Episode 6 of 10: Regional Financial Metrics
Performance variances in profitability, efficiency, and return.
Regional revenue tells only part of the story. Value driver performance reveals the true competitive dynamics of each geography.
Note: All regional data is based on the head office location of the top 100 retailers.
Profitability Leaders
- Operating Margins: Highest in Latin America (6.9%), though this is inflated by Femsa’s consolidated reporting including high-margin bottling operations. North America follows with healthy margins of 4.3%. Europe has the lowest average operating margins (1.9%), reflecting its highly competitive and fragmented nature.
- Net Margins: North America leads at 2.8%, with Latin America (2.4%) and Africa & Middle East (1.7%) next. Europe (1.3%) and Asia Pacific (1.2%) have the lowest net margins.
Efficiency and Returns (ROA)
- Efficiency: Africa & Middle East boasts the highest levels of sales productivity from assets, followed by North America. Asia Pacific and Latam operate at much lower efficiency levels due to geographic scale and operational impacts.
- Return on Assets: North America stands out with the highest returns at 5.9%. Africa & Middle East is second at 3.75%, followed by Latin America (2.9%) and Europe (2.4%). Asia Pacific delivers the lowest overall returns at 1.7%.
Regional Headlines
- North America: Leads globally in revenue, profitability, and efficiency. It delivers the highest net margins and return on assets (ROA), reflecting strong operational performance and scale advantages.
- Europe: Generates substantial revenue but trails North America in profitability, efficiency, and returns. This is largely due to intense competition and a more fragmented market structure, with smaller average retailer size (relative to North America) across the region.
- Asia Pacific: Benefits from above-average gross margins, supported by a strong convenience retail presence. However, higher costs and lower operational efficiency weigh on operating and net margins, resulting in the lowest overall returns among the major regions.
- Latin America: Demonstrates strong gross and operating margins, but weaker efficiency tempers overall returns. Despite this, the region outperforms both Europe and Asia Pacific in ROA.
- Africa & Middle East: While the smallest market by revenue, it combines below-average profitability with high efficiency. This drives the second-highest returns globally, behind North America.
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This series is a curated version of our full report which covers wider analysis and reporting supported by more extensive graphics and tables than this headline episode format allows. It also includes a ranked table of the top 100 global grocery retailers. Look out on our Resources page for future releases and where you can also get in touch with us to learn more.
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The data, information and analysis contained in these materials represent the opinions of Comsensus Limited. The views expressed do not necessarily reflect the views of the management of the business(es) under discussion. These materials are not endorsed or otherwise supported by the management of any of the companies or organizations discussed herein. Nothing in these materials constitutes financial advice in any way whatsoever, nor should any data or content be relied upon for any investment activities.