The Mexican brewer, Fomento Economico Mexicano (Femsa), reported net profit for the fourth quarter of MXN725m (US$69.7m), down 39% on the corresponding quarter the year before and below analysts’ forecasts.

The depreciation of the Mexican peso contributed to the drop in profits. “Non-operating charges that affected the results are mainly a foreign exchange loss of MXN41m compared to a foreign exchange gain of MXN219m in the fourth quarter of 2001,” the company said.

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Operating income rose by 10.3% to MXN2.443 billion, but was still lower than expectations. Analysts forecasts had been for operating income in the region of MXN2.635 billion. Fourth-quarter revenues rose by 6.7% to MXN13.615 billion, driven by growth at Femsa’s retail division and Coca-Cola Femsa, the company’s partly owned soft drinks subsidiary.

Growth in beer export volumes slowed to 3% in the fourth quarter. “Demand for beer in the United States slowed down slightly during the quarter, mainly due to consumption anomalies linked to the geopolitical climate and adverse weather in certain regions,” the company said. Femsa’s prime beer brands are Tecate, Sol and Dos Equis.

Femsa also announced that Coca-Cola Femsa, in which it owns a 51% stake, was in the advanced stages of completing its acquisition of the Latin American soft drinks group, PanAmerican Beverages (Panamco). “We are now in the process of completing Coca-Cola Femsa’s acquisition of Panamco,” said Femsa’s chairman and CEO, Jose Antonio Fernandez, “The integration phase is already in progress and we should be in a position to quickly begin implementing the new strategic business plan upon closing.”

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