Q3 2024 Fomento Economico Mexicano SAB de CV Earnings Call Transcript
Key Points
- Fomento Economico Mexicano SAB de CV (FMX) reported a solid set of results in the Proximity and Health division, with growth and margin expansion in key areas.
- The company achieved total revenue growth of 8.3% and a 14.6% increase in operating income compared to the same period last year.
- OXXO Mexico continues to show structural momentum with a high ROI-WACC spread, and plans for 2025 include adding approximately 1,100 net new stores.
- The digital division saw a 28% year-on-year growth in active users for Spin by OXXO, indicating strong customer adoption trends.
- Coca-Cola FEMSA reported a 10.7% increase in top line revenue, reflecting a solid revenue management strategy and operational efficiencies.
- Same-store sales at Proximity America were flat for the quarter, with a 5.7% contraction in average traffic due to adverse weather conditions and a demanding comparison base.
- Net consolidated income decreased by 27.5% to MXN9.2 billion, driven by higher interest expenses and a lower non-cash foreign exchange gain.
- The Health division in Mexico is facing intense competition, requiring strategic adjustments to navigate ongoing challenges.
- The company decided to suspend the Pronto initiatives due to high costs and a long path to profitability.
- Traffic at OXXO stores has been negative for two consecutive quarters, raising concerns about operating leverage and consumer demand.
Hello, and welcome to FEMSA's third-quarter 2024 results conference call. My name is Melissa, and I will be your coordinator for today's event. (Operator Instructions)
I'll now turn the call over to Juan Fonseca, Director of Investor Relations. Please go ahead.
Good morning, everyone. Welcome to FEMSA's third-quarter 2024 results conference call.
Today, we are joined by Jose Antonio Fernández Garza-Lagüera, CEO of our Proximity and Health Division; Martin Arias, our CFO; and Jorge Collazo, who heads Coca-Cola FEMSA's Investor Relations team.
The plan for today is for Jose to open the conversation with some comments on the performance of Proximity and Health during the third quarter, and then to move on to a more strategic set of topics that follows and provides an update to some of the messages he shared with you six months ago during our first-quarter call, including some preliminary views on our expectations for 2025. After Jose's remarks, Martin will provide more
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