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.
Profitable Complexity
We use our robust information technology platform, detailed processes, and logistics expertise to manage the complex variables required to run an efficient supply chain profitably. Today, through our demand planning system, we are able to accurately replenish our stores with the items they need to satisfy our consumers according to the movement of goods in different product categories. To do this, we use information extracted from our point-of-sale databases, as well as historical data, to predict the behavior patterns for our product categories in the different seasons and events of the year. Together, these systems and processes significantly improve product availability, reduce stock outs, increase inventory turnover, and achieve high levels of service.
Furthermore, our 13 distribution centers use the information generated by our demand planning system to design and execute the logistics required to pick, pack, and ship products on-time for sale at our stores. Our centers each serve an average of more than 700 stores, replenishing the inventory of over 1,000 products on average a week through a distribution network synchronized with our warehouse operations to ensure the proper transportation and care of the product. Our centers’ operations are conducted through a warehouse management system, which has developed the functionality to manage each task and control every movement of an article from receiving to shipping. Because of the importance of inventory control, we use different devices such as Radio Frequency and Voice-guided Picking to register every transaction in real-time.
Moreover, the modern infrastructure of our new distribution centers enables optimal material handling and a high fill rate of orders, while minimizing the risk of any damage to our merchandise. Our centers are also capable of handling any kind of product—from dry to frozen and perishable foods. As OXXO grows, we will continually evolve our supply chain not only to efficiently manage the increasing size and complexity of our growing array of offerings, but also to maximize our profitability. Indeed, we recently enhanced our distribution network to reach our stores more frequently incorporating multi-temperature trucks and setting up dedicated routes for certain product categories.
At the end of the day, OXXO’s sharpening consumer focus, growing ubiquity, and expanding array of products and services ensure that ”we are always ready, and we are always there for you.“
We use our robust information technology platform, detailed processes, and logistics expertise to manage the complex variables required to run an efficient supply chain profitably. Today, through our demand planning system, we are able to accurately replenish our stores with the items they need to satisfy our consumers according to the movement of goods in different product categories. To do this, we use information extracted from our point-of-sale databases, as well as historical data, to predict the behavior patterns for our product categories in the different seasons and events of the year. Together, these systems and processes significantly improve product availability, reduce stock outs, increase inventory turnover, and achieve high levels of service.
Furthermore, our 13 distribution centers use the information generated by our demand planning system to design and execute the logistics required to pick, pack, and ship products on-time for sale at our stores. Our centers each serve an average of more than 700 stores, replenishing the inventory of over 1,000 products on average a week through a distribution network synchronized with our warehouse operations to ensure the proper transportation and care of the product. Our centers’ operations are conducted through a warehouse management system, which has developed the functionality to manage each task and control every movement of an article from receiving to shipping. Because of the importance of inventory control, we use different devices such as Radio Frequency and Voice-guided Picking to register every transaction in real-time.
Moreover, the modern infrastructure of our new distribution centers enables optimal material handling and a high fill rate of orders, while minimizing the risk of any damage to our merchandise. Our centers are also capable of handling any kind of product—from dry to frozen and perishable foods. As OXXO grows, we will continually evolve our supply chain not only to efficiently manage the increasing size and complexity of our growing array of offerings, but also to maximize our profitability. Indeed, we recently enhanced our distribution network to reach our stores more frequently incorporating multi-temperature trucks and setting up dedicated routes for certain product categories.
At the end of the day, OXXO’s sharpening consumer focus, growing ubiquity, and expanding array of products and services ensure that ”we are always ready, and we are always there for you.“
At OXXO, we offer our consumers an array of more than 2,000 products and services. What can we do for you?