UPDATE 2-Mexico’s FEMSA net jumps, revs up despite rain

* Results hurt by strong rain, low temperatures

* Revenue up 4.3 pct, Oxxo continues strong expansion
(Adds bottler, retail units results, comment and stock quote)

MEXICO CITY, Oct 22 (BestGrowthStock) – Mexico’s FEMSA posted a 56
percent jump in third-quarter earnings from a year ago as
revenues rose moderately even though drinks distribution was
hurt by unusually bad weather during the period.

FEMSA (FMSAUBD.MX: ) (FMX.N: ) earned 3.94 billion pesos ($312
million) in the July-September period, compared with 2.52 billion
pesos in the year-earlier quarter.

Results reflect the sale of FEMSA’s beer unit for a 20 percent
stake in Heineken (HEIN.AS: ) earlier this year. FEMSA’s profits
include 2.214 billion pesos for its share in the Dutch brewer in
the period.

Quarterly revenue rose 4.3 percent to 42.782 billion pesos.

“The mild recovery of consumption in Mexico was hurt by
extreme rain and low temperatures during the third quarter,”
said FEMSA CEO Jose Antonio Fernandez in a statement.

Mexico’s northeast was hit by Hurricane Alex, causing severe
damage in the industrial city of Monterrey, where FEMSA is
based. Gulf states like Veracruz also suffered massive
flooding, which interrupted distribution and sales for many

FEMSA’s earnings before interest, tax, depreciation and
amortization (EBITDA) rose 3.3 percent to 7.040 billion pesos
in the third quarter.

Revenue from its Coca-Cola FEMSA (KOFL.MX: ) (KOF.N: ) bottler
was hit by a devaluation of the Venezuelan currency. The unit
has been expanding into noncarbonated beverages, such as mate
tea in Brazil, and moved in October to buy a dairy-products
company in Panama. [ID:nN14156662]

Sales at the company’s Oxxo convenience store chain rose
15.2 percent to 16.2 billion pesos as it added 180 stores
during quarter, bringing the total of stores to 8,011.
Same-store sales, or those recorded at outlets that have been
open for at least 12 months, rose 4.4 percent from a year ago.

During a conference call with analysts, Chief Financial
Officer Javier Astaburuaga said the company was looking at
expanding the Oxxo chain into other countries in the

“We are looking as always, maybe at this point of time more
intensely than in the past, at some other geographies,”
Astaburuaga said. “We are looking at America as a whole,” he
added. The company has a handful of Oxxo stores operating in

FEMSA shares lost 1.54 percent to 66.45 pesos in noon
trading on Friday.

($1 = 12.625 pesos as of end-Sept)
(Reporting by Cyntia Barrera Diaz and Michael O’Boyle; Editing by
Phil Berlowitz)

UPDATE 2-Mexico’s FEMSA net jumps, revs up despite rain