In This Article:
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Total Revenue Growth: 8.3% increase in the third quarter.
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Operating Income Growth: 14.6% increase compared to the same period last year.
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Net Consolidated Income: Decreased 27.5% to MXN9.2 billion.
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Gross Margin: Expanded by 300 basis points to 44.2%.
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Operating Margin: Expanded by 10 basis points to 9% of sales.
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Same-Store Sales Growth (Health Division): 7.4% increase.
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OXXO Store Expansion: Added 367 net new stores in the third quarter.
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OXXO Gas Same Station Sales Growth: 7.6% increase.
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Digital Active Users (Spin by OXXO): Reached 8.2 million, a 28% year-on-year growth.
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Spin Premia Loyalty Program Users: 23.8 million active users, a 35% year-on-year increase.
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Coca-Cola FEMSA Revenue Growth: 10.7% increase in top line.
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Capital Expenditure (CapEx): MXN12.1 billion, representing 6.2% of total revenues.
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Share Buybacks: Repurchased 102.2 million shares, increasing earnings per share by 2.8% to MXN6.14 year to date.
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Net Debt to EBITDA Ratio: Stood at 0.68 times at the end of the quarter.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fomento Economico Mexicano SAB de CV (NYSE:FMX) reported a solid set of results in the Proximity and Health division, with growth and margin expansion in key areas.
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The company achieved total revenue growth of 8.3% and a 14.6% increase in operating income compared to the same period last year.
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OXXO Mexico continues to show structural momentum with a high ROI-WACC spread, and plans for 2025 include adding approximately 1,100 net new stores.
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The digital division saw a 28% year-on-year growth in active users for Spin by OXXO, indicating strong customer adoption trends.
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Coca-Cola FEMSA reported a 10.7% increase in top line revenue, reflecting a solid revenue management strategy and operational efficiencies.
Negative Points
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Same-store sales at Proximity America were flat for the quarter, with a 5.7% contraction in average traffic due to adverse weather conditions and a demanding comparison base.
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Net consolidated income decreased by 27.5% to MXN9.2 billion, driven by higher interest expenses and a lower non-cash foreign exchange gain.
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The Health division in Mexico is facing intense competition, requiring strategic adjustments to navigate ongoing challenges.
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The company decided to suspend the Pronto initiatives due to high costs and a long path to profitability.
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Traffic at OXXO stores has been negative for two consecutive quarters, raising concerns about operating leverage and consumer demand.