MEXICO: Femsa Reports Strong FY Growth

Grupo Femsa has reported strong growth for the 2016 fiscal year, although it offered a cautious forecast for the year ahead.

Femsa said its full-year revenues grew by 28.2% to 399.6bn pesos, while operating profit was up 10.9% to 37.4bn pesos. The results were partially driven by the addition of Socofar’s figures, and an organic basis, revenues were up 16.6% and operating profit grew by 6.3%.

The group’s Retail division saw revenue grow by 14.4% and operating profit by 11.6%, driven by store expansion and a 7% rise like-for-like sales at the OXXO convenience store banner. Meanwhile, the Health Division saw revenues grow by 24% on an organic basis, on LFL growth of 22.4%, with organic operating profit up 5.8%. And finally, the Coca-Cola Femsa bottling unit saw adjusted revenues grow by 6.6% on a constant-currency basis, while operating profit was up 4% on the same basis.

CEO Carlos Salazar Lomelín said the group still sees a “resilient consumer environment in our key Mexico market” for 2017, but admitted that there is “more uncertainty than usual largely driven by external dynamics”.

The group ended the year with 15,225 outlets, an increase of nearly 1,200 outlets from 2015.