Price Chart

Executive Summary

FEMSA reported Q1 2026 results with consolidated revenue up 6.1% YoY to Ps. 207,784 million and operating income up 5.5% to Ps. 14,314 million, driven by strong performance at OXXO Mexico (revenue +8.3%, operating income +20.9%) and Americas & Mobility (+12.9% revenue). However, Coca-Cola FEMSA's operating income declined 2.3%, and Health operating income fell 14.2%. Net consolidated income surged 97.3% to Ps. 17,639 million, but excluding a one-time gain from the BradyPLUS/Imperial Dade merger, net income declined 36.4% to Ps. 5,688 million due to higher financing costs and FX losses. The company also announced a non-renewal of a medication dispensing agreement in Colombia and declared ordinary and extraordinary dividends.

Key Facts

• FEMSA consolidated revenue grew 6.1% YoY to Ps. 207,784 million in Q1 2026; on a comparable basis, revenue grew 8.5%.
• Consolidated income from operations increased 5.5% to Ps. 14,314 million; on a comparable basis, operating income grew 12.1%.
• OXXO Mexico revenue grew 8.3% to Ps. 74,424 million, with operating income up 20.9% to Ps. 5,629 million.
• Coca-Cola FEMSA revenue grew 1.1% to Ps. 70,925 million, but operating income declined 2.3% to Ps. 9,032 million.
• Health division revenue grew 0.9% to Ps. 22,175 million, but operating income declined 14.2% to Ps. 657 million.
• Consolidated net income was Ps. 17,639 million, up 97.3% YoY, but excluding a one-time gain from the BradyPLUS/Imperial Dade merger, net income was Ps. 5,688 million, a decline of 36.4%.
• Net Debt/EBITDA ex-KOF increased to 1.24x from 0.69x in 1Q25, reflecting cash outflows for dividends (Ps. 47,218 million) and share repurchases (Ps. 16,055 million) over the last twelve months.
• Cruz Verde Colombia notified EPS Sanitas of its decision not to renew the medication dispensing agreement under the Mandatory Health Plan, set to expire on September 30, 2026.
• Shareholders approved ordinary dividend of Ps. 4.7520 per BD Unit and extraordinary dividend of Ps. 8.0597 per BD Unit, payable in four installments.

Financial Impact

Consolidated revenue grew 6.1% to Ps. 207,784 million; operating income up 5.5% to Ps. 14,314 million; net income up 97.3% to Ps. 17,639 million (but down 36.4% excluding one-time gain). Coca-Cola FEMSA operating income down 2.3%.

Risk Factors

• Coca-Cola FEMSA operating income declined 2.3% YoY, with Mexico & Central America operating income down 17.4% due to excise tax increases and restructuring costs.
• Adjusted net income (ex-one-time gain) fell 36.4% due to higher financing costs, FX losses, and absence of discontinued operations income.
• Net debt/EBITDA ex-KOF rose to 1.24x from 0.69x a year ago, driven by large dividend and buyback payouts.
• Health division operating income declined 14.2%, and the non-renewal of the Cruz Verde Colombia medication dispensing agreement creates revenue risk for that segment.
• Europe same-store sales declined 2.7% YoY, indicating soft consumer trends in Germany.

Market Snapshot

Investment Themes

Documents Analyzed

This report is based on 5 SEC documents filed with EDGAR.

US Market Status

Related Tickers