Fomento Economico Mexicano S.A.B. de C.V.
FMX · NYSE
Dec 2026
Next quarter
Expected to report Feb 24, 2027 — estimated from last year’s reporting date.
Consensus is $1.93 EPS for Dec 2026 across 1 estimates, ranging $1.93 to $1.93.
FMX Sep 2026
- 6.78%
- $1.18
- $1.10
- —
- —
Highlights
- Consolidated growth: Third-quarter revenue rose 9.8% year over year to Ps. 235.6 billion and operating income increased 9.9% to Ps. 19.9 billion; on a comparable basis, operating income grew 13.4%.
- EPS miss: Reported EPS was US$1.10 per ADS versus consensus of US$1.18, a 6.78% shortfall.
- OXXO Mexico recovery: Revenue advanced 10.3% and same-store sales rose 9.2%, driven by a 3.5% increase in traffic and 5.5% higher average ticket; operating income grew 5.8%.
- Coca-Cola FEMSA strength: Revenue grew 10.9%, volume 5.3% and operating income 15.4%; operating margin expanded 60 basis points to 14.9%, including Ps. 1.055 billion of net insurance-claim income in Brazil.
- Net income comparability: Consolidated net income climbed 81.0% to Ps. 10.6 billion, aided by the absence of the prior-year Ps. 3.146 billion discontinued-operations loss and a Ps. 2.382 billion favorable year-over-year swing in foreign exchange.
- Americas & Mobility pressure: Revenue grew 18.1%, including OXXO Brazil consolidation, but operating income fell 75.9% to Ps. 170 million as Brazil losses and weak Mexican fuel margins weighed; comparable operating income declined 29.9%.
- Health and Europe weakness: Health operating income fell 63.2% to Ps. 319 million, including a Ps. 430 million credit-risk provision; Europe operating income declined 24.8% to Ps. 531 million.
- Leverage and investment: Ex-Coca-Cola FEMSA net debt was Ps. 95.2 billion, or 1.19x adjusted LTM EBITDA versus 0.91x a year earlier; quarterly capex fell 28.3% to Ps. 9.4 billion.
Analysis
FEMSA delivered broad top-line growth in 3Q26, but the result was uneven beneath revenue and missed the supplied EPS consensus: reported EPS of US$1.10 per ADS was 6.78% below US$1.18. Revenue increased 9.8% year over year to Ps. 235.6 billion, while operating income rose 9.9% to Ps. 19.9 billion, or 13.4% on a comparable basis. Against 2Q26, the prior-quarter call reported revenue growth of 9.3% and operating-income growth of 7.2%; 3Q reported growth rates were higher, although these are year-over-year comparisons rather than sequential changes. OXXO Mexico’s same-store sales growth eased slightly from 9.5% in 2Q to 9.2%, while reported traffic growth improved from 2% to 3.5% in 3Q.
The main supports were OXXO Mexico’s improving customer traffic and Coca-Cola FEMSA’s strong volume, revenue and operating-income growth. Meanwhile, margins and earnings quality were mixed: OXXO Mexico’s operating margin contracted 40 basis points, and Americas & Mobility, Europe and Health all recorded operating-income declines. Consolidated net income rose 81.0% to Ps. 10.6 billion, but the comparison benefited materially from the absence of a large prior-year discontinued-operations loss and a favorable foreign-exchange swing. Management also flagged a soft Mexican consumer backdrop and tougher comparisons ahead.
Consolidated performance
- Revenue and profit: Revenue rose 9.8% to Ps. 235.6 billion and gross profit grew 9.7% to Ps. 94.1 billion; gross margin held at 39.9%. Comparable revenue growth was 9.4% and comparable gross-profit growth was 9.8%.
- Operating performance: Operating income increased 9.9% to Ps. 19.9 billion, with margin up 10 basis points to 8.5%; comparable operating-income growth was faster at 13.4%. Adjusted EBITDA rose 12.9% to Ps. 34.8 billion and margin expanded 40 basis points to 14.8%.
- Earnings drivers: Net consolidated income rose to Ps. 10.6 billion from Ps. 5.8 billion. The year-ago figure included a Ps. 3.146 billion discontinued-operations loss from Solistica, while this quarter included a Ps. 1.121 billion non-cash FX gain versus a Ps. 1.261 billion loss a year earlier. Higher net interest expense, income taxes and other financial expenses partly offset those benefits.
- Nine-month context: For the first nine months, revenue increased 8.7%, operating income 7.9% and adjusted EBITDA 12.6%. Net income rose 84.0%, but excluding the first-quarter ImperialBrady gain, it increased 12.1% to Ps. 25.5 billion.
OXXO Mexico
- Sales and traffic: Revenue advanced 10.3% to Ps. 86.7 billion, supported by 9.2% same-store sales growth: traffic increased 3.5% and average ticket 5.5%. The prior-quarter call reported 9.5% same-store growth and 2% traffic growth, with management attributing a substantial share of that quarter’s traffic uplift to the World Cup.
- Store base: OXXO added 51 net stores during 3Q, reaching 24,759 in Mexico. The company added 702 net stores over the last 12 months, including portfolio optimization: 191 openings and 140 closures during the quarter.
- Margin trade-off: Gross profit grew 7.4%, below revenue growth, and gross margin contracted 120 basis points to 44.8%. Management cited an unusually high concentration of commercial income in the year-ago quarter, as well as price and assortment actions intended to improve value and traffic.
- Operating result: Operating income increased 5.8% to Ps. 8.0 billion, but margin declined 40 basis points to 9.3%. Higher labor and variable compensation and costs to close underperforming stores weighed, while operating expenses grew 7.9%, below revenue growth.
Coca-Cola FEMSA
- Volume and revenue: Volume rose 5.3% to 1,089.8 million unit cases and revenue increased 10.9% to Ps. 79.7 billion; comparable revenue growth was 11.3%. Volume increased across all operating regions.
- Margin and operating income: Gross profit grew 14.5% and gross margin expanded 140 basis points to 46.5%, supported by lower sweetener and PET costs and hedging. Operating income increased 15.4% to Ps. 11.9 billion, with margin up 60 basis points to 14.9%.
- Regional mix and one-offs: South America operating income rose 51.2%, including Ps. 1.055 billion of net insurance-claim income in Brazil; Mexico and Central America operating income fell 3.1% as higher marketing, freight, depreciation and maintenance costs pressured the result.
- Below operating income: Majority net income rose a more modest 5.5% to Ps. 6.2 billion. Higher tax and a larger financing expense—Ps. 2.0 billion versus Ps. 1.3 billion a year earlier—absorbed part of the operating gain.
Americas & Mobility
- Revenue growth and comparability: Revenue rose 18.1% to Ps. 29.5 billion, including the consolidation of OXXO Brazil from February. Comparable growth was 10.9%; merchandise sales increased 66.0% reported, while fuel and other sales rose 8.4%.
- Store sales: Same-store sales rose 13.8% in pesos and 15.8% on a comparable basis. Comparable currency-neutral growth varied by market: 5.1% in Brazil, 21.2% in Latin America and 1.5% in the U.S.
- Profit pressure: Operating income fell 75.9% to Ps. 170 million and margin contracted 220 basis points to 0.6%; comparable operating income declined 29.9%. The release cites operating losses from OXXO Brazil, fuel-margin pressure in Mexico and higher expenses to build regional capabilities.
- Growth platform: Bara revenue increased 44.1%, same-store sales rose 10.3% and its store base grew 56.7% year over year to 898 locations, including 112 net additions in the quarter. Bara is reported outside Americas & Mobility.
Europe and Health
- Europe: Reported revenue declined 5.2% to Ps. 14.1 billion, though it grew 4.0% on a currency-neutral comparable basis. Operating income fell 24.8% to Ps. 531 million and operating margin contracted 100 basis points to 3.8%. Lower B2B contribution and softer German performance weighed; a reclassification of distribution expenses also reduced reported gross margin.
- Health: Revenue increased 7.0% to Ps. 23.0 billion, but gross profit fell 7.4% and operating income dropped 63.2% to Ps. 319 million. The operating result included a Ps. 430 million non-cash credit-risk provision tied to the winding down of Colombia’s institutional business.
- Underlying pressures: Health’s gross margin contracted 410 basis points to 26.0%, partly because of distribution-expense reclassification, as well as mix and margin pressures. Europe’s reported gross margin was down 250 basis points, with the company attributing most of the adjusted contraction to lower food and tobacco margins.
Capital and liquidity
- Leverage: Ex-Coca-Cola FEMSA net debt was Ps. 95.2 billion at quarter-end, with net debt to adjusted LTM EBITDA of 1.19x, up from 0.91x a year earlier. FEMSA attributed the increase mainly to cash outflows under its capital-allocation strategy.
- Spending: Capex was Ps. 9.4 billion, 4.0% of revenue and 28.3% lower year over year, mainly due to lower spending at Coca-Cola FEMSA, OXXO Mexico, Europe and Health.
- Funding and shareholder returns: FEMSA issued CHF 300 million of five-year senior unsecured bonds, settled October 14, at a 1.73% yield. It also announced an accelerated share repurchase of up to US$280 million, with final settlement expected before year-end.
