Home Business-newBusiness This is Femsa’s plan to ‘conquer’ Mexico in 2023

This is Femsa’s plan to ‘conquer’ Mexico in 2023

by Yucatan Times
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Oxxo and ready-to-go alcoholic beverages are the ‘focus’ of the 1.7 billion US dollar investment that Fomento Económico Mexicano (Femsa) has planned for this year.

“We expect this year to be investing 1.7 billion dollars for the total business, mostly in the proximity division with the expansion of stores, and in KOF (the Coca-Cola FEMSA bottling company), given the long relationship we have with the Coca-Cola Company, which will lead us to grow in all categories, especially in the production of coolers,” said Daniel Rodríguez Cofré, CEO of Femsa, in a conference with analysts.

He explained that for Oxxo, the focus of expansion will continue to be Mexico, but South America will definitely begin to “move the needle more,” with the main focus on Colombia and Chile.

In addition, there will be a boost to its Oxxo Premia loyalty program, which is already used in one out of every five transactions carried out in stores, and the strengthening of its Spin fintech program, as well as resuming its relationship with banks to provide financial services.

How did Femsa fare in 2022?

Between October and December 2022, the conglomerate recorded a 23 percent increase in revenues compared to the same period in 2021, with a value of 186.467 billion pesos.

The fuel division led the growth with 25.4 percent; followed by proximity with 17.1 percent, and healthcare with 1 percent.

Regarding Envoy Solutions, its logistics division in the United States, they explained that it will continue to operate as it has been, but will not have a significant Capex until they know whether it will be sold or separated from Femsa, following the analysis of future strategy where the decision was made to sell its shares in Heineken.

During the fourth quarter of 2022, Femsa’s EBITDA totaled Ps. 26.562 billion, equivalent to an annual increase of 13.3%.

Net income in the last quarter of the year totaled 8.838 billion pesos, 12.5 percent below the similar quarter of 2021, related to an exchange loss of 4.299 billion pesos due to Femsa’s dollar-denominated cash position, which was impacted by the appreciation of the peso.

TYT Newsroom

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