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

Core Insights - FEMSA reported third-quarter 2024 net majority earnings per ADS of 84 cents, with adjusted net majority earnings per ADS at $1.37, down from$1.75 in the same quarter last year [1][2] - Total revenues reached $10 billion, reflecting an 8.3$469.4 million), marking a decline of 27.5% from the previous year [1] Financial Performance - Gross profit increased by 12.1% year over year to Ps. 79,368 million (US$4.03 billion), with a consolidated gross margin expansion of 130 basis points [4] - Operating income improved 14.6$882.4 million), with a consolidated operating margin increase of 50 basis points to 8.8% [6] Segment Performance - Proximity Americas: Revenues rose 4.8% year over year to Ps. 77,594 million (US$3.9 billion), with flat same-store sales due to a decline in store traffic [7][8] - **Proximity Europe**: Revenues grew 20.4$684.6 million), with operating income increasing by 57.2% [9] - Health Division: Reported revenues of Ps. 20,883 million (US$1.06 billion), up 12.5$867.2 million), with operating income rising 17% [11] - Coca-Cola FEMSA: Revenues advanced 10.7% year over year to Ps. 69,601 million (US$3.5 billion), with operating margin expanding by 30 basis points [12] Financial Position - As of September 30, 2024, FEMSA had cash and cash equivalents of Ps. 155,770 million (US$7.9 billion) and long-term debt of Ps. 137,794 million (US$7 billion) [13] - Capital expenditures in Q3 2024 totaled Ps. 12,138 million (US$616.4 million), focusing on investments in Coca-Cola FEMSA and Proximity Americas [13]