FMX Filings — Mexican Economic Development, Inc. - FilingSpy
FMX
Mexican Economic Development, Inc.
A Mexican beverage and retail giant behind Coca-Cola FEMSA, the world's largest independent Coca-Cola bottler, and OXXO, the convenience store chain found on nearly every corner in Mexico. It began in 1890 as the Cuauhtémoc Brewery in Monterrey, founded by five businessmen to brew Carta Blanca beer, and took the name FEMSA in 1988. The company once brewed beer itself but sold its brewing business to Heineken in 2010.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
FEMSA net income fell 17.9% to Ps. 33.1B as a non-cash FX loss on dollar holdings reversed the prior year's gain.
A stronger peso wiped out a fifth of . Total rose 7.6% to Ps. 841.0 billion and held at 40.6%, but a Ps. 17.7 billion swing to a on dollar-denominated cash turned operating growth into a bottom-line decline. The core retail and bottling businesses expanded, yet the peso's move shows how currency swings now dominate reported earnings.
Key takeaways
Consolidated fell 17.9% to Ps. 33,053 million, driven by a Ps. 17,676 million as the Mexican peso appreciated against the company's U.S. dollar cash holdings — a direct reversal of the prior year's FX gain.
Total rose 7.6% to Ps. 840,954 million, with growth across all business units, led by Proximity Americas which added 1,125 net new OXXO stores and posted a 1.0% increase.
Consolidated contracted 50 to 40.6%, as margin declines at Coca-Cola FEMSA, Health, and Proximity Europe were only partially offset by expansion in Proximity Americas.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
FEMSA manages interest rate, foreign currency, and commodity price risks primarily through derivatives, with most debt fixed-rate after swaps.
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After hedging, 83.5% of total debt is fixed-rate and 16.5% is variable-rate; a 100 rate rise would increase annual by Ps. 211 million.
53.4% of is in Mexican pesos, 27.0% in U.S. dollars, and 7.2% in euros; a 10% peso devaluation would increase by Ps. 4,336 million.
Coca-Cola FEMSA rose 4.3% to Ps. 291,746 million, but fell 40 on higher promotional discounts and fixed costs, even as volume grew.
Management disclosed that a in Coca-Cola FEMSA's IT general controls over financial accounting led to the conclusion that internal control over financial reporting was ineffective as of December 31, 2025.
Financing outflows rose to Ps. 92,000 million, driven by higher payments of Ps. 49,925 million, while the 2026 budget was set at approximately Ps. 49,870 million.
What changed
The prior year's flag on OXXO traffic: the 1.5% traffic decline in 2024 did not reverse; growth slowed to just 1.0% in 2025, suggesting price-driven growth has largely exhausted itself and footfall remains under pressure.
The prior year's flag on the in IT controls: the weakness was not remediated and was explicitly cited again in 2025, this time at Coca-Cola FEMSA, leading to an ineffective internal control assessment — a widening rather than a resolution.
The prior year's flag on the budget and : 2025 capex was deployed, and the 2026 budget was set at Ps. 49,870 million, a reduction from the Ps. 58.8 billion guided for 2025, signaling a more constrained investment cycle ahead.
The prior year's flag on peso volatility: the direction flipped — a 10% peso devaluation would now increase by Ps. 4,336 million, compared to a Ps. 8.5 billion decrease in 2024, reflecting the company's shift to a net short-dollar position after the Heineken divestiture.
What to watch
Whether OXXO growth can return above 1.0% in 2026 or if traffic continues to decline, indicating the core Mexican convenience business has reached a saturation point.
The remediation timeline for the Coca-Cola FEMSA IT general controls , and whether it triggers any restatements or auditor actions in the next filing.
The effect of U.S. trade policy changes, including potential tariffs, on Coca-Cola FEMSA's cross-border concentrate costs and Proximity Americas' U.S. expansion in Texas.
The return on the 2026 budget of Ps. 49,870 million, particularly the Ps. 17,045 million allocated to new and refurbished OXXO stores, given slowing .
The company holds cross-currency swaps with notional amounts up to Ps. 19,526 million maturing through 2050, used as fair value hedges on foreign-currency debt.
Forward contracts hedging U.S. dollar transactions had a of Ps. 10,533 million and a net fair value liability of Ps. 619 million at year-end.
Commodity derivative contracts with notional amounts of Ps. 5,376 million hedge raw material costs, recording a Ps. 231 million loss on expired contracts in 2025.
No equity derivative agreements exposed the company to equity risk, though accelerated agreements were entered into in 2025.
FEMSA's risk factors center on its dependence on The Coca-Cola Company, slowing retail growth, and exposure to Mexico's economic and security conditions.
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Coca-Cola FEMSA's business is highly dependent on its relationship with The Coca-Cola Company, which controls concentrate pricing, supply, and bottler agreement renewals.
Proximity Americas Division's historic growth rate may slow as OXXO store penetration increases and viable new store locations become less favorable.
A in Coca-Cola FEMSA's IT general controls over financial accounting was identified, leading management to conclude was ineffective as of December 31, 2025.
Adverse economic conditions in Mexico, which accounted for 64% of 2025 total revenues, and peso volatility could significantly impact financial results.
Political, social, and security events, including organized crime and potential US trade policy changes like new tariffs, pose operational and financial risks across key markets.
The company faces risks from integrating acquisitions under its FEMSA Forward strategy, which may not achieve expected returns and could pressure profit margins.
FEMSA is a Mexican multinational focused on retail, Coca-Cola bottling, and digital solutions, operating across the Americas and Europe.
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FEMSA operates through three core businesses: Coca-Cola FEMSA (the world's largest Coke bottler by volume), retail divisions (Proximity Americas, Proximity Europe, Health, and Fuel), and the Spin digital/Fintech unit.
Coca-Cola FEMSA serves ~268M consumers daily, sold ~4.2B unit cases in 2025, and operates 55 plants and 256 distribution centers across Mexico, Central America, and South America.
The Proximity Americas Division runs 25,587 OXXO small-format stores, primarily in Mexico, and expanded into the U.S. by acquiring 249 Delek convenience stores in Texas.
The Proximity Europe Division operates 2,755 multi-format outlets (e.g., k kiosk, BackWerk) in five European countries, mainly through franchise and agency models.
The Health Division has 4,503 pharmacy locations across Mexico, Chile, Ecuador, and Colombia, while the Fuel Division operates 552 OXXO Gas stations in Mexico.
FEMSA's strategy focuses on balanced growth, digital expansion via its Spin ecosystem, global replication of its retail competencies, and embedded sustainability.
FEMSA's 2025 total revenues rose 7.6% to Ps. 840,954 million, driven by growth across all units, but net income fell to Ps. 33,053 million due to FX losses.
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Consolidated total revenues grew 7.6% to Ps. 840,954 million, with Proximity Americas adding 1,125 net new stores and a 1.0% increase.
Consolidated contracted 50 to 40.6%, pressured by margin declines in Coca-Cola FEMSA, Health, and Proximity Europe, partially offset by Proximity Americas' expansion.
Consolidated decreased 17.9% to Ps. 33,053 million, primarily due to a Ps. 17,676 million swing to a non-cash foreign exchange loss from an appreciated Mexican peso on USD cash.
Coca-Cola FEMSA's total revenues increased 4.3% to Ps. 291,746 million, but fell 40 on higher promotional discounts and fixed costs.
Net was Ps. 71,080 million, while financing outflows rose to Ps. 92,000 million driven by higher payments of Ps. 49,925 million.
2026 are budgeted at approximately Ps. 49,870 million, with Proximity Americas allocating Ps. 17,045 million for new and refurbished OXXO stores.