By Anthony Harrup
MEXICO CITY--Retail and beverages company Fomento Economico Mexicano posted higher sales and operating gains in the third quarter, while net profit fell on a non-cash foreign-exchange loss.
Femsa, as the company is better known, posted net profit of 5.84 billion Mexican pesos ($316.6 million) for the July-September quarter, down from MXN9.24 billion in the year-earlier period. Profit was affected by an exchange loss due to the appreciation of Mexican peso against the U.S. dollar, given Femsa's dollar-denominated cash position.
Net majority income was equivalent to MXN0.70 a share or $0.38 an American depositary share.
Sales in the quarter rose 9.1% to MXN214.64 billion and were up 4.9% adjusted for currency effects, mergers and acquisitions. Adjusted earnings before interest, taxes, depreciation and amortization rose 6.5% to MXN30.84 billion.
Sales at the Oxxo convenience store chain were up 9.2%, including a 1.7% increase in same-store sales, a 5.7% store expansion and the consolidation of U.S. operations. Sales in Europe rose 10%, or 3.3% adjusted for currencies. Drug store sales were up 2.9% and service station sales rose 5%.
Sales at beverages unit Coca-Cola Femsa rose 3.3%, with lower sales volume in Mexico partially offset by volume growth in Central and South America.
Femsa Chief Executive Jose Antonio Fernandez said in a release that the consumer environment in Mexico remains a challenge, but results in that market showed signs of improvement from the previous quarter.
"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," he said.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
10-28-25 1005ET
