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Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) is a renowned Mexican multinational conglomerate headquartered in Monterrey, Mexico. FEMSA stands out in the beverage and retail sectors across Central and South America, operating the world's largest independent Coca-Cola bottling group and Mexico's largest convenience store chain.
FEMSA is structured into several divisions:
- Retail Division: This includes OXXO, the leading convenience store chain in Mexico with expanding operations under Proximity Americas and Proximity Europe divisions. The European division includes Valora, which operates convenience and foodvenience formats.
- Health Division: FEMSA operates drugstores and related activities through this division, alongside Digital@FEMSA, which encompasses digital financial services such as Spin by OXXO and Spin Premia.
- Beverage Division: Coca-Cola FEMSA, the largest bottler of Coca-Cola products globally by volume, forms a significant part of FEMSA's operations.
- Strategic Business Unit: This division handles logistics, distribution, point-of-sale refrigeration, and plastic solutions, serving both FEMSA's units and third-party clients.
In 2023, FEMSA divested its 15% stake in Heineken and its distribution business, focusing on its core sectors. Coca-Cola FEMSA and the OXXO chain collectively constituted 75% of FEMSA's total revenue and approximately 90% of its profits in 2023.
FEMSA's latest significant financial move includes a comprehensive Tender Offer to purchase outstanding US$552.83 million worth of 4.375% Senior Notes due 2043, with settlement concluded on November 9, 2023. This is part of FEMSA's strategic initiatives announced in February 2023, aimed at optimizing its business platform.
With over 350,000 employees across 18 countries, FEMSA is committed to creating economic and social value. The company is also recognized for its sustainability practices, featuring in indexes such as the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index, and the S&P/BMV Total Mexico ESG Index.
FEMSA continues to focus on growth through strategic investments and partnerships, strengthening its position as a key player in the beverage and retail industries.
FEMSA (NYSE: FMX) announced an amendment to its previously issued offer to purchase bonds, correcting a typographical error in the fixed spread and hypothetical total consideration for its 0.500% Senior Notes due 2028 and 1.000% Senior Notes due 2033. The company aims to purchase up to
FEMSA announced a cash tender offer for its notes worth up to
Fomento Económico Mexicano (FMX) announces a new long-range plan aimed at maximizing value creation. The plan focuses on core business verticals: Retail, Coca-Cola FEMSA, and Digital, to enhance growth potential and financial strength. Key decisions include divesting from Heineken and other non-core units, exploring strategic alternatives for Envoy Solutions, and targeting a debt reduction to a leverage of 2x Net Debt/EBITDA. Preliminary revenue figures show a 23% increase in consolidated revenues for Q4 2022. The company’s strategy seeks to simplify its corporate structure, provide clarity for investors, and return excess capital to shareholders over time.
Fomento Económico Mexicano, S.A.B. de C.V. (FMX) announces its upcoming Fourth Quarter and Full Year 2022 Conference Call on February 24, 2023, at 9:00 AM ET. The quarterly results will be shared before market opening. Interested participants can join via a toll-free US number or an international line, with a Conference ID of 1219864. The conference will also be available live on their website, and a replay will be accessible afterward. FEMSA operates in retail, health, beverages, and logistics across 18 countries, employing over 320,000 individuals and maintaining a focus on sustainability.
Fomento Económico Mexicano (FEMSA) has announced a partnership with Volaris, an ultra-low-cost airline, to become the first third-party partner in FEMSA's coalition loyalty program. This initiative will enable users to earn and redeem rewards points through OXXO, Volaris, and future partners. Alejandro Gonzalez-Saúl of Digital@FEMSA emphasized the benefits this agreement will bring to millions of customers, marking the start of future collaborations to enhance customer engagement. Details regarding the terms of the loyalty program will be disclosed after the partnership's implementation.
Fomento Económico Mexicano (FEMSA) has signed an agreement to acquire all remaining shares of NET PAY, becoming the 100% owner. This follows a minority stake acquisition in 2019. The acquisition aims to enhance FEMSA's offerings for micro, small, and medium-sized businesses in Mexico with improved payment services. CEO Jose Antonio Fernández emphasized the strategic importance, highlighting that this move will simplify transactions and increase profitability for small business owners. The transaction awaits customary closing conditions and government approvals, expected to close in Q1 2023.
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.
FEMSA Announces Leadership Changes
On October 13, 2022, FEMSA appointed Ian Craig as CEO of Coca-Cola FEMSA, effective January 1, 2023, succeeding John Santa María, who retired after 27 years. Ian, previously CEO of Coca-Cola FEMSA Brazil, brings extensive experience, having been with FEMSA for 28 years. Concurrently, Constantino Spas will succeed Alfonso Garza as CEO of FEMSA Strategic Businesses, also effective January 1, 2023. Constantino has served as CFO at Coca-Cola FEMSA since 2018, contributing to significant transformation efforts. These changes reflect FEMSA's commitment to long-term talent development.
FEMSA has successfully completed its acquisition of Valora Holding AG, achieving 97.77% ownership by October 7, 2022. The company plans to initiate a squeeze-out and delisting of Valora shares from the SIX Swiss Exchange. This acquisition is seen as a strategic move to strengthen FEMSA's presence in the European market for convenience stores and food services. Both CEOs expressed optimism about future growth, innovations, and synergies from this merger. Valora generated CHF 2.2 billion in sales in 2021 and operates around 2,700 locations across multiple countries.
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