Fomento Economico Mexicano S.A.B. de C.V. FMX, alias FEMSA, reported third-quarter 2026 net majority earnings per ADS of US$1.10, missing the Zacks Consensus Estimate of US$1.18. Net majority earnings per FEMSA unit skyrocketed 185.7% year over year to Ps. 2.00.
Net consolidated income was Ps. 10,569 million (US$585.2 million), reflecting growth of 81% from the year-ago quarter. The rise was aided by operating income growth, favorable foreign exchange movements and the absence of prior-year discontinued-operation losses.
Total revenues of US$13.66 billion (Ps. 235.6 billion) surpassed the consensus estimate of US$13.46 billion. Consolidated revenues grew 9.8% in Mexican pesos, driven by growth in OXXO Mexico, Americas & Mobility, Health, and Coca-Cola FEMSA, partly offset by a decline in Europe. Comparable revenues, excluding the consolidation of OXXO Brazil and currency effects, advanced 9.4%.
Shares of this Zacks Rank #3 (Hold) company have rallied 29.4% in the past year compared with the industry’s 20.4% growth.
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Peeking Into FMX’s Q3 Margin Details
FEMSA's gross profit increased 9.7% year over year to Ps. 94,050 million (US$5,207.4 million). The consolidated gross margin was unchanged at 39.9%, reflecting margin expansion in Coca-Cola FEMSA and Americas & Mobility, offset by contractions in OXXO Mexico, Europe and Health. Comparable gross profit rose 9.8%.
FEMSA’s operating income (income from operations) increased 9.9% to Ps. 19,918 million (US$1,102.8 million). The operating margin expanded 10 basis points (bps) to 8.5%. On a comparable basis, operating income grew 13.4%. Selling expenses increased 11.2%, while administrative expenses rose 3%.
Adjusted EBITDA climbed 12.9% to Ps. 34,833 million (US$1,928.6 million), while the adjusted EBITDA margin expanded 40 bps to 14.8%.
Fomento Economico Mexicano S.A.B. de C.V. Price, Consensus and EPS Surprise
Fomento Economico Mexicano S.A.B. de C.V. price-consensus-eps-surprise-chart | Fomento Economico Mexicano S.A.B. de C.V. Quote
FEMSA’s Q3 Segmental Performance
OXXO Mexico: Total revenues increased 10.3% year over year to Ps. 86,652 million (US$4,797.8 million). OXXO Mexico's same-store sales increased 9.2%, reflecting stronger traffic and higher average ticket values. Average ticket increased 5.5%, and store traffic improved 3.5% in the quarter. Commercial initiatives, favorable weather and continued services growth supported performance.
The segment's gross margin contracted 120 bps to 44.8% due to a demanding prior-year comparison. Operating income rose 5.8%, while the operating margin contracted 40 bps to 9.3%, reflecting store-closure costs and higher labor expenses. OXXO Mexico added 51 net stores, bringing its store base to 24,759.
Americas & Mobility: Revenues increased 18.1% to Ps. 29,466 million (US$1,631.5 million), supported by 66% growth in merchandise sales and an 8.4% increase in fuel and other sales. The consolidation of OXXO Brazil and strength across South American convenience operations supported growth. Same-store sales increased 13.8%.
However, operating income plunged 75.9%, with the operating margin contracting 220 bps to 0.6%. Results were hurt by OXXO Brazil losses and continued fuel-margin pressure in Mexico. The division ended the quarter with 1,986 stores.
Europe: Revenues declined 5.2% to Ps. 14,063 million (US$778.6 million), primarily reflecting currency headwinds. On a currency-neutral basis, revenues grew 4%, supported by Swiss retail operations. Same-store sales fell 7.7%. Operating income declined 24.8%, while the operating margin contracted 100 bps to 3.8%. Lower business-to-business sales and weaker performance in Germany weighed on profitability.
Health Division: Revenues increased 7% to Ps. 22,985 million (US$1,272.6 million), supported by Colombia retail and Ecuador. Same-store sales advanced 4.6%, while the store base reached 4,569 locations. Operating income plummeted 63.2%, with the operating margin contracting 260 bps to 1.4%. Results reflected unfavorable sales mix, margin pressures and a Ps. 430-million non-cash credit-risk provision related to Colombia's institutional business.
Coca-Cola FEMSA: Revenues increased 10.9% to Ps. 79,718 million (US$4,413.8 million), supported by solid volume growth across its territories. Total sales volume rose 5.3% to 1,089.8 million unit cases. Gross profit climbed 14.5%, while the gross margin expanded 140 bps to 46.5%. Operating income increased 15.4%, with the operating margin expanding 60 bps to 14.9%. Adjusted EBITDA advanced 16.2%.
FMX's Spin Platform Expands Its User Base
Spin by OXXO reached 18.4 million acquired users, reflecting 20.4% year-over-year growth. Active users increased 17.3% to 11.7 million, while average monthly transactions rallied 56% to 131.2 million.
Spin Premia's acquired users grew 13.6% to 69.2 million. Active loyalty users reached 30 million, up 8.3%, while the average tender at OXXO Mexico increased to 52.1%.
FEMSA’s Financial Position
As of Sept. 30, 2026, FEMSA had cash and cash equivalents of Ps. 111,063 million (US$6,149.4 million) and long-term debt of Ps. 126,466 million (US$7,002.2 million). Its net debt-to-adjusted EBITDA ratio, excluding Coca-Cola FEMSA, increased to 1.19 times from 0.91 times a year earlier.
The third-quarter capital expenditure declined 28.3% year over year to Ps. 9,408 million (US$520.9 million), reflecting lower investments across Coca-Cola FEMSA, OXXO Mexico, Europe and Health.
FEMSA also entered an accelerated share repurchase agreement for up to $280 million of ADSs, with final settlement expected before the end of 2026.
Stocks to Consider
We have highlighted three better-ranked stocks from the Consumer Staples sector, namely Diageo plc DEO, The Boston Beer Company Inc. SAM and The J. M. Smucker Co. SJM.
Diageo is a global beverage alcohol company operating in approximately 180 countries. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Diageo’s current financial-year sales suggests a decline of 3.4%, while the earnings estimate implies a rise of 2.7% from the year-ago reported figures.
Boston Beer is one of the largest craft brewers in the United States. Boston Beer produces beer, malt beverages and cider products at company-owned breweries and under contract. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Boston Beer’s current financial-year sales and EPS indicates declines of 3.8% and 3.9%, respectively, from the year-ago reported numbers. SAM delivered an average negative earnings surprise of 6.1% in the trailing four quarters.
J. M. Smucker is a leading manufacturer and marketer of branded food, beverage, pet food and pet snack products in North America. SJM currently has a Zacks Rank #2.
The Zacks Consensus Estimate for J. M. Smucker’s 2026 EPS implies growth of 17.1% from the previous year’s reported number. SJM delivered a trailing four-quarter average earnings surprise of 13.8%.
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Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report
The J. M. Smucker Company (SJM): Free Stock Analysis Report
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