FEMSA Q3 Earnings Decline Y/Y, Sales Improve on Segmental Growth

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 third-quarter 2024 net majority earnings per ADS of 84 cents (Ps. 1.65 per FEMSA unit). The company posted adjusted net majority earnings per ADS of $1.37, down from $1.75 in the year-ago quarter.Net consolidated income was Ps. 9,243 million (US$469.4 million), reflecting a decline of 27.5% from the year-ago quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Total revenues were $10 billion (Ps. 196,771 million), which improved 8.3% year over year in the local currency. Revenue growth was driven by gains across all business units and favorable currency rates due to the depreciation of the Mexican Peso against most of its operating currencies.Shares of the Zacks Rank #3 (Hold) company have lost 9.1% in the past three months compared with the industry’s 0.4% decline. A Peek Into FMX’s Q3 Margin DetailsFEMSA’s gross profit rose 12.1% year over year to Ps. 79,368 million (US$4.03 billion). The consolidated gross margin expanded 130 basis points (bps), owing to the gross margin expansion in Health, Proximity Americas and Coca-Cola FEMSA, and steady margins in Fuel and Proximity Europe.The company’s gross margin expanded 300 bps at Proximity Americas, 90 bps at the Health division and 20 bps at the Coca-Cola FEMSA segments. The gross margin was flat year over year in the Fuel and Proximity Europe segments.FEMSA’s operating income (income from operations) improved 14.6% year over year to Ps. 17,374 million (US$882.4 million), driven by growth across all its operating segments. The consolidated operating margin increased 50 bps to 8.8%, driven by margin expansion at the Proximity Americas, Proximity Europe, Coca-Cola FEMSA and Fuel segments. Operating margin growth was partially offset by contraction in the Health division.Fomento Economico Mexicano S.A.B. de C.V. Price, Consensus and EPS SurpriseFomento Economico Mexicano S.A.B. de C.V. price-consensus-eps-surprise-chart | Fomento Economico Mexicano S.A.B. de C.V. QuoteFEMSA’s Q3 Segmental PerformanceProximity Americas: Total revenues for the segment rose 4.8% year over year to Ps. 77,594 million (US$3.9 billion). The company reported flat same-store sales for Proximity Americas, driven by a 6.1% rise in average customer tickets, offset by a 5.7% store traffic decline. The lower store traffic was due to adverse weathe...

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