FEMSA Posts 11.1% Revenue Growth, 4.9% Income Rise in 1Q25

FEMSA reported an 11.1% year-over-year increase in consolidated revenue for the first quarter of 2025, along with a 4.9% rise in operating income, according to quarterly results released Friday.

The company highlighted the resilience of its diversified business portfolio despite challenging market conditions in several regions, particularly in Mexico. Gross profit for the quarter grew 15.8%.

Coca-Cola FEMSA, the beverage division, posted a 10% increase in total revenue and a 7.4% rise in operating income, driven by robust volume growth and favorable currency conditions in South America.

The Proximity Americas segment, including OXXO convenience stores, recorded a 6.8% revenue increase. However, operating income fell 11.8% due to lower store traffic and higher labor costs, with same-store sales declining 1.8%.

FEMSA’s Health division achieved the strongest growth, with a 27.4% rise in operating income fueled by a 21% increase in revenue and a 23.5% gross profit improvement. The Fuel segment reported modest revenue growth of 1.8% but saw operating income drop 13.9%.

In the Proximity Europe segment, revenue increased 18%, while operating income declined 14.6%. Comparable figures showed more moderate trends, with consolidated revenue up 5.6% and operating income rising 1.7%.

FEMSA’s digital financial platform, Spin by OXXO, reached 8.9 million active users, marking a 20.9% year-over-year growth. Its loyalty program, Spin Premia, recorded 25.2 million active users, up 15.9%. The average transaction share rose to 42.5%, compared to 35.1% in the same period last year.

José Antonio Fernández Carbajal, CEO, FEMSA, acknowledged a slower start to the year, citing a weak consumer environment and a tough comparison base, particularly for OXXO Mexico. He noted that the company has implemented cost-control measures and revenue-boosting initiatives to tackle these challenges.

Fernández Carbajal expressed optimism for the remainder of the year, citing improving visibility despite global macroeconomic uncertainty. He anticipates a recovery in the second half of 2025, particularly in 3Q25.