FEMSA 2Q2024 Total Consolidated Revenues grew 12.2%
$FMX (Fomento Economico Mexicano SAB-ADR) delivered another good quarter with 198.7B Pesos revenue for Q2 2024 which is 12.2% higher compared to Q2 of 2023. Net income is 15.67B Pesos 75.5% increase from Q2 of 2023. This huge difference in net income is due to divestments in several investments. Considering operations growth it is around 15.8% growth.
Breaking down into segments; Proximity Americas total Revenues increased 8.9% versus 2Q23. Spin by OXXO had 7.9 million active users representing a 37.0% growth compared to 2Q23 while Spin Premia had 22.8 million active loyalty users representing a 44.3% growth compared to 2Q23 and an average tender3 of 36.1%. COCA-COLA FEMSA total volume and revenues grew 7.5% and 13.1%, respectively against 2Q23.
Impact to Portfolio
FEMSA have around 3.8% share in the overall portfolio experienced extreme volatility during the Mexican elections. It is heavily affected by high inflation but will be the first beneficiary of rate cuts in the medium term.
Other Updates
We experienced drops from several of our holdings and added some shares of DLR. We will look for opportunities in other positions and will use the 20% cash level to maximize returns during recovery. The good thing with good fundamentals is it can recover faster after the negative sentiments become less.
Recent flooding in the Philippines
Our house was flooded last week and most of our appliances and furniture are damaged. Our linens and clothes are on the process of drying. This is a first experience of this flood magnitude in our house as it is on higher grounds compared to other areas in the community. I was able to save gadgets and laptops then restore power and broadband after 3 days so if I miss some messages, I will try to catch up and reach out.
Happy Investing!... Show More
