- Femsa reported a first-quarter revenue of MXN195.82 billion, marking an 11% increase compared to the previous year.
- The revenue figure was slightly below analysts’ estimates, which were projected at MXN196.01 billion.
- Net income for the quarter increased significantly by 54% year-over-year, reaching MXN8.94 billion.
- Operating income for the period was MXN13.57 billion, showing a 4.9% growth from the previous year.
- The actual operating income fell short of the estimated MXN14.73 billion.
- Market sentiment on Femsa is largely positive, with 11 buy recommendations and 4 holds, with no sell recommendations.
Fomento Economico Mexica-Ubd on Smartkarma
Analyst coverage on Fomento Economico Mexica-Ubd by Actinver Research on Smartkarma reveals a positive outlook for the company. In one report titled “FEMSA 4Q24: Better than expected (Quick View)”, sales of P$208.3bn exceeded estimates, driven by strong growth across all segments, favorable FX movements, KOF’s performance, and recent acquisitions. Despite a decline in traffic, the company saw a 6.8% increase in ticket sales, indicating promising consumer behavior.
Another report, “FEMSA 3Q24: Mixed results amid margin expansion but sluggish OXXO SSS (Quick View)”, highlights a 8.3% YoY sales growth to P$196.8bn, slightly above projections. While some segments underperformed, favorable FX rates supported overall growth. The report also notes challenges in Proximity Americas with flat SSS due to weather issues in Mexico. Overall, the analyses provide valuable insights into Fomento Economico Mexica-Ubd‘s performance and potential for investors.
A look at Fomento Economico Mexica-Ubd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Fomento Economico Mexicano-Ubd shows a promising long-term outlook. With a solid Momentum score of 4, indicating strong market performance, and respectable scores in Value, Dividend, and Resilience at 3 each, the company appears to be well-rounded in key investment factors. However, its Growth score of 2 suggests potential for improvement in this area.
As a Company deeply involved in the distribution and marketing of non-alcoholic beverages in Latin America, Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA) is a significant player within the Coca-Cola system. Additionally, its ownership of convenience stores in Mexico and Colombia, along with a stake in Heineken, diversifies its portfolio and strengthens its position in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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