FEMSA Announces Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

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.

Positive

• Double-digit revenue growth across major business units
• 31.5% increase in consolidated operating income
• Margin expansion in Proximity Americas, Coca-Cola FEMSA, Proximity Europe, and Fuel
• 24.9% growth in Spin by OXXO digital users
• Record capital returns to shareholders

Negative

• Challenging consumer environment in Mexico market
• CEO succession process creates leadership transition uncertainty

Insights

Financial Analyst

FEMSA delivered exceptional Q4 2024 results with consolidated revenue growth of 12.8% and operating income surging 31.5% year-over-year, demonstrating strong operational execution across its diversified business portfolio. The company's largest segments showed impressive momentum, with Proximity Americas (OXXO stores) growing revenues 13.2% and Coca-Cola FEMSA posting 14.3% revenue growth alongside substantial operating income increases of 18.7% and 25.0% respectively.

Particularly noteworthy is the accelerating digital transformation through FEMSA's fintech initiatives. Spin by OXXO has reached 8.6 million active users, growing 24.9% year-over-year, while Spin Premia's loyalty program has expanded to 24.6 million users (up 27.5%). The 40.7% tender rate indicates that Spin Premia now influences over two-fifths of OXXO transactions, creating a powerful ecosystem that drives customer retention and provides valuable consumer data.

The margin expansion across multiple business units (Proximity Americas, Coca-Cola FEMSA, Proximity Europe, and Fuel) reflects operational efficiency improvements and scale benefits. Foreign exchange tailwinds from international operations provided additional lift, though these may fluctuate in future periods.

FEMSA's capital allocation strategy is evolving meaningfully, with management signaling an acceleration of shareholder returns in 2025-2026 through increased dividends and share repurchases. This suggests confidence in operating cash flow generation while potentially indicating fewer large-scale acquisition opportunities that meet return thresholds.

The formal CEO succession process announcement introduces an element of leadership transition that bears watching, as new leadership could potentially adjust strategic priorities. Management's cautionary outlook regarding a challenging consumer environment in 2025, particularly in Mexico, suggests potential headwinds for same-store sales growth in their core market, though FEMSA's diversified business model provides some insulation against regional economic pressures.

MONTERREY, Mexico, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today its operational and financial results for the fourth quarter and full year of 2024.

• FEMSA: Total Consolidated Revenues grew 12.8% and Income from Operations increased 31.5% compared to 4Q23.
• FEMSA Retail¹: Proximity Americas total Revenues grew 13.2% and Income from operations increased 18.7% versus 4Q23.
• SPIN: Spin by OXXO had 8.6 million active users² representing 24.9% growth compared to 4Q23 while Spin Premia had 24.6 million active loyalty users² representing 27.5% growth compared to 4Q23, and an average tender³ of 40.7%.
• COCA-COLA FEMSA: Total Revenues and Income from Operations grew 14.3% and 25.0%, respectively against 4Q23.

Financial for the Fourth Quarter and Full Year 2024 Change vs. comparable period
	Total Revenues		Gross Profit		Income from Operations		Same-Store Sales
	4Q24	YTD24	4Q24	YTD24	4Q24	YTD24	4Q24	YTD24
FEMSA Consolidated	12.8%	11.2%	16.7%	15.0%	31.5%	19.8%
Proximity Americas	13.2%	10.3%	19.0%	17.0%	18.7%	11.2%	3.8%	4.2%
Proximity Europe	21.5%	14.2%	17.5%	14.6%	9.9%	45.3%	N.A.	N.A.
Health	13.3%	5.8%	21.2%	6.9%	109.7%	4.6%	9.4%	(0.3%)
Fuel	8.0%	11.7%	2.4%	8.0%	6.9%	12.4%	9.7%	9.9%
Coca-Cola FEMSA	14.3%	14.2%	16.8%	16.0%	25.0%	17.4%

José Antonio Fernandez Carbajal, FEMSA’s Chief Executive Officer, commented:

In the fourth quarter FEMSA delivered a strong close to a strong year, with double-digit growth in revenues, gross profit, and income from operations in most of our business units, driven by the strength of our platform and the effort of our teams, while also reflecting foreign exchange tailwinds from our international operations.

The solid trends in the fourth quarter’s top line were complemented by strong margin expansion at our two largest operations, Proximity Americas and Coca-Cola FEMSA, leveraging powerful execution in their core markets. Looking at the full year, margin expansion was achieved not only at Proximity Americas and Coca-Cola FEMSA, but also at Proximity Europe and Fuel.

Beyond our operations, during the year we continued to make progress with the remaining steps of FEMSA Forward, including in the execution of our capital allocation framework. In addition to high levels of capital expenditures as we continued to invest in our organic growth opportunities across business units, during 2024, we returned record amounts of capital through a combination of dividends and share repurchases, a process that we intend to accelerate in 2025 and 2026 as we move to maximize the efficiency of our balance sheet.

Finally, on the governance front, the Corporate Practices and Nominations Committee of FEMSA’s Board of Directors has formally launched the succession process for the CEO position. Please refer to the Recent Developments section of this release for further details.

We begin 2025 facing an increasingly challenging consumer environment in many of our markets, particularly Mexico, but we are confident we have a compelling opportunity set in front of us, a solid strategy to pursue those opportunities, and the best team in the business.”

To obtain the full text of this earnings release, please visit our Investor Relations website at 
https://femsa.gcs-web.com/ under the Financial Reports section

CONFERENCE CALL INFORMATION
Our Fourth Quarter and Full Year 2024 Conference Call will be held on: Thursday, February 27, 2025, 10:00 AM Eastern Time (9:00 AM Mexico City Time). The conference call will be webcast live through streaming audio.
Telephone:	Toll Free US:    (866) 580 3963
	International:    +1 (786) 697 3501
Webcast:	https://edge.media-server.com/mmc/p/qvjeojz7/
Conference ID:	FEMSA
If you are unable to participate live, the conference call audio will be available on https://femsa.gcs-web.com/financial-reports/quarterly-results

ABOUT FEMSA
FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Americas Division operating OXXO, a small-format store chain, and other related retail formats, and Proximity Europe which includes Valora, our European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates through a Health Division, which includes drugstores and related activities and Spin, which includes Spin by OXXO and Spin Premia, among other digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume. Across its business units, FEMSA has more than 392,000 employees in 18 countries. FEMSA is a member of the Dow Jones Best-in-Class World Index & Dow Jones Best-in-Class MILA Pacific Alliance Index, both from S&P Global; FTSE4Good Emerging Index; MSCI EM Latin America ESG Leaders Index; S&P/BMV Total México ESG, among other indexes.

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¹ FEMSA Retail: Proximity Americas & Europe, Fuel and FEMSA Health.
² Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days.
   Active User for Spin Premia: User that has transacted at least once with OXXO Premia within the last 90 days.
³ Tender: OXXO MXN sales with Spin Premia redemption or accrual / Total OXXO MXN Sales, during the period.

FAQ

What were FEMSA's (FMX) key financial metrics for Q4 2024?

FEMSA reported 12.8% growth in consolidated revenues and 31.5% increase in operating income compared to Q4 2023.

How did FEMSA's Proximity Americas division perform in Q4 2024?

Proximity Americas saw 13.2% revenue growth and 18.7% increase in operating income versus Q4 2023.

What was Spin by OXXO's user growth in Q4 2024?

Spin by OXXO reached 8.6 million active users, representing 24.9% growth compared to Q4 2023.

How much did Coca-Cola FEMSA's revenues grow in Q4 2024?

Coca-Cola FEMSA's revenues grew 14.3% with operating income increasing 25.0% compared to Q4 2023.

What are FEMSA's (FMX) capital return plans for 2025-2026?

FEMSA plans to accelerate capital returns through dividends and share repurchases in 2025 and 2026 to maximize balance sheet efficiency.