MEXICAN ECONOMIC DEVELOPMENT INC (FMX): Financial results for Q3 2026
MEXICAN ECONOMIC DEVELOPMENT INC (FMX) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 3Q 2026 Results October 28, 2026 Investor Contact (52) 81-8328-6167 investor@femsa.com femsa.gcs-web.com Media Contact (52) 55-5249-6843 comunicacion@femsa.com www.femsa.com HIGHLIGHTS Monterrey, Mexico, October 28, 2026 — Fomento Económico Mexicano, S.A.B. de C.V. (
How this was made
The 30-second read
Why it matters
The earnings release provides fresh guidance for investors tracking emerging‑market consumer exposure and may affect sector weightings in regional funds.
Market read
First‑report earnings for a large emerging‑market consumer firm; relevant for investors in LATAM exposure and sector peers.
What to watch
Currency volatility and upcoming Q4 comparison base may affect future results more than current growth.
FEMSA reported 3Q26 total revenue growth of 9.8% and income from operations growth of 9.9%, led by OXXO Mexico and Coca-Cola FEMSA, while Americas & Mobility, Europe and Health faced operating pressure.
Consolidated revenue, operating income and Adjusted EBITDA grew, supported by OXXO Mexico and Coca-Cola FEMSA, but operating income declined sharply in Americas & Mobility, Europe and Health, and consolidated net income benefited from the absence of a prior-year discontinued-operations loss and a favorable foreign-exchange swing.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q26 total revenuesother | Ps. 235,609 million | – | 9.8% |
| 3Q26 gross profitother | Ps. 94,050 million | – | 9.7% |
| 3Q26 gross profit marginother | 39.9% | – | – |
| 3Q26 income from operationsother | Ps. 19,918 million | – | 9.9% |
| 3Q26 operating marginother | 8.5% | – | 10 bps |
| 3Q26 Adjusted EBITDAnon-GAAP | Ps. 34,833 million | – | 12.9% |
| 3Q26 Adjusted EBITDA marginnon-GAAP | 14.8% | – | 40 bps |
| 3Q26 consolidated net incomeother | Ps. 10,569 million | – | 81.0% |
| 3Q26 net majority incomeother | Ps. 6,810 million | – | N.S. |
| 3Q26 net majority income per FEMSA BD Unitother | Ps. 2.00 per FEMSA BD Unit | – | 185.7% growth |
| 3Q26 net majority income per FEMSA ADSother | US$1.10 per FEMSA ADS | – | – |
| 3Q26 effective income tax rateother | 32.5% | – | – |
| 3Q26 income tax provisionother | Ps. 5,080 million | – | 34.2% |
| 3Q26 CAPEXother | Ps. 9,408 million | – | (28.3)% |
| 3Q26 CAPEX as percentage of total revenuesother | 4.0% of total revenues | – | – |
| First nine months of 2026 total revenuesother | Ps. 674,623 million | – | 8.7% |
| First nine months of 2026 gross profitother | Ps. 270,849 million | – | 8.3% |
| First nine months of 2026 gross profit marginother | 40.1% | – | (20 bps) |
| First nine months of 2026 income from operationsother | Ps. 53,365 million | – | 7.9% |
| First nine months of 2026 operating marginother | 7.9% | – | (10 bps) |
| First nine months of 2026 Adjusted EBITDAnon-GAAP | Ps. 96,342 million | – | 12.6% |
| First nine months of 2026 Adjusted EBITDA marginnon-GAAP | 14.3% | – | 50 bps |
| First nine months of 2026 consolidated net incomeother | Ps. 37,456 million | – | 84.0% |
| First nine months of 2026 consolidated net income excluding one-time ImperialBrady gainother | Ps. 25,504 million | – | 12.1% |
| First nine months of 2026 net majority income per FEMSA BD Unitother | Ps. 7.97 | – | – |
| First nine months of 2026 net majority income per FEMSA ADSother | US$4.41 per ADS | – | – |
| First nine months of 2026 CAPEXother | Ps. 24,476 million | – | (21.3)% |
| Cash and investments, ex-KOF, as of September 30, 2026other | Ps. 70,403 million | – | – |
| Financial debt, ex-KOF, as of September 30, 2026other | Ps. 54,762 million | – | – |
| Lease liabilities, ex-KOF, as of September 30, 2026other | Ps. 110,844 million | – | – |
| Net debt, ex-KOF, as of September 30, 2026other | Ps. 95,203 million | – | – |
| Net debt / Adjusted LTM EBITDA, ex-KOF, as of September 30, 2026non-GAAP | 1.19x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| OXXO MexicoA 9.2% increase in same-store sales and 2.9% store expansion drove revenue. Same-store sales reflected a 5.5% increase in average ticket and a 3.5% increase in store traffic. | Ps. 86,652 million | – | 10.3% |
| Americas & MobilityFuel sales increased 8.4% and merchandise sales increased 66.0%, including the consolidation of OXXO Brazil beginning February 1st, 2026. Comparable revenue increased 10.9%. | Ps. 29,466 million | – | 18.1% |
| EuropeCurrency headwinds reduced reported revenue. On a currency-neutral basis, revenue grew 4.0%, supported by Swiss retail operations and partly offset by lower B2B sales and softer German performance. | Ps. 14,063 million | – | (5.2)% |
| HealthGrowth in Colombia retail and Ecuador was partly offset by lower Colombia institutional-business revenue and softer Chile performance. Currency-neutral revenue growth was 3.4%. | Ps. 22,985 million | – | 7.0% |
| Coca-Cola FEMSARevenue growth was driven by volume growth and revenue management initiatives, partly offset by unfavorable mix and negative currency translation effects. Volume increased 5.3% to 1,089.8 million-unit cases. | Ps. 79,718 million | – | 10.9% |
Capital returns
- FEMSA entered into an accelerated share repurchase agreement on September 14, 2026 to repurchase an aggregate amount of up to US$280 million of its ADSs, subject to agreed-upon market conditions and delivery at maturity.
- Final settlement of FEMSA's accelerated share repurchase agreement is expected to occur before year-end 2026.
- At the March 27, 2026 Shareholders meeting, FEMSA approved the cancellation of 56,737,112 FEMSA Units acquired through the stock repurchase program from April 2025 to March 2026.
- Coca-Cola FEMSA paid the third installment of its ordinary dividend on October 13, 2026 of Ps. 0.241875 per share, for a total cash distribution of Ps. 4,065.1 million.
What drove it
- OXXO Mexico added 51 net stores during the quarter and had 24,759 stores as of September 30, 2026.
- OXXO Mexico added 702 net new stores over the last twelve months.
- Spin by OXXO had 11.7 million active users, up 17.3% year over year, and average monthly transactions increased 56.0% year over year to 131.2 million.
- Spin Premia had 30.0 million active loyalty users, up 8.3% year over year, and average tender was 52.1%.
- Bara revenue increased 44.1%, supported by a 10.3% average same-store sales increase and 325 net new stores over the last twelve months.
- Coca-Cola FEMSA gross margin expanded 140 basis points to 46.5%, driven mainly by lower sweetener and PET costs, raw-material hedging initiatives, and currency effects on U.S. dollar-denominated raw-material costs.
- Coca-Cola FEMSA South America operating income increased 51.2%, including Ps. 1,055 million in income related to insurance claims in Brazil, net of expenses.
Concerns
- Americas & Mobility income from operations decreased 75.9% to Ps. 170 million, reflecting the incorporation of OXXO Brazil losses and continued pressure on Mexican fuel margins.
- Europe income from operations decreased 24.8% to Ps. 531 million, mainly impacted by lower B2B contribution.
- Health income from operations decreased 63.2% to Ps. 319 million, including a non-cash credit-risk provision of Ps. 430 million related to the unwinding of Colombia's institutional business.
- OXXO Mexico gross profit margin contracted 120 basis points to 44.8%, reflecting a demanding comparison base that included a particularly high concentration of commercial income in 3Q25.
- FEMSA cited a soft Mexican consumer environment, recent volatility in Brazil, and a more demanding comparison base in the coming quarters.
- FEMSA's 3Q26 net interest expense was Ps. 4,541 million, compared with Ps. 3,563 million in 3Q25.
What to watch
- OXXO Mexico traffic, average ticket, commercial initiatives and the effects of portfolio optimization following 140 closures of older underperforming locations during the quarter.
- The pace at which OXXO Brazil losses and capability-building expenses affect Americas & Mobility profitability.
- Fuel margins in Mexico, where higher fuel costs and maximum price commitments continued to weigh on unit margins.
- Progress in de-escalating Colombia's institutional Health business and the impact of the Ps. 430 million non-cash credit-risk provision.
- Europe's B2B sales contribution, German consumer demand, weather and transport-related disruptions.
- Coca-Cola FEMSA's volume growth, revenue management, commodity costs, currency translation and the contribution from insurance-claim income.
Balance sheet and cash flow
- FEMSA consolidated cash and cash equivalents were Ps. 111,063 million as of September 30, 2026, compared with Ps. 107,980 million as of December 31, 2025.
- FEMSA consolidated investments were Ps. 6,112 million as of September 30, 2026, compared with Ps. 20,042 million as of December 31, 2025.
- FEMSA total liabilities were Ps. 498,515 million as of September 30, 2026, compared with Ps. 466,525 million as of December 31, 2025.
- FEMSA long-term debt was Ps. 126,466 million as of September 30, 2026, compared with Ps. 126,992 million as of December 31, 2025.
- FEMSA issued CHF $300 million in five-year senior unsecured bonds on September 23, 2026. The bonds bear interest at an annual rate of 107 basis points over the relevant benchmark rate, for a yield of 1.73%. The transaction settled on October 14, 2026.
- Coca-Cola FEMSA net debt including the effect of hedges was Ps. 39,892 million as of September 30, 2026, compared with Ps. 52,846 million as of December 31, 2025.
Analysis
FEMSA delivered 3Q26 consolidated revenue of Ps. 235,609 million, up 9.8%, and income from operations of Ps. 19,918 million, up 9.9%. Gross profit increased 9.7% while gross margin remained at 39.9%. Adjusted EBITDA increased 12.9% to Ps. 34,833 million and the Adjusted EBITDA margin expanded 40 basis points to 14.8%. The operating margin expanded 10 basis points to 8.5%, with Coca-Cola FEMSA margin expansion partly offset by contractions across OXXO Mexico, Americas & Mobility, Europe and Health.
OXXO Mexico was a principal growth driver. Revenue increased 10.3% to Ps. 86,652 million, supported by 9.2% same-store sales growth and 2.9% store expansion. The 3.5% traffic increase was its strongest performance in more than two years according to management, while average ticket increased 5.5%. Profitability grew more slowly than sales: income from operations increased 5.8% to Ps. 8,041 million and operating margin contracted 40 basis points to 9.3%, reflecting a 120-basis-point gross-margin contraction, store-closing costs, and higher labor and variable compensation expenses.
Coca-Cola FEMSA provided another important contribution, with revenue up 10.9% to Ps. 79,718 million, volume up 5.3% to 1,089.8 million-unit cases, and operating income up 15.4% to Ps. 11,874 million. Its gross margin expanded 140 basis points to 46.5%, while reported operating margin expanded 60 basis points to 14.9%. South America was particularly strong, with operating income up 51.2%, although this included Ps. 1,055 million in income related to insurance claims in Brazil, net of expenses. Mexico and Central America operating income declined 3.1% as higher marketing, depreciation, maintenance and freight expenses outweighed gross-profit growth.
The remaining operating businesses constrained the consolidated result. Americas & Mobility revenue increased 18.1%, but income from operations fell 75.9% to Ps. 170 million due to OXXO Brazil losses and Mexican fuel-margin pressure. Europe revenue declined 5.2% on currency headwinds and income from operations declined 24.8%. Health revenue increased 7.0%, but income from operations fell 63.2%, including a Ps. 430 million non-cash credit-risk provision tied to the Colombia institutional-business unwinding. These units also experienced gross-margin effects from the reclassification of distribution expenses from selling expenses to cost of goods sold.
Net consolidated income rose 81.0% to Ps. 10,569 million. The increase reflected the absence of the Ps. 3,146 million discontinued-operations loss recorded in 3Q25, higher operating income, and a Ps. 1,121 million non-cash foreign-exchange gain compared with a Ps. 1,261 million loss in 3Q25. These benefits were partly offset by net interest expense of Ps. 4,541 million and a Ps. 5,080 million income tax provision. Capital expenditures declined 28.3% to Ps. 9,408 million. Net debt ex-KOF was Ps. 95,203 million and Net Debt / Adjusted LTM EBITDA ex-KOF was 1.19x, up from 0.91x in 3Q25, which FEMSA attributed mainly to cash outflows under its capital-allocation strategy. The release provided no forward financial guidance.
Management, verbatim
During the third quarter we delivered a strong set of results, led by OXXO Mexico and Coca-Cola FEMSA, our two largest businesses.
Jose Antonio Fernández Garza-Lagüera, FEMSA’s Chief Executive Officer
Nevertheless, we are encouraged by the momentum we are seeing across most of our businesses.
Jose Antonio Fernández Garza-Lagüera, FEMSA’s Chief Executive Officer
Our geographic diversification continues to deliver value, with the strength and balance of our operations supporting our consolidated results and reinforcing the resilience of our business.
Ian Craig, Coca-Cola FEMSA’s CEO
Not in the filing
stated, not guessed- Explicit accounting basis for FEMSA consolidated financial statements
- FEMSA GAAP and non-GAAP EPS reconciliation
- FEMSA operating cash flow
- FEMSA free cash flow
- FEMSA dividend declaration or payment
- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax-rate guidance
- Prior outlook for comparison
- Prior-quarter figures for consolidated income statement metrics
- Comparable-period net debt and cash balance figures for FEMSA ex-KOF
- Explicit segment revenue guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
FEMSA is a diversified Latin American consumer products company with major businesses in convenience stores (OXXO) and beverage bottling (Coca‑Cola FEMSA).
Ticker impact
FEMSA (NYSE:FMX) released its Q3 2026 earnings with revenue up 9.8% and net income up 81% YoY.
likely modest move as market digests strong revenue growth versus margin pressure in OXXO Mexico.
First‑report earnings provide fresh data; size of company and double‑digit growth give material relevance, but no clear catalyst for a large directional swing.
Market effects
Retail and beverage segments may see modest re‑rating; OXXO and Coca‑Cola FEMSA performance could influence consumer‑discretionary stocks in Latin America.
Positive earnings could lift broader Mexico‑focused ETFs and ADRs.
Limited; impact confined to emerging‑market consumer stocks.
Counterpoint
Margin compression in OXXO Mexico and weakness in Europe/Health could signal over‑optimism on top‑line growth.
Key entities
- companyFEMSA
Mexican consumer products conglomerate listed on NYSE as FMX.
- executiveJose Antonio Fernández Garza‑Lagüera
CEO of FEMSA who commented on the quarter's performance.
