MEXICAN ECONOMIC DEVELOPMENT INC | CIK:0001061736 | 3

  • Filed: 4/24/2018
  • Entity registrant name: MEXICAN ECONOMIC DEVELOPMENT INC (CIK: 0001061736)
  • Generator: Donnelley Financial Solutions
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  • ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory

    Note 26. Information by Segment

    The analytical information by segment is presented considering the Company’s business units (as defined in Note 1) based on its products and services, which is consistent with the internal reporting presented to the Chief Operating Decision Maker. A segment is a component of the Company that engages in business activities from which it earns revenues, and incurs the related costs and expenses, including revenues, costs and expenses that relate to transactions with any of Company’s other components. All segments’ operating results are reviewed regularly by the Chief Operating Decision Maker, which makes decisions about the resources that would be allocated to the segment and to assess its performance, and for which financial information is available.

    Inter-segment transfers or transactions are entered into and presented under accounting policies of each segment, which are the same to those applied by the Company. Intercompany operations are eliminated and presented within the consolidation adjustment column included in the tables below.

     

    a) By Business Unit:

     

    2017

      Coca-Cola
    FEMSA
        FEMSA
    Comercio-Retail
    Division
        FEMSA
    Comercio-
    Health
    Division
        FEMSA
    Comercio-
    Fuel Division
        Heineken
    Investment
        Other (1)     Consolidation
    Adjustments
        Consolidated  

    Total revenues

      Ps.  203,780     Ps.  154,204     Ps.  47,421     Ps.  38,388     Ps.  —       Ps.  35,357     Ps.  (18,694)     Ps.  460,456  

    Intercompany revenue

        4,678       198       —         —         —         13,818       (18,694)       —    

    Gross profit

        91,685       58,245       14,213       2,767       —         7,186       (3,828)       170,268  

    Administrative expenses

        —         —         —         —         —         —         —         16,512  

    Selling expenses

        —         —         —         —         —         —         —         111,456  

    Other income

        —         —         —         —         —         —         —         34,741  

    Other expenses

        —         —         —         —         —         —         —         33,959  

    Interest expense

        8,810       1,317       685       156       —         2,359       (2,203)       11,124  

    Interest income

        887       298       23       47       23       2,491       (2,203)       1,566  

    Other net finance expenses (3)

        —         —         —         —         —         —         —         6,342  

    Income before income taxes and share of the profit of associates and joint ventures accounted for using the equity method

        (7,162     11,518       956       146       30,000       4,472       (64     39,866  

    Income taxes

        4,554       734       434       23       (5,132     9,970       —         10,583  

    Share of the profit of associates and joint ventures accounted for using the equity method, net of taxes

        60       5       —         —         7,847       11       —         7,923  
     

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Consolidated net income

        —         —         —         —         —         —         —         37,206  
     

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Depreciation and amortization (2)

        11,657       4,403       942       118       —         545       —         17,665  

    Non-cash items other than depreciation and amortization

        1,714       296       31       18       —         255       —         2,314  
     

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Investments in associates and joint ventures

        11,500       642       —         —         83,720       235       —         96,097  

    Total assets

        285,677       68,820       38,496       4,678       76,555       150,816       (36,501)       588,541  

    Total liabilities

        144,968       49,696       25,885       4,091       1,343       62,147       (36,501)       251,629  

    Investments in fixed assets (4)

        14,612       8,563       774       291       —         1,311       (371)       25,180  

     

    (1) Includes other companies (see Note 1) and corporate.
    (2) Includes bottle breakage.
    (3) Includes foreign exchange loss, net; loss on monetary position for subsidiaries in hyperinflationary economies; and market value gain on financial instruments.
    (4) Includes acquisitions and disposals of property, plant and equipment, intangible assets and other long-lived assets.

     

    2016

      Coca-Cola
    FEMSA
        FEMSA
    Comercio-Retail
    Division
        FEMSA
    Comercio-
    Health Division
        FEMSA
    Comercio-
    Fuel Division
        Heineken
    Investment
        Other (1)     Consolidation
    Adjustments
        Consolidated  

    Total revenues

      Ps.  177,718     Ps.  137,139     Ps.  43,411     Ps.  28,616     Ps.  —       Ps.  29,491     Ps.  (16,868)     Ps.  399,507  

    Intercompany revenue

        4,269       —         —         —         —         12,599       (16,868)       —    

    Gross profit

        79,662       50,990       12,738       2,248       —         6,114       (3,548)       148,204  

    Administrative expenses

        —         —         —         —         —         —         —         14,730  

    Selling expenses

        —         —         —         —         —         —         —         95,547  

    Other income

        —         —         —         —         —         —         —         1,157  

    Other expenses

        —         —         —         —         —         —         —         5,909  

    Interest expense

        7,473       809       654       109       —         1,580       (979)       9,646  

    Interest income

        715       246       31       37       20       1,229       (979)       1,299  

    Other net finance expenses (3)

        —         —         —         —         —         —         —         3,728  

    Income before income taxes and share of the profit of associates and joint ventures accounted for using the equity method

        14,308       11,046       914       182       9       2,218       (121)       28,556  

    Income taxes

        3,928       719       371       16       3       2,851       —         7,888  

    Share of the profit of associates and joint ventures accounted for using the equity method, net of taxes

        147       15       —         —         6,342       3       —         6,507  
     

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Consolidated net income

        —         —         —         —         —         —         —         27,175  
     

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Depreciation and amortization (2)

        8,666       3,736       855       92       —         360       —         13,709  

    Non-cash items other than depreciation and amortization

        2,908       288       8       17       —         630       —         3,851  

    Investments in associates and joint ventures

        22,357       611       —         —         105,229       404       —         128,601  

    Total assets

        279,256       59,740       35,862       3,649       108,976       90,429       (32,289)       545,623  

    Total liabilities

        150,023       42,211       24,368       3,132       7,132       64,876       (32,289)       259,453  

    Investments in fixed assets (4)

        12,391       7,632       474       299       —         1,671       (312)       22,155  

     

    (1) Includes other companies (see Note 1) and corporate.
    (2) Includes bottle breakage.
    (3) Includes foreign exchange loss, net; loss on monetary position for subsidiaries in hyperinflationary economies; and market value gain on financial instruments.
    (4) Includes acquisitions and disposals of property, plant and equipment, intangible assets and other long-lived assets.

     

    2015

      Coca-Cola
    FEMSA
        FEMSA
    Comercio-Retail
    Division
        FEMSA
    Comercio-
    Health Division
        FEMSA
    Comercio-
    Fuel Division
        Heineken
    Investment
        Other (1)     Consolidation
    Adjustments
        Consolidated  

    Total revenues

      Ps. 152,360     Ps. 119,884     Ps.  13,053     Ps.  18,510     Ps.  —       Ps.  22,774     Ps.  (14,992)     Ps. 311,589  

    Intercompany revenue

        3,794       46       —         —         —         11,152       (14,992)       —    

    Gross profit

        72,030       43,649       3,688       1,420       —         5,334       (2,942)       123,179  

    Administrative expenses

        —         —         —         —         —         —         —         11,705  

    Selling expenses

        —         —         —         —         —         —         —         76,375  

    Other income

        —         —         —         —         —         —         —         423  

    Other expenses

        —         —         —         —         —         —         —         (2,741

    Interest expense

        (6,337     (612     (148     (78     —         (1,269     667       (7,777

    Interest income

        414       149       8       35       18       1,067       (667     1,024  

    Other net finance expenses (3)

        —         —         —         —         —         —         —         (865

    Income before income taxes and share of the profit of associates and joint ventures accounted for using the equity method

        14,725       9,714       416       164       8       208       (72     25,163  

    Income taxes

        4,551       859       97       28       2       2,395       —         7,932  

    Share of the profit of associates and joint ventures accounted for using the equity method, net of taxes

        155       (10     —         —         5,879       21       —         6,045  
     

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Consolidated net income

        —         —         —         —         —         —         —         23,276  
     

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Depreciation and amortization (2)

        7,144       3,132       204       63       —         282       —         10,825  

    Non-cash items other than depreciation and amortization

        1,443       296       (16     17       —         326       —         2,066  
     

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Investments in associates and joint ventures

        17,873       744       —         19       92,694       401       —         111,731  

    Total assets

        210,249       44,677       22,534       3,230       95,502       49,213       (16,073     409,332  

    Total liabilities

        101,514       30,661       14,122       2,752       4,202       30,298       (16,073     167,476  

    Investments in fixed assets (4)

        11,484       5,731       317       228       —         1,448       (323     18,885  

     

    (1) Includes other companies (see Note 1) and corporate.
    (2) Includes bottle breakage.
    (3) Includes foreign exchange loss, net; loss on monetary position for subsidiaries in hyperinflationary economies; and market value gain on financial instruments.
    (4) Includes acquisitions and disposals of property, plant and equipment, intangible assets and other long-lived assets.

     

    b) By Geographic Area:

    The Company aggregates geographic areas into the following for the purposes of its consolidated financial statements: (i) Mexico and Central America division (comprising the following countries: Mexico, Guatemala, Nicaragua, Costa Rica and Panama) and (ii) the South America division (comprising the following countries: Brazil, Argentina, Colombia, Chile and Venezuela). Venezuela operates in an economy with exchange controls and hyper-inflation; and as a result, it is not aggregated into the South America area, (iii) Europe (comprised of the Company’s equity method investment in Heineken Group) and (iv) the Asian division comprised of Philippines commencing on February 1, 2017, started to consolidated in the Company financial statements. The Company’s results for 2017 reflect a reduction in the share of the profit of associates and joint ventures accounted for using the equity method, net of taxes, as a result of this consolidation (see Note 4.1.2).

    Geographic disclosure for the Company is as follow:

     

    2017

       Total
    Revenues
         Total
    Non Current
    Assets
     

    Mexico and Central America (1)

       Ps.  301,463      Ps.  176,174  

    Asia (2)

         20,524        17,233  

    South America (3)

         135,608        130,225  

    Venezuela

         3,932        1  

    Europe

         —          83,720  

    Consolidation adjustments

         (1,071      —    
      

     

     

        

     

     

     

    Consolidated

       Ps.  460,456      Ps.  407,353  
      

     

     

        

     

     

     

     

    2016

       Total
    Revenues
         Total
    Non Current
    Assets
     

    Mexico and Central America (1)

       Ps.  267,732      Ps.  176,613  

    South America (3)

         113,937        138,549  

    Venezuela

         18,937        7,281  

    Europe

         —          105,229  

    Consolidation adjustments

         (1,099      —    
      

     

     

        

     

     

     

    Consolidated

       Ps.  399,507      Ps.  427,672  
      

     

     

        

     

     

     

    2015

       Total
    Revenues
         Total
    Non Current
    Assets
     

    Mexico and Central America (1)

       Ps.  228,563      Ps.  158,506  

    South America (2)

         74,928        67,568  

    Venezuela

         8,904        3,841  

    Europe

         —          92,694  

    Consolidation adjustments

         (806      —    
      

     

     

        

     

     

     

    Consolidated

       Ps.  311,589      Ps.  322,609  
      

     

     

        

     

     

     

     

    (1) Central America includes Guatemala, Nicaragua, Costa Rica and Panama. Domestic (Mexico only) revenues were Ps. 288,783, Ps. 254,643 and Ps. 218,809 during the years ended December 31, 2017, 2016 and 2015, respectively. Domestic (Mexico only) non-current assets were Ps. 170,547 and Ps. 168,976, as of December 31, 2017, and December 31, 2016, respectively.
    (2) South America includes Brazil, Argentina, Colombia, Chile and Venezuela, although Venezuela is shown separately above. South America revenues include Brazilian revenues of Ps. 64,345, Ps. 48,924 and Ps. 39,749 during the years ended December 31, 2017, 2016 and 2015, respectively. Brazilian non-current assets were Ps. 89,137 and Ps. 97,127, as of December 31, 2017 and December 31, 2016, respectively. South America revenues include Colombia revenues of Ps. 17,545, Ps. 17,027 and Ps. 14,283 during the years ended December 31, 2017, 2016 and 2015, respectively. Colombia non-current assets were Ps. 18,396 and Ps. 18,835, as of December 31, 2017 and December 31, 2016, respectively. South America revenues include Argentina revenues of Ps. 13,938, Ps. 12,340 and Ps. 14,004 during the years ended December 31, 2017, 2016 and 2015, respectively. Argentina non-current assets were Ps. 3,052 and Ps. 3,159, as of December 31, 2017 and December 31, 2016, respectively. South America revenues include Chile revenues of Ps. 40,660 and Ps. 36,631 during the year ended December 31, 2017 and 2016, respectively. Chile non-current assets were Ps. 19,590 and Ps. 19,367, as of December 31, 2017 and 2016, respectively.