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Mexico's Femsa 4Q Net Profit Falls on Exchange Losses

By Anthony Harrup


MEXICO CITY--Mexican retail and beverages company Fomento Económico Mexicano said its net profit fell in the fourth quarter, hit by exchange and other noncash losses, while sales rose moderately from a year earlier.

Femsa, as the company is better known, posted net profit of 6.34 billion Mexican pesos ($370 million) for the October-December period, down 21% from the fourth quarter of 2022.

A strong Mexican peso led to a noncash exchange loss on the company's dollar-denominated cash position. An accounting loss related to discontinued operations also contributed to the lower profit.

Majority net profit in the quarter was MXN0.91 a share, and $0.64 an American depositary share.

Fourth quarter sales rose 4.6% from a year earlier to MXN189.83 billion, and adjusted earnings before interest, taxes, depreciation and amortization increased 3.6% to MXN26.93 billion.

Femsa said it had a tough comparison basis for revenue at some units, while higher labor costs in Mexico pressured expenses.

Sales at Oxxo convenience stores rose 14%, with same-store sales up 8.5%, drugstore sales rose 2.6%, while gas-station sales were up 9% on the year. Beverages unit Coca-Cola Femsa posted an 8.1% rise in sales, and 10% higher adjusted Ebitda for the quarter.


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(END) Dow Jones Newswires

February 23, 2024 10:31 ET (15:31 GMT)

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