Background on Fomento Económico Mexicano (Femsa)
Fomento Económico Mexicano, or Femsa, is a diversified conglomerate operating in the consumer and retail sectors. It manages OXXO convenience stores and has a stake in Coca-Cola Femsa. The company’s performance is crucial for understanding the Mexican economy and its impact on various industries.
Q3 2025 Financial Performance
Net Income: Femsa reported a net income of 5,838 million pesos in Q3 2025, marking a 36.8% decrease compared to the same period in 2024.
Reasons for the Decline: The drop in net income was primarily due to the Mexican peso’s strength against the US dollar, increased interest expenses, and reduced financial income due to lower interest rates.
Total Revenue Growth: Despite the decline in net income, Femsa’s total revenue increased by 9% annually to 214,638 million pesos. This growth was driven by all divisions: Proximity America (+9.2%), Proximity Europe (+10.1%), Health (+2.9%), Combustibles (+5%), and Coca-Cola Femsa (+3.3%).
Operational Performance
EBITDA: The company’s EBITDA increased by 4.3%, demonstrating the strength of Femsa’s internationally diversified portfolio, which helped offset weaker consumption trends in Mexico.
OXXO Expansion: Femsa expanded its OXXO store network by 198 outlets during the quarter, bringing Proximity Americas (which includes Mexico, the US, Colombia, Chile, and Peru) to a total of 25,378 establishments by the end of September.
Market Reaction and Future Outlook
Analysts from Ve Por Más (Bx+) noted that Femsa’s results were in line with market expectations, highlighting the positive performance of its business units despite the pressure on net income.
Optimistic Outlook: José Antonio Fernández Carbajal, Femsa’s CEO, expressed optimism about the company’s future performance: “We are optimistic that our results will continue to improve in Q4 and we are preparing for an exciting 2026, which includes the FIFA World Cup and Coca-Cola’s 100th anniversary in Mexico.”
Stock Performance
At the close of trading on Tuesday, Femsa’s shares fell 1% to 174.95 pesos per title, while Coca-Cola Femsa (KOF) dropped 0.68% on the Mexican Stock Exchange.
Key Questions and Answers
- Q: What caused the decline in Femsa’s net income? A: The decrease was primarily due to the Mexican peso’s strength against the US dollar, increased interest expenses, and reduced financial income due to lower interest rates.
- Q: How did Femsa’s total revenue perform in Q3 2025? A: Despite the decline in net income, Femsa’s total revenue increased by 9% annually to 214,638 million pesos.
- Q: Which divisions contributed to Femsa’s revenue growth? A: All divisions, including Proximity America (+9.2%), Proximity Europe (+10.1%), Health (+2.9%), Combustibles (+5%), and Coca-Cola Femsa (+3.3%), contributed to the revenue growth.
- Q: How did Femsa’s EBITDA perform in Q3 2025? A: Femsa’s EBITDA increased by 4.3%, reflecting the strength of its internationally diversified portfolio.
- Q: What is the current status of Femsa’s OXXO store network? A: Femsa expanded its OXXO store network by 198 outlets during Q3 2025, bringing the total to 25,378 establishments in Proximity Americas by the end of September.
- Q: What is Femsa’s outlook for the future? A: Femsa’s CEO, José Antonio Fernández Carbajal, expressed optimism about the company’s future performance and preparation for significant events in 2026, including the FIFA World Cup and Coca-Cola’s 100th anniversary in Mexico.
