Q4 2024 Fomento Economico Mexicano SAB de CV Earnings Call Transcript
Key Points
- Fomento Economico Mexicano SAB de CV (FMX) reported double-digit growth across earnings line items and notable margin expansion for the full year 2024.
- The company successfully divested non-core assets, monetizing approximately $10.7 billion, and focused on core business units.
- Coca-Cola FEMSA showed strong digital capability evolution, contributing to business growth and momentum.
- The Proximity Americas division achieved a 13.2% revenue growth, driven by new store expansion and strong commercial income dynamics.
- The company plans to deploy nearly $5.3 billion in capital returns to shareholders over the next two years, representing approximately 17% of its market cap.
- The consumer environment in Mexico is soft, impacting traffic and sales performance.
- The company is still far from its leverage objective of 2 times net debt-to-EBITDA, requiring accelerated capital returns.
- OXXO's average traffic contracted by 2.8% due to a weaker consumer environment and cannibalization from new store openings.
- The fuel business in Mexico is facing distinct pressures, likely affecting short-term results for OXXO Gas.
- The company faces challenges in creating a platform for its US operations following the acquisition of Delek's convenience stores.
Good day, and welcome to today's FEMSA's fourth quarter 2024 results conference call. (Operator Instructions) This meeting is being recorded.
And now I'd like to hand the call over to Juan Fonseca. Please go ahead, sir.
Good morning, everyone, and welcome to FEMSA's fourth quarter and full year '24 results conference call. Today, we are joined by Jose Antonio Fernandez- Carbajal, FEMSA's CEO and Chairman of the Board; Martin Arias, our CFO; and Jorge Collazo, who heads Coca-Cola FEMSA's Investor Relations team.
The plan for today is for Jose Antonio to open the conversation with some high-level comments on the full year results, some thoughts on our capital allocation framework as well as a quick update on management succession. Martin will then cover our quarterly results as well as provide more detail on our capital return plans. Finally, we will turn it back to Jose Antonio for some closing remarks and then open the call for your questions.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
