FEMSA Announces Financial Results for 2022
On Feb. 24, 2023, FEMSA published its operational and financial results from 4Q22 and the full year 2022. The company reported a 28% fall in net profit of US$247 million during 4Q22 due to the appreciation of the peso.
FEMSA’s consolidated revenues grew by 23% in comparison to 4Q21, reaching MX$186.47 billion (US$10.13 billion). The company stressed it had seen revenue growth in all its business units during this period, including health with 8.3%, Coca-Cola with 4.6%, and FEMSA’s proximity division, which comprises retail stores like OXXO and service stations, with 17.1%.
Daniel Rodríguez, Chief Executive Officer, FEMSA, highlighted the continued strength of OXXO in Mexico during 2022, as the company continued its store increase strategy. “FEMSA will continue to open 800 to 1,000 OXXO stores a year in Mexico,” he said. Meanwhile, Monex analysts pointed out that it will be important to measure the proximity division's progress in 2023 considering the high inflationary environment.
On an international level, the proximity division continued to grow at a steady pace in most markets. Following the consolidation of Valora’s convenience stores in Europe in October 2022, FEMSA announced the division’s financial results for the first time.
Moreover, FEMSA Health delivered stable results while facing a challenging macroeconomic environment, particularly in Chile. Elsewhere OXXO Gas had another strong quarter on the back of increased volume recovery and strong operating leverage.
Rodríguez mentioned that Coca-Cola FEMSA will see a rise in spending. Additionally, company executives revealed that US$100 million will go to the health division and around US$120 million to smaller businesses. "For FEMSA, it will be important to consider volumes in the context of raw material price increases in 2023," Monex analysts said.
On Feb. 15, 2023, FEMSA announced that it would divest its shares in the Dutch beer company Heineken in order to focus on its retail division.