2018 Annual Report
For the years ended December 31, 2018, 2017 and 2016
(In thousands of Mexican pesos)
| 2018 | 2017 | 2016 | ||||
|---|---|---|---|---|---|---|
| Cash flows from operating activities: | ||||||
| Consolidated net income for the year | $ | 3,738,055 | $ | 4,161,981 | $ | 4,733,987 |
| Adjustments not requiring (providing) cash: | ||||||
| Income tax recognized in net income | 1,346,296 | 1,227,272 | 2,034,667 | |||
| Depreciation and amortization | 1,289,725 | 1,258,361 | 1,116,873 | |||
| Impairment of property | (23,175) | 31,349 | - | |||
| (Gain) loss on sale of property, machinery and equipment | 112,151 | 17,431 | (2,368) | |||
| Provisions | 3,557 | 23,416 | 42,629 | |||
| Gain arising on changes in fair value of investment properties | (91,652) | (115,955) | (121,718) | |||
| Gain on stock purchase | - | - | (1,141,267) | |||
| Interest expense | 158,103 | 143,794 | 128,748 | |||
| Equity in income of associates | (187,088) | (173,293) | (89,992) | |||
| Interest income | (4,064,516) | (3,804,754) | (3,430,773) | |||
| 2,281,456 | 2,769,602 | 3,270,786 | ||||
| Items related to operating activities: | ||||||
| (Increase) decrease in: | ||||||
| Accounts receivable | 165,949 | (966,841) | (1,516,340) | |||
| Interest received from operating activities | 3,759,751 | 3,577,472 | 3,140,534 | |||
| Inventories | (1,553,140) | (350,099) | (1,249,618) | |||
| Prepaid expenses | 76,527 | (13,786) | (17,618) | |||
| Other assets | (63,331) | (50,738) | (81,919) | |||
| Long-term accounts receivable | 10,143 | 17,336 | ||||
| Net assets projected for future employee retirement benefits | 143,121 | (116,357) | 9,644 | |||
| (Decrease) increase in: | ||||||
| Trade accounts payable | 1,609,533 | 338,912 | 1,111,390 | |||
| Other accounts payable and accrued liabilities | (809,731) | 471,573 | 236,365 | |||
| Due to related parties | 305,095 | (20,097) | 223,526 | |||
| Direct employee benefits | 5,498 | 38,570 | 21,632 | |||
| Income taxes paid | (1,607,138) | (1,492,407) | (1,671,225) | |||
| Net cash flows provided by operating activities | 4,313,590 | 4,195,947 | 3,494,493 | |||
| Cash flows from investing activities: | ||||||
| Purchase of property, machinery and equipment | (1,418,350) | (1,583,697) | (2,904,643) | |||
| Sales of property, machinery and equipment | 27,501 | 173,830 | 6,447 | |||
| Acquisition of shares | - | - | (1,945,602) | |||
| Business acquisition | - | - | 403,008 | |||
| Interest received | 80,289 | 35,411 | 99,460 | |||
| Net cash flows used in investing activities | (1,310,560) | (1,374,456) | (4,341,330) | |||
| Cash flows from financing activities: | ||||||
| Repurchase of shares | (300,967) | (424,062) | (235,891) | |||
| Interest paid | (9,934) | (12,166) | (10,188) | |||
| Dividends paid to controlling interest and non-controlling interest | (2,136,772) | (2,161,070) | (2,106,825) | |||
| Net cash flows used in financing activities | (2,447,673) | (2,597,298) | (2,352,904) | |||
| Effects of exchange rate changes on cash and cash equivalents | (2,300) | (13,948) | 58,524 | |||
| Net decrease in cash and cash equivalents | 553,057 | 210,245 | (3,141,217) | |||
| Cash and cash equivalents at beginning of the year | 1,924,601 | 1,714,356 | 4,855,573 | |||
| Cash and cash equivalents at end of the year | $ | 2,477,658 | $ | 1,924,601 | $ | 1,714,356 |
See accompanying notes to consolidated financial statements.