This result is attributed to a challenging comparison base with the first quarter of 2023, which included extraordinary gains from the reclassification of the investment in Heineken

The business conglomerate Fomento Economico Mexicano (Femsa) has cut its net profit by 88.3% in the first quarter compared to the same period of the previous year, leaving it with profits of US$ 343 million.

This drop in profit is due, as the company explained today Friday, to a challenging comparative basis with the first quarter of 2023, which included profits of US$ 2,369 million due to the reclassification of Femsa's investment in Heineken to discontinued operations.

Likewise, the lower profits are due to lower interest income and higher interest expense derived from the acquisition of financial derivatives, partially offset by a reduction in interest rates associated with prepaid debt.

This was partially offset by a lower non-cash exchange loss, resulting from a decrease in its dollar cash position compared to the period ended 2023.

Meanwhile, the company's sales grew 11.3% year-on-year, to US$190,984 million. For their part, costs also increased by 11.6% year-on-year, up to US$6.3 billion.

By markets, sales in America grew by 15.1% year-on-year, and those in Europe by 8.2%. In turn, from the health business, Femsa pocketed US$ 1,059 million, 2.3% less than in the first quarter of 2023, and from the fuel business it increased its turnover by 13.9%.

Meanwhile, the adjusted gross operating result (Ebitda) has increased by 15.4% since the first quarter of 2023, reaching US$ 1,461 million.

For its part, Femsa increased its operating income by 14.4% compared to the same period of the previous year, reaching US$ 861.5 million.

The general director of Femsa, José Antonio Fernandez Carbajal, has highlighted that the first quarter results show that the company is maintaining "the positive trend of last year." "We are starting 2024 with momentum," he stated.