Femsa's third quarter results were below market consensus in consolidated terms; however, the company managed to exceed the expected cash flow by analysts. They reported revenue of 28 billion 909 million pesos, a 19.6% increase compared to the same period last year.
The company prioritizes maintaining investment levels that ensure the operational efficiency of its assets to uphold its competitive position. They do not plan to pay extraordinary dividends, considering it prudent to maintain a strong financial position in light of events such as the upcoming presidential elections in the United States.
Femsa will focus on improving profitability in Chile and Peru instead of pursuing accelerated growth. In Mexico, they launched a pilot program that combines the convenience store business Oxxo, Oxxo gas, and a third-party food offering, along with services like showers and rest areas on some highways.
The company suspended the growth plan for its grocery stores "Pronto" to prioritize other projects. They are evaluating the feasibility of offering credits through Spin by Oxxo. Regarding operational profit, the results exceeded expectations.
Femsa reported revenues of 196 billion 771 million pesos, an increase of 8.3%. However, net profit experienced a reduction of 39.5%, mainly due to an impairment charge related to the divestment of the logistics business.
Despite the below-expected results in revenue and net profit, analysts believe the trend is positive. The company continues to present solid quarterly reports and expects to open around 1,100 Oxxo format stores next year, increasing Vara Stores by 40%. In Colombia, they foresee a 25% growth in openings due to improved profitability.
