Fomento Economico Mexicano S.A.B. de C.V. FMX, alias FEMSA, reported second-quarter 2026 adjusted net majority earnings per ADS of 93 cents, topping the Zacks Consensus Estimate of 82 cents by 13.4% and up from 42 cents in the year-ago quarter. The company reported net majority earnings per ADS of 93 cents (Ps. 1.62 per FEMSA unit).
Net consolidated income was Ps. 9,221 million (US$528.5 million), reflecting growth of 64.9% from the year-ago quarter.
Total revenues of US$13.28 billion (Ps. 231,002 million) surpassed the consensus estimate of $12.94 billion by 2.7%. Consolidated revenues grew 9.3% in Mexican pesos, led by OXXO Mexico, Americas & Mobility, and Coca-Cola FEMSA. OXXO Mexico same-store sales increased 9.5%. Comparable revenues, excluding acquisitions and currency-translation effects, advanced 10.1%.
Shares of this Zacks Rank #2 (Buy) company have rallied 8% in the past three months compared with the industry’s 3.8% growth.
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Peeking Into FMX’s Q2 Margin Details
FEMSA’s gross profit rose 7.8% year over year to Ps. 92,611 million (US$5.3 billion). The consolidated gross margin contracted 60 basis points (bps) to 40.1%, reflecting pressure at OXXO Mexico, Europe, Health, and Americas & Mobility, offset by margin expansion in Coca-Cola FEMSA. The company’s gross margin contracted 70 bps in OXXO Mexico, 10 bps in Americas & Mobility, 120 bps in Europe, and 310 bps in Health, offset by an expansion of 180 bps in Coca-Cola FEMSA. Comparable gross profit rose 8.8% year over year. Excluding expense reclassifications in Europe and Health, the contraction would have been 20 basis points.
FEMSA’s operating income (income from operations) rose 7.2% to Ps. 19,110 billion (US$1.1 billion), driven by growth in Coca-Cola FEMSA and OXXO Mexico, offset by declines in Americas & Mobility, Europe, and Health. On a comparable basis, operating income increased 11.7%, reflecting stronger underlying growth after excluding currency and acquisition effects. The operating margin contracted 10 bps to 8.3%.
Adjusted EBITDA climbed 12.7% to Ps. 33,340 million (US$1.91 billion), while the adjusted EBITDA margin expanded 40 bps to 14.4%.
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 Q2 Segmental Performance
OXXO Mexico: Total revenues for the segment rose 11.8% year over year to Ps. 86,708 million (US$4.97 billion). Same-store sales rose 9.5%, driven by a 7.4% increase in the average ticket and a 2% improvement in store traffic. Results benefited from pricing and assortment initiatives, stronger demand in traffic-driving categories and the FIFA World Cup.
The segment’s gross margin declined 70 bps to 44.8% due to pricing actions intended to improve traffic and market share. Nevertheless, operating income rose 12.3%, and the operating margin expanded 10 bps to 10%, supported by operating leverage and expense control. OXXO Mexico added 253 stores in the second quarter, bringing its total store base to 24,708.
Americas & Mobility: Total revenues for the segment rose 17.4% year over year to Ps. 28,567 million (US$1.6 billion). Merchandise sales climbed 55.6%, aided by the consolidation of OXXO Brazil, while fuel and other sales increased 9.3%. Comparable revenues rose 11.6%. The segment’s same-store sales increased 11.4% in Mexican pesos and 17.6% on a currency-neutral basis.
Despite strong sales growth, operating income plunged 88% year over year. The operating margin contracted 240 bps to 0.3% due to losses from OXXO Brazil and fuel-margin compression in Mexico. Adjusted EBITDA decreased 4.3%. The Americas & Mobility division had 1,953 stores as of June 30, 2026.
Europe: Total revenues for the segment fell 3.8% year over year to Ps. 14,491 million (US$830.5 million). The decline was mainly due to currency headwinds, although revenues for the segment increased 3.2% on a currency-neutral basis. Same-store sales declined 5.7%. Operating income decreased 7.3%, reflecting foreign-exchange pressure and reorganization expenses.
Health Division: The segment reported total revenues of Ps. 22,328 million (US$1.28 billion), up 2.2% year over year and 4.8% on a comparable basis. Same-store sales advanced 0.7% in Mexican pesos and 6.2% on a currency-neutral basis, reflecting stronger underlying operating performance. However, operating income declined 57.7%. Results were hurt by weakness in Mexico, competitive promotional activity in Chile and a Ps. 408 million credit-risk provision tied to Colombia’s institutional business. The segment’s store base reached 4,584 locations as of June 30, 2026.
Coca-Cola FEMSA: Total revenues for the segment increased 4.7% to Ps. 76,318 million (US$4.4 billion) and advanced 6.6% on a comparable basis. Total sales volume grew 3.5% to 1.07 billion unit cases. Gross profit rose 8.8%, and the gross margin expanded 180 bps to 47.1%. Operating income increased 9.1%, with the operating margin improving 60 bps to 14%. Adjusted EBITDA advanced 12.1% year over year. The adjusted EBITDA margin expanded 130 bps to 19.7%, making Coca-Cola FEMSA a major contributor to consolidated profitability.
FEMSA’s Financial Position
As of June 30, 2026, FEMSA had cash and cash equivalents of Ps. 104,960 million (US$6.02 billion). The company’s long-term debt was Ps. 124,830 million (US$7.15 billion).
In the second quarter of 2026, capital expenditure totaled Ps. 8,872 million (US$508.5 million), a 3.6% decline from the prior year, reflecting lower CAPEX at Coca-Cola FEMSA, along with reduced spending in Health and Europe. These declines were partially offset by higher CAPEX at OXXO Mexico, supporting the continued pace of store openings, and in Americas & Mobility, reflecting store expansion investments across the region.
Other Stocks to Consider
We have highlighted three other top-ranked stocks from the Consumer Staples sector, namely The Vita Coco Company Inc. COCO, Primo Brands Corporation PRMB and Kraft Heinz Company KHC.
Vita Coco develops, markets and distributes coconut water and other beverage products, led by the Vita Coco brand. 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 Vita Coco’s current financial-year sales and earnings is expected to rise 31.7% and 30%, respectively, from the year-ago reported figures. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
Primo Brands is a leading North American branded beverage company focused on healthy hydration. The company currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Primo Brands’ current financial-year sales indicates growth of 1.6% from the year-ago number. PRMB delivered an average earnings surprise of 1.4% in the trailing four quarters.
Kraft Heinz is one of the largest consumer packaged food and beverage companies in North America. KHC currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Kraft Heinz’s 2026 sales and EPS implies declines of 2% and 20.4%, respectively, from the previous year’s reported numbers. KHC delivered a trailing four-quarter average earnings surprise of 10.2%.
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Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report
Vita Coco Company, Inc. (COCO): Free Stock Analysis Report
Kraft Heinz Company (KHC): Free Stock Analysis Report
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