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FEMSA Q4 Earnings Decline Y/Y, Positive Business Trends Aid Revenues
FMXFEMSA(FMX) ZACKS·2025-02-28 19:16

Core Insights - FEMSA reported a significant decline in net majority earnings per ADS for Q4 2024, with earnings at 91 cents compared to 1.70inthepreviousyear,reflectingadropinadjustednetmajorityearningsto46cents[1][2]−Totalrevenuesforthecompanyincreasedby12.81.70 in the previous year, reflecting a drop in adjusted net majority earnings to 46 cents [1][2] - Total revenues for the company increased by 12.8% year over year to 9.99 billion, driven by growth across all business units and favorable currency rates due to the depreciation of the Mexican Peso [2][3] Financial Performance - FEMSA's gross profit rose 16.7% year over year to Ps. 90,906 million (4.36billion),withaconsolidatedgrossmarginexpansionof140basispoints[3][4]−Operatingincomeimprovedby31.54.36 billion), with a consolidated gross margin expansion of 140 basis points [3][4] - Operating income improved by 31.5% year over year to Ps. 22,634 million (1.09 billion), with the consolidated operating margin increasing by 160 basis points to 10.9% [5] Segment Performance - Proximity Americas segment revenues increased by 13.2% year over year to Ps. 80,992 million (3.9billion),withsame−storesalesupby3.83.9 billion), with same-store sales up by 3.8% [7][8] - Proximity Europe saw a revenue growth of 21.5% year over year to Ps. 13,870 million (665 million), although the operating margin contracted by 50 basis points to 4.7% [9] - The Health Division reported revenues of Ps. 21,824 million (1.05billion),up13.31.05 billion), up 13.3% year over year, with a significant operating income increase of 109.7% [10] - Fuel Division revenues rose by 8% year over year to Ps. 16,331 million (783 million), with average same-station sales increasing by 9.7% [11] - Coca-Cola FEMSA's revenues advanced 14.3% year over year to Ps. 75,528 million (3.6billion),witha253.6 billion), with a 25% increase in consolidated operating income [12] Financial Position - As of December 31, 2024, FEMSA had cash and cash equivalents of Ps. 139,834 million (6.7 billion) and long-term debt of Ps. 139,151 million (6.7billion)[13]−CapitalexpenditureforQ42024totaledPs.20,694million(6.7 billion) [13] - Capital expenditure for Q4 2024 totaled Ps. 20,694 million (992.2 million), focusing on production and distribution capacity enhancements [13]