FEMSA: the progress of OXXO and KOF

As of the third quarter of 2022, FEMSA reported a favorable report, with an increase in Revenues and Ebitda of 20.5% and 12.8%, respectively, according to J. Roberto Solano and Brian Rodriguez, analysts at Monex.

FEMSA’s figures show an increase in Revenues and Ebitda of 18.2% and 14.0% for Coca-Cola FEMSA (KOF), 17.8% and 15.4% for Comercio (Proximity, Health and Gas), and 70.3% and 46.5% for Logistics and Distribution, respectively.

Also as of the third quarter, FEMSA’s Net Income presented an adjustment of -17.3%, considering higher operating income; a decrease in net interest expense; and a foreign exchange gain.

This was partially offset by a reduction in Equity in Income of Associates, mainly reflecting the results of Heineken, as well as a Ps. 1.964 billion negative variance in other non-operating expenses, reflecting a high basis of comparison that included dividends received from the investment in Jetro Restaurant Depot, during the third quarter of 2021.


Analysts added in a report that Ebitda Margin stood at 13.5%, a level lower by -90 basis points compared to the third quarter of 2021.

This contraction considers a lower Margin in all business units (contrary to previous quarters).

KOF presented an increase in Revenues and Ebitda of 18.2% and 14.0% from July to September 2022.

Proximity (Oxxo) reported an increase in Revenues and Ebitda of 20.6% and 16.9%, as a result of an increase in VMT of 17.5%, which also showed an increase in traffic of 4.5% and in the average Ticket of 11.9% (in addition, 68 new units were opened compared to the third quarter of 2021).

Healthcare reported an increase in Revenues of 1.1%, but an adjustment in Ebitda of -1.3%, which considers an adjustment in VMT of -3.1% (three units were opened).

Finally, Logistics and Distribution reported increases of 70.3% and 46.5%, while Fuels reported increases of 33.6% and 46.3%, respectively.


Towards 2023, both analysts believe that FEMSA’s report was in line with expectations, with an attractive advance in KOF and Proximity, with the additive factor in Logistics and Distribution, but with a modest scenario in Healthcare (considering the difficult comparable base).


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