- FEMSA reported inline revenue and EBITDA despite modestly weaker-than-expected same-store sales at OXXO, as renewed lockdowns in January and February hit the business.
- A reopening of Mexico's economy should drive sequential improvements in same-store sales for OXXO, and management is ready to continue expanding the geographic store footprint beyond Mexico.
- The launch of spin, FEMSA's digital wallet product, is a promising near-term opportunity given the scale of eligible transactions and the need for more consumer finance options in Mexico.
- Long-term revenue and FCF growth in the neighborhood of 7% can support a long-term annualized return of over 10% from today's price.
For further details see:
Another Tough Quarter For FEMSA, But Recovery Comes Next