Fomento Económico Mexicano (FEMSAUBD) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw a recovery in same-store sales and traffic trends, especially at OXXO Mexico, with initiatives focused on affordability and competitiveness yielding positive results.

• Strategic priorities include regaining growth and relevance in OXXO Mexico, scaling successful models in Colombia and Brazil, and leveraging digital and physical integration through Spin.

• Organizational restructuring aims to streamline operations, consolidate leadership, and drive efficiency, with expected annualized savings of MXN 1 billion by 2027.

• Spin by OXXO active users grew 22.0% year-over-year to 10.5 million; Spin Premia loyalty users up 13.8% to 28.1 million.

• CEO highlighted ongoing restructuring, integration of corporate teams, and digital strategy realignment.

Financial highlights

• Q4 2025 total revenues increased 5.7% year-over-year, with operating income up 8.5% and net consolidated income rising 33.6%.

• Gross margin for Proximity Americas expanded by 40 bps to 48.1%, and operating margin reached 12%.

• Health Division Q4 revenues grew 4.6%, but operating margin was pressured by a MXN 487 million provision for uncollectible accounts in Colombia.

• Proximity Europe revenues up 2.5%, income from operations up 10.8% year-over-year.

• CapEx for 2025 totaled MXN 45.3 billion, below 2024 levels, reflecting prudent investment pacing.

Outlook and guidance

• 2026 targets include accelerating store expansion in Bara (one-third growth), OXXO Brazil (100 net new stores, 15% growth), and Colombia (20% growth).

• Spin's negative EBIT is expected to improve by 20% in 2026, with full restructuring benefits realized by 2027.

• Extraordinary capital returns of $1.3 billion planned for March 2026–March 2027, with flexibility for further buybacks or dividends.

• Management expects continued momentum in 2026 despite a soft but stabilizing consumer environment and new taxes in Mexico.

• Efficiency and top-line benefits from restructuring expected to ramp up in 2026 and be fully realized by 2027.