Mexico-based, Femsa-owned OXXO has reported a 7.9% growth in its Q3 2018 revenue versus the same period in 2017. The company attributes the growth to higher traffic at its convenience stores.
Net profit fell by 85%...
Femsa generated a revenue of MXN118.4bn (US$6.3bn) in Q3 2018 compared to MXN109bn in Q3 2017. However, the company’s net profit fell by 85% to MXN4.7bn (US$2.4m) compared with MXN32.4bn (US$1.7bn). This was due to the sale of a 5% stake in Heineken, in September 2017, and exchange-rate losses.
…while OXXO’s store traffic increases revenue
OXXO’s like-for-like sales increased by 6.2%, aided by a 2.5% growth in store traffic and a 3.6% rise in average customer ticket. Traffic growth helped increase total revenue by 12.1% in Q3, versus a 12.0% rise in the whole nine-month period. The company said that on an organic basis, total revenues rose by 11.7%, supported by the opening of 182 net new stores in the quarter. At the end of Q3 there were 17,478 OXXO stores.
According to Eduardo Padilla, CEO of Femsa, higher costs and tight labour conditions constrained retail operating margins in Mexico.