FEMSA Reports Strong Growth for Fourth Quarter and Year-End

FEMSA Achieves Remarkable Financial Growth

Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) has shared notable financial results for the fourth quarter and the entire year. Their announcement reveals a continuous upward trajectory, showcasing double-digit growth across various financial metrics.

Solid Revenue Growth Across Divisions

FEMSA reported a remarkable 12.8% growth in total consolidated revenues, alongside a significant 31.5% increase in income from operations compared to the same period last year. This performance demonstrates the robust nature of FEMSA's business model and operational efficiency.

Highlights from Retail Operations

In the Retail segment, FEMSA's Proximity Americas division achieved an impressive 13.2% growth in total revenues and an 18.7% increase in income from operations versus the prior quarter. This growth reflects the successful adaptation and optimization of their retail strategies in a competitive market.

Growth in Digital Solutions

FEMSA’s digital portfolio also showed strong momentum, with Spin by OXXO reaching 8.6 million active users, marking a growth of 24.9%. The Spin Premia loyalty program saw 24.6 million active users, showcasing an impressive 27.5% growth.

Coca-Cola FEMSA's Contribution

The beverage sector was bolstered by Coca-Cola FEMSA, reporting a 14.3% increase in total revenues and a 25.0% rise in income from operations. The strategic alignment with Coca-Cola products supports FEMSA's overall growth trajectory.

Operational Insights and Market Challenges

Chief Executive Officer, José Antonio Fernandez Carbajal, expressed optimism about the future despite challenges in consumer environments, particularly within key markets. He attributed the strong performance to the resilience and capability of FEMSA's teams across business units.

Elevated Capital Returns and Investment Strategies

Throughout the year, FEMSA continued to focus on capital allocation while executing its FEMSA Forward initiatives. The company has committed to returning substantial capital through dividends and share repurchases. This strategy aims to maximize balance sheet efficiency as it anticipates ongoing investments in organic growth initiatives.

Planning for Future Leadership

On governance matters, FEMSA's Board of Directors has officially initiated the succession planning process for the CEO role, further demonstrating their commitment to visionary leadership and strategic growth.

About FEMSA

FEMSA is committed to generating economic and social value through diverse business ventures. With operations spanning the retail and beverage sectors, FEMSA is a leader in the industry, driven by a dedicated workforce exceeding 392,000 employees across 18 countries. Their Proximity Americas Division houses OXXO, while Coca-Cola FEMSA is recognized as the largest franchise bottler of Coca-Cola products globally.

Frequently Asked Questions

1. What were FEMSA’s revenue growth figures for Q4 2024?

FEMSA enjoyed a 12.8% growth in total consolidated revenues for the fourth quarter of 2024.

2. How did Coca-Cola FEMSA perform in this quarter?

Coca-Cola FEMSA reported a 14.3% increase in total revenues and a 25.0% rise in income from operations.

3. What is the future direction for FEMSA?

FEMSA is focusing on improving its operational efficiency and will prioritize substantial capital returns through dividends and share repurchases.

4. How many active users does Spin by OXXO have?

Spin by OXXO has reached 8.6 million active users, indicating a notable growth of 24.9%.

5. What strategic initiatives is FEMSA pursuing?

FEMSA is implementing its FEMSA Forward strategies while also entrusting the succession planning for CEO to ensure continuous leadership and innovation.

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