FEMSA Delivers Strong Third Quarter 2024 Results Amid Soft Consumer Environment

FEMSA, a leading Mexican company with operations in the retail and beverage industries, announced its operational and financial results for the third quarter of 2024 on October 28, 2024. Despite a soft consumer environment, particularly in Mexico, FEMSA reported encouraging results across its business units, with revenue growth and margin expansion.

FEMSA's total consolidated revenues grew by 8.3% compared to the third quarter of 2023 (3Q23), while income from operations increased by 14.6%. The company's Proximity Americas division, which operates the OXXO small-format store chain and other related retail formats, saw mixed trends in its same-store sales performance. Average ticket growth offset a contraction in average traffic, reflecting adverse weather conditions in Mexico, a decline in volumes of key beverage categories, and a demanding comparison base. However, stellar gross margin and continued solid store expansion contributed to a good result for the division.

Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume, delivered a notable set of numbers with double-digit growth in revenues and profits. The company's Health division showed sequential improvement, reflecting better trends in certain markets and currency tailwinds, partially offset by the intense competitive environment in Mexico. FEMSA's Digital division made further progress growing its user base, with a focus on containing costs while generating more and better engagement and recurring revenue.

FEMSA's Chief Executive Officer, José Antonio Fernandez Carbajal, commented on the results, "During the third quarter, most of our business units delivered encouraging results, with revenue growth and margin expansion across our income statement even as we continue to see a soft consumer environment in the second half of the year, particularly in our key Mexican market."

FEMSA's cost management strategies contributed to its income from operations in the third quarter of 2024. The company's focus on containing costs while generating more and better engagement and recurring revenue in its Digital division, as well as its solid execution and favorable currency effects in other business units, helped FEMSA maintain its positive momentum.

The key drivers of FEMSA's revenue growth in the third quarter of 2024 include the company's ability to navigate a soft consumer environment, its focus on cost management, and its continued investment in digital initiatives. These growth trends are expected to be sustainable as FEMSA continues to execute on its strategic objectives and adapt to changing market conditions.