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Fomento Económico (FEMSA): Initiation Of Coverage – Its 97% Net Income Surge Masks A Hidden 36% Decline — What Changed?

Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) reported its financial and operational results for the first quarter of 2026 with a restructured segment reporting format to enhance transparency and facilitate closer tracking of distinct business units. The new segmentation isolates OXXO Mexico due to its significant impact and introduces the Americas & Mobility segment combining international OXXO convenience operations and fuel businesses in Mexico and the U.S. FEMSA’s consolidated revenues increased by 6.1% year-over-year, while operating income rose 5.5%. Adjusting for currency and comparable figures, revenue and operating income growth were stronger at 8.5% and 12.1%, respectively. However, net income showed a sharp increase of 97.3% to 17.6 billion Chilean pesos, primarily driven by a one-time non-cash accounting gain; when excluding this, net income declined by 36.4%, impacted by higher financing expenses from foreign exchange losses and lower interest income.