FEMSA(US:FMX)2026-02-25 13:03Revenue Growth - FEMSA's total consolidated revenues increased by 5.7% to Ps. 220,091 million in 4Q25 compared to 4Q24, with income from operations rising by 8.5% to Ps. 24,546 million[14]. - Coca-Cola FEMSA's total revenues grew by 2.9% and income from operations increased by 13.3% compared to 4Q24[8]. - Total revenues increased by 5.3% in 4Q25 compared to 4Q24, driven by a 4.4% increase in same-store sales and a 4.6% store expansion[33]. - Total revenues for Bara increased by 31.0% in 4Q25, with same-store sales growth of 11.5%[36]. - OXXO Brazil's total revenues grew by 28.7% year-over-year, with same-store sales growth of 18.3%[37]. - Total revenues for Proximity Europe increased by 2.5% in 4Q25, with a 2.3% growth excluding currency effects[41]. - Total revenues for FEMSA Health increased by 4.6% in 4Q25, with same-store sales growth of 4.7%[46]. - Total revenues for OXXO Gas increased by 3.6% in 4Q25, driven by an 8.7% increase in same-station sales[52]. - Total revenues for Proximity Americas in Q4 2025 reached Ps. 85,257 million, a 5.3% increase from Q4 2024[106]. - Total revenues for Q4 2025 reached Ps. 220,091 million, a 5.7% increase compared to Q4 2024, while total revenues for the twelve months of 2025 were Ps. 840,954 million, up 7.6% from 2024[94]. Profitability - The gross profit margin for FEMSA decreased by 220 basis points to 41.5%, with a gross profit increase of only 0.5%[20]. - Gross profit margin reached 48.1%, reflecting a 40-basis point expansion due to improvements in Latam and US operations[34]. - Gross profit rose to Ps. 341,576 million, reflecting a 6.2% increase, with a gross profit margin of 40.6%, down 50 basis points from the previous year[75]. - Gross profit for Q4 2025 was Ps. 91,422 million, representing 41.5% of total revenues, with a slight increase of 0.5% compared to Q4 2024[94]. - Gross profit for Proximity Americas was Ps. 40,979 million in Q4 2025, reflecting a 6.1% year-over-year growth[106]. - Gross profit for Q4 2025 was Ps. 36,321 million, reflecting a 1.8% increase year-over-year and a 4.6% increase on a currency-neutral basis[139]. Net Income - Net consolidated income for 4Q25 was Ps. 12,709 million, a 33.6% increase from Ps. 9,510 million in 4Q24[23]. - Consolidated net income decreased by 17.9% to Ps. 33,053 million, primarily due to a non-cash foreign exchange loss of Ps. 5,747 million[77]. - Consolidated net income for Q4 2025 was 7,890 million pesos, a 5.2% increase from 7,499 million pesos in Q4 2024[200]. Capital Expenditures - Capital expenditures amounted to Ps. 14,200 million, a decrease of 31.4% compared to 4Q24, indicating a disciplined approach to growth[26]. - Capital expenditures amounted to Ps. 45,315 million, a decrease of 11.3% compared to 2024, indicating a strategic rebalancing in CAPEX spending[78]. - CAPEX for Proximity Americas decreased by 23.6% to Ps. 2,981 million in Q4 2025[106]. - CAPEX for Q4 2025 was Ps. 670 million, a decrease of 10.1% compared to Ps. 746 million in Q4 2024[111]. Debt and Financial Ratios - The net debt to EBITDA ratio (ex-KOF) as of December 31, 2025, was 1.02x, up from 0.45x in 4Q24, reflecting significant cash outflows for dividends and share repurchases[25]. - The effective income tax rate for 4Q25 was 38.5%, with a tax provision of Ps. 7,004 million, down 26.6% from 4Q24[22]. - The effective income tax rate for 2025 was 37.3%, significantly higher than the statutory rate of 30% due to non-deductible tax losses and labor-related expenses[76]. - The company’s long-term debt decreased by 10.2% to Ps. 126,992 million in 2025, compared to Ps. 141,482 million in 2024[97]. User Growth and Digital Initiatives - Spin by OXXO achieved 10.5 million active users, representing a 22.0% growth year-over-year, while Spin Premia had 28.1 million active loyalty users, a 13.8% increase[7]. - Spin by OXXO acquired 0.8 million users in 4Q25, reaching a total of 16.1 million users, a 22.7% increase year-over-year[68]. - Spin Premia acquired 2.2 million users in 4Q25, totaling 63.1 million users, a 19.3% increase year-over-year[69]. - The company announced a strategic focus on Ecosystem 2.0, centering on OXXO Mexico, with Spin responsible for the entire P&L and digital performance[83]. Market and Strategic Outlook - The company is optimistic about its growth agenda for 2026, despite a stabilizing consumer environment and new taxes in Mexico[13]. - The company plans to leverage revenue-growth-management initiatives and digital capabilities to accelerate growth in South America in 2026[129]. - The company completed the separation of the Grupo Nós joint venture in Brazil, retaining OXXO stores and a distribution center while reallocating assets with Raízen[88]. Sustainability and Corporate Governance - Coca-Cola FEMSA achieved a record score of 81 in the S&P Global Corporate Sustainability Assessment, marking a significant improvement in ESG ratings[135].