FEMSA Third-Quarter Net Income Jumps 81% As A Year-Earlier Solistica Loss Drops Out
Revenue rose 9.8% to Ps. 235,609 million, but Americas & Mobility and Health profits fell sharply.
FEMSA, the Mexican parent of OXXO convenience stores and Coca-Cola FEMSA, said Wednesday that third-quarter consolidated net income rose 81.0% to Ps. 10,569 million, helped by a non-cash foreign exchange gain and the absence of a year-earlier loss tied to the Solistica divestiture.
Where the profit jump came from
Revenues grew 9.8% to Ps. 235,609 million and income from operations rose 9.9% to Ps. 19,918 million, according to the company's results release. The operating margin was 8.5%, up 10 basis points.
Three items lifted net income: a non-cash foreign exchange gain of Ps. 1,121 million against a Ps. 1,261 million loss a year earlier, the absence of a Ps. 3,146 million loss from discontinued operations booked in the third quarter of 2025 on the Solistica divestiture, and operating growth. Higher net interest expense of Ps. 4,541 million and a Ps. 5,080 million tax provision partly offset them.
Net majority income was Ps. 2.00 per FEMSA BD Unit, or US$1.10 per ADS.
OXXO and Coca-Cola FEMSA carry the quarter
OXXO Mexico same-store sales rose 9.2%, with average ticket up 5.5% and traffic up 3.5%. Its operating margin slipped 40 basis points to 9.3%, as gross margin fell 120 basis points against a year-earlier quarter heavy with commercial income. CEO Jose Antonio Fernández Garza-Lagüera said customer traffic delivered its "strongest performance in more than two years."
Coca-Cola FEMSA, the bottler, grew revenue 10.9% and operating income 15.4%.
The weak spots were elsewhere. Americas & Mobility operating income fell 75.9% to Ps. 170 million, which the company tied to OXXO Brazil losses folded into results and Mexican fuel margin pressure. Health operating income fell 63.2% to Ps. 319 million, including a non-cash credit-risk provision of Ps. 430 million tied to unwinding Colombia's institutional business. Europe operating income fell 24.8%.
Debt up, buyback running
Net debt excluding Coca-Cola FEMSA was 1.19 times adjusted twelve-month EBITDA, up from 0.91 times a year earlier, which the company attributed mainly to cash outflows under its capital allocation strategy.
FEMSA entered an accelerated share repurchase for up to US$280 million of ADSs on September 14, with final settlement expected before year-end 2026. It also issued CHF 300 million of five-year bonds, settled October 14.
The CEO cautioned that Mexico's consumer environment remains soft, Brazil has been volatile and comparisons get tougher in coming quarters. The company's market value stood at US$42.3 billion.
FEMSA holds its third-quarter conference call Wednesday at 11:00 a.m. Eastern.
