Fomento Economico Mexicano (FMX) Q3 2026 Earnings Report

The call was predominantly positive. FEMSA reported strong consolidated growth, an 81% increase in net income, improving OXXO México traffic and market share, solid Coca-Cola FEMSA performance, rapid Bara expansion, and continued shareholder returns. These positives were partly offset by margin contraction, store-pruning impacts, weaker European and health profitability, Colombia credit-risk provisions, labor-cost pressure, OXXO Brasil losses, a soft Mexican consumer environment, and more demanding comparisons. Management remained confident in its strategy while maintaining a cautious outlook for the consumer environment and expansion timing.

Management remains committed to opening 1,000 net new stores for the foreseeable future in OXXO Mexico, with Juan Fonseca framing 1,000 stores from a base of basically 25,000 stores as 4% growth in net new stores; Brazil is expected to expand about a store a week or more, maybe 70 stores next year, with growth in the high single digits and possibly able to crack 10%, Colombia is planned to be in the double digits, and Bara is expected to be in the double digits and probably north of 30%, with the company planning to open more stores next year than this year and probably over-deliver on a store a day. OXXO Mexico’s annual target remains at the net 1,000 store level for the next year and beyond, while Texas is expected to have less than a single-digit expansion for next year, with investments north of $5 million or $6 million per store. Management also has an ambition of tripling OXXO Mexico’s percentage of food service, expects labor expenses as a percentage of revenues to increase probably more in the short term following a 13% increase in minimum wage and a reduction in the work week next year, and expects to be somewhere in the 1.5, 1.6 net debt to EBITDA range by the end of this year, first quarter of next year, versus an unchanged leverage objective of approximately two times net debt to adjusted EBITDA ex-KOF.