Monterrey, Mexico, October 28, 2025 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today its operational and financial results for the third quarter of 2025.
- FEMSA: Total Consolidated Revenues grew 9.1% and Income from Operations increased 4.3% compared to 3Q24.
- FEMSA Retail: Proximity Americas total Revenues grew 9.2% and Income from operations increased 7.1% versus 3Q24.
- SPIN: Spin by OXXO had 9.9 million active users representing 20.5% growth compared to 3Q24 while Spin Premia had 27.7 million active loyalty users representing 16.4% growth compared to 3Q24, and an average tender at OXXO Mexico of 48.2% which increased from 38.5% tender in 3Q24.
- COCA-COLA FEMSA: Total Revenues and Income from Operations grew 3.3% and 6.8%, respectively against 3Q24.
José Antonio Fernandez Carbajal, FEMSA’s Chief Executive Officer, commented:
“During the third quarter, our results showed a modest sequential improvement in Mexico, a welcome change of trend relative to the first half of the year despite still facing a challenging environment in our key market, including soft consumption dynamics.
We are particularly encouraged by the efficacy of the broad range of tactical initiatives our teams deployed in recent months, which contributed to the improved results at OXXO and Coca-Cola FEMSA. We are also encouraged by the resilience and strength of our geographically diversified platform, as other markets, particularly in South America, and Europe helped mitigate the softer trends in Mexico.
As we enter the final stretch of 2025, we are cautiously optimistic that our results will continue to improve across our business units in the fourth quarter, and we are also getting ready for what should be an exciting 2026, including a FIFA World Cup that will be partly played in Mexico for the third time, as well as the 100th anniversary of Coca-Cola in Mexico. Our teams are already hard at work getting ready for next year.
I have been nearly 40 years with FEMSA. Looking ahead, I am highly confident that our Company and our business units are as well positioned as ever for long-term growth and value creation. I want to take this opportunity, as I step back from the CEO role, to thank once again every one of my colleagues, undoubtedly the best team in the business, who have helped build our Company into the success it is today.”
QUARTERLY RESULTS
Results are compared to the same period of previous year
Total revenues increased 9.1% in 3Q25 compared to 3Q24, driven by growth across all our business units, and reflecting the benefit from favorable exchange rate effects, particularly from Europe, due to the depreciation of the Mexican peso against many of our foreign operating currencies, as well as the reconsolidation of our LTL business which remained from the divestment of Solistica. After accounting for currency effects and M&A, revenues grew 4.9%.
Gross profit increased 8.0%. Gross margin decreased 40 basis points, reflecting margin contractions in Coca-Cola FEMSA and Fuel, and the consolidation of our lower margin US operation within Proximity Americas, partially offset by a margin expansion in Proximity Mexico, coupled with stable margins at Health and Proximity Europe. After accounting for currency effects and M&A, gross profit increased 7.7%.
Income from operations increased 4.3%, driven by growth across our business units except Health and Fuel, coupled with favorable exchange rate effects, particularly from Europe. The consolidated operating margin was 8.4% as a percentage of total sales, representing a contraction of 40 basis points, reflecting margin contractions in Health and our Fuel division and the consolidation of the USA Proximity business. This was partially offset by margin expansion in OXXO Latam, Coca-Cola FEMSA and Proximity Europe, coupled with a flat margin in OXXO Mexico. After accounting for currency effects and M&A, income from operations increased 6.5%.
The effective income tax rate was 29.3% in 3Q25. Our income tax provision was Ps. 3,785 million in 3Q25, a sequential improvement compared to the second quarter in which the impacts from certain non-deductible losses and expenses, and the reversal of previously accrued deferred tax assets, weighed more heavily given a lower pre-tax profit.
Net consolidated income was Ps. 5,838 million, compared to Ps. 9,243 million in 3Q24, reflecting: i) a non-cash foreign exchange loss of Ps. 1,261 million, compared to a gain of Ps. 4,254 million in 3Q24, related to our U.S. dollar-denominated cash position negatively impacted by the appreciation of the Mexican peso during the quarter, and reflecting a Ps. 5,515 million swing from gain to loss driven by the depreciation of the Mexican peso during the 3Q24; ii) higher interest expense of Ps. 5,470 million compared to Ps. 4,818 million in 3Q24 due to an increase in Coca-Cola FEMSA’s debt and lease related financial expenses driven by the growth of our retail network; iii) lower interest income of Ps. 1,907 million compared to Ps. 2,612 million in 3Q24, impacted by lower interest rates coupled with lower cash balances; and iv) lower tax provisions, as explained above.
Net majority income was Ps. 0.70 per FEMSA Unit and US$0.38 per FEMSA ADS.
Net Debt / EBITDA. On an ex-KOF basis, as of September 30, 2025, cash and investments were Ps. 114,046 million and total debt was Ps. 177,003 million, resulting in net debt of Ps. 62,957 million. Our Net Debt / EBITDA ratio ex-KOF was 0.91x up from 0.68x in 3Q24. This increase reflects mainly the cash outflow related to our capital allocation strategy, which has resulted in Ps. 35,826 million of ordinary and extraordinary dividends, as well as Ps. 7,259 million of share repurchases during the last twelve months.
Capital expenditures amounted to Ps. 13,128 million, 6.1% as a percentage of total sales, and an increase of 8.2% compared to 3Q24, reflecting higher CAPEX at Coca-Cola FEMSA, mainly deployed to increase our production and distribution capacity. This was offset by lower CAPEX at all our other businesses, mainly reflecting lower investments given the pause in the expansion strategy in OXXO Chile and Peru, as well as in Health Mexico. Proximity Americas had slightly lower CAPEX in Mexico as our efforts remain in more targeted new store openings, including less CAPEX-intensive OXXO Nicho Stores, and the remodeling and optimization of existing stores going forward.
RESULTS FOR THE FIRST NINE MONTHS OF 2025
Results are compared to the same period of previous year
Total revenues increased 8.4%, reflecting growth across all our business units, currency tailwinds, and the consolidation of the results of our US operations.
Gross profit rose by 8.6%. Gross margin remained stable at 40.3% of total revenues, reflecting a gross margin increase at Proximity Americas, partially offset by declines in Europe and nearly flat margin at Coca Cola FEMSA and the Health and Fuel Divisions.
Income from operations increased 3.0%. Our consolidated operating margin decreased 40 basis points to 8.0% of total revenues, reflecting a margin contraction at the Proximity Americas Division, nearly flat margins at Proximity Europe, Coca-Cola FEMSA, Health, and Fuel.
Our effective income tax rate was 36.7% for the first nine months of 2025, compared to 31.7% in 2024. Our income tax provision was Ps. 12,855 million for the first nine months of 2025, reflecting: i) non-deductible tax losses from Spin and non-deductible labor related expenses in Mexico, both of which weighed more heavily given the lower pre-tax profits caused by FX losses relating to our US dollar cash balances, ii) a one-time non-recurrent payment related to a contingency from 2018; and iii) higher than usual reversal of deferred tax assets given the lower likelihood of using such assets in the future. As we have expanded our labor force in Mexico retail and beverages, labor has increased faster than revenues, thus increasing the relative weight of the non-deductible portion as a percentage of total expenses.
Net consolidated income was Ps. 20,359 million reflecting a decline of 33.7% compared to 2024 explained by a higher base from the first nine months of 2024, which reflected: i) a non-cash foreign exchange gain of Ps. 9,258 million compared to a loss in 2025 of Ps. 4,917 million, related to FEMSA’s U.S. dollar-denominated cash position negatively impacted by the appreciation of the Mexican peso, ii) a higher net interest expense of Ps. 9,822 million, compared to Ps. 5,656 million in 2024 due to lower interest income, and iii) an increase in income taxes as explained above. This was partially offset by a higher other financial income of Ps. 1,856 million compared to a Ps. 808 million expense in 2024, reflecting a financial instrument gain of Ps. 1,583 million which included a remaining position of Heineken in the first nine months of last year, and a lower loss in net income from discontinued operations of Ps. 813 million compared to Ps. 3,227 million in 2024, which included our Solistica business (and related impairments) most of which was divested.
Net majority income per FEMSA Unit was Ps. 3.15 (US$1.72 per ADS).
Capital expenditures amounted to Ps. 31,115 million, an increase of 2.4% compared to 2024, reflecting higher investments at Coca-Cola FEMSA to expand production and distribution capacity offset by a reduction in the remainder of our divisions.
RECENT DEVELOPMENTS
- On August 11 of 2025, we informed that BradyPLUS and Imperial Dade have announced that they have entered into a definitive agreement to combine their companies via an all-equity merger transaction. BradyPLUS is a provider of janitorial and sanitation, foodservice, and industrial packaging products and solutions in the United States. FEMSA currently owns a minority stake of BradyPLUS. Imperial Dade is a distributor of foodservice packaging, commercial cleaning supplies, janitorial equipment, and industrial packaging in the United States.
FEMSA supported the transaction, which we expect will expand the combined company’s geographic reach, enhance its ability to serve its customers, and generate synergies. FEMSA will remain invested in the combined company with approximately 19% and will have representation on its board. The transaction is subject to customary regulatory approvals.
- On September 4 of 2025, we entered into definitive agreements with Raízen, S.A. (“Raízen”) to amicably terminate our joint venture in Brazil known as “Grupo Nós” that includes OXXO proximity stores and Shell Select convenience stores, allowing both companies to focus on their respective business‘ strategies. Under the terms of the agreement, FEMSA will retain all the OXXO stores in Brazil, as well as the distribution center located in Cajamar, São Paulo, while Raízen will retain all the Shell Select convenience stores. Completion of the separation of the OXXO stores and the Shell Select convenience stores is subject to regulatory approvals and other customary conditions and is expected to close in the coming months.
- On September 17 of 2025, we announced that based on our senior leadership succession planning process, and consistent with the plan detailed on FEMSA’s Fourth Quarter and Full Year 2024 earnings press release dated February 27, 2025, our Board of Directors has appointed Jose Antonio Fernández Garza-Lagüera, currently CEO of FEMSA Proximity & Health, to become FEMSA’s Chief Executive Officer effective as of November 1st, 2025.
- FEMSA is saddened by the recent passing of Ricardo Guajardo Touché, a distinguished member of Coca Cola FEMSA’s Board Of Directors and a valued part of the Coca-Cola FEMSA and FEMSA’s family. Mr. Guajardo served for years as a trusted voice on various FEMSA governance bodies. His leadership, wisdom, and unwavering commitment were instrumental in guiding FEMSA and Coca-Cola FEMSA through key moments of growth and transformation.
- FEMSA extends its condolences and support to our teams’, their families, and all the communities affected by the floods occurred during the month of October in central and Northeast Mexico. In line with our principles and protocols, FEMSA has mobilized efforts to support the communities, and aid in the recovery of the region. A part of this, FEMSA coordinated with local authorities to provide humanitarian relief, including donations of water, food, and essential supplies to the most impacted areas. These efforts underscore the FEMSA’s dedication to supporting the broader community, including support to our own employees and their families. FEMSA remains committed to long-term recovery and resilience in the region.
CONFERENCE CALL INFORMATION
Our Third quarter 2025 Conference Call will be held on: Tuesday, October 28, 2025, 10:30 AM Eastern Time (8:30 AM Mexico City Time). The conference call will be webcast live through streaming audio.
Telephone:
Toll Free US: (866) 580 3963
International: +1 (786) 697 3501
Webcast: https://edge.media-server.com/mmc/p/65yp7xh9/
Conference ID: FEMSA
ABOUT FEMSA
FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Americas Division operating OXXO, a small-format store chain, and other related retail formats, and Proximity Europe which includes Valora, our European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates though a Health Division, which includes drugstores and related activities and Spin, which includes Spin by OXXO and Spin Premia, among other digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume. Across its business units, FEMSA has more than 392,000 employees in 18 countries. FEMSA is a member of the Dow Jones Best-in-Class World Index & Dow Jones Best-in-Class MILA Pacific Alliance Index, both from S&P Global; FTSE4Good Emerging Index; MSCI EM Latin America ESG Leaders Index; S&P/BMV Total México ESG, among other indexes.
The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the noon buying rate for Mexican pesos as published by the Federal Reserve Bank of New York on September 30, 2025, which was 18.3442 Mexican pesos per US dollar.
FORWARD-LOOKING STATEMENTS
This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.
Our consolidated financial statements as of and for the year ended December 31, 2025, are not yet available, and the independent audit of those financial statements is ongoing and has not yet been completed. The unaudited preliminary financial information as of and for the year ended December 31, 2025, presented herein, is preliminary and subject to change as we complete our financial closing procedures and prepare our consolidated financial statements, and as our independent registered public accounting firm completes its audit of such consolidated financial statements. As of the date of this release, our independent registered public accounting firm has not expressed an opinion or any other form of assurance on any financial information as of or for the year ended December 31, 2025, or on our internal control over financial reporting as of December 31, 2025. Our audited consolidated financial statements may differ materially from this preliminary information and will also include notes providing additional disclosures.
COMPARABILITY
Our “comparable” term means, with respect to a year-over-year comparison, the change of a given measure excluding the effects
of: (i) mergers, acquisitions, and divestitures; and (ii) translation effects resulting from exchange rate movements. In preparing
this measure, management has used its best judgment, estimates, and assumptions to maintain comparability.
