FEMSA's Active Management Is Driving Improved Growth And Margins

FEMSA has outperformed peers with proactive margin improvement, operational streamlining, and expanded capital returns despite macro headwinds and weak OXXO traffic. OXXO Mexico's affordability initiatives and easier comps should support improved same-store sales, though traffic declines and cost pressures remain key watch items. Management is targeting aggressive store expansion for Bara, as well as ongoing growth for OXXO in Mexico, Brazil, Colombia, and elsewhere, and in-store assortment improvement can drive further upside.