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3. Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX)  

Number of Hedge Fund Holders: 23

Country: Mexico

Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) commonly known as FEMSA, is a Mexican multinational beverage and retail company that operates various businesses across Latin America, Europe, and Asia. Fomento Económico Mexicano, S.A.B. de C.V.’s (NYSE:FMX) convenience store chain, OXXO, is one of the largest in Latin America, with over 20,000 stores across Mexico, Latin America, and Asia. The company’s health division operates pharmacies and provides healthcare services in several countries, including Mexico, Colombia, and Chile.

On October 28, Fomento Económico Mexicano, S.A.B. de C.V.’s (NYSE:FMX) announced financial results for Q3. The company’s revenues increased 8.3%, whereas income from operations increased 14.6% compared to the same quarter in the previous year. OXXO’s same-store sales grew 4.8%, driven by a steady growth in its store base and a gross margin expansion of 300 basis points to 44.2%.

During the third quarter, Fomento Económico Mexicano, S.A.B. de C.V.’s (NYSE:FMX) added 367 net new stores, with 273 in Mexico and 94 in South America, including 39 new stores in Brazil. In the last nine months, the company has added 1,266 net new stores with 961 openings in Mexico and 305 in South America, including 124 new stores in Brazil.

Fomento Económico Mexicano, S.A.B. de C.V.’s (NYSE:FMX) plans to continue expanding its store base, with a preliminary target of 1,100 net new stores in Mexico in 2025, representing a growth rate of over 4%. The company also plans to expand its presence in the Brazilian market, where it has a joint venture to operate convenience stores. The company plans to increase its store base in Brazil by approximately 20% in the next year.