Mexico's Femsa Reports Higher Sales, Lower Net Profit for 1Q
By Anthony Harrup
MEXICO CITY -- Mexican retail and beverages company Fomento Económico Mexicano posted double-digit increases in sales and operating profit for the first quarter, while net profit fell after large one-off gains in the year-earlier period.
Femsa, as the company is better known, reported net profit of 5.88 billion Mexican pesos ($343 million) for the January-March period. Profit in the year-earlier quarter was 50.33 billion pesos, which included a 40.61 billion one-time gain from the reclassification of the company's participation in Heineken as it began selling its stake in the Dutch brewer.
First-quarter majority net income was equivalent to 0.82 pesos a share, or $0.49 an American depositary share.
Sales rose 11% to 178.2 billion pesos with increases in most business units. Operating profit grew 14% and adjusted earnings before interest, taxes, depreciation and amortization rose 15% to 25.05 billion pesos.
Sales at the Oxxo convenience store chain rose 15% with same-store sales up 9.7%. The company added 424 stores in the quarter to end March with 23,290 in Mexico and Latin America. Gas station sales were up 14% on higher volume and fuel prices, while the drugstore division saw a 2.3% decline in revenue which the company attributed to competition in Mexico and a challenging environment in Colombia and Ecuador.
Beverages unit Coca-Cola Femsa reported an 11% rise in sales with sales volume up 7.3%.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
April 26, 2024 10:40 ET (14:40 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
These Stocks Are (Still) Powering the Bull Market
-
5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom
-
After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?
-
5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings
-
10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings
-
Markets Brief: Inflation Back in the Spotlight
-
AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?
-
What’s Happening In the Markets This Week
-
3 Dividend Stocks for June 2024
-
After Earnings, Is Alibaba Stock a Buy, Sell, or Fairly Valued?
-
MongoDB Earnings: Slashing Valuation as Execution and Macro to Blame for Lower Guidance
-
Marvell Earnings: We Raise Our Medium-Term AI Forecast and Bring Our Valuation Up to $75
-
Zscaler Earnings: Impressive Traction in Emerging Products Drives Sales Growth for the Quarter
-
Dell Earnings: Raising Valuation on Strong AI, but the Stock Remains Severely Overvalued
-
After Earnings, Is Nvidia Stock a Buy, Sell, or Fairly Valued?
-
The 10 Best Companies to Invest in Now