FEMSA Reports Mixed Q2 Revenue Growth, Net Profit Drops 64%

Fomento Económico Mexicano (FEMSA), the largest Coca-Cola franchise bottler and a major retail operator in Latin America, reported mixed second-quarter results for 2025. Despite a 6.3% rise in total consolidated revenues driven by growth outside Mexico, the company faced a steep 64% drop in net profit due to a foreign-exchange loss and weak consumer demand in Mexico, exacerbated by adverse weather conditions. Operating income remained flat or slightly improved, with strong performance seen in international markets, particularly South America, and growth in pharmacy and service-station sales. FEMSA's Oxxo convenience stores experienced a decline in same-store sales, reflecting challenges in Mexico’s soft consumer environment, while its digital platforms, such as Spin by OXXO and Spin Premia, showed significant active user growth. Management emphasized ongoing initiatives to adjust product assortments, pricing strategies, and expense controls to counteract volume pressures and prepare for a crucial fourth quarter. The company remains optimistic about long-term growth prospects, leveraging its partnership with The Coca-Cola Company and focusing on profitability and debt management amid a challenging macroeconomic backdrop.