In the face of a volatile macroeconomic environment, FEMSA Comercio produced another set of excellent results.
Total revenues rose 19.0% to Ps. 74.112 billion. Our revenue growth came from our continued store expansion and our comparable same-store sales growth—driven by a balanced increase in store traffic and an improvement in average customer ticket. For the year, our same-store sales growth came in above the trend, reinforcing our position as an industry benchmark.
Gross profit grew 21.1% to Ps. 25.476 billion, resulting in a 60 basis point gross margin expansion to 34.4% of total revenues. Gain in gross margin largely resulted from our effective revenue management, our positive collaboration with our key supplier partners—combined with a more efficient use of promotion-related marketing resources—and our improved mix of higher margin products and services.
Income from operations increased 20.7% to Ps. 6.276 billion. Our higher operating expenses reflect our growing number of stores, as well as our strengthening of FEMSA Comercio’s organizational structure—including management and information technology-related projects. For the year, our operating margin expanded 10 basis points to 8.5% of total revenues.
Total revenues rose 19.0% to Ps. 74.112 billion. Our revenue growth came from our continued store expansion and our comparable same-store sales growth—driven by a balanced increase in store traffic and an improvement in average customer ticket. For the year, our same-store sales growth came in above the trend, reinforcing our position as an industry benchmark.
Gross profit grew 21.1% to Ps. 25.476 billion, resulting in a 60 basis point gross margin expansion to 34.4% of total revenues. Gain in gross margin largely resulted from our effective revenue management, our positive collaboration with our key supplier partners—combined with a more efficient use of promotion-related marketing resources—and our improved mix of higher margin products and services.
Income from operations increased 20.7% to Ps. 6.276 billion. Our higher operating expenses reflect our growing number of stores, as well as our strengthening of FEMSA Comercio’s organizational structure—including management and information technology-related projects. For the year, our operating margin expanded 10 basis points to 8.5% of total revenues.
Consumer Focus
At OXXO, we recently re-designed our entire commercial strategy around distinct consumer needs that we seek to satisfy. As opposed to a purely supply-side driven category management model, this new matrix-like structure incorporates demand-side variables that enable us to more effectively operate our retail levers—assortment, price, and promotions—to drive incremental revenues at our stores. By increasingly targeting, understanding, and fulfilling the following eight primary reasons that consumers visit OXXO, we are continually improving our ability to use these retail levers to more effectively draw shoppers to our stores. We have identified our consumer needs as: Thirst, Craving, Time Optimization, Hunger, Gathering, Daily and Replenishment.
Through our ongoing analysis and satisfaction of these core consumption occasions, we continually expand and enhance our value proposition to enable our stores to provide consumers with an ever-increasing array of the quality products and services that they have come to expect from OXXO.
At OXXO, we recently re-designed our entire commercial strategy around distinct consumer needs that we seek to satisfy. As opposed to a purely supply-side driven category management model, this new matrix-like structure incorporates demand-side variables that enable us to more effectively operate our retail levers—assortment, price, and promotions—to drive incremental revenues at our stores. By increasingly targeting, understanding, and fulfilling the following eight primary reasons that consumers visit OXXO, we are continually improving our ability to use these retail levers to more effectively draw shoppers to our stores. We have identified our consumer needs as: Thirst, Craving, Time Optimization, Hunger, Gathering, Daily and Replenishment.
Through our ongoing analysis and satisfaction of these core consumption occasions, we continually expand and enhance our value proposition to enable our stores to provide consumers with an ever-increasing array of the quality products and services that they have come to expect from OXXO.
Think of it: 9,561 OXXO stores all waiting to serve you.