FEMSA Q4 Earnings Miss, Revenues Top Estimates on Segment Strength

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 2025 adjusted net majority earnings per ADS of 92 cents, up from 46 cents in the year-ago quarter, but missed the Zacks Consensus Estimate of $1.50. The company reported net majority earnings per ADS of $1.36 (Ps. 2.46 per FEMSA unit).Net consolidated income was Ps. 12,709 million (US$705.8 million), reflecting growth of 33.6% from the year-ago quarter.Total revenues were US$12.22 billion (Ps. 220,091 million), rising 5.7% year over year in the local currency and beating the Zacks Consensus Estimate of $12.14 billion. Revenue growth was driven by gains across all its business units. Excluding the currency effects and M&A, comparable revenues grew 5.2% year over year.Shares of this Zacks Rank #3 (Hold) company have rallied 19.7% in the past three months compared with the industry’s 13% growth. Peeking Into FMX’s Q4 Margin DetailsFEMSA’s gross profit rose 0.5% year over year to Ps. 91,422 million (US$5.08 billion). The consolidated gross margin contracted 220 basis points (bps) to 41.5%, driven by gross margin contractions of 60 bps in Coca-Cola FEMSA, 550 bps in Proximity Europe, 1,170 bps in Health, and 20 bps in Fuel. These were partly offset by a gross margin expansion of 40 bps in Proximity Americas. The declines in Proximity Europe and Health were primarily due to the reclassification of distribution expenses from selling expenses to cost of goods sold, and had no impact on income from operations. Comparable gross profit rose 1.3% year over year, while the comparable gross margin contracted 70 bps to 43%.FEMSA’s operating income (income from operations) improved 8.5% year over year to Ps. 24,546 million (US$1.36 billion), driven by growth across all business units, except for the Health division. Comparable operating income increased 9.6% year over year. The consolidated operating margin expanded 30 bps to 11.2%, driven by margin expansion of 30 bps in Proximity Americas, 160 bps in Coca-Cola FEMSA, 40 bps in Proximity Europe and 20 bps in Fuel. This was partly negated by an operating margin contraction of 300 bps 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 Q4 Segmental PerformancePro...

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