FEMSA Q4 Earnings Decline Y/Y, Positive Business Trends Aid Revenues

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 fourth-quarter 2024 net majority earnings per ADS of 91 cents (Ps. 1.90 per FEMSA unit). The company posted adjusted net majority earnings per ADS of 46 cents, down from $1.70 in the year-ago quarter.Net consolidated income was Ps. 10,961 million (US$525.6 million), reflecting a decline of 78.3% from the year-ago quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Total revenues were US$9.99 billion (Ps. 208,311 million), which improved 12.8% 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 this Zacks Rank #4 (Sell) company have risen 5.3% in the past three months compared with the industry’s 2.5% growth. Peeking Into FMX’s Q4 Margin DetailsFEMSA’s gross profit rose 16.7% year over year to Ps. 90,906 million (US$4.36 billion). The consolidated gross margin expanded 140 basis points (bps), owing to the gross margin expansion in Health, Proximity Americas and Coca-Cola FEMSA, offset by margin declines in Fuel and Proximity Europe.The company’s gross margin expanded 230 bps at Proximity Americas, 200 bps at the Health division and 100 bps at the Coca-Cola FEMSA segments. The gross margin was down 70 bps year over year in the Fuel and 150 bps at the Proximity Europe segment.FEMSA’s operating income (income from operations) improved 31.5% year over year to Ps. 22,634 million (US$1.09 billion). The consolidated operating margin increased 160 bps to 10.9%, driven by growth across the Proximity Americas, Coca-Cola FEMSA and Health segments, partially offset by steady margins in Fuel and contraction in the Proximity Europe 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 Q4 Segmental PerformanceProximity Americas: Total revenues for the segment rose 13.2% year over year to Ps. 80,992 million (US$3.9 billion). On an organic basis, revenues improved 8.1%. The company reported a 3.8% increase in same-store sales for Proximity Americas, driven by a 6.8% rise in average customer tickets, offset by a 2.8% store traffic decline.The Proximit...

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