This was partially offset by a non-cash foreign exchange gain of US$463 million related to Femsa's dollar-denominated cash position, positively impacted by the depreciation of the Mexican peso.
Mexican conglomerate Femsa has cut its net profit by 57.4% in the first nine months of the year compared to the same period last year, to a profit of 30.697 billion Mexican pesos (US$ 1.535 billion), the company reported on Monday.
This decline is explained by a "challenging" comparative basis for the first nine months of 2023, which included a gain from the reclassification of Femsa's investment in Heineken to discontinued operations and higher interest expenses.
This was partially offset by a non-cash foreign exchange gain of 9,258 million Mexican pesos (US$ 463 million) related to Femsa's dollar-denominated cash position, positively impacted by the depreciation of the Mexican peso.
Femsa's sales in the first three quarters were 10% higher than those achieved by the company in the same period of the previous year, recording a turnover of 572.866 billion Mexican pesos (US$ 28.661 billion).
By business segment, the company has seen growth in all its units, with year-on-year increases of 9.3% and 11.7% for its operations in America and Europe, respectively.
Meanwhile, the health business had an increase in revenue of 3.3% and the fuel business an increase of 13%. The company's joint venture with Coca-Cola Femsa had an increase in revenue of 12.4% year-on-year.
Adjusted gross operating profit (EBITDA) was 80,939 million Mexican pesos (US$ 4,049 million), 16.8% more year-on-year, with an adjusted EBITDA margin of 14.1%.
Operating income for the first nine months of 2024 reached 47.99 billion Mexican pesos (US$ 2.401 billion), 14.1% more than in the same period of the previous year.
Regarding the third quarter, Femsa reduced its net profit by 27.5% compared to the period between July and September 2023, to 9.243 billion Mexican pesos (US$ 462 million).
Femsa CEO José Antonio Fernández Carbajal has highlighted that during the third quarter, most of its business units obtained encouraging results, with revenue growth and margin expansion in several areas, even in a weak consumer environment in the second half of the year, particularly in Mexico, a key market for the company.
"While we make an effort to close the year strong, we are already working hard on developing plans and objectives to achieve an even better 2025," he said.
