Femsa (FMX.N): 2Q26 Review: High Quality Beat as OXXO Gains Share

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Femsa (FMX.N): 2Q26 Review: High Quality Beat as OXXO Gains Share

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28 Jul 2026 10:12:24 ET │ 12 pages

Femsa (FMX.N)

2Q26 Review: High Quality Beat as OXXO Gains Share

CITI'S TAKE

Buy FEMSA delivered one of the cleanest consumer beats this earnings

season, with revenue (+3% vs. Citi), EBITDA (+3%) and operating income Price (27 Jul 26 16:00) US$132.15

ahead of our estimates, while EBITDA also exceeded consensus by 4%. Target price US$140.00

The beat was overwhelmingly driven by OXXO Mexico, which delivered Expected share price return 5.9%

9.5% SSS, 2.0% traffic growth, the first positive traffic quarter in several Expected dividend yield 7.2%

periods, and outperformed ANTAD convenience stores by impressive Expected total return 13.1%

1,200bps. Although the Global Football Tournament provided a temporary

Market Cap US$40,165M tailwind, we believe the combination of positive traffic, continued market

share gains and margin expansion points to stronger commercial

execution. Overall, we believe this quarter marks another step toward a

more durable growth profile for OXXO, supported by improving execution Renata CabralAC

before any meaningful recovery in consumer demand. +55-11-4009-7561

renata.cabral@citi.com

OXXO Mexico Remains the Growth Engine — OXXO delivered 9.5% SSS, driven by Luis Felipe Terzariol

7.4% ticket growth and 2.0% traffic growth, ending several quarters of declining +55-11-4009-3564

customer visits. Positive traffic is particularly encouraging because it is typically the luis.terzariol@citi.com

hardest operating metric to improve in convenience retail once inflation begins to

normalize. The company also reported market share gains across several destination

categories, including beverages, snacks and cigarettes, reinforcing that the recovery