Release Date: July 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OXXO Mexico delivered strong same-store sales performance, nearing double digits, with traffic growing for the first time in eight quarters.
- The company is seeing positive results from strategic adjustments, with a focus on becoming more consumer-centric, leading to better performance and market share gains.
- Spin by OXXO experienced a 22% year-over-year growth in monthly active users, ranking among the most relevant participants in the payment system.
- Bara is showing promising growth, with record store openings and double-digit same-store sales growth, driven by resilient demand and a strong private label strategy.
- OXXO's operations in Latin America, particularly in Colombia and Brazil, are showing encouraging growth, with Colombia's revenues up approximately 30% and Brazil's store performance improving with each new cohort.
Negative Points
- The company faces a challenging consumer environment, particularly in its core Mexico market, with sluggish consumer spending.
- Currency headwinds and a softer performance in the Health segment in Europe negatively impacted financial results.
- OXXO Mexico's gross margin contracted by 70 basis points year-over-year, due to selected price rationalization initiatives and a higher mix of lower price point SKUs.
- The Health Division recorded a significant decline in operating income, driven by a noncash credit risk provision in Colombia and competitive pressures in Chile.
- The company anticipates that some of the tailwinds, such as the World Cup boost, will no longer be present in the second half of the year, potentially impacting performance.
Q & A Highlights
Q: Can you provide more details on the partnership with QED and how it fits into FEMSA's ecosystem expansion strategy?
A: Jose Antonio Fernandez Garza, CEO, explained that the partnership with QED is in its early stages but promising. QED's expertise in developing credit solutions globally aligns well with FEMSA's ecosystem. The partnership aims to leverage data for credit insights and gradually scale credit offerings. Spin by OXXO is growing, and the focus is on monetization and credit as strategic opportunities. Martin Felipe Arias Yaniz, CFO, added that the credit initiative will start small and eventually seek non-recourse financing options.
Q: How has Carlos' leadership impacted OXXO Mexico since taking over?
A: Jose Antonio Fernandez Garza, CEO, highlighted Carlos' extensive retail experience and his focus on building a strong team. Carlos has emphasized supply chain excellence and competitive pricing strategies, which have contributed to market share gains. His leadership has been instrumental in driving OXXO's growth and competitiveness.
Q: Can you elaborate on the strategic pillars and their impact on OXXO's performance?
A: Jose Antonio Fernandez Garza, CEO, noted that the strategic pillars are showing positive results, particularly in impulse categories like beer and tobacco, where OXXO is gaining market share. Coffee and prepared foods are also growing, with coffee seeing double-digit revenue growth. Daily replenishment and beyond trade initiatives are promising but require further development.
Q: What are the expectations for OXXO Mexico's performance in the second half of the year?
A: Juan Fonseca Serratos, IR Contact Officer, mentioned that while the consumer environment in Mexico remains soft, recent weeks have shown positive traffic trends. Historically, OXXO's same-store sales grow at inflation plus 1%. The focus will be on maintaining momentum despite the absence of World Cup tailwinds.
Q: How is FEMSA addressing labor challenges at OXXO Mexico, especially with the focus on traffic and food service?
A: Jose Antonio Fernandez Garza, CEO, acknowledged the need for better staffing, particularly in the third shift, to enhance service levels. While this may increase SG&A initially, it is expected to drive traffic and sales. The strategy involves balancing labor costs with supplier negotiations and maintaining service quality.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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