Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), which owns the OXXO convenience-store chain, saw total consolidated revenues in its third quarter grow 9.1% and income from operations increase 4.3% compared to a year earlier, the company said in its earnings call Tuesday.
Meanwhile, total revenues at FEMSA’s Proximity Americas, which encompasses Mexico, the United States, Colombia, Chile and Peru, grew 9.2% and income from operations increased 7.1% versus 2024’s third quarter. The company at the start of October celebrated its one-year anniversary of acquiring Delek US Holdings’ 249 c-stores.
The 9.2% increase reflects a 1.7% increase in same-store sales, coupled with a 5.7% store expansion, the consolidation of the U.S. operation into the results, as well as currency tailwinds relative to the U.S. and some South American currencies, the company said.
“The growth in same-store sales was driven by an increase of 4.9% in average ticket and a decrease of 3.1% in store traffic,” FEMSA said. On a comparable basis, total revenues increased 4.8%.”
During the quarter, the OXXO store base in Mexico, the U.S. and Latam (OXXO Colombia, Chile and Peru) expanded by 198 stores, FEMSA said. This division had 1,370 total net store additions for the last 12 months, which includes 242 stores from the acquisition of Delek’s retail operations in the U.S.
“During the third quarter, our results showed a modest sequential improvement in Mexico, a welcome change of trend relative to the first half of the year despite still facing a challenging environment in our key market, including soft consumption dynamics,” José Antonio Fernandez Carbajal, FEMSA’s CEO, said in a prepared statement. “We are particularly encouraged by the efficacy of the broad range of tactical initiatives our teams deployed in recent months, which contributed to the improved results at OXXO and Coca-Cola FEMSA. We are also encouraged by the resilience and strength of our geographically diversified platform, as other markets, particularly in South America, and Europe helped mitigate the softer trends in Mexico.”
- FEMSA is No. 33 on CSP’s 2025 Top 202 ranking of U.S. c-store chains by store count.
José Antonio Fernandez Carbajal’s son, José Antonio Fernández Garza-Laguera, currently the CEO of Monterrey, Mexico-based FEMSA’s Proximity and Health division, will take over as CEO on Saturday. José Antonio Fernández Carbajal, executive chairman of FEMSA and interim CEO since July of 2023, will continue in his role as executive chairman.
“As we enter the final stretch of 2025, we are cautiously optimistic that our results will continue to improve across our business units in the fourth quarter, and we are also getting ready for what should be an exciting 2026, including a FIFA World Cup that will be partly played in Mexico for the third time, as well as the 100th anniversary of Coca-Cola in Mexico,” José Antonio Fernández Carbajal continued. “Our teams are already hard at work getting ready for next year.
“I have been nearly 40 years with FEMSA,” he continued. “Looking ahead, I am highly confident that our company and our business units are as well positioned as ever for long-term growth and value creation. I want to take this opportunity, as I step back from the CEO role, to thank once again every one of my colleagues, undoubtedly the best team in the business, who have helped build our company into the success it is today.”
The 9.1% growth in total revenues in the third quarter was “driven by growth across all of FEMSA’s business units, and reflecting the benefit from favorable exchange rate effects, particularly from Europe, due to the depreciation of the Mexican peso against many of its foreign operating currencies, and other factors,” the company said. After accounting for currency effects and M&A, revenues grew 4.9%.
Gross profit increased 8%, the company said, while gross margin decreased 40 basis points, “reflecting margin contractions in Coca-Cola FEMSA and fuel, and the consolidation of our lower margin U.S. operation within Proximity Americas, partially offset by a margin expansion in Proximity Mexico, coupled with stable margins at Health and Proximity Europe. After accounting for currency effects and M&A, gross profit increased 7.7%.”
FEMSA, a beverage bottler and convenience-store retailer, has set its sights on becoming a major player in the United States after its acquisition of 249 Delek locations, officials said. The $385 million deal with Delek established FEMSA in the Southwest United States, primarily in Texas but also in New Mexico and Arkansas. The stores, previously operated under the DK Convenience brand, are transitioning to OXXO. The chain will retain a branded fuel partnership with Alon and DK Fuel, owned by Delek. FEMSA began operating the former Delek US stores on Oct. 1, 2024. FEMSA owns the world's largest Coke bottler, Coca-Cola Mexico. Its Proximity Americas Division operates the OXXO convenience-store chain and related retail formats in Mexico, Central America and South America, and now in North America. Its Proximity Europe Division operates Valora, its European retail c-store unit.
The company has roughly 24,600 locations in South America, including about 23,000 in Mexico, 550 in Brazil, 550 in Colombia, 200 in Peru and 300 in Chile.
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