- Femsa’s second-quarter revenue reached MXN211.36 billion, marking a 6.3% year-over-year increase and aligning with estimates of MXN211.3 billion.
- Health Division’s revenue surged by 16% year-over-year to MXN21.85 billion, slightly exceeding the estimate of MXN21.84 billion.
- Fuel Division’s revenue saw a marginal increase of 0.6% year-over-year, totaling MXN17.10 billion, slightly below the estimate of MXN17.37 billion.
- Net income dropped significantly by 64% year-over-year to MXN5.59 billion.
- Basic earnings per share (EPS) was recorded at MXN0.13.
- Gross profit stood at MXN85.92 billion, up by 4.2% year-over-year, but missed the estimate of MXN87.92 billion.
- Health Division’s gross profit increased by 14% year-over-year, reaching MXN6.50 billion, which is below the estimate of MXN6.67 billion.
- Fuel Division’s gross profit rose by 6.6% year-over-year to MXN2.15 billion, exceeding the estimate of MXN2 billion.
- Operating income grew by 1.2% year-over-year to MXN17.83 billion, falling short of the estimated MXN18.21 billion.
- Gross margin decreased to 40.7% from 41.5% year-over-year, slightly below the estimated 41.1%.
- Health Division same-store sales experienced a strong growth of 13.1%.
- Fuel Division same-store sales increased by 4.9%.
- Analyst recommendations include 11 buys, 4 holds, and no sells.
Fomento Economico Mexica-Ubd on Smartkarma
Analyst coverage of Fomento Economico Mexica-Ubd on Smartkarma has been positive, with Actinver Research providing insightful reports on the company’s performance. In their report titled “Fomento Economico Mexica-Ubd – Actinver Research – FEMSA 1Q25: Proximity starts soft (Quick View)”, Actinver highlights that sales were 11.1% higher YoY, exceeding estimates and staying in line with consensus. Although there were challenges like a soft consumer environment and declining YoY traffic, management anticipates an improvement in momentum from 3Q25 onwards.
Another report by Actinver, “Fomento Economico Mexica-Ubd – Actinver Research – FEMSA 4Q24: Better than expected (Quick View)”, notes a 12.8% YoY sales growth, surpassing estimates driven by various factors including strong segment growth and inorganic expansion. Despite a decline in traffic for the third consecutive quarter, SSS at Proximity Americas increased to 3.8%. The analysts at Actinver maintain a bullish sentiment on Fomento Economico Mexica-Ubd based on their research findings.
A look at Fomento Economico Mexica-Ubd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Fomento Economico Mexicano-Ubd has a well-rounded outlook for the long term. With consistent scores of 3 across Value, Dividend, Growth, and Resilience, the company demonstrates stability and potential for growth. While the Momentum score lags slightly behind at 2, overall, Fomento Economico Mexicano-Ubd appears to have a positive trajectory.
Fomento Economico Mexicano-Ubd, a company operating within the Coca-Cola system producing non-alcoholic beverages in Latin America, shows promise with its balanced Smart Scores. With a diversified portfolio that includes convenience stores in Mexico and Colombia and a stake in Heineken, FEMSA has established itself as a resilient player in the market. Investors may find Fomento Economico Mexicano-Ubd to be a reliable option for long-term investment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
