By Anthony Harrup

MEXICO CITY--Mexican retail and beverages company Fomento Economico Mexicano reported higher profit and sales in the first quarter, lifted in part by the depreciation of the Mexican peso.

Femsa, as the company is better known, posted net profit of 8.94 billion Mexican pesos ($458.6 million) for the January-March period, up 54% from the first quarter of 2024. Earnings before interest, taxes, depreciation and amortization rose 8.8% to 25.3 billion pesos.

Sales increased by 11% to 195.82 billion pesos with growth in all business units. Adjusted for exchange rates, acquisitions and divestitures, sales rose 5.6%.

Retail operations had a challenging start to the year, Femsa said. Revenue rose 6.8% with store expansion and currency effects offsetting a 1.8% decline in same-store sales. Adding to a soft consumer environment were negative calendar effects, including the absence this year of the extra leap year day in February, and the shift in the Easter holiday week to the second quarter.

For Mexico, "our base case is projecting a recovery as we approach mid-year and gaining momentum during the third quarter and beyond," Femsa said. "The second half of the year weighs more than the first half for many of our business units."

Peso depreciation contributed to 18% sales growth in Europe, and a 21% increase in the drug store division with sales growth in Colombia, Chile and Ecuador. Service station sales grew 1.8%. Beverages unit Coca-Cola Femsa reported a 10% increase in sales, with lower volume in Mexico and Colombia partially offset by gains elsewhere in Latin America.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

April 28, 2025 10:36 ET (14:36 GMT)

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