FEMSA Posts 9.1% 3Q25 Revenue on Retail, Beverages, Intl Growth

Fomento Económico Mexicano (FEMSA) reported 9.1% growth in consolidated revenues in 3Q25 compared with the same period last year, supported by strong performance across its business units and favorable exchange rate effects. Income from operations increased 4.3%.

The company said the improvement reflected steady growth in its retail and beverage segments, as well as contributions from international operations, which helped offset softer consumption trends in Mexico.

FEMSA’s Retail division, including OXXO convenience stores, reported 9.2% revenue growth and a 7.1% increase in operating income. Its digital financial platform, Spin by OXXO, reached 9.9 million active users, up 20.5% year over year, while Spin Premia loyalty users totaled 27.7 million, up 16.4%. The average payment tender at OXXO Mexico rose to 48.2% from 38.5% a year earlier.

Coca-Cola FEMSA, the company’s beverage arm, recorded 3.3% revenue growth and a 6.8% rise in operating income.

CEO José Antonio Fernández Carbajal noted a “modest sequential improvement in Mexico” and highlighted the impact of tactical initiatives at OXXO and Coca-Cola FEMSA in supporting results. He added that diversification across South America and Europe helped balance regional trends. Fernández Carbajal, who will step down later this year, also noted preparations for 2026, which will mark Coca-Cola’s 100th anniversary in Mexico and the FIFA World Cup, partly hosted in the country.

After accounting for currency and merger effects, consolidated revenues grew 4.9%. Gross profit increased 8.0%, while the operating margin contracted 40 basis points to 8.4% due to margin pressure in the Health and Fuel divisions and consolidation of FEMSA’s US proximity business.

The company reported a 29.3% effective tax rate for the quarter and net consolidated income of MX$5.8 billion (US$312 million), down from MX$9.2 billion a year earlier, reflecting foreign exchange losses and higher interest expenses.

FEMSA’s net debt-to-EBITDA ratio rose to 0.91x, driven by dividend payments and share repurchases. Capital expenditures totaled MX$13.1 billion, or 6.1% of total sales, primarily for expanding Coca-Cola FEMSA’s production and distribution capacity.

For the first nine months of 2025, total revenues increased 8.4%, gross profit rose 8.6%, operating income grew 3%, and the effective tax rate was 36.7%.

During the quarter, FEMSA announced the merger of its minority-owned BradyPLUS with Imperial Dade in the US, expected to expand the combined company’s geographic footprint. FEMSA will hold a 19% stake in the merged entity.

The company also reached an agreement with Brazil’s Raízen to dissolve their Grupo Nós joint venture, which operated OXXO and Shell Select stores. FEMSA will retain all OXXO stores in Brazil and the Cajamar distribution center, while Raízen will keep the Shell Select brand.

In September, FEMSA’s board appointed José Antonio Fernández Garza-Lagüera, CEO, FEMSA Proximity & Health, as the company’s next chief executive officer, effective Nov. 1.