses”.

(G) Reclassification of equity method operated associets from “Other expenses” to “Other Operating expenses(income)”.

(H) The expenses related to severance payments resulting from restructuring programs, contingencies, gain (loss) on sales of long lived assets and write off´s were reclassified from “Other expenses” to “Other operating expenses (income), net”.

(I) Reclassification of operating “Foreign exchange (loss) gain” from “Integral result of financing” to “Other operating (expenses) income”.

(J) Elimination of Embedded financial derivatives.

(K) Change of deferred income tax provision.

(L) The Participation in Heinken results is presented net of income tax.

  

    2011
MX GAAP
    % of rev.     Adjustments     2011
IFRS
    % of rev.      
EBTIDA & CAPEX                                            
Income from operations     26,904       13.3       (2,010 )     24,894       12.4     (A) (B) (C) (D) (E) (F) (G) (H) (I)
Depreciation     4,604       2.3       1,012       5,616       2.8     (B)
Amortization & other non cash charges     2,450       1.1       (1,244 )     1,206       0.5     (B) (D) (G) (H) (I)
EBITDA     33,958       16.7       (2,242 )     31,716       15.7     (A) (C) (E) (F) (H)
CAPEX     12,515               -       12,515              

 

March 30, 201 2

 

2
 

 

FEMSA

Consolidated Balance Sheet

Millions of Pesos

As of December 31:

 

    2010
MX GAAP
    Adjustments     2010
IFRS
    2011
IFRS
     
ASSETS                                      
Cash and cash equivalents     27,163       (392 )     26,771       27,170     (A)
Accounts receivable     7,702       (1 )     7,701       10,498      
Inventories     11,314       -       11,314       14,360      
Other current assets     5,281       346       5,627       6,913     (A)
Total current assets     51,460       (47 )     51,413       58,941      
Investments in shares     68,793       -       68,793       78,643      
Property, plant and equipment, net     41,911       44       41,955       54,413     (B) (C)
Intangible assets     52,340       (8,087 )     44,253       62,987     (C)
Other assets     9,074       (2,034 )     7,040       8,846     (B) (C)
TOTAL ASSETS     223,578       (10,124 )     213,454       263,830      
                                     
LIABILITIES & STOCKHOLDERS´ EQUITY                                    
Bank loans     1,578       -       1,578       638      
Current maturities long-term debt     1,725       (1 )     1,724       4,935      
Interest payable     165       -       165       216      
Operating liabilities     27,048       (254 )     26,794       32,526     (D) (E)
Total current liabilities     30,516       (255 )     30,261       38,315      
Long-term debt     21,510       (55 )     21,455       23,138      
Labor liabilities     1,883       455       2,338       2,584     (F)
Other liabilities     16,656       (10,410 )     6,246       7,690     (G)
Total liabilities     70,565       (10,265 )     60,300       71,727      
Total stockholders’ equity     153,013       141       153,154       192,103     (C) (E) (F) (G)
LIABILITIES AND STOCKHOLDERS’ EQUITY     223,578       (10,124 )     213,454       263,830      

 

(A) Reclassification of Restrictive Cash from “Cash and cash equivalents” to “Other current assets”.

(B) Reclassification of leasehold improvements from “Other assets” to “Property, plant and equipment, net”.

(C) Elimination of inflation effects of “Property, Plant and Equipment”, “Intangible Assets” and “Other Assets” related to non-hyperinflationary periods.

(D) Elimination of Embedded financial derivatives.

(E) Application of IFRS 2 "Share-Based Payment".

(F) Elimination of unamortized actuarial gains and past services.

(G) Elimination of deferred income tax recognized on the FEMSA-Heineken transaction and recalculation of deferred income tax base on the IFRS balance sheet.

 

March 30, 2012

 

3
 

  

FEMSA

Consolidated Income Statement

Millions of Pesos

 

    1Q 2011     2Q 2011     3Q 2011     4Q 2011  
Total revenues     42,920       48,465       50,543       56,744  
Cost of sales     25,552       28,414       29,440       32,318  
Gross profit     17,368       20,051       21,103       24,426  
Administrative expenses     1,824       2,016       1,988       2,224  
Selling expenses     10,983       12,053       12,976       13,631  
Other Operating expenses (income), net     7       64       35       551  
Income from operations     4,554       5,918       6,104       8,020  
Other Non Operative expenses (income)     52       66       184       498  
Interest expense     (481 )     (535 )     (629 )     (598 )
Interest income     202       256       317       193  
Interest expense, net     (279 )     (279 )     (312 )     (405 )
Foreign exchange (loss) gain     (180 )     (107 )     1,028       234  
(Loss) gain on monetary position     1       21       (3 )     33  
Gain (loss) on financial instrument     74       (13 )     (266 )     94  
Integral result of financing     (384 )     (378 )     447       (44 )
Income before income tax     4,118       5,474       6,367       7,478  
Income tax     1,305       1,838       2,083       2,236  
Participation in Heineken results     557       541       1,682       2,101  
Net consolidated income     3,370       4,177       5,966       7,343  
Net majority income     2,228       2,827       4,654       5,512  
Net minority income     1,142       1,350       1,312       1,831  

 

    1Q 2011     2Q 2011     3Q 2011     4Q 2011  
EBTIDA & CAPEX                        
Income from operations     4,554       5,918       6,104       8,020  
Depreciation     1,274       1,308       1,354       1,593  
Amortization & other non cash charges     142       184       180       657  
EBITDA     5,970       7,410       7,638       10,270  
CAPEX     1,266       2,960       2,928       5,239  

 

March 30, 2012

 

4
 

 

Coca-Cola FEMSA

Results of Operations

Millions of Pesos

 

    For the twelve months of:      
    2011
MX GAAP
    % of rev.     Adjustments     2011
IFRS
    % of rev.      
Total revenues     124,715       100.0       (1,491 )     123,224       100.0     (A)
Cost of sales     67,488       54.1       (803 )     66,685       54.1     (A) (B) (C) (D)
Gross profit     57,227       45.9       (688 )     56,539       45.9     (A)
Administrative expenses     5,185       4.2       (67 )     5,118       4.2     (A) (B) (C) (D)
Selling expenses     31,890       25.5       125       32,015       26.0     (A) (B) (C) (D)
Other Operating expenses (income), net     -       -       667       667       0.5     (E) (F) (G)
Income from operations     20,152       16.2       (1,413 )     18,739       15.2     (A) (B) (C) (D) (E) (F) (G)
Depreciation     3,269       2.6       486       3,755       3.0     (B)
Amortization & other non cash charges     1,577       1.2       (671 )     906       0.8     (B) (D) (E) (F) (G)
EBITDA     24,998       20.0       (1,598 )     23,400       19.0     (A) (C) (F)
CAPEX     7,826               -       7,826              

 

(A) Elimination of inflation effects recognized on non-hyperinflationary economies under IFRS (Argentina, Costa Rica and Nicaragua).

(B) Change on depreciation and amortization based on the IFRS Balance of Assets.

(C) Reclassification of employee profit sharing from “Other expenses” to “Cost of sales” and “Administrative and Selling expenses”.

(D) Elimination of provisions of severance, labor cost of past services and actuarial gain or loss.

(E) Reclassification of equity method operated associets from “Other expenses” to “Other Operating expenses(income)”.

(H) The expenses related to severance payments resulting from restructuring programs, contingencies, gain (loss) on sales of long lived assets and write off´s were reclassified from “Other expenses” to “Other operating expenses (income), net”.

(G) Reclassification of operating “Foreign exchange (loss) gain” from “Integral result of financing” to “Other operating (expenses) income”.

 

March 30, 2012

  

5
 

 

FEMSA Comercio

Results of Operations

Millions of Pesos

 

    For the twelve months of:      
    2011
MX GAAP
    % of rev.     Adjustments     2011
IFRS
    % of rev.      
Total revenues     74,112       100.0       -       74,112       100.0      
Cost of sales     48,636       65.6       -       48,636       65.6      
Gross profit     25,476       34.4       -       25,476       34.4      
Administrative expenses     1,438       1.9       (6 )     1,432       1.9      (A) (B) (C) (D)
Selling expenses     17,762       24.0       593       18,355       24.8      (A) (B) (E)
Other Operating expenses (income), net     -       -       112       112       0.2      (F) (G)
Income from operations     6,276       8.5       (699 )     5,577       7.5      (A) (B) (C) (D) (E) (F) (G)
Depreciation     1,175       1.6       518       1,693       2.3      (B)
Amortization & other non cash charges     707       0.9       (452 )     255       0.4      (B) (C) (F) (G)
EBITDA     8,158       11.0       (633 )     7,525       10.2      (B) (D) (E) (F)
CAPEX     4,096               -       4,096              

 

(A) Change on depreciation and amortization based on the IFRS Balance of Assets.

(B) Reclassification of employee profit sharing from “Other expenses” to “Cost of sales” and “Administrative and Selling expenses”.

(C) Elimination of provisions of severance, labor cost of past services and actuarial gain or loss.

(D) Change on executive bonus reserve.

(E) Reclassification of commissions for cash in transit from “Interest expense” to “Selling expenses”.

(H) The expenses related to severance payments resulting from restructuring programs, contingencies, gain (loss) on sales of long lived assets and write off´s were reclassified from “Other expenses” to “Other operating expenses (income), net”.

(G) Reclassification of operating “Foreign exchange (loss) gain” from “Integral result of financing” to “Other operating (expenses) income”.

 

March 30, 2012

  

6
 

 

Coca-Cola FEMSA

Results of Operations

Millions of Pesos

 

    1Q 2011     2Q 2011     3Q 2011     4Q 2011  
Total revenues     25,853       28,388       30,077       36,090  
Cost of sales     14,070       15,346       16,158       19,646  
Gross profit     11,783       13,042       13,919       16,444  
Administrative expenses     1,149       1,275       1,271       1,327  
Selling expenses     6,815       7,335       8,106       8,796  
Other Operating expenses (income), net     4       27       28       608  
Income from operations     3,815       4,405       4,514       5,713  
Depreciation     845       875       885       1,067  
Amortization & other non cash charges     74       116       156       551  
EBITDA     4,734       5,396       5,555       7,331  
CAPEX     613       1,849       1,795       3,446  

  

FEMSA Comercio

Results of Operations

Millions of Pesos

 

    1Q 2011     2Q 2011     3Q 2011     4Q 2011  
Total revenues     16,110       18,973       19,410       19,619  
Cost of sales     11,050       12,538       12,767       12,281  
Gross profit     5,060       6,435       6,643       7,338  
Administrative expenses     334       351       368       379  
Selling expenses     4,096       4,643       4,820       4,796  
Other Operating expenses (income), net     2       2       41       67  
Income from operations     628       1,439       1,414       2,096  
Depreciation     397       404       438       454  
Amortization & other non cash charges     39       40       78       98  
EBITDA     1,064       1,883       1,930       2,648  
CAPEX     704       903       1,112       1,376  

 

March 30, 2012

 

7
 

 

Coca-Cola FEMSA presents 2011 Financial Information under International Financial Reporting Standards (IFRS)

 

Mexico City, Mexico – March 29, 2012 – Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL; NYSE: KOF) (“Coca-Cola FEMSA” or the “Company”), the largest public bottler of Coca-Cola products in the world, presents its quarterly and full year 2011 results under International Financial Reporting Standards (IFRS).

 

Background Information

 

Beginning in 2012, Mexican companies with securities listed on the Mexican National Securities’ Registry ( Registro Nacional de Valores ) of the Mexican National Banking and Securities Commission ( Comisión Nacional Bancaria y de Valores ), are required to prepare their financial statements in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”).

 

The information contained in this document is based on audited financial results for the year ended December 31, 2011 prepared in accordance with the Mexican Financial Reporting Standards ( Normas de Información Financiera Mexicana or “MFRS”) that have been translated to IFRS.

 

For comparison purposes, the Company’s transition date is January 1, 2011, and the Company has applied the provisions of IFRS 1 for the presentation of its financial results.

 

For more information, please refer to the notes to Coca-Cola FEMSA’s 2011 financial statements, contained in its annual report.

 

v v v

 

Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola, Fanta, Sprite, Del Valle, and other trademark beverages of The Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City, the southeast and northeast Mexico), Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia (most of the country), Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state of Mato Grosso do Sul, part of the state of Goias, and part of the state of Minas Gerais), and Argentina (Buenos Aires and surrounding areas), along with bottled water, juices, teas, isotonics, beer, and other beverages in some of these territories. The Company has 35 bottling facilities in Latin America and serves more than 1,700,000 retailers in the region.

 

March 29, 2012 Page 1

 

 
 

 

Significant Accounting Effects

 

Fixed Assets (Property, Plant and Equipment (PPE) – Valuation

The Company valued its fixed assets at their historical costs in all countries, except for Venezuela, where the historical cost was the cost as of the acquisition date, restated pursuant to the rate of inflation (because such country is considered a hyperinflationary economy).

 

Intangible Assets – Valuation

The Company valued its intangible assets at their historical costs.

With regards to IAS (International Accounting Standard) 38 “Intangible Assets”, the Company identified certain intangible assets that do not meet the requirements to be considered as such under IFRS, mainly launching costs for new products. As such, costs are recognized in our results at the moment they are incurred in.

 

Differed Income Tax – Calculation

The adjustments under IFRS recognized by the Company affected the calculation of the differed income tax, in terms of the provisions of IAS 12, “Income Tax”.

 

Presentation of Financial Statements – Changes in the Presentation of Financial Statements

In terms of IAS 1 “Presentation of Financial Statements”, the operating income line is not required under IFRS; nevertheless, we will continue to include this line for the benefit of the reader, as a non-GAAP item.

 

Other Expenses and Other Products - Recognition as Operating Expenses

Several accounting items that were not included in the results of operations will be reclassified as part of the results of operations under IFRS. These accounting items will include employee profit sharing ( participación de los trabajadores en las utilidades or PTU ), restructuring costs, fixed assets sales/retirement and the equity method in operative investments.

 

Employment Termination – Cancelation of the Liabilities for Indemnifications

Under IFRS, the costs related to employment termination will be recognized in the results as of the moment that an agreement has been reached to terminate the employment with the employee. In terms of the foregoing, as of the transition date, the Company has canceled its liabilities for indemnifications.

 

Inflation – Determination of Hyperinflationary Economies

In terms of NIF B-10 “Recognition of Inflation”, the inflationary effects of the financial information must be recognized when the economy is considered to be inflationary, i.e., when accumulated inflation for the three previous years is equal to or greater than 26%. Furthermore, pursuant to IAS 29, an economy is hyperinflationary when accumulated inflation for the three previous years is close to or exceeds 100% (among other economic indicators). The Company has eliminated the inflationary effects that were previously registered in Mexico for the years 1998 through 2007. For foreign subsidiaries, the accumulated inflation, as of the acquisition date was eliminated (except for Venezuela, which is considered to be a hyperinflationary economy), as of the date when the Company started consolidating them.

 

Presentation of information under Generally Accepted Accounting Principles in the United States of America (U.S. GAAP)

As a result of the process for adopting IFRS, annual financial information will not be presented under Generally Accepted Accounting Principles in the United States of America (U.S. GAAP).

 

(7 pages of tables to follow)

 

March 29, 2012 Page 2

 

 
 

 


 

Consolidated Balance Sheet                                        
Expressed in millions of Mexican pesos.   MFRS     Adjust.     IFRS     MFRS     Adjust.     IFRS      
Assets   31-Dec-11             31-Dec-11     01-Jan-11             01-Jan-11      
Current Assets                                                      
Cash, cash equivalents and marketable securities   Ps. 12,661       (488 )   Ps. 12,173     Ps. 12,534       (392 )   Ps. 12,142     (A)  
Total accounts receivable     8,634       (2 )     8,632       6,363       (2 )     6,361        
Inventories     7,573       (24 )     7,549       5,007       -       5,007        
Other current assets     3,206       478       3,684       2,532       356       2,888     (A)  
Total current assets     32,074       (36 )     32,038       26,436       (38 )     26,398        
Property, plant and equipment                                                      
Property, plant and equipment     73,309       (8,664 )     64,645       57,104       (8,134 )     48,970        
Accumulated depreciation     (31,807 )     5,104       (26,703 )     (25,230 )     4,492       (20,738 )      
Total property, plant and equipment, net     41,502       (3,560 )     37,942       31,874       (3,642 )     28,232     (B)(C)  
Other non-current assets     78,032       (7,498 )     70,534       55,751       (6,881 )     48,870     (C)(D)  
Total Assets   Ps. 151,608       (11,094 )   Ps. 140,514     Ps. 114,061       (10,561 )   Ps. 103,500        
                                                       
Liabilities and Shareholders' Equity     31-Dec-11       Adjust.       31-Dec-11       01-Jan-11       Adjust.       01-Jan-11        
Current Liabilities                                                      
Short-term bank loans and notes   Ps. 5,540       -     Ps. 5,540     Ps. 1,840       -     Ps. 1,840        
Suppliers     11,852       -       11,852       8,988       -       8,988        
Other current liabilities     7,685       11       7,696       6,818       7       6,825        
Total Current Liabilities     25,077       11       25,088       17,646       7       17,653        
Long-term bank loans     17,034       (56 )     16,978       15,511       (56 )     15,455        
Other long-term liabilities     8,717       (3,322 )     5,395       7,023       (1,816 )     5,207     (D)  
Total Liabilities     50,828       (3,367 )     47,461       40,180       (1,865 )     38,315        
Shareholders' Equity                                                      
Non-controlling interest     3,089       (13 )     3,076       2,602       (30 )     2,572        
Total controlling interest     97,691       (7,714 )     89,977       71,279       (8,666 )     62,613     (C)(D)  
Total shareholders' equity     100,780       (7,727 )     93,053       73,881       (8,696 )     65,185        
Liabilities and Shareholders' Equity   Ps. 151,608       (11,094 )   Ps. 140,514     Ps. 114,061       (10,561 )   Ps. 103,500        

 

(A) Reclassification of Restrictive Cash and marketable securities to Other current assets.

(B) Reclassification of leasehold improvements from other assets to Property, plant and equipment, net.

(C) Elimination of Inflation effects (valuing at historical cost)of Property, Plant and Equipment, Intangible Assets and Other Assets related to economies that, under IFRS, are considered as Non-hiperinflationary

(D) Recalculation of deferred income tax

 

March 29, 2012 Page 3

 

 
 

 


 

Consolidated Income Statement                                    
Expressed in millions of Mexican pesos (1)   MFRS     Adjust.     IFRS        
     2011     % Ing             2011     % Ing         
Volume (million unit cases) (2)     2,648.7               -       2,648.7                  
Average price per unit case (2)     45.38               (0.54 )     44.84                  
Net revenues     124,066               (1,428 )     122,638               (A)  
Other operating revenues     649               (63 )     586               (A)  
Total revenues     124,715       100 %     (1,491 )     123,224       100 %     (A)  
Cost of goods sold     67,488       54.1 %     (803 )     66,685       54.1 %     (A)(B)(C)(D)  
Gross profit     57,227       45.9 %     (688 )     56,539       45.9 %        
Operating expenses     37,075       29.7 %     58       37,133       30.1 %     (A)(B)(C)(D)  
Other operative expenses, net     -       0.0 %     667       667       0.5 %     (E)(F)(G)  
Operating income (3)     20,152       16.2 %     (1,413 )     18,739       15.2 %        
Other non operative expenses, net     2,326               (1,849 )     477               (C)(E)(F)  
Interest expense     1,736               (63 )     1,673                  
Interest income     601               (24 )     577                  
Interest expense, net     1,135               (39 )     1,096                  
Foreign exchange loss (gain)     (62 )             174       112               (G)  
Gain on monetary position in Inflationary subsidiries     (155 )             94       (61 )             (A)  
Market value (gain) loss on ineffective portion of derivative instruments     140               (2 )     138               (H)  
Comprehensive financing result     1,058               227       1,285                  
Income before taxes     16,768               209       16,977                  
Income taxes     5,599               4       5,603               (I)  
Consolidated net income     11,169               205       11,374                  
Net controlling interest income     10,615       8.5 %     204       10,819       8.8 %        
Net non-controlling interest income     554               1       555                  
Operating income (3)     20,152       16.2 %     (1,413 )     18,739       15.2 %        
Depreciation     3,269               486       3,755               (B)  
Amortization and other operative non-cash charges     1,577               (671 )     906               (D)(E)(F)(G)  
Operative cash flow (4)     24,998       20.0 %     (1,598 )     23,400       19.0 %        

 

(1) Except volume and average price per unit case figures.

(2) Sales volume and average price per unit case exclude beer sales results

(3) The Operating income line is presented as a non-GAAP measure for the convenience of the reader

(4) Operative cash flow = Operating Income + depreciation, amortization & other operative non-cash charges.

Since October 2011, we integrated Grupo Tampico in the operations of Mexico.

Since December 2011, we integrated Grupo CIMSA in the operations of Mexico.


IFRS Adjustments:

(A) Elimination of inflation effects recognized on non hiperinflationary economies under IFRS (Nicaragua, Costa Rica and Argentina).

(B) Change on depreciation and amortization based on new balance of Assets.

(C) Reclassification of Employee Profit Sharing from other non operative expenses to cost of sales and administrative and selling expenses.

(D) Elimination of provisions of severance, labor cost of past services and actuarial gain or loss.

(E) Reclassification of equity method related with operative investments.

(F) The expenses related to severance payments resulting from restructuring programs , sales, write-off and imparment of long live assets and sales of materials were reclassified from other non operative expense to other operative expenses.

(G) Reclassification of Operative Foreign exchange (loss) gain from Integral result of financing to other operative (expenses) income.

(H) Elimination of Embedded Financial derivatives

(I) Recalculation of deferred income tax

 

March 29, 2012 Page 4

 

 
 

 


 

Consolidated Income Statement                                                
Expressed in millions of Mexican pesos (1)   IFRS     IFRS     IFRS     IFRS  
    1Q 11     % Ing     2Q 11     % Ing     3Q 11     % Ing     4Q 11     % Ing  
Volume (million unit cases) (2)     604.8               665.6               645.9               732.3          
Average price per unit case (2)     40.98               41.19               44.89               47.38          
Net revenues     25,725               28,267               29,936               35,897          
Other operating revenues     128               121               141               193          
Total revenues     25,853       100 %     28,388       100 %     30,077       100 %     36,090       100 %
Cost of goods sold     14,070       54.4 %     15,346       54.1 %     16,158       53.7 %     19,646       54.4 %
Gross profit     11,783       45.6 %     13,042       45.9 %     13,919       46.3 %     16,444       45.6 %
Operating expenses     7,964       30.8 %     8,610       30.3 %     9,377       31.2 %     10,123       28.0 %
Other operative expenses, net     4       0.0 %     27       0.1 %     28       0.1 %     608       1.7 %
Operating income (3)     3,815       14.8 %     4,405       15.5 %     4,514       15.0 %     5,713       15.8 %
Other non operative expenses, net     44               59               99               272          
Interest expense     342               401               460               468          
Interest income     94               146               201               129          
Interest expense, net     248               255               259               339          
Foreign exchange loss (gain)     13               68               (57 )             88          
Gain on monetary position in Inflationary subsidiries     (3 )             (18 )             2               (35 )        
Market value (gain) loss on ineffective portion of derivative instruments     (61 )             13               281               (96 )        
Comprehensive financing result     197               318               485               296          
Income before taxes     3,574               4,028               3,930               5,145          
Income taxes     1,231               1,244               1,429               1,603          
Consolidated net income     2,343               2,784               2,501               3,542          
Net controlling interest income     2,235       8.6 %     2,676       9.4 %     2,302       7.7 %     3,404       9.4 %
Net non-controlling interest income     108               108               199               138          
Operating income (3)     3,815       14.8 %     4,405       15.5 %     4,514       15.0 %     5,713       15.8 %
Depreciation     845               875               885               1,067          
Amortization and other operative non-cash charges     74               116               156               551          
Operative cash flow (4)     4,734       18.3 %     5,396       19.0 %     5,555       18.5 %     7,331       20.3 %

 

(1) Except volume and average price per unit case figures.

(2) Sales volume and average price per unit case exclude beer sales results

(3) The Operating income line is presented as a non-GAAP measure for the convenience of the reader

(4) Operative cash flow = Operating Income + depreciation, amortization & other operative non-cash charges.

Since October 2011, we integrated Grupo Tampico in the operations of Mexico.

Since December 2011, we integrated Grupo CIMSA in the operations of Mexico.

 

March 29, 2012 Page 5

 

 
 

 


 

Mexico & Central America Division                                    
Expressed in millions of Mexican pesos (1)   MFRS     Adjust.     IFRS        
    2011     % Ing           2011     % Ing        
Volume (million unit cases)     1,510.8               -       1,510.8                  
Average price per unit case     34.39               (0.34 )     34.06                  
Net revenues     51,960               (507 )     51,453               (A)  
Other operating revenues     236               (29 )     207               (A)  
Total revenues     52,196       100.0 %     (536 )     51,660       100.0 %     (A)   
Cost of goods sold     27,421       52.5 %     (338 )     27,083       52.4 %     (A)(B)(C)(D)  
Gross profit     24,775       47.5 %     (198 )     24,577       47.6 %        
Operating expenses     15,869       30.4 %     5       15,874       30.7 %     (A)(B)(C)(D)  
Other operative expenses, net     -       0.0 %     21       21       0.0 %     (E)(F)(G)  
Operating income (2)     8,906       17.1 %     (224 )     8,682       16.8 %        
Depreciation, amortization & other operative non-cash charges     2,278       4.4 %     (279 )     1,999       3.9 %     (B)(D)(E)(F)(G)  
Operative cash flow (3)     11,184       21.4 %     (503 )     10,681       20.7 %        

 

(1) Except volume and average price per unit case figures.

(2) The Operating income line is presented as a non-GAAP measure for the convenience of the reader

(3) Operative cash flow = Operating Income + Depreciation, amortization & other operative non-cash charges.

Since October 2011, we integrated Grupo Tampico in the operations of Mexico.

Since December 2011, we integrated Grupo CIMSA in the operations of Mexico.


IFRS Adjustments:

(A) Elimination of inflation effects recognized on non hiperinflationary economies under IFRS (Nicaragua and Costa Rica).

(B) Change on depreciation and amortization based on new balance of Assets.

(C) Reclassification of Employee Profit Sharing from other non operative expenses to cost of sales and administrative and selling expenses.

(D) Elimination of provisions of severance, labor cost of past services and actuarial gain or loss.

(E) Reclassification of equity method related with operative investments.

(F) The expenses related to severance payments resulting from restructuring programs , sales, write-off and imparment of long live assets and sales of materials were reclassified from other non operative expense to other operative expenses.

(G) Reclassification of Operative Foreign exchange (loss) gain from Integral result of financing to other operative (expenses) income.

 

March 29, 2012 Page 6

 

 
 

 

 

Mexico & Central America Division                                                
Expressed in millions of Mexican pesos (1)   IFRS     IFRS     IFRS     IFRS  
    1Q 11     % Ing     2Q 11     % Ing     3Q 11     % Ing     4Q 11     % Ing  
Volume (million unit cases)     331.7               402.2               366.7               410.3          
Average price per unit case     33.45               33.55               34.05               35.04          
Net revenues     11,096               13,494               12,486               14,377          
Other operating revenues     22               38               46               101          
Total revenues     11,118       100.0 %     13,532       100.0 %     12,532       100.0 %     14,478       100.0 %
Cost of goods sold     5,797       52.1 %     6,865       50.7 %     6,533       52.1 %     7,888       54.5 %
Gross profit     5,321       47.9 %     6,667       49.3 %     5,999       47.9 %     6,590       45.5 %
Operating expenses     3,656       32.9 %     4,103       30.3 %     4,002       31.9 %     4,113       28.4 %
Other operative expenses, net     (8 )     -0.1 %     23       0.2 %     (6 )     0.0 %     12       0.1 %
Operating income (2)     1,673       15.0 %     2,541       18.8 %     2,003       16.0 %     2,465       17.0 %
Depreciation, amortization & other operative non-cash charges     441       4.0 %     506       3.7 %     517       4.1 %     535       3.7 %
Operative cash flow (3)     2,114       19.0 %     3,047       22.5 %     2,520       20.1 %     3,000       20.7 %

 

(1) Except volume and average price per unit case figures.

(2) The Operating income line is presented as a non-GAAP measure for the convenience of the reader

(3) Operative cash flow = Operating Income + Depreciation, amortization & other operative non-cash charges.

Since October 2011, we integrated Grupo Tampico in the operations of Mexico.

Since December 2011, we integrated Grupo CIMSA in the operations of Mexico.

 

March 29, 2012 Page 7

 

 
 

 


 

South America Division                                  
Expressed in millions of Mexican pesos (1)   MFRS     Adjust.     IFRS      
    2011     % Ing           2011      % Ing      
Volume (million unit cases) (2)     1,137.9               -       1,137.9                
Average price per unit case (2)     59.97               (0.81 )     59.16                
Net revenues     72,106               (921 )     71,185             (A)  
Other operating revenues     413               (34 )     379             (A)  
Total revenues     72,519       100.0 %     (955 )     71,564       100.0 %   (A)  
Cost of goods sold     40,067       55.3 %     (465 )     39,602       55.3 %   (A)(B)(C)(D)  
Gross profit     32,452       44.7 %     (490 )     31,962       44.7 %      
Operating expenses     21,206       29.2 %     55       21,261       29.7 %   (A)(B)(C)(D)  
Other operative expenses, net     -       0.0 %     646       646       0.9 %   (E)(F)(G)  
Operating income (3)     11,246       15.5 %     (1,191 )     10,055       14.1 %      
Depreciation, amortization & other operative non-cash charges     2,568       3.5 %     94       2,662       3.7 %   (B)(D)(E)(F)(G)  
Operative cash flow (4)     13,814       19.0 %     (1,097 )     12,717       17.8 %      

 

(1) Except volume and average price per unit case figures.

(2) Sales volume and average price per unit case exclude beer sales results

(3) The Operating income line is presented as a non-GAAP measure for the convenience of the reader

(4) Operative cash flow = Operating Income + depreciation, amortization & other operative non-cash charges.

 

 

 

IFRS Adjustments:

(A) Elimination of inflation effects recognized on non hiperinflationary economies under IFRS (Argentina).

(B) Change on depreciation and amortization based on new balance of Assets.

(C) Reclassification of Employee Profit Sharing from other non operative expenses to cost of sales and administrative and selling expenses.

(D) Elimination of provisions of severance, labor cost of past services and actuarial gain or loss.

(E) Reclassification of equity method related with operative investments.

(F) The expenses related to severance payments resulting from restructuring programs , sales, write-off and imparment of long live assets and sales of materials were reclassified from other non operative expense to other operative expenses.

(G) Reclassification of Operative Foreign exchange (loss) gain from Integral result of financing to other operative (expenses) income.

 

March 29, 2012 Page 8

 

 
 

 


 

South America Division                                                
Expressed in millions of Mexican pesos (1)   IFRS     IFRS     IFRS     IFRS  
    1Q 11     % Ing     2Q 11     % Ing     3Q 11     % Ing     4Q 11     % Ing  
Volume (million unit cases) (2)     273.1               263.4               279.2               322.0          
Average price per unit case (2)     50.12               52.86               59.13               63.11          
Net revenues     14,629               14,773               17,450               21,520          
Other operating revenues     106               83               95               92          
Total revenues     14,735       100.0 %     14,856       100.0 %     17,545       100.0 %     21,612       100.0 %
Cost of goods sold     8,273       56.1 %     8,481       57.1 %     9,625       54.9 %     11,758       54.4 %
Gross profit     6,462       43.9 %     6,375       42.9 %     7,920       45.1 %     9,854       45.6 %
Operating expenses     4,308       29.2 %     4,507       30.3 %     5,375       30.6 %     6,010       27.8 %
Other operative expenses, net     12       0.1 %     4       0.0 %     34       0.2 %     596       2.8 %
Operating income (3)     2,142       14.5 %     1,864       12.5 %     2,511       14.3 %     3,248       15.0 %
Depreciation, amortization & other operative non-cash charges     478       3.2 %     485       3.3 %     524       3.0 %     1,083       5.0 %
Operative cash flow (4)     2,620       17.8 %     2,349       15.8 %     3,035       17.3 %     4,331       20.0 %

 

(1) Except volume and average price per unit case figures.

(2) Sales volume and average price per unit case exclude beer sales results

(3) The Operating income line is presented as a non-GAAP measure for the convenience of the reader

(4) Operative cash flow = Operating Income + depreciation, amortization & other operative non-cash charges.

 

March 29, 2012 Page 9