Mexico's Femsa Posts Double-Digit 2Q Sales, Profit Growth

By Anthony Harrup

MEXICO CITY--Mexican retail and beverages conglomerate Fomento Economico Mexicano reported Thursday that its net profit rose 17% in the second quarter, with sales growth led by convenience stores and boosted by acquisitions.

Femsa, as the company is better known, had net profit of 8.93 billion Mexican pesos ($533 million) for the April-June quarter on sales of 198.2 billion pesos.

Sales were 18% higher than in the year-ago quarter. Excluding acquisitions, such as last year's purchase of Switzerland-based kiosk and convenience store operator Valora Holding, sales were up 9.5%.

Convenience-store chain Oxxo, which has more than 22,000 stores in Mexico and Latin America, posted 20% sales growth, including 15% higher same-store sales. Drug-store sales were almost flat on the year, while service station sales rose 9.3%. Sales at bottling unit Coca-Cola Femsa rose 7.2%.

Earnings before interest, taxes, depreciation and amortzation, a measure of profitability, was up 16% at 27.1 billion pesos.

Write to Anthony.Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

July 27, 2023 12:16 ET (16:16 GMT)

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