Mexican retailer Femsa plans to complete asset sales next year, cut debt
By Valentine Hilaire
MEXICO CITY (Reuters) — Mexico's Femsa, which controls one of the world's largest Coca-Cola (NYSE:KO) bottlers and a sprawling chain of Oxxo convenience stores, plans to wrap up a series of asset sales next year aimed at reducing debt, a company executive said.
The company this year sold its stakes in Dutch brewer Heineken (AS:HEIN) and U.S. wholesaler Jetro Restaurant Depot. The businesses that remain to be unloaded represent about 10% of the company's initial divestment plan to refocus on core businesses, Femsa's head of investor relations Juan Fonseca told Reuters in an interview on Thursday.
Some warehousing operations as well as distribution, logistics and refrigeration businesses no longer fit into Femsa's strategy and may be sold, Fonseca said.
Femsa's shares have surged more than 40% this year after shedding 4.8% in 2022. Asset sales in 2023 have raised more than $7 billion.
Other Mexican companies have also moved to simplify their structure, by spinning off some businesses, such as broadcaster Televisa and conglomerate Alfa, although their shares have failed to respond as positively.
Femsa, which last year acquired Swiss kiosk operator Valora for $1.15 billion, plans to concentrate on its retail, bottling and financial technology (fintech) operations.
Femsa is capitalizing on the ubiquity of its Oxxo stores by promoting fintech services in them, such as digital accounts and debit cards, Fonseca said.
The company's fintech business, called Spin, is set to reach 10 million clients by 2024 from about 8.8 million now, he said.
Another potential strategy for Spin could involve channeling Mexicans' remittances from abroad, which hit $47 million between January and September, through Spin's
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