FEMSA’s Q4 2024 Earnings Conference Call: Key Insights
On February 27, 2025, at 10:00 AM ET, Fomento Económico Mexicano, S.A.B. de C.V. (FMX) held its Fourth Quarter 2024 earnings conference call. The call was led by Juan Fonseca, Director of Investor Relations, José Antonio Fernández Carbajal, Chief Executive Officer & Chairman, Martin Arias, Chief Financial Officer, and Jorge Collazo, representing the Coca-Cola business unit. The call was participated by several analysts, including Ricardo Alves from Morgan Stanley, Lisa Lane from Bank of America, Hector Maya from Scotiabank, Rodrigo Alcantara from UBS, Renata Cabral from Citibank, and Ulises Argote from Santander. Ben Theurer from Barclays also joined the call.
Company Highlights
During the call, the company reported strong financial results for Q4 2024. FEMSA’s consolidated revenue grew by 11.5% year-over-year, reaching MXN 281.1 billion ($13.6 billion USD). The EBITDA margin expanded by 110 basis points to 22.2%. Net income attributable to FEMSA grew by 18.2% to MXN 11.7 billion ($564 million USD).
Business Segment Performance
The company’s beer business, FEMSA Comercio, reported a revenue growth of 10.3% year-over-year, driven by the strong performance of its brands in Mexico and South America. FEMSA’s Coca-Cola business, FEMSA Cerveza, grew by 12.3% year-over-year, benefiting from the recovery of the on-premise channel and the successful launch of new products.
Outlook and Guidance
The company’s management team provided an optimistic outlook for 2025. They expect the economic recovery in Mexico to continue, and they anticipate growth in their beer and Coca-Cola businesses. FEMSA aims to achieve a consolidated revenue growth of around 9% to 11% in 2025, with an EBITDA margin expansion of around 50 basis points.
Impact on Individual Investors
For individual investors, FEMSA’s strong financial performance and optimistic outlook could be a positive sign. The company’s ability to grow revenue and expand its margins despite the challenges posed by the economic recovery in Mexico is impressive. Moreover, the company’s diverse business model, which includes beer, Coca-Cola, and retail, provides a degree of resilience in uncertain economic conditions.
Impact on the World
FEMSA’s strong financial performance and outlook could have broader implications for the global economy. Mexico is the eighth-largest economy in the Americas, and a robust recovery in the country could boost economic growth in the region. Moreover, FEMSA’s success in navigating economic challenges could serve as a model for other companies operating in emerging markets.
Conclusion
In conclusion, FEMSA’s Q4 2024 earnings conference call provided investors with a positive update on the company’s financial performance and outlook. The company’s ability to grow revenue and expand margins in a challenging economic environment is impressive, and its diverse business model provides a degree of resilience. Moreover, FEMSA’s success could have broader implications for the global economy, particularly in Mexico and the Americas.
- FEMSA reported strong financial results for Q4 2024, with consolidated revenue growing by 11.5% year-over-year.
- The company’s EBITDA margin expanded by 110 basis points to 22.2%, and net income attributable to FEMSA grew by 18.2%.
- FEMSA’s beer business, FEMSA Comercio, and Coca-Cola business, FEMSA Cerveza, reported revenue growth of 10.3% and 12.3% year-over-year, respectively.
- The company’s management team provided an optimistic outlook for 2025, with a revenue growth target of around 9% to 11% and an EBITDA margin expansion of around 50 basis points.
- FEMSA’s strong financial performance and optimistic outlook could be a positive sign for individual investors and have broader implications for the global economy.
