FEMSA Announces Third Quarter 2023 Results

Rhea-AI Summary

FEMSA announces 19.3% growth in total consolidated revenues for Q3 2023. FEMSA Retail's Proximity Americas revenues increased by 20.8%. DIGITAL's Spin by OXXO had 6.4 million active users and Spin Premia had 17.7 million active loyalty users. COCA-COLA FEMSA saw 11.6% growth in total volume and 10.1% growth in revenues. CEO comments on positive results and future growth potential.

Positive

• FEMSA's total consolidated revenues grew by 19.3% in Q3 2023, indicating strong business momentum. FEMSA Retail's Proximity Americas revenues increased by 20.8%, driven by strong traffic trends at OXXO. DIGITAL's Spin by OXXO and Spin Premia had 6.4 million and 17.7 million active users respectively, indicating a growing user base. COCA-COLA FEMSA saw 11.6% growth in total volume and 10.1% growth in revenues, reflecting a strong performance in the beverage sector.

Negative

• None.

MONTERREY, Mexico, Oct. 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 third quarter of 2023. 

• FEMSA: Total Consolidated Revenues grew 19.3% against 3Q22.
• FEMSA Retail¹: Proximity Americas total Revenues increased 20.8% against 3Q22.
• DIGITAL: Spin by OXXO had 6.4 million active users² while Spin Premia had 17.7 million active loyalty users² and an average tender³ of 28.3%.
• COCA-COLA FEMSA: Total volume and revenues grew 11.6% and 10.1%, respectively, against 3Q22.

Financial Summary for the Third Quarter and First Nine Months 2023 Change vs. comparable period
	Total Revenues		Gross Profit		Income from Operations		Same-Store Sales
	3Q23	YTD23	3Q23	YTD23	3Q23	YTD23	3Q23	YTD23
FEMSA Consolidated	19.3%	19.4%	22.1%	21.3%	12.6%	8.8%
Proximity Americas	20.8%	20.8%	23.9%	21.1%	14.7%	17.2%	15.1%	16.1%
Health	0.2%	0.1%	(0.6%)	3.6%	(10.4%)	(5.7%)	(3.6%)	(3.5%)
Fuel	14.2%	14.3%	10.2%	12.4%	3.3%	10.1%	8.1%	8.8%
Coca-Cola FEMSA	10.1%	9.2%	13.6%	10.9%	15.3%	13.0%

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

“The third quarter was very favorable for our business, with strong momentum across most of our operations. However, our positive results were tempered by the unfortunate passing of FEMSA’s former CEO, Daniel Rodriguez Cofré, in the month of August. We honor his legacy by continuing to execute on the strategy that he helped design and put in place.

Our quarterly results show a continuation, and in some cases an acceleration, of the positive trends that we have seen during the past several quarters, and again offer a glimpse of the significant organic growth potential we have before us. Notably, Proximity Americas increased revenues by more than 20 percent, driven by strong traffic trends at OXXO and reflecting an accelerated store expansion. In Europe, Valora continued to grow its top line, while Health revenues were again stable, reflecting a challenging comparison base in Chile as well as significant currency headwinds. For its part, Coca-Cola FEMSA delivered very strong results across its income statement, while Digital@FEMSA continued to add users at a rapid pace. Importantly, we are achieving solid growth today, while also investing significant capital in the future of our core business verticals, across markets but particularly in Mexico.

On the strategic front, during the third quarter we continued to make progress executing the FEMSA Forward gameplan, announcing the creation of a new distribution platform in the United States by bringing together Envoy Solutions and BradyIFS. The regulatory process has advanced according to schedule, and we expect this transaction to close soon.

As we approach the final stretch, we are well positioned to close the year on a high note, and already begin to look forward to an interesting and dynamic 2024.”  

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 2023 Conference Call will be held on: Friday, October 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/6zh9pt2t/
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 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 FEMSA Health, 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. 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 was FEMSA's revenue growth in Q3 2023?

FEMSA's total consolidated revenues grew by 19.3% in Q3 2023.

How did FEMSA Retail perform in Q3 2023?

FEMSA Retail's Proximity Americas revenues increased by 20.8% in Q3 2023.

What were the active user numbers for DIGITAL's Spin by OXXO and Spin Premia?

Spin by OXXO had 6.4 million active users, while Spin Premia had 17.7 million active loyalty users in Q3 2023.

How did COCA-COLA FEMSA perform in Q3 2023?

COCA-COLA FEMSA saw 11.6% growth in total volume and 10.1% growth in revenues in Q3 2023.

What did the CEO comment on regarding the results?

The CEO commented on the positive results and strong business momentum, as well as the significant organic growth potential for the company.