Fomento Económico Mexicano (FEMSAUBD) Q1 2026 earnings summary

Executive summary

• New segment reporting structure introduced to enhance transparency and track progress in key markets.

• Strong consolidated performance driven by OXXO Mexico recovery, international operations, and cost restructuring, partially offset by currency headwinds and softer Health and KOF results.

• First quarter 2026 saw consolidated volume grow 1.2% year-over-year, with strong performances in South America offsetting declines in Mexico and Central America.

• OXXO Mexico achieved 8.3% revenue growth and double-digit operating income growth, despite security disruptions and a challenging consumer environment.

• Spin digital platform continued rapid growth, reaching 11 million active users and over 100 million monthly transactions.

Financial highlights

• Consolidated revenues up 6.1% year-over-year; operating income up 5.5%.

• On a comparable and currency-neutral basis, revenues and operating income grew 8.5% and 12.1%, respectively.

• Net consolidated income was MXN 17.6 billion, up 97.3% year-over-year, driven by a one-time non-cash gain; excluding this, net income was MXN 5.7 billion, down 36.4%.

• Total revenues: Ps. 70,925 million (+1.1% year-over-year); gross profit: Ps. 33,255 million (+4.5%).

• OXXO Mexico gross margin expanded 140 bps to 46.2%; operating income up 20.9% with margin at 7.6%.

Outlook and guidance

• CapEx expected to accelerate through the year, targeting a 5%-6% CapEx-to-sales ratio.

• Ordinary and extraordinary dividends totaling MXN 41 billion planned for March 2026–March 2027.

• Focus remains on targeted revenue management and leveraging the FIFA World Cup platform for sustainable volume growth.

• Share repurchase program ongoing, expected to complete in Q2, incremental to dividend distributions.

• Optimism for summer performance, especially with the FIFA World Cup, but caution for H2 due to macro uncertainty.