FEMSA Announces Second Quarter 2023 Results

Rhea-AI Summary

FEMSA (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced 18.3% growth in Total Consolidated Revenues and 19.9% increase in Proximity Americas total Revenues. Digital segment reported 5.7 million active users for Spin by OXXO and 15.8 million active loyalty users for Spin Premia. Coca-Cola FEMSA saw a 7.2% increase in total revenues. The financial summary for the second quarter and first six months of 2023 shows positive changes in Total Revenues, Gross Profit, and Income from Operations for FEMSA Consolidated and its business units.

Positive

• FEMSA reported strong revenue growth across its segments, with Proximity Americas and Digital showing significant increases. Coca-Cola FEMSA also reported a positive 7.2% growth in total revenues. The financial summary indicates positive changes in Total Revenues, Gross Profit, and Income from Operations for FEMSA Consolidated and its business units.

Negative

• None.

MONTERREY, Mexico, July 27, 2023 (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 second quarter of 2023. 

• FEMSA: Total Consolidated Revenues grew 18.3% against 2Q22.
• FEMSA Retail¹: Proximity Americas total Revenues increased 19.9% against 2Q22.
• DIGITAL: Spin by OXXO had 5.7 million active users² while Spin Premia had 15.8 million active loyalty users² and an average tender³ of 24.0%.
• COCA-COLA FEMSA: Total revenues grew 7.2% against 2Q22.

Financial Summary for the Second Quarter and First Six Months 2023 Change vs. comparable period
	Total Revenues				Gross Profit				Income from Operations				Same-Store Sales
	2Q23		YTD23		2Q23		YTD23		2Q23		YTD23		2Q23		YTD23
FEMSA Consolidated	18.3%		19.9%		20.1%		21.3%		8.0%		6.8%
Proximity Americas	19.9%		20.8%		19.3%		19.5%		18.0%		18.7%		15.3%		16.7%
Health	0.6%		0.1%		6.5%		5.7%		(0.5%)		(3.5%)		(3.7%)		(5.1%)
Fuel	9.3%		14.4%		6.9%		13.7%		(0.9%)		15.0%		3.2%		9.3%
Coca-Cola FEMSA	7.2%		9.2%		7.9%		9.9%		11.9%		12.1%
Envoy Solutions	23.1%		23.4%		31.1%		27.1%		(7.1%)		(8.6%)

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

“It is a great privilege to lead this amazing company again. It is also a challenge that I embrace, particularly as we find ourselves in the process of implementing our transformational FEMSA Forward strategy, and as we pursue our ambitious long-range growth plans for all our core business units, setting the course for sustained, long-term value creation.

The second quarter results announced today represent an example of the organic growth potential we have before us. Among the highlights, Proximity Americas increased revenues by 20 percent, again driven by strong same-store sales trends at OXXO and reflecting an accelerated store expansion. In Europe, Valora reported solid top line growth, while Health revenues were stable, reflecting a challenging comparison base in Chile as well as currency headwinds. For its part, Coca-Cola FEMSA again delivered a strong performance, while Envoy Solutions showed sustained revenue growth driven by recent acquisitions. On the Digital side, we continued to add users at a rapid pace, with active users growing more than one hundred percent year-over-year.

I want to extend my gratitude to our hardworking team who continue to find a way to post strong results, putting us on the right path to meet or exceed our long-term aspirations.”

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 Second Quarter 2023 Conference Call will be held on: Thursday, July 27, 2023, 11:00 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/chfb9z24
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 though a Health Division, which includes drugstores and related activities and Digital@FEMSA, 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. FEMSA also participates in the logistics and distribution industry through its Strategic Business Unit, which additionally provides point-of-sale refrigeration and plastic solutions to its business units and third-party clients. Across its business units, FEMSA has more than 350,000 employees in 18 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index: S&P/BMV Total México ESG, among other indexes that evaluate its sustainability performance.

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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 Mexico MXN sales with OXXO Premia or Spin Premia redemption or accrual divided by Total OXXO Mexico MXN Sales, during the period. 

FAQ

What were FEMSA's total consolidated revenues growth in the second quarter of 2023?

FEMSA reported 18.3% growth in Total Consolidated Revenues.

How many active users did Spin by OXXO have in the second quarter of 2023?

Spin by OXXO had 5.7 million active users.

When will FEMSA's Second Quarter 2023 Conference Call be held?

The conference call will be held on Thursday, July 27, 2023, at 11:00 AM Eastern Time (9:00 AM Mexico City Time).

Where can I find the full text of FEMSA's earnings release?

The full text of the earnings release is available on FEMSA's Investor Relations website at https://femsa.gcs-web.com/ under the Financial Reports section.