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.-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations