FEMSA AR 2018

Income Statement
Net sales	Ps.	468,894	Ps.	439,239	Ps.	398,622	Ps.	310,849	Ps.	262,779
Total revenues	469,744		439,932		399,507		311,589		263,449
Cost of goods sold	294,574		277,842		251,303		188,410		153,278
Gross profit	175,170		162,090		148,204		123,179		110,171
Operating expenses	133,594		121,828		110,777		89,444		80,188
Income from operations ⁽¹⁾	41,576		40,262		37,427		33,735		29,983
Other non-operating expenses (income), net	874		1,285		4,208		954		(508)
Financing expenses, net	7,380		3,302		4,619		7,618		6,988
Income before income taxes and share of the profit of equity accounted investees	33,322		35,674		28,600		25,163		23,503
Income taxes	10,169		10,213		7,888		7,932		6,253
Share of the profit of equity accounted investees, net of taxes	6,560		8,021		6,463		6,045		5,380
Net income from continuing operations	29,713		33,480		27,175		23,276		22,630
Net income from discontinuing operations⁽⁹⁾	3,366		3,726		-		-		-
Consolidated net income	33,079		37,206		27,175		23,276		22,630
Controlling Interest	23,990		42,408		21,140		17,683		16,701
Non-Controlling Interest	9,089		(5,202)		6,035		5,593		5,929
Ratios to total revenues (%)
Gross margin	37.3%		36.8%		37.1%		39.5%		41.8%
Operating margin	8.9%		9.2%		9.4%		10.8%		11.4%
Consolidated net income	6.3%		7.6%		6.8%		7.5%		8.6%
Other information
Depreciation	14,698		13,799		12,076		9,761		9,029
Amortization and other non cash charges to income from operations	4,184		4,104		5,484		3,130		1,933
Operative Cash Flow (EBITDA)	60,458		58,165		54,987		46,626		40,945
Capital expenditures ⁽²⁾	24,266		23,486		22,155		18,885		18,163

Balance Sheet
Assets
Current assets	177,607	181,188	117,951	86,723	79,112
Equity accounted investees	94,315	96,097	128,601	111,731	102,159
Property, plant and equipment, net ⁽³⁾	108,602	116,712	102,223	80,296	75,629
Intangible assets,net	145,610	154,093	153,268	108,341	101,527
Other assets, net	50,247	40,451	43,580	22,241	17,746
Total assets	576,381	588,541	545,623	409,332	376,173
Liabilities
Short-term bank loans and current portion of longterm bank loans and notes payable	13,674	13,590	7,281	5,895	1,553
Other current liabilities	87,790	91,432	79,008	59,451	47,766
Long-term bank loans and notes payable	114,990	117,758	131,967	85,969	82,935
Employee benefits	4,699	5,373	4,447	4,229	4,207
Deferred tax liabilities	5,886	6,133	11,037	6,230	3,643
Other non-current liabilities	13,800	17,343	25,713	5,702	5,947
Total liabilites	240,839	251,629	259,453	167,476	146,051
Total equity	335,542	336,912	286,170	241,856	230,122
Controlling interest	257,053	250,291	211,904	181,524	170,473
Non-controlling interest	78,489	86,621	74,266	60,332	59,649
Financial ratios (%)
Liquidity	1.750	1.725	1.367	1.327	1.604
Leverage	0.718	0.747	0.907	0.692	0.635
Capitalization	0.29	0.29	0.33	0.28	0.27
Data per share
Controlling interest book value ⁽⁴⁾	14.368	13.990	11.844	10.146	9.528
Net controlling interest income ⁽⁵⁾	1.341	2.370	1.182	0.988	0.933
Dividends paid ⁽⁶⁾
Series B shares	0.460	0.431	0.417	0.366	0.000
Series D shares	0.575	0.538	0.521	0.458	0.000
Number of employees ⁽⁷⁾	297,073	295,027	266,144	246,158	216,740
Number of outstanding shares ⁽⁸⁾	17,891.13	17,891.13	17,891.13	17,891.13	17,891.13

Company’s key performance indicator.

Includes investments in property, plant and equipment, as well as deferred charges and intangible assets.

Includes bottles and cases.

Controlling interest divided by the total number of shares outstanding at the end of each year.

Net controlling interest income divided by the total number of shares outstanding at the end of the each year.

Expressed in nominal pesos of each year.

Includes incremental employees resulting from mergers & acquisitions made during the year.

Total number of shares outstanding at the end of each year expressed in millions.

The consolidated income statement of 2017 was revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines.

ANNUAL REPORT 2018