Fomento Económico Mexicano, S.A.B. de C.V. (FMX) 6-K Current report (foreign)

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 October 2009

.

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:  October 28, 2009

	Latin America’s Beverage Leader FEMSA Achieves 27.2% Operating Income
	Growth in 3Q09
	Monterrey, Mexico, October 28, 2009 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) today announced its operational and financial results for the third quarter of 2009.
	Third Quarter 2009 Highlights:
	·  Consolidated total revenues and income from operations grew 21.4% and 27.2%, respectively, compared to the third quarter 2008.
	-      In spite of a challenging economic environment, FEMSA again delivered a quarter of strong growth in revenues and income from operations, driven by double-digit performance in all of our operations.
	·     Coca-Cola FEMSA total revenues and income from operations increased 31.5% and 24.0%, respectively.
	-      Driven by double-digit growth in income from operations in its Latincentro and Mercosur divisions, combined with stable results in its Mexico division.
	·     FEMSA Cerveza total revenues increased 13.1%, while income from operations increased 19.4%.
	-      Sales volume in Mexico increased 1.5% and price per hectoliter grew 6.4%. Brazil sales volume decreased 3.9% and Export sales volume rose a solid 12.3%.
	-      Top-line growth combined with operating expense containment offset raw material cost pressures, resulting in an increase of 19.4% in income from operations and 70 basis points of operating margin expansion.
	·     FEMSA Comercio continued its pace of strong growth and margin expansion.
	-      Income from operations increased by 55.0% resulting in an operating margin expansion of 230 basis points compared to the third quarter of 2008, to reach 8.8%.
	José Antonio Fernández, Chairman and CEO of FEMSA, commented: “This year is providing one of the most challenging economic environments we have faced in a long time, and yet our team keeps finding ways to leverage our platform to grow, to improve, and ultimately to thrive. This quarter we are again delivering double-digit growth in operating income, in-line with the first half of the year, as our international operations more than offset the prolonged weakness of the Mexican market. Going forward, we are faced with even more hurdles, including potential incremental taxation in Mexico in 2010. The long-awaited recovery in the US has yet to materialize and as a result, employment in our key northern hubs remains soft. However, we are confident that we can continue to meet and exceed our objectives as we have up until this point.”

FEMSA Consolidated

Our results of operations have been affected by the depreciation of local currencies against the US dollar in most of our operations, particularly beginning in the fourth quarter of 2008, and continuing through the third quarter of 2009. As of September 30, 2009 the Mexican Peso depreciated approximately 25.1% and Brazilian Real appreciated approximately 7.1% compared to the same period of 2008.

Total revenues increased 21.4% compared to 3Q08, to Ps. 50.647 billion. Coca-Cola FEMSA accounted for approximately 70% of the incremental consolidated revenues, while FEMSA Cerveza and FEMSA Comercio provided the balance. For the first nine months of 2009, consolidated total revenues increased 19.9% to Ps. 142.917 billion.

Gross profit increased 21.7% compared to 3Q08 to Ps. 23.454 billion in 3Q09. Gross margin increased 10 basis points compared to the same period in 2008 to 46.3% of total revenues. FEMSA Comercio´s gross profit improvement more than offset raw-material cost pressures at Coca-Cola FEMSA and FEMSA Cerveza, as well as the depreciation of local currencies as applied to our US dollar-denominated costs.

For the first nine months of 2009, gross profit increased 19.3% to Ps. 65.547 billion. Gross margin contracted 20 basis points compared to the same period in 2008 to 45.9% of total revenues. FEMSA Comercio´s gross profit improvement partially offset raw-material cost pressures at FEMSA Cerveza and Coca-Cola FEMSA, as well as the depreciation of the local currencies as applied to our US dollar- denominated costs.

Income from operations increased 27.2% to Ps. 7.219 billion in 3Q09 as compared to the same period in 2008, driven by double-digit income growth in all of our operations. Coca-Cola FEMSA accounted for approximately half of the incremental consolidated income from operations, while FEMSA Comercio and FEMSA Cerveza provided the balance. Consolidated operating margin expanded 70 basis points as compared to 3Q08 to 14.3%, as operating margin improvement and expense containment initiatives at FEMSA Cerveza and FEMSA Comercio offset gross margin pressure at the beverage operations.

For the first nine months of 2009, income from operations increased 20.9% to Ps. 18.826 billion. Our consolidated operating margin year-to-date was 13.2% as a percentage of total revenues, an increase of 10 basis points as compared to the same period of 2008, driven mainly by robust top-line growth and expense containment initiatives across our operations, as well as by gross margin expansion at FEMSA Comercio, which together offset raw material pressures at the beverage operations.

Net income increased 46.0% compared to 3Q08 to Ps. 3.743 billion in 3Q09, mainly as a result of the growth in income from operations and lower integral result of financing during the quarter, driven by a smaller impact from foreign exchange losses than in 3Q08. The effective tax rate was 32.1% in 3Q09 compared with 33.1% in 3Q08.

For the first nine months of 2009, net income increased 10.0% to Ps. 8.957 billion, compared to the same period of 2008, primarily as a result of income from operations growth being partially offset by an increase in the integral result of financing during the period. Such increase resulted from the appreciation of the US dollar against our local currencies as applied to our liability position and from higher interest expense. The effective tax rate was 32.1% for the first nine months of 2009, compared with 30.4% in the same period of 2008.

Net majority income increased 24.8% over 3Q08, resulting in Ps. 0.70 per FEMSA Unit1 in 3Q09. Net majority income per FEMSA ADS was US$ 0.52 for the quarter. For the first nine months of 2009, net majority income per FEMSA Unit1 was Ps. 1.63 (US$ 1.21 per ADS).

Capital expendituresdecreased 20.4% over 3Q08 to Ps. 3.183 billion in 3Q09, mainly driven by the rationalization and deferral of investments in FEMSA Cerveza, and a slight slowdown in store openings at FEMSA Comercio during the quarter, which partially offset higher manufacturing investments at Coca-Cola FEMSA.

________________________ 

1 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of September 30, 2009 was 3,578,226,270 equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

October 28, 2009

2

Our consolidated balance sheet as of September 30, 2009, recorded a cash balance of Ps. 16.801 billion (US$ 1.246 billion), an increase of Ps. 11.047 billion (US$ 819.5 million) compared to the same period in 2008, reflecting strong cash generation at all of our operations, mainly Coca-Cola FEMSA. Short-term debt was Ps. 8.552 billion (US$ 634 million) while long-term debt was Ps. 33.753 billion (US$ 2.504 billion). Our net debt decreased by Ps. 7.035 billion (US$ 521.9 million) for a net debt balance of Ps. 25.504 billion (US$ 1.892 billion).

Consistent with what we believe to be FEMSA’s conservative approach, as of September 30, 2009, our ratio of net debt to EBITDA2 was only 0.7x, while our mix of US dollar-denominated debt represented 12.2% and our mix of fixed interest rate represented 42.3% of this debt. In terms of our debt profile, we only had approximately Ps. 747.9 million (US$ 55 million) coming due in the remaining months of 2009, which have already been refinanced. For 2010 and 2011, we have minor debt maturities, and our debt profile currently extends as far out as 2017.

As a matter of policy, FEMSA follows what it considers to be a conservative approach with respect to its leverage position and seeks to maintain low leverage ratios. FEMSA also seeks to manage risk through derivative instruments, through which it aims to minimize the volatility and uncertainty of operating results by hedging interest rates, foreign exchange rates and the prices of certain of our raw materials.

Soft Drinks – Coca-Cola FEMSA

Coca-Cola FEMSA’s financial results and discussion are incorporated by reference from Coca-Cola FEMSA’s press release, which is attached to this press release or visit www.coca-colafemsa.com.

Beer – FEMSA Cerveza

Mexico sales volumeincreased 1.5% to 6.859 million hectoliters in 3Q09, in the context of a still challenging economic environment, particularly in our key northern markets. Our Tecate brand family and Indio once again delivered strong growth. Furthermore, Mexico price per hectoliter showed robust growth of 6.4% over 3Q08 to Ps. 1,156.7 in 3Q09, resulting from price increases implemented during the second quarter of 2009, in addition to the increases carried out late in the third quarter of 2008. Mexico beer revenues were up 8.0% over 3Q08 mainly driven by stable volumes and healthy prices.

For the first nine months of 2009, Mexico sales volume decreased 2.6% to 19.754 million hectoliters and price per hectoliter grew 7.6% over the comparable period in 2008.

Brazil sales volume decreased 3.9% in 3Q09, against a tough comparable figure of 8.0% volume growth in 3Q08, to 2.278 million hectoliters, while Brazil price per hectoliter calculated in Mexican pesos increased 15.3% to Ps. 744.2 compared to the same period in 2008, largely driven by the strength of the Brazilian Real. Price per hectoliter in local currency increased by 0.9%. Brazil beer revenues were up 10.9% in Mexican pesos over 3Q08.

For the first nine months of 2009, Brazil sales volume decreased 3.4% to 6.799 million hectoliters.

Export sales volume increased 12.3% in 3Q09 to 1.065 million hectoliters, despite a challenging economic environment across export markets and a tough comparable figure of 10.0% volume growth in 3Q08. This increase was mainly driven by our Dos Equis brand in the US as well as by Sol in other key markets. Export price per hectoliter in Mexican pesos increased 38.3% to Ps. 1,333.3 in 3Q09 as compared with 3Q08, reflecting the Mexican peso depreciation against the US dollar. In US dollar terms, price per hectoliter increased 6.7% mainly due to moderate price increases implemented for our Tecate brand, as well as a favorable brand mix shift from Tecate to higher-priced Dos Equis. As a result, Export beer revenues were up 55.2% over 3Q08.

For the first nine months of 2009, export sales volume increased 5.8% to 2.885 million hectoliters.

________________________ 

2  As used herein, Net debt/EBITDA is calculated by dividing net debt at the end of the quarter by the EBITDA for the last twelve months, as reported in Mexican pesos and converted to US dollars with the period-end exchange rate.

October 28, 2009

3

Total revenues increased 13.1% over 3Q08 to Ps. 12.042 billion in 3Q09. Higher average price per hectoliter in pesos in all of our markets drove these results. Mexican beer sales represented 71.8% of total beer revenues, while Brazil and Export beer sales reached 15.3% and 12.9% of total beer revenues, respectively in 3Q09.

For the first nine months of 2009, total revenues increased 10.0% to Ps. 33.975 billion mainly driven by a 9.4% increase in beer revenues due to higher average unit price across our operations. Mexican beer revenues reached 72.1% of total beer revenues, down from 75.3% in the comparable period in 2008. Brazil beer revenues represented 15.4% of total beer revenues, up from 15.3% in the same period of 2008. Export beer revenues were 12.4% of total beer revenues, up from 9.4% in the comparable period in 2008.

Cost of sales was Ps. 5.682 billion in 3Q09, an increase of 16.0% compared with 3Q08, which was above the 13.1% growth in total revenues. Cost per hectoliter increased by 14.6% over 3Q08, as a result of i) the depreciation of the Mexican peso against the US dollar and the Brazilian Real, as applied to the unhedged portion of input costs denominated in foreign currencies, and ii) year-over-year increases in the cost of raw materials, particularly in grains and to a lesser extent aluminum. Gross profit increased 10.6% over 3Q08 to Ps. 6.360 billion in 3Q09, however as a percentage of revenues, gross margin declined 120 basis points from 54.0% in 3Q08 to 52.8% in 3Q09 as a result of these cost increases.

For the first nine months of 2009, cost of sales increased 15.6% to Ps. 16.314 billion. Gross margin year-to-date contracted by 230 basis points to 52.0% of total revenues as a result of these cost increases.

Income from operations increased 19.4% compared with 3Q08 to Ps. 1.800 billion in 3Q09, as continued rationalization and containment efforts at the selling expense level in Mexico and Brazil helped to offset gross margin pressures, as well as the effect of the peso depreciation as applied to marketing expenses in the US and Brazil. Operating expenses increased by 7.5%, which was less than total revenues growth continuing the trend of previous quarters in 2009, and as a result operating margin increased by 70 basis points, offsetting the contraction experienced at the gross margin level.

For the first nine months of 2009, income from operations increased 9.5% to Ps. 4.308 billion, resulting in a stable operating margin of 12.7%, as compared to the same period of 2009.

FEMSA Comercio

Total revenues increased 14.6% compared to 3Q08 to Ps. 14.080 billion in 3Q09 mainly driven by the opening of 183 net new stores in the quarter, for a total increase of 906 net new stores in the last twelve months. As of September 30, 2009, FEMSA Comercio had a total of 6,994 convenience stores in Mexico, on track to surpass its objective for the year. Same-store sales increased an average of 2.9% for the quarter over 3Q08, driven by a 2.9% increase in store traffic, and a stable average customer ticket. The same-store sales, ticket and traffic dynamics reflect the effects observed in 2008 and the previous quarters of 2009 from the continued mix shift from prepaid wireless phone cards to the sale of electronic air-time, for which only the margin is recorded, not the full amount of the air-time recharge. On a comparable basis excluding this change, the average ticket would have grown in the low-single-digits in 3Q09.

For the first nine months of 2009, total revenues increased 12.9% to Ps. 39.435 billion. FEMSA Comercio´s same-store sales increased an average of 0.6%, which reflects the mix shift from prepaid wireless phone cards to the sale of electronic air-time, as described above.

Gross profit increased by 21.2% in 3Q09 compared to 3Q08, resulting in a 180 basis point gross margin expansion reaching 32.9% of revenues. This increase reflects more effective collaboration and execution with our key supplier partners and a positive mix shift due to the growth in higher margin categories and to a lesser extent, the continued shift towards electronic air-time recharges as described above. For the first nine months of 2009, gross margin expanded by 200 basis points to 31.7% of total revenues to Ps. 12.514 billion.

October 28, 2009

4

Income from operationsincreased 55.0% over 3Q08 to Ps. 1.232 billion in 3Q09. Operating expenses increased 12.3% to Ps. 3.405 billion driven by the growing number of stores, which were partially offset by broad expense-containment initiatives at the store level, as well as by scale-driven efficiencies. As a result, operating margin expanded 230 basis points over 3Q08 reaching 8.8% of total revenues.

For the first nine months of 2009, income from operations increased 44.5% to Ps. 2.801 billion, resulting in an operating margin of 7.1%, a 160 basis point expansion from the prior year.

Recent Developments

In relation to recent press reports, on October 1, 2009, FEMSA confirmed that it is in discussions with several parties to explore opportunities involving its beer business. However, there can be no assurance that such discussions will lead to any definitive agreement.

CONFERENCE CALL INFORMATION:

Our Third Quarter 2009 Conference Call will be held on: Wednesday October 28, 2009, 2:30 PM Eastern Time (12:30 PM Mexico City Time). To participate in the conference call, please dial: Domestic US: (1-888) 221-9518, International: (1-913) 312-1463. The conference call will be webcast live through streaming audio. For details please visit www.femsa.com/investor.

If you are unable to participate live, the conference call audio will be available on http://ir.femsa.com/results.cfm.

We are a holding company whose principal activities are grouped under the following sub-holding companies and carried out by their respective operating subsidiaries: Coca-Cola FEMSA, S.A.B. de C.V., which engages in the production, distribution and marketing of non-alcoholic beverages; FEMSA Cerveza, S.A. de C.V., which engages in the production, distribution and marketing of beer and flavored alcoholic beverages; and FEMSA Comercio, S.A. de C.V., which engages in the operation of convenience stores.

The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the noon day buying rate for pesos as published by the Federal Reserve Bank of New York at September 30, 2009, which was 13.4805 Mexican pesos per US dollar.

FORWARD LOOKING STATEMENTS

This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

Six pages of tables and Coca-Cola FEMSA’s press release to follow

October 28, 2009

5

FEMSA

Consolidated Income Statement

Millions of Pesos

	For the third quarter of:													For the nine months of:
	2009(A)			% of rev.		2008(A)			% of rev.		% Increase			2009(A)			% of rev.		2008(A)			% of rev.		% Increase
Total revenues		50,647			100.0		41,723			100.0		21.4			142,917			100.0		119,191			100.0		19.9
Cost of sales		27,193			53.7		22,447			53.8		21.1			77,370			54.1		64,241			53.9		20.4
Gross profit		23,454			46.3		19,276			46.2		21.7			65,547			45.9		54,950			46.1		19.3
Administrative expenses		2,595			5.1		2,287			5.5		13.5			7,796			5.5		6,874			5.8		13.4
Selling expenses		13,640			26.9		11,312			27.1		20.6			38,925			27.2		32,502			27.2		19.8
Operating expenses		16,235			32.0		13,599			32.6		19.4			46,721			32.7		39,376			33.0		18.7
Income from operations		7,219			14.3		5,677			13.6		27.2			18,826			13.2		15,574			13.1		20.9
Other expenses		(599	)				(567	)				5.6			(1,809	)				(1,444	)				25.3
Interest expense		(1,253	)				(1,066	)				17.5			(4,054	)				(3,526	)				15.0
Interest income		146					114					27.7			378					492					(23.3	)
Interest expense, net		(1,107	)				(952	)				16.3			(3,676	)				(3,034	)				21.2
Foreign exchange (loss) gain		(43	)				(462	)				(90.7	)		(387	)				206				N.S.
(Loss) gain on monetary position		159					230					(30.9	)		371					514					(27.8	)
Gain (loss) on financial instrument(6)		(116	)				(96	)				21.1			(139	)				(125	)				11.0
Integral result of financing		(1,107	)				(1,280	)				(13.6	)		(3,831	)				(2,439	)				57.1
Income before income tax		5,513					3,830					43.9			13,186					11,691					12.8
Income tax		(1,770	)				(1,267	)				39.7			(4,229	)				(3,549	)				19.2
Net income		3,743					2,563					46.0			8,957					8,142					10.0
Net majority income		2,521					2,020					24.8			5,823					5,854					(0.5	)
Net minority income		1,222					543				N.S.				3,134					2,288					37.0
(A) Average Mexican Pesos of each year.
EBITDA & CAPEX
Income from operations		7,219			14.3		5,677			13.6		27.2			18,826			13.2		15,574			13.1		20.9
Depreciation		1,397			2.8		1,291			3.1		8.2			4,175			2.9		3,617			3.0		15.4
Amortization & other(5)		1,189			2.3		882			2.1		34.8			3,382			2.4		2,910			2.4		16.2
EBITDA		9,805			19.4		7,850			18.8		24.9			26,383			18.5		22,101			18.5		19.4
CAPEX		3,183					3,998					(20.4	)		8,143					8,824					(7.7	)
FINANCIAL RATIOS	2009					2008					Var. p.p.
Liquidity(1)		1.07					0.92					0.15
Interest coverage(2)		8.85					8.25					0.61
Leverage(3)		0.83					0.78					0.05
Capitalization(4)		29.41	%				30.68	%				(1.27	)

(1) Total current assets / total current liabilities.

(2) Income from operations + depreciation + amortization & other / interest expense, net.

(3) Total liabilities / total stockholders' equity.

(4) Total debt / long-term debt + stockholders' equity.

Total debt = short-term bank loans + current maturities long-term debt + long-term bank loans and notes payable.

(5) Includes returnable bottle breakage expense.

(6) Includes solely derivative instruments that do not meet hedging criteria for accounting purposes

October 28, 2009

6

FEMSA

Consolidated Balance Sheet

As of September 30:

Millions of Pesos

ASSETS	2009(A)	2008(A)	% Increase
Cash and cash equivalents	16,801	5,754	N.S.
Accounts receivable	9,559	9,035		5.8
Inventories	13,654	11,726		16.4
Prepaid expenses and other	5,714	4,369		30.8
Total current assets	45,728	30,884		48.1
Property, plant and equipment, net	68,578	60,779		12.8
Intangible assets(1)	70,718	62,631		12.9
Other assets	16,366	14,480		13.0
TOTAL ASSETS	201,390	168,774		19.3
LIABILITIES & STOCKHOLDERS´ EQUITY
Bank loans	3,021	2,493		21.2
Current maturities long-term debt	5,531	5,896		(6.2	)
Interest payable	220	380		(42.1	)
Operating liabilities	34,015	24,773		37.3
Total current liabilities	42,787	33,542		27.6
Long-term debt (2)	33,753	29,905		12.9
Labor liabilities	3,277	2,754		19.0
Other liabilities	11,495	7,670		49.9
Total liabilities	91,312	73,871		23.6
Total stockholders’ equity	110,078	94,903		16.0
LIABILITIES AND STOCKHOLDERS’ EQUITY	201,390	168,774		19.3

(1) Includes mainly the intangible assets generated by acquisitions.

(A) Mexican Pesos for the end of each year.

(2) Includes the effect of assigned and non assigned derivative financial instruments on long-term debt, for accountig purposes

	September 30, 2009
DEBT MIX	Ps.		% Integration			Average Rate
Denominated in:
Mexican pesos		35,081		82.9	%		7.7	%
Dollars		5,142		12.2	%		0.6	%
Colombian pesos		668		1.6	%		10.3	%
Argentinan pesos		1,243		2.9	%		23.5	%
Venezuelan bolivars		171		0.4	%		18.7	%
Total debt		42,305		100.0	%		7.8	%
Fixed rate(1)		17,889		42.3	%
Variable rate(1)		24,416		57.7	%

% of Total Debt	2009			2010			2011			2012			2013			2014			2015+
DEBT MATURITY PROFILE		1.8	%		18.6	%		17.1	%		28.1	%		18.6	%		3.3	%	12.5	%

(1) Includes the effect of interest rate swaps.

October 28, 2009

7

Coca-Cola FEMSA

Results of Operations

Millions of Pesos

	For the third quarter of:									For the nine months of:
		2009(A)	% of rev.		2008(A)	% of rev.		% Increase			2009(A)	% of rev.		2008(A)	% of rev.		% Increase
Total revenues		26,007		100.0	19,770		100.0		31.5		73,358		100.0	56,248		100.0		30.4
Cost of sales		13,943		53.6	10,374		52.5		34.4		39,128		53.3	29,349		52.2		33.3
Gross profit		12,064		46.4	9,396		47.5		28.4		34,230		46.7	26,899		47.8		27.3
Administrative expenses		1,137		4.4	977		4.9		16.4		3,582		4.9	2,868		5.1		24.9
Selling expenses		6,968		26.8	5,225		26.4		33.4		19,669		26.8	14,783		26.3		33.1
Operating expenses		8,105		31.2	6,202		31.3		30.7		23,251		31.7	17,651		31.4		31.7
Income from operations		3,959		15.2	3,194		16.2		24.0		10,979		15.0	9,248		16.4		18.7
Depreciation		672		2.6	593		3.0		13.3		2,113		2.9	1,766		3.1		19.6
Amortization & other		317		1.2	220		1.1		44.1		734		0.9	588		1.1		24.8
EBITDA		4,948		19.0	4,007		20.3		23.5		13,826		18.8	11,602		20.6		19.2
Capital expenditures		1,542			1,447				6.6		3,321			2,640				25.8
(A) Average Mexican Pesos of each year.
Sales volumes
(Millions of unit cases)
Mexico		321.4		52.2	293.2		51.3		9.6		923.0		52.0	866.1		52.7		6.6
Latincentro		151.8		24.7	137.6		24.0		10.3		426.9		24.0	397.3		24.2		7.4
Mercosur		142.4		23.1	141.6		24.7		0.6		426.9		24.0	379.6		23.1		12.5
Total		615.6		100.0	572.4		100.0		7.6		1,776.8		100.0	1,643.0		100.0		8.1

 

October 28, 2009

8

FEMSA Cerveza

Results of Operations

Millions of Pesos

	For the third quarter of:										For the nine months of:
		2009(A)	% of rev.		2008(A)	% of rev.		% Increase				2009(A)	% of rev.		2008(A)	% of rev.		% Increase
Sales:
Mexico		7,934		65.9	7,346		69.0		8.0			22,444		66.1	21,416		69.3		4.8
Brazil		1,695		14.1	1,529		14.4		10.9			4,803		14.1	4,347		14.1		10.5
Export		1,420		11.8	915		8.6		55.2			3,866		11.4	2,666		8.6		45.0
Beer sales		11,049		91.8	9,790		92.0		12.9			31,113		91.6	28,429		92.0		9.4
Other revenues		993		8.2	857		8.0		15.9			2,862		8.4	2,464		8.0		16.2
Total revenues		12,042		100.0	10,647		100.0		13.1			33,975		100.0	30,893		100.0		10.0
Cost of sales		5,682		47.2	4,898		46.0		16.0			16,314		48.0	14,115		45.7		15.6
Gross profit		6,360		52.8	5,749		54.0		10.6			17,661		52.0	16,778		54.3		5.3
Administrative expenses		1,058		8.8	1,014		9.5		4.3			3,109		9.2	3,052		9.9		1.9
Selling expenses		3,502		29.1	3,227		30.3		8.5			10,244		30.1	9,792		31.7		4.6
Operating expenses		4,560		37.9	4,241		39.8		7.5			13,353		39.3	12,844		41.6		4.0
Income from operations		1,800		14.9	1,508		14.2		19.4			4,308		12.7	3,934		12.7		9.5
Depreciation		471		3.9	427		4.0		10.3			1,393		4.1	1,265		4.1		10.1
Amortization & other		705		5.9	570		5.3		23.7			2,171		6.4	1,903		6.2		14.1
EBITDA		2,976		24.7	2,505		23.5		18.8			7,872		23.2	7,102		23.0		10.8
Capital expenditures		805			1,671				(51.8	)		2,788			4,250				(34.4	)
(A) Average Mexican Pesos of each year.
Sales volumes
(Thousand hectoliters)
Mexico		6,859.3		67.3	6,756.8		67.1		1.5			19,754.0		67.1	20,274.8		67.5		(2.6	)
Brazil		2,277.7		22.3	2,370.0		23.5		(3.9	)		6,799.3		23.1	7,035.0		23.4		(3.4	)
Exports		1,065.0		10.4	948.8		9.4		12.3			2,884.9		9.8	2,727.0		9.1		5.8
Total		10,202.0		100.0	10,075.6		100.0		1.3			29,438.2		100.0	30,036.8		100.0		(2.0	)
Price per hectoliter
Mexico		1,156.7			1,087.2				6.4			1,136.2			1,056.3				7.6
Brazil		744.2			645.1				15.3			706.4			617.9				14.3
Exports		1,333.3			964.4				38.3			1,340.1			977.6				37.1
Total		1,083.0			971.7				11.5			1,056.9			946.5				11.7
Price per hectoliter in local currency
Brazil (Brazilian Real)		104.9			104.0				0.9			107.3			99.1				8.3
Exports (USD)		100.6			94.2				6.7			98.3			93.7				4.9

   

October 28, 2009

9

FEMSA Comercio

Results of Operations

Millions of Pesos

	For the third quarter of:										For the nine months of:
		2009(A)	% of rev.		2008(A)	% of rev.		% Increase				2009(A)		% of rev.		2008(A)		% of rev.		% Increase
Total revenues		14,080		100.0	12,286		100.0		14.6			39,435			100.0	34,941			100.0		12.9
Cost of sales		9,443		67.1	8,460		68.9		11.6			26,921			68.3	24,559			70.3		9.6
Gross profit		4,637		32.9	3,826		31.1		21.2			12,514			31.7	10,382			29.7		20.5
Administrative expenses		232		1.6	201		1.6		15.4			682			1.7	617			1.8		10.5
Selling expenses		3,173		22.5	2,830		23.0		12.1			9,031			22.9	7,827			22.4		15.4
Operating expenses		3,405		24.1	3,031		24.6		12.3			9,713			24.6	8,444			24.2		15.0
Income from operations		1,232		8.8	795		6.5		55.0			2,801			7.1	1,938			5.5		44.5
Depreciation		207		1.5	167		1.4		24.0			607			1.5	486			1.4		24.9
Amortization & other		130		0.8	117		0.9		11.1			383			1.0	336			1.0		14.0
EBITDA		1,569		11.1	1,079		8.8		45.4			3,791			9.6	2,760			7.9		37.4
Capital expenditures		701			765				(8.4	)		1,872				1,763					6.2
(A) Average Mexican Pesos of each year.
Information of Convenience Stores
Total stores												6,994				6,088					14.9
Net new convenience stores		183			237				(22.8	)		906	(2)			851	(2)				6.5
Same store data: (1)
Sales (thousands of pesos)		642.1			624.0				2.9			624.4				620.5					0.6
Traffic		26.4			25.7				2.9			25.1				24.2					3.6
Ticket		24.3			24.3				-			24.9				25.7					(3.1	)

(1) Monthly average information per store, considering same stores with at least 13 months of operations.

(2) For the last twelve months of each year.

 

October 28, 2009

10

FEMSA

Macroeconomic Information

										Exchange Rate
	Inflation									as of September 30, 2009				as of September 30, 2008
				September 08 -			December 08 -
		3Q 2009		September 09			September 09			Per USD		Per Mx. Peso		Per USD		Per Mx. Peso
Mexico		1.01	%		4.89	%		2.30	%		13.50		1.0000		10.79		1.0000
Colombia		-0.11	%		3.20	%		2.10	%		1,922.00		0.0070		2,174.62		0.0050
Venezuela		6.95	%		27.43	%		18.57	%		2.15		6.2810		2.15		5.0195
Brazil		0.47	%		4.45	%		3.23	%		1.78		7.5947		1.91		5.6375
Argentina		2.21	%		6.15	%		4.99	%		3.84		3.5140		3.14		3.4424

 

October 28, 2009

11

	2009 THIRD-QUARTER AND FIRST NINE MONTHS RESULTS
		Third Quarter									YTD
		2009			2008			Δ%			2009		2008		Δ%
	Total Revenues		26,007			19,770			31.5	%		73,358		56,248		30.4	%
	Gross Profit		12,064			9,396			28.4	%		34,230		26,899		27.3	%
	Operating Income		3,959			3,194			24.0	%		10,979		9,248		18.7	%
	Net Controlling Income (1)		2,134			1,252			70.4	%		5,679		4,747		19.6	%
	EBITDA(2)		4,948			4,007			23.5	%		13,826		11,602		19.2	%
	Net Debt (3)		6,733			12,382			-45.6	%
	LTM EBITDA/ Interest Expense, net		10.35			10.12
	LTM EBITDA/ Interest Expense		9.05			7.60
	LTM Earnings per Share		3.54			3.63
	Capitalization(4)		20.5	%		26.5	%
	Expressed in millions of Mexican pesos. (1) Majority Net Income, the name changed according to Mexican Financial Reporting Standards (2) EBITDA = Operating income + Depreciation + Amortization & Other operative Non-cash Charges. See reconciliation table on page 9 except for Earnings per Share (3) Net Debt = Total Debt - Cash (4) Total debt / (long-term debt + stockholders' equity)
	Total revenues reached Ps. 26,007 million in the third quarter of 2009, an increase of 31.5% compared to the third quarter of 2008 driven by double-digit increases in every division.
	Consolidated operating income grew 24.0% to Ps. 3,959 million for the third quarter of 2009, mainly driven by double-digit operating income growth recorded in our Latincentro and Mercosur divisions. Our operating margin was 15.2% in the third quarter of 2009.
	Consolidated net controlling income increased 70.4% to Ps. 2,134 million in the third quarter of 2009, mainly reflecting higher operating income, resulting in earnings per share of Ps. 1.16 in the third quarter of 2009.
	Mexico City (October 27, 2009), Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL, NYSE: KOF) (“Coca-Cola FEMSA” or the “Company”), the largest Coca-Cola bottler in Latin America and the second-largest Coca-Cola bottler in the world in terms of sales volume, announces results for the third quarter of 2009.
	“Our company achieved another quarter of strong top- and bottom-line results, with our revenues up more than 30% and our operating income and EBITDA up 24%. Along with price increases implemented across our territories, our results reflected the strong growth of sparkling beverages in Mexico and the growth of still beverages in all of our divisions. During the quarter, we continued the integration of the Brisa water business in our Colombian operation. We also continued to benefit from our broad offering of beverage categories, which have helped us to reach consumers even under difficult economic conditions. As the economic environment has improved recently, our Company has taken advantage of our solid financial position to continue investing for the long term. This is exemplified by the development and deployment of new go-to-market models that will enable us to maximize our clients' revenue potential. In the process, we have delivered growing results and value for our shareholders while building a total beverage platform that will positively position us to capture growth in the coming years." said Carlos Salazar Lomelin, Chief Executive Officer of the Company.

October 27, 2009 Page 12

CONSOLIDATED RESULTS

Our consolidated total revenues increased 31.5% to Ps. 26,007 million in the third quarter of 2009, compared to the third quarter of 2008, as a result of double-digit revenue increases in all of our divisions. Revenue growth was driven by (i) organic growth, in both pricing and volumes, accounting for more than 55% of incremental revenues, (ii) a positive exchange rate translation effect, resulting from the depreciation of the Mexican peso against our operation’s local currencies(1), contributing more than 40% of incremental revenues, and (iii) the consolidation of Brisa in Colombia providing less than 5%. On a currency neutral basis and excluding the acquisition of Brisa, our consolidated total revenues would have increased approximately 17%.

Total sales volume increased 7.5% to reach 615.6 million unit cases in the third quarter of 2009 as compared to the same period in 2008 driven by (i) increases in sparkling beverages in our Mexico division, accounting for approximately 40% of incremental volumes, (ii) still beverages sales volume, mainly driven by the Jugos del Valle line of business in our Mexico and Latincentro divisions, accounting for more than 30% of incremental sales volume, and (iii) our bottled water business, driven by the acquisition of Brisa in Colombia, representing the balance. Excluding Brisa, total sales volume increased 5.3%.

Our gross profit increased 28.4% to Ps. 12,064 million in the third quarter of 2009, compared to the third quarter of 2008. Cost of goods sold increased 34.4% driven by (i) the devaluation of the local currencies in our main operations as applied to our U.S. dollar-denominated raw material cost, (ii) higher year-over-year sweetener costs and (iii) the third and final stage of the scheduled Coca-Cola Company increase in concentrate prices in Mexico; which were partially offset by lower resin costs. Gross margin reached 46.4% in the third quarter of 2009 as compared to 47.5% in the same period in 2008.

Our consolidated operating income increased 24.0% to Ps. 3,959 million in the third quarter of 2009, mainly driven by double-digit operating income growth in our Latincentro and Mercosur divisions. Our operating margin was 15.2% in the third quarter of 2009, a decrease of 100 basis points compared to the same period in 2008 mainly as a result of gross margin pressures.

During the third quarter of 2009, we recorded Ps. 341 million in other expenses. These expenses mainly reflected the loss on sale of certain fixed assets and the recording of employee profit sharing in the other expenses line, in accordance with Mexican Financial Reporting Standards.

Our comprehensive financing result in the third quarter of 2009 recorded an expense of Ps. 378 million as compared to an expense of Ps. 514 million in the same period of 2008, mainly due to a lower foreign exchange loss driven by a lower U.S. dollar-denominated net debt position.

During the third quarter of 2009, income tax, as a percentage of income before taxes, was 30.9% compared to 38.3% in the same period of 2008. This difference was mainly driven by additional tax provisions recorded during the third quarter 2008.

Our consolidated net controlling income(2) increased by 70.4% to Ps. 2,134 million in the third quarter of 2009 as compared to the third quarter of 2008, mainly as a result of higher operating income. Earnings per share (EPS) were Ps. 1.16 (Ps. 11.56 per ADR) computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).

(1) See tables on page 25 related to quarterly and YTD foreign exchange rate movements.

(2) Previously referred to as Majority Net Income, the name changed according to Mexican Financial Reporting Standards.

 

October 27, 2009 Page 13

 

BALANCE SHEET

As of September 30, 2009, we had a cash balance of Ps. 8,946 million, including US$ 174 million denominated in U.S. dollars, an increase of Ps. 2,754 million compared to December 31, 2008, as a result of cash generated by our operations and financing during the first nine months of the year.

Total short-term debt was Ps. 5,151 million and long-term debt was Ps. 10,528 million. Total debt decreased Ps. 2,895 million compared with year-end 2008 mainly due to the maturity of the outstanding balance of the Yankee Bond inherited through the acquisition of Panamco in the amount of US$ 265 million and the maturity of a Certificado Bursátil in the amount of Ps. 500 million in July, 2009. In addition, we prepaid debt denominated in Colombian pesos equivalent to US$ 117 million. All of these maturities were paid with cash generated from our operations. Net debt decreased Ps. 5,649 million compared to year-end 2008, mainly as a result of cash generated during the first nine months of the year. KOF’s total debt balance includes U.S. dollar-denominated debt in the amount of US$ 376 million. (1)

The weighted average cost of debt for the quarter was 6.5%. The following charts set forth the Company’s debt profile by currency and interest rate type and by maturity date as of September 30, 2009:

Currency	% Total Debt(1)			% Interest Rate Floating(1)(2)
Mexican pesos		55.1	%		46.1	%
U.S. dollars		31.6	%		43.0	%
Colombian pesos		4.3	%		100.0	%
Venezuelan bolivars		1.1	%		0.0	%
Argentine pesos		7.9	%		15.7	%

(1)   After giving effect to cross-currency swaps and interest rate swaps.

(2)   Calculated by weighting each year’s outstanding debt balance mix.

Debt Maturity Profile

Maturity Date	2009			2010			2011			2012			2013			2014	+
% of Total Debt		4.2	%		28.6	%		0.0	%		25.2	%		15.1	%	26.9	%

Consolidated Cash Flow
Expressed in millions of Mexican pesos as of September 30, 2009
	Sep-09
	Ps.
Income before taxes		8,544
Non cash charges to net income		4,614
		13,158
Change in working capital		(124	)
Resources Generated by Operating Activities		13,034
Investments		(3,941	)
Debt payments		(2,953	)
Other		(3,160	)
Increase in cash and cash equivalents		2,980
Cash and cash equivalents at begining of period		6,192
Translation Effect		(226	)
Cash and cash equivalents at end of period		8,946

The difference between the debt decrease of the balance sheet and the debt decrease in nominal terms presented in the cash flow is related to the foreign exchange impact, presented separately as a part of the translation effect, in accordance with the Mexican Financial Reporting Standards.

October 27, 2009 Page 14

MEXICO DIVISION OPERATING RESULTS

Revenues

Total revenues from our Mexico division increased 12.3% to Ps. 9,581 million in the third quarter of 2009, as compared to the same period in 2008. Increased sales volume accounted for close to 75% of incremental revenues during the quarter. Average price per unit case reached Ps. 29.74, an increase of 2.6%, as compared to the third quarter of 2008, reflecting higher volumes from the Coca-Cola brand, which carries higher average price per unit case. Excluding bulk water under the Ciel brand, our average price per unit case was Ps. 34.65, a 1.7% increase as compared to the same period in 2008.

Total sales volume increased 9.6% to 321.4 million unit cases in the third quarter of 2009, as compared to the third quarter of 2008, mainly driven by (i) an 8% volume growth in sparkling beverages supported by incremental volumes from the Coca-Cola brand in multi-serve and single-serve presentations that compensated for a low single-digit decline in flavored sparkling beverages, (ii) incremental volumes in the still beverage category, growing more than 80%, due to the Jugos del Valle product line and (iii) a 5% volume growth in our bottled water business.

Operating Income

Our gross profit increased 6.6% to Ps. 4,707 million in the third quarter of 2009 as compared to the same period in 2008. Cost of goods sold increased 18.3% as a result of the devaluation of the Mexican peso as applied to our U.S. dollar-denominated raw material costs and the third and final stage of the scheduled Coca-Cola Company concentrate price increase announced in 2006, which were partially offset by lower year-over-year resin costs. Gross margin decreased from 51.7% in the third quarter of 2008 to 49.1% in the same period of 2009.

Operating income remained flat at Ps. 1,699 million in the third quarter of 2009, compared to Ps. 1,696 million in the same period of 2008. Our operating margin was 17.7% in the third quarter of 2009, a decrease of 220 basis points as compared to the same period of 2008, mainly due to gross margin pressures.

October 27, 2009 Page 15

 

LATINCENTRO DIVISION OPERATING RESULTS (Colombia, Venezuela, Guatemala, Nicaragua, Costa Rica and Panama)

As of June 1, 2009, Coca-Cola FEMSA started to distribute the Brisa portfolio in Colombia.

Revenues

Total revenues reached Ps. 9,844 million in the third quarter of 2009, an increase of 70.7% as compared to the same period of 2008. Higher average price per unit case and volume growth accounted for approximately 50% of incremental revenues. A positive currency translation effect, resulting from the depreciation of the Mexican peso against our operation’s local currencies(1), represented approximately 45% of incremental revenues and the integration of Brisa contributed the balance. On a currency neutral basis and excluding the acquisition of Brisa, our Latincentro division’s revenues would have increased approximately 35%.

Total sales volume in our Latincentro division increased 10.3% to 151.8 million unit cases in the third quarter of 2009 as compared to the same period of 2008. Volume growth was mainly driven by (i) the consolidation of the Brisa water brand in Colombia, (ii) the strong performance of the Jugos del Valle line of business in Colombia and Central America and (iii) increases in sparkling beverages in Central America and Colombia.

Operating Income

Gross profit reached Ps. 4,471 million, an increase of 72.0% in the third quarter of 2009, as compared to the same period of 2008. Cost of goods sold increased 69.5% mainly driven by higher year-over-year sweetener costs across the division, which were partially compensated by lower resin costs. Gross margin increased 30 basis points to 45.4% in the third quarter of 2009.

Our operating income increased 73.2% to Ps. 1,301 million in the third quarter of 2009, compared to the third quarter of 2008, as a result of operating leverage achieved by higher revenues that more than compensated for higher labor costs in Venezuela, and increased marketing expenses in the division, as a result of the integration of the Brisa portfolio in Colombia and the continued expansion of the Jugos del Valle line of business in Colombia and Central America. Our operating margin reached 13.2% in the third quarter of 2009, resulting in a 20 basis points increase as compared to the same period of 2008.

(1) See tables on page 25 related to quarterly and YTD foreign exchange rate movements.

October 27, 2009 Page 16

MERCOSUR DIVISION OPERATING RESULTS (Brazil and Argentina)

Volume and average price per unit case exclude beer results.

Revenues

Total revenues increased 20.4% to Ps. 6,582 million in the third quarter of 2009, as compared to the same period of 2008. Excluding beer, which accounted for Ps. 642 million during the quarter, revenues increased 20.3% to Ps. 5,940 million, compared to the same period of 2008. A positive translation effect, resulting from the depreciation of the Mexican peso against our operation’s local currencies(1), represented almost 65% of incremental revenues and higher average prices per unit case and volume growth accounted for the balance. On a currency neutral basis, our Mercosur division’s revenues would have increased more than 7%.

Sales volume, excluding beer, increased 0.6% to 142.4 million unit cases in the third quarter of 2009, as compared to the third quarter of 2008, driven by the still beverage portfolio in Argentina and Brazil.

Operating Income

In the third quarter of 2009, our gross profit increased 21.1% to Ps. 2,886 million, as compared to the same period in 2008. Cost of goods sold increased 19.8% driven by higher cost of sweetener in Brazil and the devaluation of local currencies as applied to our U.S. dollar-denominated raw material costs, which were partially offset by lower resin costs. Gross margin in the Mercosur division increased 20 basis points to 43.8% in the third quarter of 2009.

Operating income increased 28.4%, reaching Ps. 959 million in the third quarter of 2009, as compared to Ps. 747 million in the same period of 2008. Operating leverage achieved by higher revenues more than compensated for higher labor and freight costs in Argentina. Our operating margin was 14.6% in the third quarter of 2009, an increase of 90 basis points as compared to the third quarter of 2008.

(1) See tables on page 25 related to quarterly and YTD foreign exchange rate movements.

October 27, 2009 Page 17

SUMMARY OF NINE-MONTH RESULTS

Our consolidated total revenues increased 30.4% to Ps. 73,358 million in the first nine months of 2009, as compared to the same period of 2008, as a result of revenue growth in all of our divisions. Organic growth across our operations contributed approximately 55% of incremental revenues; a positive exchange rate translation effect, resulting from the depreciation of the Mexican peso against our operation’s local currencies(1), accounted for more than 30%; and the acquisitions of Refrigerantes Minas Gerais, Ltda. (REMIL)(2) in Brazil and Brisa(3) in Colombia together contributed less than 15%, representing the balance. On a currency neutral basis and excluding the acquisitions of REMIL(2) and Brisa(3), our consolidated revenues for the first nine months would have increased approximately 17%.

Total sales volume increased 8.1% to 1,776.8 million unit cases in the first nine months of 2009, as compared to the same period in 2008. Excluding the acquisitions of REMIL(2) and Brisa(3), total sales volume increased 4.6% to reach 1,718.5 million unit cases. The still beverage category, mainly driven by the performance of the Jugos del Valle line of business across our territories, contributed close to 60% of incremental volumes; the sparkling beverage category, driven by the Coca-Cola brand, contributed more than 25% of volume growth and water, including bulk water, represented the balance.

Our gross profit increased 27.3% to Ps. 34,230 million in the first nine months of 2009, as compared to the same period of 2008, driven by gross profit growth across all of our divisions. Cost of goods sold increased 33.3% as a result of (i) the devaluation of local currencies in our main operations as applied to our U.S. dollar-denominated raw material costs, (ii) the higher cost of sweetener across our operations, (iii) the integration of REMIL and (iv) the third and final stage of the scheduled Coca-Cola Company concentrate price increase announced in 2006 in Mexico; all of which were partially offset by lower resin costs. Gross margin reached 46.7% for the first nine months of 2009, a decrease of 110 basis points as compared to the same period of 2008.

Our consolidated operating income increased 18.7% to Ps. 10,979 million in the first nine months of 2009, as compared to 2008. Our Mercosur and Latincentro divisions accounted for more than 95% of this growth. Our operating margin was 15.0% for the first nine months of 2009, a 140 basis points decline as compared to the same period of 2008.

Our consolidated net controlling income(4) was Ps. 5,679 million in the first nine months of 2009, an increase of 19.6% compared to the same period in 2008, mainly reflecting higher operating income. EPS was Ps. 3.08 (Ps. 30.76 per ADR) in the first nine months of 2009, computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).

(1) See tables on page 25 related to quarterly and YTD foreign exchange rate movements.

(2) REMIL was included in our operating results beginning June 1, 2008. REMIL was accounted for as an acquisition during the months of January through May of 2009.

(3)Since June 1, 2009 we integrate the results of Brisa in our Colombia, Latincentro division and consolidated results.

(4) Previously referred to as Majority Net Income, the name changed according to Mexican Financial Reporting Standards.

October 27, 2009 Page 18

CONFERENCE CALL INFORMATION

Our third-quarter 2009 Conference Call will be held on: October 27, 2009, at 12:00 P.M. Eastern Time (10:00 A.M. Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: 866-700-7477 or International: 617-213-8840. We invite investors to listen to the live audiocast of the conference call on the Company’s website: www.coca-colafemsa.com.

If you are unable to participate live, an instant replay of the conference call will be available through November 3, 2009. To listen to the replay, please dial: Domestic U.S.: 888-286-8010 or International: 617-801-6888. Pass code: 56366733.

v v v

Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola, Sprite, Fanta, Lift and other trademark beverages of The Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City and southeast 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 (federal capital of Buenos Aires and surrounding areas), along with bottled water, beer and other beverages in some of these territories. The Company has 31 bottling facilities in Latin America and serves over 1,500,000 retailers in the region. The Coca-Cola Company owns a 31.6% equity interest in Coca-Cola FEMSA.

v v v

This news release may contain forward-looking statements concerning Coca-Cola FEMSA’s future performance and should be considered as good faith estimates by Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA’s control that could materially impact the Company’s actual performance.

References herein to “US$” are to United States dollars. This news release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations should not be construed as representations that Mexican peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated.

v v v

(6 pages of tables to follow)

October 27, 2009 Page 19

Consolidated Income Statement
Expressed in millions of Mexican pesos(1)
	3Q 09		% Rev			3Q 08		% Rev			Δ%			YTD 09			% Rev			YTD 08			% Rev			Δ%
Volume (million unit cases) (2)	615.6					572.4						7.5	%		1,776.8						1,643.0						8.1	%
Average price per unit case (2)	41.03					33.42						22.8	%		40.02						33.30						20.2	%
Net revenues	25,901					19,654						31.8	%		72,964						55,940						30.4	%
Other operating revenues	106					116						-8.6	%		394						308						27.9	%
Total revenues	26,007			100	%	19,770			100	%		31.5	%		73,358			100	%		56,248			100	%		30.4	%
Cost of Goods Sold	13,943			53.6	%	10,374			52.5	%		34.4	%		39,128			53.3	%		29,349			52.2	%		33.3	%
Gross profit	12,064			46.4	%	9,396			47.5	%		28.4	%		34,230			46.7	%		26,899			47.8	%		27.3	%
Operating expenses	8,105			31.2	%	6,202			31.4	%		30.7	%		23,251			31.7	%		17,651			31.4	%		31.7	%
Operating income	3,959			15.2	%	3,194			16.2	%		24.0	%		10,979			15.0	%		9,248			16.4	%		18.7	%
Other expenses, net	341					562						-39.3	%		1,158						1,267						-8.6	%
Interest expense	455					407						11.8	%		1,496						1,566						-4.5	%
Interest income	70					71						-1.4	%		192						357						-46.2	%
Interest expense, net	385					336						14.6	%		1,304						1,209						7.9	%
Foreign exchange loss (gain)	71					180						-60.6	%		374						(26	)					-1538.5	%
Gain on monetary position in Inflationary subsidiries	(161	)				(232	)					-30.6	%		(374	)					(517	)					-27.7	%
Fair value loss (gain) on derivative financial instruments	83					230						-63.9	%		(27	)					122						-122.1	%
Comprehensive financing result	378					514						-26.5	%		1,277						788						62.1	%
Income before taxes	3,240					2,118						53.0	%		8,544						7,193						18.8	%
Income taxes	1,002					812						23.4	%		2,606						2,293						13.7	%
Consolidated net income	2,238					1,306						71.4	%		5,938						4,900						21.2	%
Net controlling income (3)	2,134			8.2	%	1,252			6.3	%		70.4	%		5,679			7.7	%		4,747			8.4	%		19.6	%
Net non-controlling income	104					54						92.6	%		259						153						69.3	%
Operating income	3,959			15.2	%	3,194			16.2	%		24.0	%		10,979			15.0	%		9,248			16.4	%		18.7	%
Depreciation (4)	672					593						13.3	%		2,113						1,766						19.6	%
Amortization and other operative non-cash charges (5)	317					220						44.1	%		734						588						24.8	%
EBITDA (6)	4,948			19.0	%	4,007			20.3	%		23.5	%		13,826			18.8	%		11,602			20.6	%		19.2	%

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

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

(3) Majority Net Income, the name changed according to Mexican Financial Reporting Standards

(4) Amortization of coolers has been reclassified into the depreciation line for accounting purposes

(5) Includes returnable bottle breakage expense.

(6) EBITDA = Operating Income + depreciation, amortization & other operative non-cash charges.

    As of June 1st, 2008, we integrated the operation of Minas Gerais (REMIL) in the results of Brazil.

    As of June 1st, 2009, we integrated the operation of Brisa in the results of Colombia.

October 27, 2009 Page 20

Consolidated Balance Sheet
Expressed in millions of Mexican pesos.
Assets	Sep 09			Dec 08
Current Assets
Cash and cash equivalents	Ps.	8,946		Ps.	6,192
Total accounts receivable		4,508			5,240
Inventories		5,077			4,313
Prepaid expenses and other		2,388			2,247
Total current assets		20,919			17,992
Property, plant and equipment
Bottles and cases		1,720			1,622
Property, plant and equipment		56,001			50,925
Accumulated depreciation		(27,358	)		(24,388	)
Total property, plant and equipment, net		30,363			28,159
Other Non Current Assets		55,464			51,807
Total Assets	Ps.	106,746		Ps.	97,958
Liabilities and Stockholders' Equity	Sep 09			Dec 08
Current Liabilities
Short-term bank loans and notes	Ps.	5,151		Ps.	6,119
Interest payable		90			267
Suppliers		8,332			7,790
Other current liabilities		8,159			7,157
Total Current Liabilities		21,732			21,333
Long-term bank loans		10,528			12,455
Pension plan and seniority premium		1,069			936
Other liabilities		7,347			5,618
Total Liabilities		40,676			40,342
Stockholders' Equity
Non-controlling interest		2,147			1,703
Controlling interest:
Capital stock		3,116			3,116
Additional paid in capital		13,220			13,220
Retained earnings of prior years		38,189			33,935
Net income for the period		5,679			5,598
Other comprehensive income		3,719			44
Total controlling interest		63,923			55,913
Total stockholders' equity		66,070			57,616
Total Liabilities and Equity	Ps.	106,746		Ps.	97,958

October 27, 2009 Page 21

Mexico Division
Expressed in millions of Mexican pesos(1)
	3Q 09	% Rev			3Q 08	% Rev			Δ%			YTD 09		% Rev			YTD 08		% Rev			Δ%
Volume (million unit cases)	321.4				293.2					9.6	%		923.0					866.1					6.6	%
Average price per unit case	29.74				28.99					2.6	%		29.63					29.16					1.6	%
Net revenues	9,559				8,499					12.5	%		27,353					25,254					8.3	%
Other operating revenues	22				34					-35.3	%		118					96					22.9	%
Total revenues	9,581		100.0	%	8,533		100.0	%		12.3	%		27,471		100.0	%		25,350		100.0	%		8.4	%
Cost of Goods Sold	4,874		50.9	%	4,119		48.3	%		18.3	%		13,799		50.2	%		12,321		48.6	%		12.0	%
Gross profit	4,707		49.1	%	4,414		51.7	%		6.6	%		13,672		49.8	%		13,029		51.4	%		4.9	%
Operating expenses	3,008		31.4	%	2,718		31.9	%		10.7	%		8,740		31.8	%		8,155		32.2	%		7.2	%
Operating income	1,699		17.7	%	1,696		19.9	%		0.2	%		4,932		18.0	%		4,874		19.2	%		1.2	%
Depreciation, amortization & other operative non-cash charges (2)	401		4.2	%	384		4.5	%		4.4	%		1,214		4.4	%		1,226		4.8	%		-1.0	%
EBITDA (3)	2,100		21.9	%	2,080		24.4	%		1.0	%		6,146		22.4	%		6,100		24.1	%		0.8	%

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

(2) Includes returnable bottle breakage expense.

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

Latincentro Division
Expressed in millions of Mexican pesos(1)
	3Q 09	% Rev			3Q 08	% Rev			Δ%			YTD 09		% Rev			YTD 08		% Rev			Δ%
Volume (million unit cases)	151.8				137.6					10.3	%		426.9					397.3					7.4	%
Average price per unit Case	64.81				41.88					54.7	%		63.82					42.70					49.5	%
Net revenues	9,838				5,763					70.7	%		27,244					16,964					60.6	%
Other operating revenues	6				5					20.0	%		12					14					-14.3	%
Total revenues	9,844		100.0	%	5,768		100.0	%		70.7	%		27,256		100.0	%		16,978		100.0	%		60.5	%
Cost of Goods Sold	5,373		54.6	%	3,169		54.9	%		69.5	%		14,702		53.9	%		9,255		54.5	%		58.9	%
Gross profit	4,471		45.4	%	2,599		45.1	%		72.0	%		12,554		46.1	%		7,723		45.5	%		62.6	%
Operating expenses	3,170		32.2	%	1,848		32.0	%		71.5	%		9,123		33.5	%		5,376		31.7	%		69.7	%
Operating income	1,301		13.2	%	751		13.0	%		73.2	%		3,431		12.6	%		2,347		13.8	%		46.2	%
Depreciation, amortization & other operative non-cash charges (2)	340		3.5	%	249		4.3	%		36.5	%		995		3.7	%		663		3.9	%		50.1	%
EBITDA (3)	1,641		16.7	%	1,000		17.3	%		64.1	%		4,426		16.2	%		3,010		17.7	%		47.0	%

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

(2) Includes returnable bottle breakage expense.

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

    Since June 2009, we integrated Brisa in the operations of Colombia.

October 27, 2009 Page 22

Mercosur Division
Expressed in millions of Mexican pesos(1)
Financial figures include beer results
	3Q 09	% Rev			3Q 08	% Rev			Δ%			YTD 09		% Rev			YTD 08		% Rev			Δ%
Volume (million unit cases) (2)	142.4				141.6					0.6	%		426.9					379.6					12.5	%
Average price per unit case (2)	41.16				34.40					19.6	%		38.66					32.89					17.5	%
Net revenues	6,504				5,392					20.6	%		18,367					13,722					33.9	%
Other operating revenues	78				77					1.3	%		264					198					33.3	%
Total revenues	6,582		100.0	%	5,469		100.0	%		20.4	%		18,631		100.0	%		13,920		100.0	%		33.8	%
Cost of Goods Sold	3,696		56.2	%	3,086		56.4	%		19.8	%		10,627		57.0	%		7,773		55.8	%		36.7	%
Gross profit	2,886		43.8	%	2,383		43.6	%		21.1	%		8,004		43.0	%		6,147		44.2	%		30.2	%
Operating expenses	1,927		29.3	%	1,636		29.9	%		17.8	%		5,388		28.9	%		4,120		29.6	%		30.8	%
Operating income	959		14.6	%	747		13.7	%		28.4	%		2,616		14.0	%		2,027		14.6	%		29.1	%
Depreciation, Amortization & Other operative non-cash charges (3)	248		3.8	%	180		3.3	%		37.8	%		638		3.4	%		465		3.3	%		37.2	%
EBITDA (4)	1,207		18.3	%	927		17.0	%		30.2	%		3,254		17.5	%		2,492		17.9	%		30.6	%

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

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

(3) Includes returnable bottle breakage expense.

(4) EBITDA = Operating Income + Depreciation, amortization & other operative non-cash charges.

    Since June 2008, we integrated Minas Gerais (Remil) in the operations of Brazil.

October 27, 2009 Page 23

SELECTED INFORMATION

For the three months ended September 30, 2009 and 2008

Expressed in millions of Mexican pesos.

	3Q 09		3Q 08
Capex	1,541.5	Capex	1,446.8
Depreciation	672.0	Depreciation	593.0
Amortization & Other non-cash charges	317.0	Amortization & Other non-cash charges	220.0

VOLUME

Expressed in million unit cases

	3Q 09										3Q 08
	Sparkling		Water (1)		Bulk Water (2)		Still (3)		Total		Sparkling		Water (1)		Bulk Water (2)		Still (3)		Total
Mexico		237.3		12.5		54.8		16.8		321.4		220.0		14.1		50.1		9.0		293.2
Central America		29.3		1.4		0.1		3.2		34.0		28.1		1.4		0.0		2.4		31.9
Colombia		43.3		7.1		7.1		4.6		62.1		42.5		2.7		2.2		1.9		49.3
Venezuela		50.7		2.3		0.7		2.0		55.7		51.5		3.4		0.0		1.5		56.4
Latincentro		123.3		10.8		7.9		9.8		151.8		122.1		7.5		2.2		5.8		137.6
Brazil		91.4		4.3		0.5		3.5		99.7		91.7		5.0		0.0		2.7		99.4
Argentina		39.6		0.4		0.2		2.5		42.7		40.3		0.6		0.0		1.3		42.2
Mercosur		131.0		4.7		0.7		6.0		142.4		132.0		5.6		0.0		4.0		141.6
Total		491.6		28.0		63.4		32.6		615.6		474.1		27.2		52.3		18.8		572.4

(1) Excludes water presentations larger than 5.0 Lt

(2) Bulk Water  = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations

(3) Still Beverages include flavored water

· Third quarter 2009 volume of Colombia, Latincentro division, and consolidated includes three months of Brisa’s operation, accounting for 11 million unit cases.

SELECTED INFORMATION

For the nine months ended September 30, 2009 and 2008

Expressed in millions of Mexican pesos.

	YTD 09			YTD 08
Capex		3,321.1	Capex		2,640.4
Depreciation		2,113.0	Depreciation		1,766.0
Amortization & Other non-cash charges		734.0	Amortization & Other non-cash charges		588.0

VOLUME

Expressed in million unit cases

	YTD 09										YTD 08
	Sparkling		Water (1)		Bulk Water (2)		Still (3)		Total		Sparkling		Water (1)		Bulk Water (2)		Still (3)		Total
Mexico		670.5		39.8		164.8		47.9		923.0		653.9		43.2		147.2		21.9		866.1
Central America		86.1		4.4		0.2		8.6		99.3		87.5		4.2		0.0		6.8		98.5
Colombia		125.0		13.1		13.1		12.6		163.8		125.2		7.6		7.3		3.2		143.3
Venezuela		150.2		6.4		1.9		5.3		163.8		142.1		8.9		0.0		4.5		155.5
Latincentro		361.3		23.9		15.2		26.5		426.9		354.8		20.7		7.3		14.5		397.3
Brazil		270.6		13.9		1.6		9.7		295.8		229.3		14.7		0.0		5.2		249.2
Argentina		121.7		1.2		0.5		7.7		131.1		124.2		1.7		0.0		4.4		130.4
Mercosur		392.3		15.1		2.1		17.4		426.9		353.5		16.4		0.0		9.6		379.6
Total		1,424.1		78.8		182.1		91.8		1,776.8		1,362.2		80.4		154.5		46.0		1,643.0

(1) Excludes water presentations larger than 5.0 Lt

(2) Bulk Water  = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations

(3) Still Beverages include flavored water

· Year to date 2009 volume of Colombia, Latincentro division, and consolidated includes four months of Brisa’s operation, accounting for 14.1 million unit cases.

· Year to date 2009 volume of Brazil, Mercosur division, and consolidated includes five months of REMIL’s(4) operation in 2009, accounting for 44.2 million unit cases. Sparkling Beverages represent approximately 95% of this volume.

(4) REMIL was included in our operating results beginning June 1, 2008. REMIL was accounted for as an acquisition during the months of January through May of 2009.

October 27, 2009 Page 24

September 2009

Macroeconomic Information

	Inflation (1)
	LTM			3Q 2009		YTD
Mexico		4.89	%	1.01	%		2.30	%
Colombia		3.20	%	-0.11	%		2.10	%
Venezuela		27.43	%	6.95	%		18.57	%
Brazil		4.45	%	0.47	%		3.23	%
Argentina		6.15	%	2.21	%		4.99	%

(1) Source: inflation is published by the Central Bank of each country.

Average Exchange Rates for each Period

	Quarterly Exchange Rate (local currency per USD)						YTD Exchange Rate (local currency per USD)
		3Q 09	3Q 08	Δ%			YTD 09		YTD 08		Δ%
Mexico		13.2628	10.3097		28.6	%		13.6610		10.5162		29.9	%
Guatemala		8.2451	7.4451		10.7	%		8.1027		7.5444		7.4	%
Nicaragua		20.4620	19.4886		5.0	%		20.2550		19.2531		5.2	%
Costa Rica		590.0153	552.0882		6.9	%		578.2441		520.9505		11.0	%
Panama		1.0000	1.0000		0.0	%		1.0000		1.0000		0.0	%
Colombia		2,014.9636	1,898.2374		6.1	%		2,219.0846		1,858.8032		19.4	%
Venezuela		2.1500	2.1500		0.0	%		2.1500		2.1500		0.0	%
Brazil		1.8659	1.6675		11.9	%		2.0840		1.6867		23.6	%
Argentina		3.8304	3.0460		25.8	%		3.7008		3.1064		19.1	%

End of Period Exchange Rates

	Exchange Rate (local currency per USD)
	Sep 09		Sep 08		Δ%
Mexico		13.5042		10.7919		25.1	%
Guatemala		8.3416		7.4718		11.6	%
Nicaragua		20.5858		19.6062		5.0	%
Costa Rica		591.7300		559.2600		5.8	%
Panama		1.0000		1.0000		0.0	%
Colombia		1,922.0000		2,174.6200		-11.6	%
Venezuela		2.1500		2.1500		0.0	%
Brazil		1.7781		1.9143		-7.1	%
Argentina		3.8430		3.1350		22.6	%

October 27, 2009 Page 25