Oct 28, 2026 earnings call — OXXO Mexico turnaround and Spin focus
Net consolidated income was MXN 9.2 billion, a 64.9% increase.
Revenue $13.0B (est $12.8B) · EPS $1.10 (est $1.04)
Key quotes
"First, impulse, our core, where we are sharpening price pack architecture and promotions to achieve competitive price points and optimizing our assortment to include lower-cost alternatives in key categories where the focus on convenience had reduced our competitiveness."
"On the subject of credit, as you know, during the quarter, we announced a partnership with QED Investors to help us develop our lending platform, bringing on board a very experienced partner with talent, expertise, and execution capabilities that materially improve our odds of success in what can be a high-risk, high-reward business."
"During the second quarter, we set a record for store openings, adding 112 net new stores, representing more than one new store per day, a pace that we will try to improve upon in the coming quarters."
Analyst Q&A 12
Spin partnership and credit plans
Q (Tiago Bortoluci · Goldman Sachs): Analyst asked how FEMSA thinks about the partnership with QED, using balance sheet to expand services, and roadmap for evolving the Spin ecosystem.
A: They said it is very early but the partnership with QED has started well and they are impressed by QED's experience and talent. They are already sharing data and seeing good correlations, and view Spin and OXXO as complementary while planning slow, contained credit growth with possible off-balance sheet financing over time.
"I would say as Spin continues to become more and more relevant in the ecosystem, we're at the point where we're enjoying the best of both worlds." — José Antonio Fernández Garza (CEO)
Leadership changes at OXXO Mexico
Q (Rodrigo Alcantara · UBS): Analyst asked how responsibilities shifted from retail to FEMSA Consolidated and what contributions Carlos Arroyo has made so far.
A: He said his role now focuses on strategy, culture, and talent across CEOs and the board. Carlos brings deep retail experience, a stellar team, and strong supply chain focus, investing to reach top 1% supply chain performance that supports food, grocery and core categories.
"He really has surrounded himself with a stellar team." — José Antonio Fernández Garza (CEO)
Price pack and assortment actions
Q (Ben Theurer · Barclays): Analyst asked what they have done on price pack architecture and assortment to compete with informal markets, and which categories still have room to drive traffic with pricing.
A: They said they adjusted price packs to add value packs especially in tobacco, soft drinks, and more competitive assortments instead of broadly lowering prices. They focus on simplifying portfolio, extracting more supplier value, and changing mix to meet value-centric consumers while aiming to maximize operating income over time rather than gross profit.
"We are maximizing profit or income from operation, but now putting into the mix that we want to grow traffic profitably." — José Antonio Fernández Garza (CEO)
Same-store sales vs gross margin drivers
Q (Ricardo Alves · Morgan Stanley): Analyst asked why strong same-store sales and an 8% ticket boost did not translate to higher gross margin and whether supplier commercial income or mix explains it.
A: They said the quarter had specific effects like excise taxes on soft drinks and cigarettes and World Cup-driven assortments (Panini) boosting ticket but not margin. They monitor supplier cost pass-through and saw they passed on either equal or slightly less than supplier costs except taxed categories, and they expect excise effects to remain into next quarters.
"The inflation that you see as the headline consumer inflation number for Mexico is not necessarily the inflation number that gets passed on in the categories that we sell through the store." — Martín Arias (CFO)
Price gaps, pantry expansion, Brazil outlook
Q (Robert Ford · BofA): Analyst asked about price deltas versus competitors, price elasticity in invested areas, TAM for grocery/pantry, and Brazil same-store sales and path to profitability.
A: They explained pricing considers full convenience cost vs supermarkets and mom-and-pop; core impulse categories are at desired pricing while they will introduce value brands and be much more aggressive in pantry to be competitive. For OXXO Brasil, it's early but cohorts improve, recent same-store sales were mid-single digits, and they expect a few years to find a sweet spot before accelerating expansion.
"Where we do need to be much more aggressive is as we expand into the pantry development." — José Antonio Fernández Garza (CEO)
Which strategic pillars work best
Q (Alejandro Fuchs · Itaú BBA): Analyst asked which of the four pillars are working better than expected and which need more improvement given strong same-store sales and traffic.
A: They said the impulse pillar has moved fastest, delivering significant share gains in beer, tobacco, and soft drinks, helped by the World Cup. Foodvenience (coffee) shows dramatic increases but needs more infrastructure; daily replenishment and hero products will take longer and require supply chain and supplier development while behind-the-scenes cost and efficiency work also supported operating results.
"On impulse, becoming excellent or best in class in something that you were already great but now you're becoming best has become the one that most quickly turned the needle." — José Antonio Fernández Garza (CEO)
Willingness to invest margin to gain share
Q (Speaker 10 · Scotiabank): Analyst asked how much gross margin they would sacrifice to gain share and how mix might change long term while optimizing operating income.
A: They said it's hard to give a number but they will give up gross margin if it raises profit and operating income over the long term, viewing gross profit as a small part of a larger profit pie including FMCGs. They expect to invest in winning pantry and daily replenishment where they see big potential and remain optimistic on net income while unable to provide a specific margin number.
"We are willing to give gross margin if we see profit go up and if we see our operating income continue to go up." — José Antonio Fernández Garza (CEO)
Prepared food and coffee share and profitability
Q (Antonio Hernández · Actinver): Analyst asked what share prepared food and coffee account for in OXXO Mexico revenue, targets, and profitability differences versus Colombia/Europe.
A: They said coffee revenues are growing double digits and OXXO Mexico food service is in the mid-single digits of revenue, with a target to approach Colombia's mid to high mid-teens. Profit-wise, food is highly accretive across markets once shrinkage is controlled and can be a good traffic and revenue driver for OXXO Mexico.
"We're not ready to give a big, precise number on coffee, but we're growing double digits in revenue in coffee." — José Antonio Fernández Garza (CEO)
Proximity Europe growth opportunities
Q (Emiliano Hernández · GBM): Analyst asked where Proximity Europe can accelerate growth medium-term — store expansion, value proposition, or other — and how investors should view it as a five-year growth driver.
A: They said Europe has driven increased promotional income and net profits, especially in Switzerland, and they are using asset-light expansion via fuel operator agreements (e.g., 200 stores in Austria). Their main focus remains Mexico and South America expansion, with opportunistic pursuits in Europe and North America but no near-term deals.
"We just signed another agreement with a fuel operator in Austria to operate 200 stores." — José Antonio Fernández Garza (CEO)
Second-half normalization outlook
Q (Froylan Mendez Solther · JPMorgan): Analyst asked how much normalization to expect in 2H for OXXO Mexico same-store sales and gross margin given World Cup effects and weak consumer.
A: They were cautiously optimistic and said mid-single-digit same-store sales (inflation plus one) is a common historical norm, though consumer softness could lower that; recent weeks post-World Cup look better. For gross margin, commercial income remains and levers are within their control; stripping one-offs, gross margin contraction could be smaller than this quarter and results will be somewhat hit-and-miss.
"At the end of the day, the mid-single-digit is where we tend to land on a normalized series." — Juan Fonseca
Labor and third shift staffing
Q (Alvaro Garcia): Analyst asked how they think about labor and third shift staffing needs when expanding foodvenience and traffic, and clarification on the 60% World Cup uplift basis.
A: They said they over-reduced third-shift staffing after COVID and are reinstating two-person third shifts in many regions, which will raise SG&A initially but improve traffic and first-shift readiness; they aim to invest in processes to mitigate labor cost rises. The 60% uplift mentioned was on a traffic basis and they believe World Cup and Panini helped gain share across channels.
"I mentioned it on a traffic basis." — José Antonio Fernández Garza (CEO)
Vision for Coca-Cola FEMSA long term
Q (Carlos Laboy · HSBC): Analyst asked José's long-term vision and ambition for Coca-Cola FEMSA as he settled into his role.
A: He said he sees an interesting future both organically and inorganically, citing opportunities in Venezuela, Colombia, and Guatemala, strong alignment with the Coca-Cola system, and powerful digital tools driving supervisor effectiveness. He is open to consolidation in Latin America and is excited about Coca-Cola FEMSA's future, while noting he is biased and enthusiastic.
"Coca-Cola FEMSA is set for a very brilliant future in organic growth." — José Antonio Fernández Garza (CEO)