Fomento Econmico Mexicano (FEMSA) reported a 102.2% year-over-year net profit surge to $297.2 million in Q1 2025, driven by explosive growth in its Brazilian OXXO stores.Consolidated revenues rose 11.1% to $10 billion, with same-store sales climbing 5.6% on a comparable basis, according to its April 28 financial disclosure.
Brazilian operations delivered standout results, with OXXOs revenue soaring 42.1% year-over-year.Same-store sales grew 11.2%, supported by a net addition of 104 stores over 12 months, expanding the network to 615 locations.
This builds on Brazils 54.7% revenue jump in Q4 2024, reflecting aggressive store rollouts since OXXOs 2020 market entry.The chain now operates in 24 So Paulo cities, leveraging partnerships like its joint venture with Razen and Grupo Ns.
Mexicos core OXXO stores saw modest 6.8% revenue growth but faced an 11.8% operating income drop due to rising labor and logistics costs.FEMSAs health division emerged as a bright spot domestically, posting 21% revenue growth.
European retail revenues grew 18%, though operating income fell 14.6% amid inflationary pressures.Brazils OXXO Growth Offsets FEMSAs Global Challenges in Q1 2025.
(Photo Internet reproduction)Digital initiatives showed momentum, with Spin by OXXO reaching 8.9 million active users-a 20.9% annual increase.
The Spin Premia loyalty program expanded to 25.2 million users, capturing 42.5% of in-store transactions.Coca-Cola FEMSA, the conglomerates beverage arm, reported 10% revenue growth and 7.4% operating income growth despite a 2.2% volume decline.OXXOs Expansion in BrazilBrazils convenience market, valued at $34.29 billion in 2024, provides fertile ground for OXXOs hybrid model.
This model combines fuel stations, in-store dining, and proprietary brands like Andatti coffee.The chain serves over 670,000 daily coffee cups regionally, with Brazilian stores recently adopting the brew.
Analysts note OXXOs success contrasts with Brazils broader retail sluggishness under 15% interest rates, attributed to its focus on immediacy-driven purchases.FEMSA CEO Jos Antonio Fernndez acknowledged challenging conditions but highlighted Brazils strategic importance during an investor briefing.
The company plans continued Latin American expansion while optimizing digital integration.With 23,000 stores across nine countries, FEMSAs Q1 performance underscores the resilience of proximity retail in volatile markets.