FEMSA Copyright 2016

Consolidated Financial Statements

 
 

Consolidated Income Statements

FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V. AND SUBSIDIARIES
MONTERREY, N.L., MEXICO

For the years ended December 31, 2015, 2014 and 2013.
Amounts expressed in millions of U.S. dollars ($) and in millions of Mexican pesos (Ps.),
except per share amounts.

    2015(*)   2015   2014   2013
Cash flows from operating activities:
                
Income before income taxes $ 1,815 Ps. 31,208 Ps. 28,883 Ps. 29,911
Adjustments for:                
Non-cash operating expenses   167   2,873   209   752
Employee profit sharing   72   1,243   1,138   1,936
Depreciation   568   9,761   9,029   8,805
Amortization   62   1,064   985   891
(Gain) loss on sale of long-lived assets   (14)   (249)   7   (41)
(Gain) on sale of shares   (1)   (14)   -   -
Disposal of long-lived assets   24   416   153   122
Impairment of long-lived assets   8   134   145   -
Share of the profit of associates and joint ventures accounted for using the equity method, net of taxes   (352)   (6,045)   (5,139)   (4,831)
Interest income   (59)   (1,024)   (862)   (1,225)
Interest expense   452   7,777   6,701   4,331
Foreign exchange loss, net   69   1,193   903   724
Monetary position loss, net   2   36   319   427
Market value (gain) on financial instruments   (21)   (364)   (73)   724
Cash flow from operating activities before changes in operating accounts
and employee profit sharing		   2,792   48,009   42,398   41,794
Accounts receivable and other current assets   (255)   (4,379)   (4,962)   (1,948)
Other current financial assets   18   318   1,736   (1,508)
Inventories   (252)   (4,330)   (1,122)   (1,541)
Derivative financial instruments   26   441   245   402
Suppliers and other accounts payable   323   5,556   6,910   517
Other long-term liabilities   48   822   (2,308)   (109)
Other current financial liabilities   (33)   (570)   793   417
Post-employment and other long-term employee benefits   (22)   (382)   (416)   (317)
Cash generated from operations   2,645   45,485   43,274   37,707
Income taxes paid   (508)   (8,743)   (5,910)   (8,949)
Net cash generated by operating activities   2,137   36,742   37,364   28,758
Cash flows from investing activities:                
Acquisition of Grupo Socofar, net of cash acquired (see Note 4)   (401)   (6,890)   -   -
Acquisition of Grupo Yoli, net of cash acquired (see Note 4)   -   -   -   (1,046)
Acquisition of Companhia Fluminense de Refrigerantes, net of cash acquired (see Note 4)   -   -   -   (4,648)
Acquisition of Spaipa S.A. Industria Brasileira de Bebidas, net of cash acquired (see Note 4)   -   -   -   (23,056)
Other acquisitions, net of cash acquired (see Note 4)   (339)   (5,821)   -   (3,021)
Investment in shares of Coca-Cola FEMSA Philippines, Inc. CCFPI (see Note 10)   -   -   -   (8,904)
Other investments in associates and joint ventures   (17)   (291)   90   (335)
Purchase of investments   -   -   (607)   (118)
Proceeds from investments   7   126   589   1,488
Interest received   60   1,024   863   1,224
Derivative financial instruments   13   232   (25)   119
Dividends received from associates and joint ventures   139   2,394   1,801   1,759
Property, plant and equipment acquisitions   (1,017)   (17,485)   (16,985)   (16,380)
Proceeds from the sale of property, plant and equipment   37   630   209   252
Acquisition of intangible assets   (56)   (971)   (706)   (1,077)
Investment in other assets   (87)   (1,502)   (796)   (1,436)
Collections of other assets   13   223   -   -
Investment in other financial assets   (2)   (28)   (41)   (52)
Net cash used in investing activities   (1,650)   (28,359)   (15,608)   (55,231)
Cash flows from financing activities:                
Proceeds from borrowings   490   8,422   5,354   78,907
Payments of bank loans   (903)   (15,520)   (5,721)   (39,962)
Interest paid   (265)   (4,563)   (3,984)   (3,064)
Derivative financial instruments   485   8,345   (2,267)   697
Dividends paid   (622)   (10,701)   (3,152)   (16,493)
Contributions from non-controlling interest   15   250   -   -
Increase in shares of non-controlling interest   -   -   -   515
Other financing activities   2   26   482   (16)
Net cash (used in) generated by financing activities   (798)   (13,741)   (9,288)   20,584
(Decrease) increase in cash and cash equivalents   (311)   (5,358)   12,468   (5,889)
Initial balance of cash and cash equivalents   2,064   35,497   27,259   36,521
Effects of exchange rate changes and inflation effects on cash and cash
equivalents held in foreign currencies		   (43)   (743)   (4,230)   (3,373)
Ending balance of cash and cash equivalents $ 1,710 Ps. 29,396 Ps. 35,497 Ps. 27,259

(*) Convenience translation to U.S. dollars ($) – see Note 2.2.3
The accompanying notes are an integral part of these consolidated statements of cash flow.