Femsa Earnings: Retail Traffic Rebounds Sequentially, Revenue Management Boosts Profit

We plan to raise our $102 fair value estimate for narrow-moat Femsa by a low-single-digit percentage after digesting solid 2024 results, with revenue growing 11.2% and operating profit rising 19.8%, both surpassing our estimates of 10.3% and 15.8%, respectively. Even with a 5% share price rise following the report, Femsa shares look attractive, as the market may be underestimating the long-term demographic and income tailwinds in Latin America.