Fomento Económico Mexicano (FMX) reported fourth‑quarter 2025 results that fell short of consensus expectations. Net majority income per FEMSA ADS was $1.36, translating to a net income of $444.6 million or $1.28 per share. Adjusted earnings per share were 92 cents, well below the consensus estimate of $1.53 per share, a miss of $0.61 or 40%.
Total revenue reached $12.023 billion, slightly below the $12.44 billion consensus estimate, a shortfall of $0.417 billion or 3.4%. The revenue miss was largely driven by a weaker Health division, which saw margin erosion and lower operating income, while the Retail Proximity Americas segment continued to grow, offsetting some of the decline.
Operating margin contracted to 8.4% from 8.8% in the prior quarter, a decline of 40 basis points. The contraction reflects higher labor costs and inflationary pressure, as well as the impact of the Health division’s lower profitability. In contrast, the Coca‑Cola FEMSA segment grew 2.9% in revenue, and Proximity Americas contributed a 5.3% increase, underscoring the strength of the company’s core retail and beverage businesses.
Management highlighted that the company’s new CEO, Jose Antonio Fernández Garza‑Lagüera, is pursuing a restructuring plan that merges Proximity and Health corporate teams, flattens the organization, and integrates Spin more tightly with OXXO. The CEO emphasized long‑term growth potential in retail and beverages and noted that restructuring benefits are expected to ramp through 2026 and be fully reflected in 2027.
Looking ahead, FMX did not provide new revenue or earnings guidance for the next quarter, but management signaled confidence that the restructuring will improve profitability. The company’s capital expenditures were reduced by 31.4% in the quarter and 11.3% for the year, indicating a more selective investment approach.
The earnings miss and revenue shortfall suggest that while FMX’s core segments remain resilient, cost inflation and a weaker Health division are current headwinds. The company’s focus on restructuring and selective capital spending aims to mitigate these pressures and position FMX for stronger profitability in the medium term.
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