Core Insights - FEMSA reported first-quarter 2025 net majority earnings per ADS of 79 cents, with adjusted net majority earnings per ADS of 45 cents, missing the Zacks Consensus Estimate of 52 cents [1][2] - Total revenues increased to US$9.58 billion, reflecting an 11.1% year-over-year growth in local currency, driven by gains across all business units and favorable currency rates [2] - The company's net consolidated income was Ps. 8,943 million (US$437.1 million), marking a 54.3% increase from the previous year [1] Financial Performance - Gross profit rose 15.8% year over year to Ps. 78,918 million (US$3.86 billion), with a consolidated gross margin expansion of 160 basis points [3] - Operating income improved 4.9% year over year to Ps. 13,565 million (US$663.1 million), while the consolidated operating margin declined 40 basis points to 6.9% [5] Segment Performance - Proximity Americas: Revenues increased 6.8% year over year to Ps. 74,886 million (US$3.7 billion), but same-store sales declined by 1.8% due to a 6.6% drop in store traffic [7][8] - Proximity Europe: Revenues grew 18% year over year to Ps. 12,909 million (US$631 million), but operating income fell 14.6% [9] - Health Division: Revenues rose 21% year over year to Ps. 21,972 million (US$1.07 billion), with same-store sales increasing by 15.4% [10] - Fuel Division: Revenues increased 1.8% year over year to Ps. 15,237 million (US$744.8 million), but operating income declined 13.9% [11] - Coca-Cola FEMSA: Revenues advanced 10% year over year to Ps. 70,157 million (US$3.4 billion), with a 7.4% increase in operating income [12] Financial Position - As of March 31, 2025, FEMSA had cash and cash equivalents of Ps. 109,345 million (US$5.3 billion) and long-term debt of Ps. 131,736 million (US$6.4 billion) [13] - Capital expenditure in Q1 2025 totaled Ps. 8,788 million (US$429.6 million), focusing on production and distribution capacity investments [13]
FEMSA Earnings Fall Short of Estimates in Q1, Segmental Revenues Aid