Mexico's Femsa posts 60% Q4 profit jump, pivots digital strategy

MEXICO CITY, Feb 25 (Reuters) - Mexican bottler and retailer FEMSA on Wednesday reported a 60% jump in fourth-quarter net profit as broad growth and lower taxes offset currency losses, while its fintech unit Spin shifted strategy and delayed a banking license.

RESULTS

• Net profit rose to 8.525 billion pesos ($473 million) for the quarter, the company said in a statement.

• Total revenues reached 220.091 billion pesos, representing a 6% increase compared to the same period the previous year.

NEW MODEL FOR SPIN

• FEMSA announced a redefinition of its "Ecosystem 2.0" strategy to focus primarily on OXXO Mexico and align store operations with digital performance.

• Under the new model, fintech arm Spin will manage the ecosystem's entire profit and loss statement.

• Spin will concentrate on digital performance, including the management of the loyalty program, digital payments, and user retention.

• The company stated it will no longer seeks third-party partners for its Premia loyalty platform.

• Application for a banking license has been delayed until the company sees clearer success in its credit-related business opportunities.

VIOLENCE IN MEXICO

• A FEMSA executive said in a conference call that the company closed up to 6,000 stores for one day as a precaution due to violence.

• On Monday, the company had reopened 90% of the affected locations.

• Approximately 200 stores sustained damage from looting or arson during the unrest, the executive said.

• Most of the affected stores are expected to be operational within a week.

• One of Mexico's most notorious drug lords, Nemesio Oseguera, or "El Mencho," was killed in a military raid on Sunday, sparking widespread retaliatory violence.