Fomento Economico Mexicano

Fomento Economico Mexicano, S.A.B. de C.V., known as FEMSA, reported strong growth in its SPIN digital ecosystem during the second quarter of 2026, with Spin by OXXO reaching 17.6 million total acquired users, up 21.6% year over year from 14.5 million. Active users rose 22.1% to 11.5 million, representing 65% of the total acquired base, while average monthly transactions increased 61.5% to 119.1 million. Spin Premia, the company's loyalty program, reached 67.1 million total acquired users, up from 58.3 million a year earlier, with active users up 9.4% to 29.1 million and average tender at OXXO Mexico reaching 50.4%. FEMSA also announced a strategic equity investment by QED Investors in its lending business, which is expected to complement its payments and loyalty offerings and support scalable credit solutions in Mexico. The company's shares have lost 2.1% in the past three months, underperforming the industry and the broader Consumer Staples sector, and trade at a forward price-to-earnings ratio of 21.14X, above the industry average of 19.96X.

Zacks Investment Research identifies five soft drink stocks poised for growth amid rising demand for healthier beverages and digital transformation. The Zacks Beverages – Soft Drinks industry, ranked in the top 37% of over 250 Zacks industries, is benefiting from consumer shifts toward zero-sugar, low-calorie, and functional drinks, as well as investments in AI, e-commerce, and smart manufacturing. The Coca-Cola Company, Monster Beverage Corporation, Fomento Económico Mexicano, Primo Brands Corporation, and The Vita Coco Company are highlighted as well-positioned to capitalize on these trends, though the industry faces headwinds from rising input costs and tariff uncertainty. Vita Coco holds a Zacks Rank #1, Coca-Cola and Primo Brands hold a Zacks Rank #2, and Monster Beverage and Fomento Económico Mexicano hold a Zacks Rank #3.

Fomento Económico Mexicano, or FEMSA, topped second-quarter earnings and revenue expectations as OXXO Mexico and Coca-Cola FEMSA delivered solid growth. Adjusted earnings reached 93 cents per American depositary share, beating the Zacks Consensus Estimate of 82 cents by 13.4%, while revenues of 13.28 billion dollars exceeded the consensus mark by 2.7% and increased 9.3% in Mexican pesos. Net consolidated income rose 64.9% to 9.22 billion pesos, and adjusted EBITDA increased 12.7% to 33.34 billion pesos, with the adjusted EBITDA margin expanding 40 basis points to 14.4%. However, consolidated gross margin contracted 60 basis points to 40.1%, and operating margin slipped 10 basis points to 8.3%, as weaker profitability in international retail and Health, along with declines in Americas and Mobility and Europe, offset gains from the core businesses. FEMSA also completed a 300 million dollar accelerated share-repurchase program during the quarter, while net debt excluding Coca-Cola FEMSA rose to 90.02 billion pesos, lifting the net debt-to-adjusted EBITDA ratio to 1.15 times from 0.93 times a year earlier.

Coca-Cola FEMSA reported a 3.5% increase in consolidated volume to 1.1 billion unit cases for the second quarter of 2026, driven by record quarterly volumes in Brazil, Colombia, and Guatemala. Total revenues rose 4.7% to MXN 76.3 billion, while gross profit grew 8.8% to MXN 35.9 billion, with gross margin expanding 180 basis points to 47.1% due to favorable sweetener and PET costs. Operating income increased 9.1% to MXN 10.7 billion, aided by MXN 265 million in recovered insurance claims in Brazil, and adjusted EBITDA grew 12.1% to MXN 15 billion. Majority net income rose 16.9% to MXN 6.2 billion, reflecting higher operating income and a lower effective tax rate. In Mexico, volume increased 1% despite headwinds from an excise tax increase and a softer consumer environment, while digital sales through the Juntos+ platform represented 38% of traditional trade sales and 19% of total revenues in the territory. Brazil volume grew 5.2%, Colombia volume surged 17.7%, and Guatemala volume rose 3.4%, while Argentina volume contracted 2.8%. Management expects 2026 capital expenditures to remain between 7% and 7.5% of total revenues and has hedged 96% of sugar, 98% of HFCS, 73% of aluminum, and 65% of PET requirements for the year.

Fomento Economico Mexicano, or FEMSA, is expected to report second-quarter 2026 earnings on July 28, with analysts forecasting significant top- and bottom-line growth. The Zacks Consensus Estimate for revenues is $12.9 billion, up 19.3% from a year ago, while the earnings estimate of 82 cents per share suggests a 95.2% surge. The company has an Earnings ESP of +37.42% and a Zacks Rank of 1, indicating a likely earnings beat. Gains are expected from its OXXO convenience-store expansion, digital initiatives like the Spin by OXXO wallet and loyalty platform, and growth in specialized distribution. FEMSA shares have risen 21.9% over the past six months, outpacing the industry's 6.1% gain, and the stock trades at a forward P/E of 22.65, above the industry average of 19.05.

Archer Daniels Midland has returned about 49.4% year-to-date, significantly outperforming the Consumer Staples sector's average return of 9.3%. The company holds a Zacks Rank of 2, or Buy, and its full-year earnings consensus estimate has risen 9.2% over the past quarter. Fomento Economico, another Consumer Staples stock, has returned 27.7% year-to-date and carries a Zacks Rank of 1, or Strong Buy, with its current-year EPS estimate up 35.8% in three months. Within its Agriculture - Operations industry, which has gained about 30.5% this year, Archer Daniels Midland is also outperforming, while Fomento Economico's Beverages - Soft drinks industry has moved 11.3% higher.

Fomento Economico Mexicano, S.A.B. de C.V., known as FEMSA, reported that its OXXO convenience store format innovation helped drive a 6% rise in same-store sales in Mexico during the first quarter of 2026, outperforming a generally soft consumer environment. The increase was fueled by a 6.6% rise in average ticket, even as traffic declined modestly, while total revenues grew 8.3% and operating income jumped 20.9%. FEMSA is enhancing the customer proposition through affordability initiatives, revenue management, financial services integration, and digital engagement, with its Spin by OXXO reaching 11 million active users and Spin Premia expanding to 28.4 million active loyalty users. The average share of OXXO Mexico sales linked to Spin Premia rose to 50.6% from 42.5% a year earlier, signaling stronger customer engagement. Outside Mexico, the company paused expansion in certain international markets to refine its value proposition, while reporting meaningful same-store sales growth in Chile, Peru, and Colombia alongside improving profitability.

Fomento Economico Mexicano declared a quarterly dividend of $1.827 per share. The dividend is payable on July 27 to shareholders of record as of July 15, with the ex-dividend date also on July 15. The forward yield is 5.65%.

Zacks Investment Research added five stocks to its Zacks Rank Number 1 Strong Buy list on June 30th. Fomento Económico Mexicano, a beverage bottling company, saw its current-year earnings consensus estimate increase 18.5% over the last 60 days. Avnet, an electronic components company, had its estimate rise 10.8%. Tilly's, a specialty retailer, experienced a 64.7% increase. Reddit, an online community platform, saw a 21.4% rise. Hamilton Insurance Group, an insurance and reinsurance company, also had an 18.5% increase.

Zacks Investment Research named Fomento Economico Mexicano and Yankuang Energy Group Company as its top value stock picks for June 22. Fomento Economico Mexicano, a Coca-Cola bottler, carries a Zacks Rank of 1 and saw its current-year earnings consensus estimate rise 20.2% over the last 60 days, with a price-to-earnings ratio of 21.91 versus 23.05 for the S&P 500 and a Value Score of B. Yankuang Energy Group Company, a coal miner, also holds a Zacks Rank of 1 and its current-year earnings estimate increased 30.5% over the same period, with a price-to-earnings ratio of 6.56 compared to 15.00 for its industry and a Value Score of A.

Fomento Economico Mexicano has returned about 25.5% since the start of the calendar year, outperforming the broader Consumer Staples sector, which has gained about 8.5% on average. The stock currently holds a Zacks Rank of 1, or Strong Buy, and its full-year earnings consensus estimate has risen 26.7% over the past quarter. Within its specific industry, Beverages - Soft drinks, which has gained an average of 12.5% year-to-date, FMX is also performing better. Another Consumer Staples stock, Helen of Troy, has returned 34.6% year-to-date and carries a Zacks Rank of 2, or Buy, though its Cosmetics industry has declined 16.4% so far this year.