Welcome to our dedicated page for Fomento Mexicano news (Ticker: FMX), a resource for investors and traders seeking the latest updates and insights on Fomento Mexicano stock.
Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) is a renowned Mexican multinational conglomerate headquartered in Monterrey, Mexico. FEMSA stands out in the beverage and retail sectors across Central and South America, operating the world's largest independent Coca-Cola bottling group and Mexico's largest convenience store chain.
FEMSA is structured into several divisions:
- Retail Division: This includes OXXO, the leading convenience store chain in Mexico with expanding operations under Proximity Americas and Proximity Europe divisions. The European division includes Valora, which operates convenience and foodvenience formats.
- Health Division: FEMSA operates drugstores and related activities through this division, alongside Digital@FEMSA, which encompasses digital financial services such as Spin by OXXO and Spin Premia.
- Beverage Division: Coca-Cola FEMSA, the largest bottler of Coca-Cola products globally by volume, forms a significant part of FEMSA's operations.
- Strategic Business Unit: This division handles logistics, distribution, point-of-sale refrigeration, and plastic solutions, serving both FEMSA's units and third-party clients.
In 2023, FEMSA divested its 15% stake in Heineken and its distribution business, focusing on its core sectors. Coca-Cola FEMSA and the OXXO chain collectively constituted 75% of FEMSA's total revenue and approximately 90% of its profits in 2023.
FEMSA's latest significant financial move includes a comprehensive Tender Offer to purchase outstanding US$552.83 million worth of 4.375% Senior Notes due 2043, with settlement concluded on November 9, 2023. This is part of FEMSA's strategic initiatives announced in February 2023, aimed at optimizing its business platform.
With over 350,000 employees across 18 countries, FEMSA is committed to creating economic and social value. The company is also recognized for its sustainability practices, featuring in indexes such as the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index, and the S&P/BMV Total Mexico ESG Index.
FEMSA continues to focus on growth through strategic investments and partnerships, strengthening its position as a key player in the beverage and retail industries.
FEMSA (NYSE: FMX) reported strong Q4 and full-year 2024 results, with total consolidated revenues growing 12.8% and income from operations increasing 31.5% compared to Q4 2023.
Key highlights include:
- Proximity Americas revenues up 13.2% with operating income growth of 18.7%
- Coca-Cola FEMSA revenues increased 14.3% with operating income up 25.0%
- Spin by OXXO reached 8.6 million active users (24.9% growth)
- Spin Premia achieved 24.6 million active loyalty users (27.5% growth)
The company demonstrated margin expansion across major divisions including Proximity Americas, Coca-Cola FEMSA, Proximity Europe, and Fuel. FEMSA implemented record capital returns through dividends and share repurchases in 2024, with plans to accelerate this in 2025-2026. The company has initiated a CEO succession process while noting challenging consumer conditions in key markets, particularly Mexico.
FEMSA (NYSE: FMX) has announced its upcoming Fourth Quarter and Full Year 2024 financial results conference call, scheduled for Thursday, February 27, 2025, at 10:00 AM Eastern Time (9:00 AM Mexico City Time). The quarterly results will be released before markets open on the same day.
The company will host a conference call accessible via toll-free number for US participants and an international dial-in option. A live webcast of the call will be available through streaming audio, and a replay will be accessible on FEMSA's investor relations website.
FEMSA (NYSE: FMX) has successfully completed the divestiture of its plastics solutions operations to AMMI, an affiliate of Milenio Capital, for 3,165 million pesos on a cash-free, debt-free basis. The transaction, which was previously announced on October 28, 2024, has now been finalized. AMMI is a diversified that specializes in non-GMO corn production and sustainable plastic packaging.
Mill Point Capital has completed its acquisition of AeriTek Global from FEMSA (NYSE: FMX) through a corporate carve-out transaction. The deal involves FEMSA's commercial refrigeration and foodservice equipment businesses, operating as Imbera and Torrey. This transaction establishes AeriTek as an independent manufacturer, designer, and distributor of commercial refrigeration and foodservice equipment products. Mill Point Capital, based in New York City, has demonstrated expertise in complex transactions, having completed 17 corporate divestitures.
FEMSA (NYSE: FMX) has successfully completed the previously announced divestiture of its refrigeration and foodservice equipment operations, Imbera and Torrey, to Mill Point Capital The transaction, which was initially disclosed on July 17, 2024, has been concluded for a total amount of 8,000 million pesos on a cash-free, debt-free basis.
FEMSA (NYSE: FMX) has announced a definitive agreement to sell its plastics solutions operations to AMMI, an affiliate of Milenio Capital, for 3,165 million pesos on a cash-free, debt-free basis. The transaction, which is part of the FEMSA Forward plan announced in February 2023, is subject to regulatory approvals and other customary conditions. The deal is expected to close in the coming months.
FEMSA reported strong Q3 2024 results with total consolidated revenues growing 8.3% and income from operations increasing 14.6% compared to Q3 2023. Proximity Americas saw revenue growth of 4.8%, while Coca-Cola FEMSA achieved 10.7% revenue growth and 13.9% operating income growth. Digital services showed significant user base expansion, with Spin by OXXO reaching 8.2 million active users (28.9% growth) and Spin Premia reaching 23.8 million active loyalty users (34.6% growth). Despite a soft consumer environment, particularly in Mexico, most business units delivered encouraging results with revenue growth and margin expansion.
FEMSA (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) has announced its upcoming Third Quarter Conference Call, scheduled for Monday, October 28, 2024, at 10:30 AM Eastern Time (8:30 AM Mexico City Time). Investors and interested parties can participate by dialing the provided toll-free US number or international number, using the Conference ID: FEMSA.
The company will release its quarterly results on October 28 before markets open. For those unable to attend live, a conference call replay will be available on FEMSA's investor relations website. Additionally, the call will be webcast live through streaming audio, with details available on the company's IR website.
FEMSA (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) has announced a definitive agreement with Grupo Traxión to divest certain logistics operations of its Solistica business. The transaction includes:
- Transportation management operations in Mexico
- Contract logistics operations in Mexico, Colombia, and Brazil
The deal, valued at approximately 4,060 million Mexican pesos, excludes FEMSA's LTL operations in Brazil. This divestment aligns with the FEMSA Forward plan announced in February 2023. The transaction is subject to regulatory approvals and other conditions, with closure expected in the coming months.
Delek US Holdings, Inc. (NYSE:DK) has successfully closed the sale of its retail business to a subsidiary of FEMSA (NYSE:FMX). The transaction, which was previously announced, involved the sale of 100% of the equity interests in Delek's retail subsidiaries for a cash consideration of approximately $385 million, including inventory purchases.
Avigal Soreq, President and CEO of Delek, expressed satisfaction with the transaction, describing it as an important step in the company's value creation journey. He also indicated a desire to build upon the relationship with FEMSA in the future and extended well wishes to the Delek US Retail employees as they become part of FEMSA's growth strategy in the United States.
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