FEMSA boosts margins and expands stores despite macro challenges, eyeing double-digit growth in Latin America.

FEMSA has outperformed its peers by proactively improving margins, streamlining operations, and increasing capital returns despite facing macroeconomic headwinds and declining traffic at its OXXO stores. The company’s affordability initiatives in Mexico and easier sales comparisons are expected to support better same-store sales, although traffic and cost pressures remain concerns. Management plans aggressive store expansion for its Bara brand and continued growth for OXXO across Mexico, Brazil, and Colombia, with improvements in in-store product assortment offering additional growth potential. These efforts support a positive outlook with double-digit upside driven by strong retail execution, disciplined capital allocation, and long-term growth opportunities in Latin America and digital finance.