Q2 2026 Fomento Economico Mexicano SAB de CV Earnings Call Transcript
Key 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.
- 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.
Hello, and welcome to the FEMSA second-quarter 2026 conference call. my name is Malu, and I'll be your moderator for today's event. Please note that this conference is being recorded. (Operator Instructions)
I would now like to hand the call over to Mr. Juan Fonseca, Investor Relations Director at FEMSA. Please go ahead.
Good morning, everyone. Welcome to FEMSA's second-quarter 2026 results conference call. Today, we are joined by Jose Antonio Fernandez Garza, FEMSA's CEO; Martin Arias, our CFO; (inaudible) Ortiz, who is now heading the Investor Relations team at Coca-Cola FEMSA and Enrique Monero who as many of you know, has rejoined us to replace Pamela on our Investor Relations team.
The plan is for Jose Antonio to open the conversation with some high-level comments on the quarter's performance and trends followed by Martin, who will provide more granular details on the results. Finally, we will open the call for your questions. Jose Antonio, please go ahead.
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