Mexico’s Femsa Plans Thousands of Additional Oxxo Stores Across Latin America | The mighty 790 KFGO


By Valentine Hilaire and Kylie Madry

MEXICO CITY (Reuters) – Mexican bottler and retailer Femsa plans to increase the number of its Oxxo convenience stores by up to 50% in Latin America over the next decade, executives said on Monday, with hundreds planned in Brazil , Chile and Colombia in 2022 alone.

Femsa already operates 20,431 Oxxo stores in Latin America, generating about 35% of the parent company’s revenue, according to its fourth quarter results.

Along with adding some 800 new Oxxo stores in its home country in 2022, executives told investors on a call that the company hopes to open another 200 Oxxo stores in Brazil as well as 150 between Chile and Colombia. .

“As we grow in these other countries, obviously profitability starts to increase,” Juan Fonseca, director of investor relations, said of the company’s ambitious expansion plans.

Femsa also said it has completed the purchase of OK Market, which operates 134 convenience stores in Chile.

Earlier on Monday, Femsa posted a net profit of 6.7 billion pesos ($328 million) in the fourth quarter, compared with a net loss of 1.2 billion pesos in the boosted year-ago period. by higher operating profit and lower net interest expense. .

The conglomerate, which runs one of the world’s largest Coca-Cola producers, also posted a 16.3% increase in quarterly revenue, helped by growth across all of its business units.

Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter rose to 23.4 billion pesos, in line with Refinitiv’s estimate of 23.07 billion pesos.

The company’s subsidiary, Coca-Cola Femsa, reported an 82.8% increase in quarterly net profit last week. Chief Executive John Santa Maria attributed the rise to increased sales in Latin America in the quarterly earnings report.

Barclays said in an analysis in mid-January that Femsa was well positioned in 2022.

Femsa shares edged up 0.86% at the market close on Monday afternoon.

($1 = 20.5075 pesos at the end of December)

(Reporting by Valentine Hilaire, Kylie Madry and Noe Torres; Writing by Stefanie Eschenbacher; Editing by Drazen Jorgic, Mark Porter and Karishma Singh)

Previous Eradicate corruption within public enterprises
Next 888 fined £9.4m for social responsibility and money laundering breaches - Legal and Compliance