FEMSA Q1 Earnings Beat as OXXO Mexico & Americas & Mobility Aid

About this update from Fomento Economico Mexicano Sab De Cv Units Cons. Of 5 Shsb

Fomento Economico Mexicano S.A.B. de C.V. FMX, alias FEMSA, reported first-quarter 2026 adjusted net majority earnings per ADS of 92 cents, topping the Zacks Consensus Estimate of 65 cents by 41.5% and up from 45 cents in the year-ago quarter. The company reported net majority earnings per ADS of $2.41 (Ps. 4.34 per FEMSA unit).Net consolidated income was Ps. 17,639 million (US$978.2 million), reflecting growth of 97.3% from the year-ago quarter.Total revenues were US$11.82 billion (Ps. 207,784 million), rising 6.1% year over year in the local currency and edging past the Zacks Consensus Estimate of $11.76 billion by 0.5%. Results were supported by continued traction in the ecosystem around OXXO, including Spin Premia, which ended the quarter with 65.1 million total acquired users. Excluding the currency effects and M&A, comparable revenues grew 8.5% year over year.Shares of this Zacks Rank #1 (Strong Buy) company have rallied 12.6% in the past three months compared with the industry’s 0.9% growth. Peeking Into FMX’s Q1 Margin DetailsFEMSA’s gross profit rose 6.6% year over year to Ps. 84,094 million (US$4.66 billion). The consolidated gross margin expanded 20 basis points (bps) to 40.5%, driven by the gross margin expansion of 140 bps in OXXO Mexico, 170 bps in Americas & Mobility, and 150 bps in Coca-Cola FEMSA, offset by a contraction of 60 bps in Europe and 320 bps in Health. Comparable gross profit rose 9.1% year over year, while the comparable gross margin expanded 60 bps to 39.9%.FEMSA’s operating income (income from operations) improved 5.5% year over year to Ps. 14,314 million (US$793.8 million), reflecting a balance of strength across proximity formats and pressure in selected businesses. Comparable operating income increased 12.1% year over year. The consolidated operating margin was flat year over year at 6.9%, driven by margin expansion of 80 bps in OXXO Mexico, 20 bps in Americas & Mobility, and 20 bps in Europe. This was partly negated by the operating margin contraction of 50 bps in the Health division and 50 bps in Coca-Cola FEMSA.Adjusted EBITDA increased 11.2% to Ps. 28,127 million ($1.56 billion). Below the line, FEMSA’s effective tax rate was 17.1%, influenced by a one-time, non-cash gain tied to the BradyPLUS and Imperial Dade merger that lifted reported profitability.Fomento Economico Mexicano S.A.B. de C.V. Price, Consensus and EPS...

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