Fomento Economico Mexicano SAB, which owns Latin America’s largest convenience-store chain, declined the most in almost two weeks after reporting fourth-quarter net income that fell short of analysts’ estimates.
Profit at the company known as Femsa tumbled 25 percent to 5.4 billion pesos ($298 million), missing the 7.23 billion pesos that was the average forecast of analysts. Shares dropped 2.6 percent to 168.88 pesos at 10:06 a.m. in Mexico City after tumbling as much as 4.3 percent for the biggest intraday decline since Feb. 11.
Weak results at Femsa’s gas stations and lower profits from the company’s stake in Heineken NV hurt earnings, Credit Suisse Group AG said in a report. Service stations generated only 39 million pesos in operating profit, or less than 1 percent of the unit’s sales, Femsa said.
“The disappointment came from gas stations having a lower margin than anticipated and lower net profit at Heineken,” Credit Suisse analyst Antonio Gonzalez wrote in a report.
Femsa, based in Monterrey, Mexico, separated its fuel business from broader retail operations for the first time in the fourth-quarter report. Same-store sales at its Oxxo chain, which has more than 14,000 stores, climbed 8.6 percent in the fourth quarter.