FEMSA 2025-26: OXXO +6.3%, Bara Scaling, $3.1B Capital Returned
FY25 (consolidated MXN reporting; financial_statements view in pesos): revenue $46.65B (peso billion); op income $4.10B; NI $1.08B; EPS MXN 2.90. Q4 Proximity Americas +5.3% revenues / +6.3% comparable. OXXO Mexico same-store growth + traffic improving. Bara +63 net new stores Q4 / +157 FY25. OXXO USA: 50 converted stores. Valora (Europe) revenue +2.5% in pesos / op income +10.8%. Coca-Cola FEMSA revenue +2.9% / op income +13.3%. Total capital returned to shareholders $3.1B March 2025 to March 2026. Health division underperformed (Colombia + Mexico institutional). Restructuring expected ~MXN 1B annual run rate savings from 2027.
Key takeaways
- OXXO Mexico same-store growth + traffic improving — material thesis indicator. OXXO is FEMSA's crown jewel (~14,000+ Mexican convenience stores). Q4 Proximity Americas revenue +5.3% / +6.3% comparable demonstrates the recovery underway after FY24 traffic challenges. Initiatives addressing competitiveness issues are working.
- Bara discount format scaling rapidly — +63 net new stores Q4, +157 FY25. Bara is the discount format competing with FEMSA's own OXXO + with hard discounters in Mexico. +1/3 store base growth target FY26. Strong momentum in discount space + growing share.
- Valora (Europe) record operating income. Acquired in 2022; integrated and now generating record results. +2.5% peso revenue / +10.8% op income — disciplined operational improvement. Provides geographic diversification beyond Mexico/LATAM.
- OXXO Colombia positive EBITDA full year + nearly breakeven EBIT Q4. Multi-year international scaling thesis playing out. Q4 inflection from breakeven loss to nearly breakeven EBIT. Continued scaling.
- $3.1B total capital returned to shareholders March 2025 to March 2026 — significant capital return. Balance of dividends + buybacks. FEMSA's capital allocation framework is increasingly shareholder-friendly post-Heineken stake monetization.
Business
Fomento Económico Mexicano S.A.B. de C.V. (FEMSA) is the largest Mexican multi-sector consumer + retail conglomerate. Key segments:
- Proximity Americas (OXXO) (~50% of revenue). 14,000+ OXXO convenience stores in Mexico + Colombia + Peru + Brazil. Q4 +5.3% revenue / +6.3% comparable. Gross margin 48.1%. Operating margin 12%. Added 209 net new stores Q4. OXXO Mexico + Colombia + Peru + Brazil all in operating segment.
- OXXO USA (~3%). Test rollout in US. 50 converted stores year-end. Foodservice strategy progressing. Multi-year US expansion thesis at early stage.
- Bara (Discount Format) (~5%). Discount stores in Mexico — direct competition with hard discounters. +63 net new stores Q4 / +157 FY25. ~1/3 store base growth target FY26.
- Valora (Europe Convenience) (~10%). Swiss/European convenience retail (acquired 2022). Q4 revenue +2.5% pesos / op income +10.8% / record op income. Gross margin 37.9%.
- Health Division (~10%). Pharmacy retail in Mexico + Colombia. Q4 revenue +4.6% / +6.7% comparable. Underperformed on Colombia institutional business + uncollectible accounts provision.
- OXXO GAS (~5%). Gas station network. Same-station sales +8.7%. Operating margin 4.8%.
- Coca-Cola FEMSA (KOF — separately listed) (~25%). Largest Coca-Cola bottler in the world by volume. Revenue +2.9% / op income +13.3% Q4.
- Other (residual). Spin (digital wallet/financial services) reduced negative EBIT in 2025.
Strategic moves FY25:
- OXXO Mexico same-store + traffic recovery initiatives
- 209 net new OXXO stores Q4 (Proximity Americas total)
- Bara: +63 stores Q4 / +157 FY25 / +1/3 store base target FY26
- Valora record operating income
- OXXO Colombia positive EBITDA full year
- Health division underperformance — uncollectible accounts provision
- Spin reduced negative EBIT — improvement expected 2026
- Restructuring initiatives — ~MXN 1B annual run rate savings from 2027
- Organizational restructure — integrating leadership teams + consolidating corporate functions
- OXXO + Spin ecosystem redefined for omnichannel value proposition
- $3.1B capital returned shareholders March 2025 to March 2026
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B / MXN B) | 581.8 | 685.7 | 890.1 | 46.65 |
| Op income ($B) | 62.4 | 56.0 | 80.2 | 4.10 |
| Net income ($B) | 23.3 | 64.0 | 25.7 | 1.08 |
| Diluted EPS ($) | 651.1 | 1789.9 | 739.4 | 2.90 |
| FCF ($B) | 41.1 | 11.6 | 28.8 | 1.64 |
| Capex ($B) | -31.5 | -38.1 | -43.7 | -2.00 |
| Total debt ($B) | 285.1 | 232.9 | 256.3 | 14.29 |
| Dividends ($B) | -17.5 | -18.8 | -25.1 | -2.60 |
| Buyback ($B) | 0 | 0 | -20.3 | -0.81 |
Note: FY25 financial_statements numbers presented in $US (or simplified) — FY22-24 in MXN. The FY25 print (USD-equivalent ~$46.6B revenue) is materially smaller than the FY24 MXN-denominated $890B. Treat the FY25 numbers as approximate; mgmt-disclosed segment metrics from the call are the cleaner reference.
Capital allocation
- Capex (FY25 amount: MXN 2B equivalent in financial_statements view; actual capex levels need verification given currency complexity).
- Dividends Continued.
- Buybacks Continued.
- Total capital returned $3.1B (mgmt-disclosed) March 2025 to March 2026 — meaningful.
- M&A / Divestitures Heineken stake monetization continued.
FY26 outlook (per Q4 2025 call, 2026-02-26)
| FY26 framework | Detail |
|---|---|
| OXXO Mexico | Focus on traffic recovery + same-store sales growth |
| OXXO Colombia | Continue scaling |
| Bara | Increase store base by ~1/3 |
| OXXO Brazil | Fine-tune value proposition + accelerate growth in São Paulo |
| Europe (Valora) | Continue strong performance |
| Restructuring savings | ~MXN 1B annual run rate from 2027 |
| Capital allocation | Linked to traffic recovery + margin sustainability + cash generation |
| Shareholder remuneration | Continued |
Key risks
Health division institutional business challenges. Q4 mgmt called out — Colombia + Mexico operations face challenges + Q4 provision for uncollectible accounts. Pharmacy retail in LATAM has both institutional (government / payer) + retail dynamics; institutional payment collection issues compress margins.
Mexico security / store closures. Q4 mgmt called out disruptions in Mexico due to security issues affecting stores; most stores reopened quickly. Recurring risk in some Mexican regions affecting OXXO + Bara operations.
OXXO Mexico competitiveness. FY24 saw traffic challenges + competitiveness issues addressed in 2025. Continued execution required to maintain share against 7-Eleven, traditional Mexican corner stores, online channels, and other formats.
Bara competition with hard discounters. Aldi, Lidl, Tiendas 3B, Bodega Aurrera (Walmart-owned) all compete in Mexican discount space. Bara's +1/3 store base growth target requires sustained competitive position.
Valora integration / Europe execution. European convenience operations face different competitive dynamics than Mexico. Multi-year integration risk.
Currency exposure. Multi-currency operations — Mexican peso, Colombian peso, Brazilian real, Swiss franc, Euro, Peruvian sol. FX volatility affects translation.
Restructuring execution. ~MXN 1B annual run rate savings from 2027 requires execution. Organizational restructure + leadership integration + corporate functions consolidation all multi-year.
Coca-Cola FEMSA (KOF) dynamics. ~25% of revenue exposure to Coca-Cola bottling. Sugar tax + healthier beverage trends + bottling margin dynamics affect KOF results.
Spin (financial services) profitability. Multi-year path to breakeven. If Spin doesn't reach profitability in expected timeframe, drag continues.
Macroeconomic / consumer health. Mexican consumer health, Colombian + Brazilian + Peruvian dynamics, European recession risk all affect convenience retail volumes.
Bottom line
FEMSA FY25 is a recovery + restructuring year: OXXO Mexico same-store + traffic improving, Bara scaling rapidly (+157 stores FY25 / +1/3 target FY26), Valora record op income, OXXO Colombia positive EBITDA full year, Coca-Cola FEMSA op income +13.3% Q4. The Q4 print confirms operational thesis with Proximity Americas revenue +5.3% / +6.3% comparable.
Health division underperformed — institutional business challenges + uncollectible accounts provision is a notable miss. Spin continues toward breakeven. Mexico security disruptions ongoing.
FY26 framework: OXXO Mexico traffic recovery + same-store growth focus; OXXO Colombia scaling; Bara +1/3 store base; OXXO Brazil acceleration; Europe continued strength; restructuring ~MXN 1B annual savings from 2027; capital allocation linked to traffic + margin + cash.
The risks are real — Health division institutional challenges, Mexico security, OXXO Mexico competitiveness, Bara competition, Valora integration, currency exposure, restructuring execution, KOF dynamics, Spin profitability, macro consumer health.
But the structural thesis (Mexico's largest retailer + multi-format portfolio + LATAM growth + European diversification + Coca-Cola FEMSA partnership + capital return) is intact. $3.1B capital returned in 12 months reflects mgmt confidence in cash flow trajectory + portfolio quality.
Quality LATAM consumer + retail conglomerate mid-restructuring with strong capital return and segment-level inflection. The OXXO Mexico same-store recovery + Bara scaling + Valora record + Coca-Cola FEMSA strength = multiple paths to FY26 outperformance. The Health division and Mexico security remain the watch items.
Citations
- Fomento Económico Mexicano S.A.B. de C.V. FY25 Form 20-F (filed February/March 2026, SEC EDGAR + BMV).
- FMX Q4 2025 / FY25 results call, 2026-02-26 — Proximity Americas Q4 +5.3% revenue / +6.3% comparable; OXXO Mexico same-store + traffic improving; OXXO USA 50 converted stores; Bara +63 Q4 / +157 FY25 / ~1/3 store base growth FY26; Valora record op income; Coca-Cola FEMSA revenue +2.9% / op income +13.3%; OXXO Colombia positive EBITDA full year; Health division underperformance + Q4 provision; restructuring MXN 1B annual savings from 2027; Spin reduced negative EBIT; $3.1B capital returned March 2025-March 2026.
- Internal financial_statements view (consolidated annual + cash flow + capital structure; note FY25 USD-equivalent reporting may differ from prior MXN-denominated periods).