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FEMSA REPORTS FIRST QUARTER EARNINGS

 MONTERREY, Mexico, April 29 /PRNewswire/ -- Fomento Economico Mexicano S.A. de C.V. or FEMSA (FEMSYP: PORTAL), Mexico's leading producer of beer and soft drinks, today reported results for the first quarter ended March 31, 1993.
 Revenues for the first quarter of 1993 were $1,586 million new pesos, a 6 percent increase over that reported during the same period in 1992. This increase can be attributed to a 6.4 percent growth in volume of beer sales and an 8.3 percent increase in volume of soft drink sales.
 Operating margin for the first quarter of 1993 improved 10 percent over that reported in 1992, as a result of efforts to achieve greater efficiency and productivity in production processes, in addition to lower prices of inputs. However, as a consequence of launching new presentations and promotions in the beer and soft drink businesses, consolidated operating costs increased 12 percent. Operating profits reached $133 million new pesos, an increase of 4 percent over that obtained in 1992, including in both periods the costs corresponding to the pension plan.
 Net profit on a comparable basis for the first quarter of 1993 increased to $103 million new pesos, 13 percent greater in real terms than the level obtained during 1992. Based on 541,390,000 shares outstanding, net earnings per share were 0.192 new pesos.
 Consolidated net profit in 1992 includes $16 million new pesos from the operation of the mineral water division registered during the first quarter of that year since this business was sold in April 1992.
 Review of Operations
 The beer business achieved a 6.4 percent increase in volume sales, in which the non-returnable presentations continued to gain importance in contributing to the first quarter of 1993 with 22.5 percent volume, an increase of 1.8 percent in its contribution to the total mix from that reported in 1992.
 The success of XX lager in can has extended throughout the country, representing at the end of the first quarter of 1993 7.2 percent of the can segment in the industry, an increase of 4 percentage points over that reported in December 1992.
 At the end of the quarter, Tecate Light extended its coverage to the national level, and is now available in over 20 cities including Guadalajara, Monterrey and Mexico City.
 At the end of January 1993, FEMSA began the first stage in launching a new image for Carta Blanca by changing the returnable bottle and designing a new label for all the presentations. FEMSA anticipates completing the relaunch by the end of 1993, since it is a brand of high volume with a nationwide distribution.
 The soft drink business obtained an 8.3 percent growth in volume sales as compared with the same period in 1992. FEMSA continued promoting and launching new presentations such as the introduction of the half-liter Coca Cola in the Valley of Mexico and the liter and a quarter Coca Cola and Fanta in the Southeast.
 Oxxo continued its expansion program and opened 43 new stores during the first quarter of 1993. The chain now boasts 547 stores and a sales area of 60,000 square meters.
 On April 25th, an agreement in principal was signed between FEMSA and the Coca Cola Company, which calls for Coca Cola to acquire 30 percent of Femsa Refrescos, S.A. de C.V. for $195 million. Femsa Refrescos operates the Coca Cola franchises in the Valley of Mexico and Southeast Mexico. The agreement, subject to approval from both parties, is expected to be completed by the end of June, or at the latest, July.
 -0- 04/28/93
 /CONTACT: Alfredo Livas of FEMSA, 011-528-340-1092, or Cathleen Mayrose of Dewe Rogerson, 212-688-6840, for FEMSA/


CO: Fomento Economico Mexicano S.A. de C.V. ST: IN: FOD SU: ERN

SM-AH -- NY046 -- 2618 04/29/93 11:27 EDT
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Publication:PR Newswire
Date:Apr 29, 1993
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