By Anthony Harrup
MEXICO CITY--Retail and beverages company Fomento Economico Mexicano nearly doubled its net profit in the first quarter thanks to a one-time gain from the merger of U.S. distribution concerns BradyPLUS and Imperial Dade.
The Mexican company better known as Femsa posted net profit of 17.64 billion Mexican pesos ($1.01 billion) for the January-March period, up 97% from the year-earlier quarter. Excluding the benefit from the merger, profit was down 36%, due largely to higher financial expenses.
The BradyPLUS and Imperial Dade merger closed in March, with Femsa retaining a 19% stake in the combined company.
Femsa's first-quarter revenue rose 6.1% to 207.78 billion pesos. Adjusted earnings before interest, taxes, depreciation and amortization increased 11% to 28.13 billion pesos.
Revenue at the Oxxo Mexico convenience store chain increased 8.3%, with same-store sales up 6% from a year earlier. Femsa opened 158 new Oxxo stores in the quarter, ending March with 24,455.
Sales at service stations in Mexico and the U.S., and at Oxxo stores in the U.S. and South America, increased by 13% and were up 4.7% on a same-store basis. Revenue in Europe edged up 1.5% excluding the effects of a stronger Mexican peso. Femsa's health division sales rose 0.9% or 6.5% excluding the currency effect.
Beverages unit Coca-Cola Femsa reported a 1.2% rise in sales volume for the quarter, with gains in Argentina, Brazil, Colombia and Guatemala partially offset by a decline in Mexico due to a soft consumer environment and higher excise taxes on soft drinks.
Coca-Cola Femsa revenue increased 1.1% from the year-earlier quarter, and was up 6% excluding the effect of the appreciation of the Mexican peso against most other currencies.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
04-30-26 1103ET
