FEMSA Announces Third Quarter 2021 Results

Rhea-AI Summary

Fomento Económico Mexicano (NYSE: FMX) reported its financial results for Q3 2021, revealing revenues of 142,443 million Ps, up 12.6% from Q3 2020, and 9.2% versus Q3 2019. Gross profit reached 53,094 million Ps, a 9.4% increase year-over-year. The Health Division excelled in Chile while the Fuel Division benefited from improved vehicle mobility in Mexico. However, demand remains below pre-pandemic levels. CEO Eduardo Padilla expressed optimism about FEMSA's future and emphasized the company's solid position across its business units.

Positive

• Q3 2021 revenues reached 142,443 million Ps, a 12.6% increase from Q3 2020.
• Gross profit for Q3 2021 was 53,094 million Ps, up 9.4% year-over-year.
• The Health Division performed well in Chile, benefiting from favorable trading conditions.
• FEMSA's Logistics and Distribution business showed recovery in Latin America.

Negative

• Vehicle mobility trends in the Fuel Division remain below pre-pandemic levels.

MONTERREY, Mexico, Oct. 28, 2021 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the third quarter of 2021.

HIGHLIGHTS

• Our results in 3Q20 were significantly impacted by the COVID-19 pandemic and the related changes in consumer mobility and behavior across markets. As we look at our 3Q21 results, the comparison base of 3Q20 is only a partial benchmark. Therefore, to facilitate the reader’s assessment of our business units’ performance in 3Q21, we provide the following table that includes variations versus 3Q19 as well.
  

FINANCIAL SUMMARY FOR THE THIRD QUARTER 2021
Information includes figures in millions of Ps. and variations as change vs. respective period
			Revenues				Gross Profit				Income from Operations				Same-Store Sales
			3Q21	% var vs. 3Q20	% var vs. 3Q19		3Q21	% var vs. 3Q20	% var vs. 3Q19		3Q21	% var vs. 3Q20	% var vs. 3Q19		% var vs. 3Q20	% var vs. 3Q19
FEMSA CONSOLIDATED			142,443	12.6%	9.2%		53,094	9.4%	8.6%		12,976	14.3%	2.7%
FEMSA COMERCIO
Proximity Division			50,808	11.7%	4.9%		21,009	17.0%	8.4%		4,642	87.6%	5.2%		9.7%	(3.5%)
Health Division			18,319	8.2%	15.1%		5,495	6.7%	17.5%		967	4.8%	49.5%		4.2%	6.4%
Fuel Division (1)			10,349	20.5%	(16.2%)		1,330	12.4%	(10.5%)		417	35.4%	(26.1%)		16.7%	(19.2%)
LOGISTICS & DISTRIBUTION			11,734	N/A	N/A		2,561	N/A	N/A		602	N/A	N/A
COCA-COLA FEMSA			48,316	3.4%	(0.8%)		21,817	2.1%	0.7%		6,476	(9.0%)	(7.7%)
(1) variations vs. comparable results

Eduardo Padilla, FEMSA’s CEO, commented:

“During the third quarter, data and sentiment towards the health emergency were still uneven across our markets and some operating restrictions remained in place but began to ease in September. At OXXO, same-store sales were stable sequentially, but profitability showed compelling gains reflecting higher efficiency. Our Health Division continued to benefit from dynamic trading conditions in Chile, as well as solid execution across the platform, while our Fuel Division saw better vehicle mobility trends in Mexico, even if we remained below pre-pandemic levels. For its part, our Logistics and Distribution business reflected improving conditions in Latin America, coupled with an environment in the United States that is steadily improving but a bit more slowly than expected, particularly for certain end-user segments. Finally, Coca-Cola FEMSA delivered solid volume performance in most markets, particularly in South America, and was able to mitigate pressures from supply chain disruption and higher raw material costs. All in all, it seems we are finally turning the corner and can look forward to a more normal 2022.

Beyond the short-term, however, our company today is in a much better position than it was last year, and I would dare say, than ever before. Every one of our business units is in solid shape, with considerable avenues for growth, and we have the balance sheet flexibility to pursue our opportunities and execute on our optionality. I am excited and very optimistic about the future of FEMSA, and as I approach my retirement, I am especially thankful to our more than 320,000 colleagues that put in their best effort day after day, and year after year. It has been the honor of my lifetime to work with, and for, you all.”

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

FORWARD-LOOKING STATEMENTS
This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

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 FEMSA Comercio, comprising a Proximity Division operating OXXO, a small-format store chain, a Health Division, which includes drugstores and related activities, and a Fuel Division, which operates the OXXO Gas chain of retail service stations. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume; and in the beer industry, as the second largest shareholder of Heineken, one of the world’s leading brewers with operations in over 70 countries. 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 320,000 employees in 13 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index, among other indexes that evaluate its sustainability performance.

FAQ

What were FEMSA's total revenues for Q3 2021?

FEMSA reported total revenues of 142,443 million Ps for Q3 2021.

How did FEMSA's gross profit change in Q3 2021 compared to the previous year?

FEMSA's gross profit increased by 9.4% year-over-year, reaching 53,094 million Ps.

What is the performance of FEMSA's Health Division in Q3 2021?

FEMSA's Health Division reported strong performance in Chile, benefiting from dynamic trading conditions.

What challenges does FEMSA's Fuel Division face?

The Fuel Division's vehicle mobility trends are still below pre-pandemic levels.

What did FEMSA's CEO say about the company's future?

CEO Eduardo Padilla expressed optimism about FEMSA's future, emphasizing growth opportunities across business units.