0001104659-26-052276
SEC filingFEMSA reported 1Q26 results with consolidated revenues growing 6.1% and operating income increasing 5.5%, while net income surged 97.3% due to a one-time gain from the BradyPLUS and Imperial Dade merger.
FEMSA delivered a solid operational performance in the first quarter of 2026, with consolidated revenues increasing 6.1% to Ps. 207,784 million and income from operations growing 5.5% to Ps. 14,314 million. On a comparable basis, excluding foreign exchange headwinds from the appreciating Mexican peso, revenues grew 8.5% and operating income increased 12.1%. The OXXO Mexico segment was a primary driver, posting 8.3% revenue growth and a 20.9% surge in operating income, supported by a 6.0% increase in same-store sales and margin expansion of 140 basis points. The Americas & Mobility segment also contributed significantly, with operating income more than doubling on a comparable basis, reflecting improved efficiency and strong same-store sales in Chile, Peru, and Colombia. Coca-Cola FEMSA faced a challenging consumer environment in Mexico but showed resilience with 1.1% revenue growth and market share gains in key categories.
The headline net income figure of Ps. 17,639 million was significantly inflated by a one-time, non-cash gain related to the BradyPLUS and Imperial Dade merger. Excluding this impact, adjusted net income would have been Ps. 5,688 million, a 36.4% decline attributed to higher net financing expenses, including foreign exchange losses and lower interest income. The company's financial position reflects substantial capital returns to shareholders, with Ps. 47,218 million in dividends and Ps. 16,055 million in share repurchases over the last twelve months. Consequently, Net Debt ex-KOF rose to Ps. 93,609 million, increasing the Net Debt / EBITDA ratio to 1.24x from 0.69x in the prior year. Management expressed optimism for a strong summer season, citing the upcoming World Cup and sustained momentum across business units.