FEMSA Announces Third Quarter 2022 Results

Rhea-AI Summary

Fomento Económico Mexicano, S.A.B. de C.V. (FMX) reported a robust third quarter for 2022, highlighting a 20.5% increase in consolidated revenues compared to Q3 2021. Significant growth was observed across divisions: Proximity revenues rose by 20.6%, and Coca-Cola FEMSA experienced an 8.4% increase in total volume. Additionally, the health division reported 6.3% same-store sales growth on a currency-neutral basis. The digital platform, Spin by OXXO, reached 4.3 million users, while OXXO Premia gained 22.3 million loyalty users.

Positive

• Consolidated revenues increased by 20.5% year-over-year.
• OXXO's strong performance with traffic growth and robust ticket expansion.
• Coca-Cola FEMSA volume increased by 8.4% in Q3 2022.
• Spin by OXXO and OXXO Premia saw significant user growth.

Negative

• FEMSA Health's performance was stable but faced challenges in Chile.

MONTERREY, Mexico, Oct. 28, 2022 (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 third quarter of 2022.

• FEMSA: Total Consolidated Revenues grew 20.5% against 3Q21.
• PROXIMITY: Total Revenues increased 20.6% against 3Q21.
• HEALTH: Same-store sales grew 6.3% against 3Q21 on a currency-neutral¹ basis.
• LOGISTICS & DISTRIBUTION: 14.6% organic² total revenue growth compared to 3Q21.
• DIGITAL: Spin by OXXO reached 4.3 million users (over 69% active³) while OXXO Premia reached 22.3 million loyalty users (over 61% active³) and a 19% tender⁴.
• COCA-COLA FEMSA: Total volume grew 8.4% against 3Q21, driven by growth across all its geographies.

Financial Summary for the Third Quarter and First Nine Months 2022
Change vs. comparable period

	Revenues		Gross Profit		Income from Operations		Same-Store Sales
	3Q22	YTD22	3Q22	YTD22	3Q22	YTD22	3Q22	YTD22
FEMSA Consolidated	20.5%	20.5%	18.0%	16.8%	13.8%	15.3%
Proximity	20.6%	18.1%	17.2%	17.4%	23.5%	34.0%	17.5%	15.4%
Fuel	33.6%	31.5%	33.2%	27.7%	64.7%	66.8%	25.1%	23.3%
Health	1.1%	2.9%	(0.5%)	1.9%	(2.6%)	3.2%	(3.1%)	0.3%
Logistics & Distribution	70.3%	56.6%	68.8%	60.0%	66.8%	65.2%
Coca-Cola FEMSA	18.2%	17.7%	16.4%	14.0%	13.3%	11.5%

Daniel Rodríguez Cofré, FEMSA’s Chief Executive Officer, commented:

“Our third quarter results reflect sustained positive momentum across our business units. OXXO Mexico delivered another strong set of numbers, with accelerating traffic growth on top of robust ticket expansion and reflecting a resilient consumer environment. We again saw some of our key categories performing extremely well, delivering strong top line performance, that combined with a leaner expense structure produced solid operating leverage. On the Digital front, we continued to add OXXO Premia and Spin by OXXO customers at an accelerated pace, but more importantly, Spin by OXXO received its definitive authorization to operate as a fintech in Mexico. This is a relevant milestone and will allow us to continue pursuing our ambition to become the preeminent fintech in Mexico.

Beyond Mexico, Proximity continued to grow at a good pace in most markets, and we closed the acquisition of Valora earlier this month. OXXO Gas had another strong quarter on the back of increased vehicle mobility which drove strong volume recovery, finally getting back to pre-COVID levels. And FEMSA Health delivered stable results against a demanding comparison base while facing a challenging macroeconomic environment, particularly in Chile. For its part, Logistics and Distribution had a strong quarter driven by a standout performance at Envoy Solutions, showing strong top-line growth and stable margins. Finally, Coca-Cola FEMSA also had a strong set of results with volumes increasing across territories and double-digit growth at the top and bottom-lines.

Against this backdrop of strong operational momentum and with such a rich opportunity set ahead of us, we want to thank and recognize John Santa Maria and Alfonso Garza for their extraordinary contributions to the FEMSA success story over so many decades, and we also congratulate Ian Craig and Constantino Spas for their new positions. We look forward to the exciting future Ian and Constantino will help us build.”

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1 Calculated by translating comparable period figures at the foreign currency exchange rates used in the current period.

2 Excludes the effects of significant mergers and acquisitions in the last twelve months.

3 Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days.

Active User for OXXO Premia: User that has transacted at least once with OXXO Premia within the last 90 days.

4 Tender: MXN sales with OXXO Premia redemption or accrual / Total OXXO MXN Sales, during the period.

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 Third Quarter 2022 Conference Call will be held on: Monday, October 31, 2022, 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/s5tbwr5j
Conference ID:	1317423
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 Division operating OXXO, a small-format store chain, OXXO Gas, a chain of retail service stations, and Valora, an operator of convenience and foodvenience formats present in 5 countries in Europe. 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 OXXO Premia, among other loyalty and 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; 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 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.

Investor Contact
(52) 818-328-6000
investor@femsa.com.mx
femsa.gcs-web.com

Media Contact
(52) 555-249-6843
comunicacion@femsa.com.mx
femsa.com

FAQ

What were FEMSA's Q3 2022 revenue results?

FEMSA reported a 20.5% increase in consolidated revenues compared to Q3 2021.

How did Coca-Cola FEMSA perform in Q3 2022?

Coca-Cola FEMSA experienced an 8.4% increase in total volume year-over-year.

What is the growth percentage for OXXO's revenues in Q3 2022?

OXXO's revenues increased by 20.6% compared to Q3 2021.

How many users does Spin by OXXO have?

Spin by OXXO has reached 4.3 million users.

What were the challenges faced by FEMSA Health in Q3 2022?

FEMSA Health faced a challenging macroeconomic environment, particularly in Chile.