Key takeaways for investors:
- Reporting changes: FEMSA now separates OXXO Mexico as its own segment and creates a new Americas & Mobility segment (OXXO outside Mexico + fuel), improving visibility into faster-growing operations like Brazil and Colombia.
- OXXO Mexico recovery: OXXO Mexico showed clear recovery with total revenue growth of 8.3%, same-store sales +6.0%, gross margin expansion of ~140 bps to 46.2%, and operating income growth of 20.9% (operating margin 7.6%). Management emphasizes continued focus on restoring sustained growth by recovering traffic and improving the value proposition.
- Americas & Mobility and international performance: The new Americas & Mobility segment grew revenue ~12.9% (10.5% comparable, currency-neutral), with strong same-store sales in LatAm ex-Brazil (>20% in local currency) and Brazil showing progress (SSS +6.9% in local currency). Europe delivered operating income growth on cost discipline despite soft traffic; Coca‑Cola FEMSA grew revenue on a comparable basis and saw comparable operating income improvement.
- Health underperformance and Colombia institutional exposure: Health revenues were largely flat (0.9% y/y) with margin pressure from Chile (mix shift to lower-margin pharma like GLP‑1 treatments) and continued losses in Mexico. FEMSA is reducing exposure to Colombia institutional counterparties (notably notifying EPS Sanitas it will not renew its contract) due to reimbursement/funding gaps and rising receivables.
- Spin momentum: Spin (digital/fintech) reached ~11 million active users and >100 million monthly transactions, is gaining share in peer-to-peer transfers, and is being integrated as an omnichannel growth engine for OXXO.
- One-time items and profitability: Consolidated revenues +6.1% and operating income +5.5%; net consolidated income was 17.6 billion CLP driven by a one-time non-cash accounting gain (BradyPLUS/Imperial Dade). Excluding that gain, net income would have been 5.7 billion CLP, a 36.4% decline y/y, largely due to higher net financing expenses and lower interest income.
- Capital allocation and balance sheet: Q1 CapEx 6.2 billion pesos (~3% of revenues), down ~29.5% y/y, expected to accelerate later in the year toward a 5–6% revenue run rate. Shareholder returns approved: ordinary dividends 15.2 billion pesos (Mar 2026–Mar 2027), extraordinary dividend 25.8 billion pesos, total distributions ~41 billion pesos, plus an ongoing 300 million share repurchase expected to complete in Q2. Management expects net leverage to finish the year slightly below 2.0x net debt/EBITDA (ex-Coca-Cola FEMSA) absent other transactions.
- Outlook/risks: Management is constructive heading into a busy summer (World Cup) but cautious on macro uncertainty and notes ongoing work to improve traffic, contain costs, and complete organizational changes.
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