Fomento Economico Mexicano SAB de CV

Latest Results (20.08.2024):

Total Revenues

Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) reported a 12.2% increase in total consolidated revenues for the second quarter of 2024 compared to the same period in 2023. This growth was driven by strong performance across most of its business units, despite challenges such as the timing of Holy Week holidays and volatile weather conditions.

Gross Profit

FEMSA's gross profit for 2Q24 increased by 19.1% year-over-year, reaching Ps. 82,440 million. The gross profit margin expanded by 240 basis points to 41.5%, primarily due to margin expansions in Proximity Americas, Proximity Europe, and Coca-Cola FEMSA, while margins in FEMSA’s Health and Fuel operations remained stable.

Income from Operations

Income from operations for FEMSA in the second quarter of 2024 rose by 15.8% compared to 2Q23, totaling Ps. 17,626 million. This increase was mainly driven by growth in most business units, although it was partially offset by a decrease in the Health division. The consolidated operating margin improved by 30 basis points to 8.9% of total sales.

Net Income

FEMSA's net consolidated income for 2Q24 was Ps. 15,669 million, a significant increase of 75.5% from Ps. 8,926 million in 2Q23. This rise was influenced by factors such as a non-cash foreign exchange gain, higher interest income, and a higher interest expense, among others. Net majority income per FEMSA Unit was Ps. 3.52, and US$1.93 per FEMSA ADS.

Proximity Americas Performance

In the Proximity Americas division, total revenues increased by 8.9% in 2Q24 compared to 2Q23, driven by a 4.1% growth in same-store sales. The division saw a 4.7% increase in average customer ticket, although store traffic decreased by 0.6%. The OXXO store base in Mexico and Latin America expanded by 390 units during the quarter, reaching a total of 23,680 stores as of June 30, 2024.