Fomento Económico Mexicano, or FEMSA, topped second-quarter earnings and revenue expectations as OXXO Mexico and Coca-Cola FEMSA delivered solid growth. Adjusted earnings reached 93 cents per American depositary share, beating the Zacks Consensus Estimate of 82 cents by 13.4%, while revenues of 13.28 billion dollars exceeded the consensus mark by 2.7% and increased 9.3% in Mexican pesos. Net consolidated income rose 64.9% to 9.22 billion pesos, and adjusted EBITDA increased 12.7% to 33.34 billion pesos, with the adjusted EBITDA margin expanding 40 basis points to 14.4%. However, consolidated gross margin contracted 60 basis points to 40.1%, and operating margin slipped 10 basis points to 8.3%, as weaker profitability in international retail and Health, along with declines in Americas and Mobility and Europe, offset gains from the core businesses. FEMSA also completed a 300 million dollar accelerated share-repurchase program during the quarter, while net debt excluding Coca-Cola FEMSA rose to 90.02 billion pesos, lifting the net debt-to-adjusted EBITDA ratio to 1.15 times from 0.93 times a year earlier.
Fomento Economico MexicanoFEMSA beat Q2 earnings and revenue estimates, with adjusted EPS and revenue surpassing consensus, and raised EBITDA.
The Coca-Cola Company
PepsiCo Inc