Core Viewpoint - FEMSA has entered into an accelerated share repurchase (ASR) agreement to repurchase $250 million of its American Depositary Shares (ADS) to enhance capital returns to shareholders [1][2]. Group 1: ASR Agreement Details - The ASR agreement involves an initial delivery of 483,559 ADSs on May 20, 2025 [1]. - The total number of shares repurchased will depend on the daily volume-weighted average price of the ADS during the agreement term, minus a discount [2]. - The final settlement of the ASR is expected to be completed by the third quarter of 2025 [2]. Group 2: Company Overview - FEMSA operates in the retail industry through its Proximity Americas Division, which includes the OXXO small-format store chain, and Proximity Europe, which operates Valora [3]. - The company also has a Health Division that includes drugstores and digital financial services initiatives [3]. - In the beverage sector, FEMSA is the largest franchise bottler of Coca-Cola products globally by volume [3]. - FEMSA employs over 392,000 people across 18 countries and is recognized in various sustainability and ESG indexes [3].

Group 1 - FEMSA filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. SEC and other regulatory bodies [1] - The reports include FEMSA's audited financial statements and are available on the company's investor relations website [2] - FEMSA operates in the retail industry through its Proximity Americas Division, which includes OXXO, and Proximity Europe, which includes Valora [3] Group 2 - The company also has a Health Division that includes drugstores and digital financial services initiatives [3] - In the beverage industry, FEMSA is the largest franchise bottler of Coca-Cola products in the world by volume [3] - FEMSA employs over 392,000 people across 18 countries and is recognized in various sustainability indexes [3]

Core Insights - FEMSA reported first-quarter 2025 net majority earnings per ADS of 79 cents, with adjusted net majority earnings per ADS of 45 cents, missing the Zacks Consensus Estimate of 52 cents [1][2] - Total revenues increased to US$9.58 billion, reflecting an 11.1% year-over-year growth in local currency, driven by gains across all business units and favorable currency rates [2] - The company's net consolidated income was Ps. 8,943 million (US$437.1 million), marking a 54.3% increase from the previous year [1] Financial Performance - Gross profit rose 15.8% year over year to Ps. 78,918 million (US$3.86 billion), with a consolidated gross margin expansion of 160 basis points [3] - Operating income improved 4.9% year over year to Ps. 13,565 million (US$663.1 million), while the consolidated operating margin declined 40 basis points to 6.9% [5] Segment Performance - **Proximity Americas**: Revenues increased 6.8% year over year to Ps. 74,886 million (US$3.7 billion), but same-store sales declined by 1.8% due to a 6.6% drop in store traffic [7][8] - **Proximity Europe**: Revenues grew 18% year over year to Ps. 12,909 million (US$631 million), but operating income fell 14.6% [9] - **Health Division**: Revenues rose 21% year over year to Ps. 21,972 million (US$1.07 billion), with same-store sales increasing by 15.4% [10] - **Fuel Division**: Revenues increased 1.8% year over year to Ps. 15,237 million (US$744.8 million), but operating income declined 13.9% [11] - **Coca-Cola FEMSA**: Revenues advanced 10% year over year to Ps. 70,157 million (US$3.4 billion), with a 7.4% increase in operating income [12] Financial Position - As of March 31, 2025, FEMSA had cash and cash equivalents of Ps. 109,345 million (US$5.3 billion) and long-term debt of Ps. 131,736 million (US$6.4 billion) [13] - Capital expenditure in Q1 2025 totaled Ps. 8,788 million (US$429.6 million), focusing on production and distribution capacity investments [13]

Core Insights - FEMSA reported a total revenue growth of 11.1% and an increase in income from operations by 4.9% for the first quarter of 2025 compared to the same period in 2024 [5] - The company faced challenges in the Proximity Americas segment, with total revenues growing by 6.8% but income from operations decreasing by 11.8% [5] - Coca-Cola FEMSA achieved a revenue growth of 10.0% and an income from operations increase of 7.4% compared to the first quarter of 2024 [5] Financial Performance - Total revenues for FEMSA reached a growth of 11.1% in Q1 2025 [5] - Gross profit increased by 15.8% in the same period [2] - Income from operations rose by 4.9% compared to Q1 2024 [5] Segment Analysis - Proximity Americas experienced a revenue growth of 6.8% but faced a significant decline in income from operations by 11.8% [2][5] - Proximity Europe saw a revenue increase of 18.0% but a decline in income from operations by 14.6% [2] - The Health segment reported a revenue growth of 21.0% and a substantial increase in income from operations by 27.4% [2] - The Fuel segment had a modest revenue growth of 1.8% but faced a decline in income from operations by 13.9% [2] User Engagement - Spin by OXXO had 8.9 million active users, representing a growth of 20.9% compared to Q1 2024 [5] - Spin Premia recorded 25.2 million active loyalty users, reflecting a growth of 15.9% compared to the same period last year [5] - The average tender for Spin Premia increased to 42.5% from 35.1% in Q1 2024 [5] Management Commentary - The CEO highlighted the company's ability to navigate a challenging environment, particularly in Mexico, leveraging a geographically diversified business platform [3] - The company anticipates a recovery in its Mexico business as the year progresses, projecting momentum in the second half of 2025 [6] - Management expressed confidence in the initiatives being implemented to drive revenues and lower costs [7]

[Highlights](index=2&type=section&id=HIGHLIGHTS) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) The CEO noted a challenging Q1, particularly in Mexico, but highlighted resilience from diversified operations and anticipates a mid-year recovery - Navigated a challenging environment by leveraging a resilient, geographically diversified business platform. Coca-Cola FEMSA's performance in South America and favorable currency tailwinds offset softer trends in Mexico[7](index=7&type=chunk) - Proximity Americas experienced a slow start with declining same-store traffic at OXXO Mexico, pressured by an adverse calendar, soft consumer demand, and a high comparison base. The company has initiated top-line and cost-cutting measures to mitigate these impacts[8](index=8&type=chunk) - The company projects a recovery beginning mid-2025 and gaining momentum in the third quarter, anticipating a solid full-year result as the second half typically weighs more for many business units[9](index=9&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) FEMSA's consolidated revenues grew 11.1%, driven by Health and digital growth, despite Proximity Americas' operating income decline Q1 2025 Performance vs. Q1 2024 (As Reported) | Business Unit | Total Revenues Growth | Income from Operations Growth | Same-Store Sales Growth | | :--- | :--- | :--- | :--- | | **FEMSA Consolidated** | **11.1%** | **4.9%** | **N/A** | | Proximity Americas | 6.8% | (11.8)% | (1.8)% | | Proximity Europe | 18.0% | (14.6)% | N/A | | Health | 21.0% | 27.4% | 15.4% | | Fuel | 1.8% | (13.9)% | 6.1% | | Coca-Cola FEMSA | 10.0% | 7.4% | N/A | - Spin by OXXO's active user base grew **20.9% YoY** to **8.9 million**, while Spin Premia's active loyalty users grew **15.9% YoY** to **25.2 million**[13](index=13&type=chunk) - The average tender for Spin Premia increased to **42.5%** in Q1 2025, up from **35.1%** in Q1 2024, indicating higher engagement within the OXXO ecosystem[13](index=13&type=chunk) [FEMSA Consolidated Financial Results](index=3&type=section&id=QUARTERLY%20RESULTS) [Consolidated Performance](index=3&type=section&id=Consolidated%20Performance) FEMSA's Q1 2025 consolidated revenues grew 11.1% to Ps. 195,820 million, with net income surging 54.3% from non-operating gains FEMSA Consolidated Financial Summary Q1 2025 | Metric | 1Q25 (Ps. M) | 1Q24 (Ps. M) | Var. % | | :--- | :--- | :--- | :--- | | Total Revenues | 195,820 | 176,334 | 11.1% | | Gross Profit | 78,918 | 68,178 | 15.8% | | Income from Operations | 13,565 | 12,936 | 4.9% | | Adjusted EBITDA | 25,303 | 23,254 | 8.8% | | Net Income | 8,943 | 5,794 | 54.3% | - Revenue growth was driven by all business units, amplified by favorable exchange rate effects from the depreciation of the Mexican peso[15](index=15&type=chunk) - The significant increase in net consolidated income was mainly due to a non-cash foreign exchange gain of **Ps. 439 million** (vs. a loss in 1Q24), a financial instrument gain of **Ps. 1,107 million** related to the Heineken position, and a gain from the divestment of plastics solutions operations[19](index=19&type=chunk) - Capital expenditures increased **16.1%** to **Ps. 8,788 million**, primarily for increasing production and distribution capacity at Coca-Cola FEMSA and for new store openings and remodeling at Proximity Americas[21](index=21&type=chunk) [Business Segment Performance](index=5&type=section&id=Business%20Segment%20Performance) [Proximity Americas](index=5&type=section&id=Proximity%20Americas) Proximity Americas' revenues grew 6.8%, but operating income declined 11.8% due to lower traffic and higher costs in Mexico Proximity Americas Financial Summary Q1 2025 | Metric | 1Q25 | 1Q24 | Var. % | | :--- | :--- | :--- | :--- | | Same-store sales | (1.8)% | - | - | | Total Revenues (Ps. M) | 74,886 | 70,085 | 6.8% | | Gross Profit (Ps. M) | 32,379 | 29,423 | 10.0% | | Income from Operations (Ps. M) | 4,389 | 4,979 | (11.8)% | - The decline in same-store sales was driven by a **6.6% decrease** in store traffic, despite a **5.1% growth** in average customer ticket[29](index=29&type=chunk) - Operating income fell due to higher selling expenses from increased labor costs (related to Mexico's minimum wage hike) and administrative expenses from investments in commercial capabilities[31](index=31&type=chunk) - The OXXO store base expanded by **384 stores** in the quarter, reaching a total of **24,846 stores** as of March 31, 2025[29](index=29&type=chunk) [Proximity Europe](index=7&type=section&id=Proximity%20Europe) Proximity Europe's revenues rose 18.0% (0.9% comparable) due to currency effects, while operating income declined 14.6% from lower B2B foodservice sales Proximity Europe Financial Summary Q1 2025 | Metric | 1Q25 (Ps. M) | 1Q24 (Ps. M) | Var. % | Comp. Var. % | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 12,909 | 10,939 | 18.0% | 0.9% | | Gross Profit | 5,431 | 4,730 | 14.8% | (1.9)% | | Income from Operations | 331 | 388 | (14.6)% | (27.7)% | - Revenue growth was almost entirely due to favorable currency effects. Excluding these, revenues were nearly flat due to lower sales in the B2B foodservice business[38](index=38&type=chunk) - The operating margin contracted by **90 basis points**, reflecting the impact of weaker performance in the structurally higher-margin B2B foodservice segment[40](index=40&type=chunk) [Health](index=8&type=section&id=Health) The Health division delivered strong Q1 results with revenues up 21.0% and operating income up 27.4%, driven by South American markets and currency tailwinds Health Division Financial Summary Q1 2025 | Metric | 1Q25 (Ps. M) | 1Q24 (Ps. M) | Var. % | Comp. Var. % | | :--- | :--- | :--- | :--- | :--- | | Same-store sales | - | - | 15.4% | 3.5% | | Total Revenues | 21,972 | 18,154 | 21.0% | 7.0% | | Gross Profit | 6,453 | 5,226 | 23.5% | 8.7% | | Income from Operations | 766 | 601 | 27.4% | 11.7% | - Revenue growth was driven by strong performance in South American markets and favorable currency translation, which offset negative results in Mexico[45](index=45&type=chunk) - Gross margin expanded by **60 basis points** due to commercial initiatives, higher retail sales in Colombia, and efficiencies from a centralized purchasing office[46](index=46&type=chunk) - The net store base decreased by **67 units** during the quarter, reaching a total of **4,594 locations**[45](index=45&type=chunk) [Fuel](index=9&type=section&id=FUEL) The Fuel division's revenues grew 1.8% from higher prices, but operating income declined 13.9% due to increased labor and restructuring costs Fuel Division Financial Summary Q1 2025 | Metric | 1Q25 (Ps. M) | 1Q24 (Ps. M) | Var. % | | :--- | :--- | :--- | :--- | | Same-station sales | - | - | 6.1% | | Total Revenues | 15,237 | 14,693 | 1.8% | | Gross Profit | 1,817 | 1,740 | 4.4% | | Income from Operations | 456 | 530 | (13.9)% | - Same-station sales growth of **6.1%** was driven by a **5.9% increase** in the average price per liter and a **0.2% growth** in average volume[53](index=53&type=chunk) - Operating income declined due to a **12.5% increase** in operating expenses, reflecting higher labor costs and costs associated with a restructuring process[55](index=55&type=chunk) [Digital (Spin)](index=12&type=section&id=SPIN) FEMSA's Spin digital platform continued strong user growth in Q1 2025, with Spin by OXXO active users up 20.9% and Spin Premia active users up 15.9% - Spin by OXXO reached **13.8 million total users**, with **8.9 million active users**, representing a **20.9% YoY growth** in the active base[65](index=65&type=chunk)[66](index=66&type=chunk) - Spin Premia, the loyalty program, reached **55.7 million total users**, with **25.2 million active users**, a **15.9% YoY increase**[67](index=67&type=chunk) - The average tender for Spin Premia at OXXO stores increased to **42.5%** during the quarter, up from **35.1%** in Q1 2024[13](index=13&type=chunk)[67](index=67&type=chunk) [Coca-Cola FEMSA (KOF)](index=12&type=section&id=COCA-COLA%20FEMSA) Coca-Cola FEMSA delivered solid Q1 2025 results with revenues up 10.0% and operating income up 7.3%, driven by South American growth offsetting declines elsewhere Coca-Cola FEMSA Financial Summary Q1 2025 (As Reported) | Metric | Growth vs. 1Q24 | | :--- | :--- | | Total Revenues | 10.0% | | Gross Profit | 12.0% | | Operating Income | 7.3% | | Majority Net Income | 2.7% | - The CEO noted that solid performance in most South American countries, including Brazil, Argentina, and Uruguay, offset volume declines in Mexico and Central America[116](index=116&type=chunk) - Digital initiatives progressed with the rollout of Juntos v.4.0 in Costa Rica and Nicaragua, and the completion of the Juntos Advisor tool rollout in Brazil[118](index=118&type=chunk) [KOF Consolidated Results](index=29&type=section&id=KOF%20Consolidated%20Results) KOF's consolidated revenues grew 10.0% to Ps. 70,157 million, with operating income up 7.3%, despite a 2.2% volume decrease and slight margin contraction KOF Consolidated Results Q1 2025 (As Reported) | Metric | 1Q 2025 (Ps. M) | 1Q 2024 (Ps. M) | Δ% | | :--- | :--- | :--- | :--- | | Total revenues | 70,157 | 63,803 | 10.0% | | Gross profit | 31,832 | 28,428 | 12.0% | | Operating income | 9,248 | 8,617 | 7.3% | - Gross margin expanded by **80 basis points** to **45.4%**, driven by lower sweetener costs and raw material hedging initiatives[129](index=129&type=chunk) - Operating margin contracted by **30 basis points**, impacted by lower operating leverage and higher costs for freight, labor, depreciation, and maintenance[130](index=130&type=chunk) [KOF Mexico & Central America Division](index=31&type=section&id=KOF%20Mexico%20%26%20Central%20America%20Division) The Mexico & Central America division saw a 4.6% volume decrease and a 5.0% operating income decline due to a consumer slowdown and higher costs KOF Mexico & Central America Division Results Q1 2025 (As Reported) | Metric | 1Q 2025 (Ps. M) | 1Q 2024 (Ps. M) | Δ% | | :--- | :--- | :--- | :--- | | Total revenues | 39,669 | 37,844 | 4.8% | | Operating income | 5,400 | 5,681 | (5.0)% | - Volume declined **4.6%**, driven by declines in Mexico, Panama, and Costa Rica, attributed to a decelerating consumer environment and a challenging comparison base[141](index=141&type=chunk) [KOF South America Division](index=32&type=section&id=KOF%20South%20America%20Division) The South America division drove KOF's growth with volume up 1.0%, revenues up 17.4%, and operating income surging 31.1%, expanding its operating margin KOF South America Division Results Q1 2025 (As Reported) | Metric | 1Q 2025 (Ps. M) | 1Q 2024 (Ps. M) | Δ% | | :--- | :--- | :--- | :--- | | Total revenues | 30,488 | 25,958 | 17.4% | | Operating income | 3,848 | 2,935 | 31.1% | - Volume grew **1.0%**, driven by a **2.5% increase** in Brazil and a **9.1% increase** in Argentina, which offset an **8.1% decrease** in Colombia[149](index=149&type=chunk) [Recent Developments](index=13&type=section&id=RECENT%20DEVELOPMENTS) [Shareholder Meeting and Dividends](index=13&type=section&id=Shareholder%20Meeting%20and%20Dividends) FEMSA's Annual Shareholders' Meeting on April 11, 2025, approved 2024 financial statements, elected the board, and authorized ordinary and extraordinary cash dividends - On April 11, 2025, the Annual Shareholders' Meeting approved the 2024 financial statements, CEO's report, and elected the board of directors for 2025[72](index=72&type=chunk) Declared Dividends per Unit (Payable in 4 installments) | Dividend Type | Per 'BD' Unit (Ps.) | Per 'B' Unit (Ps.) | Payment Dates | | :--- | :--- | :--- | :--- | | Ordinary | 4.5826 | 3.8190 | Apr 25, 2025; Jul 18, 2025; Oct 17, 2025; Jan 16, 2026 | | Extraordinary | 10.1084 | 8.4240 | Apr 25, 2025; Jul 18, 2025; Oct 17, 2025; Jan 16, 2026 | - On April 24, 2025, FEMSA filed its annual report on Form 20-F for the fiscal year 2024 with the U.S. SEC[75](index=75&type=chunk) [Financial Statements & Appendix](index=16&type=section&id=Financial%20Statements%20%26%20Appendix) [Detailed Financial Tables](index=16&type=section&id=Detailed%20Financial%20Tables) This section provides detailed unaudited consolidated financial statements for Q1 2025, including income statements, balance sheets, segment breakdowns, and key financial metrics

Table of Contents As filed with the Securities and Exchange Commission on April 24, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 Commission file number 001-35934 Fomento Económico Mexicano, S.A.B. de C.V. (Exact name of registrant as specified in its charter) Mexican Economic Development, Inc. (Translation of registrant's name into English ...

Fomento Economico Mexicano S.A.B. de C.V. (FMX) , alias FEMSA, shares have rallied 24.3% in the year-to-date period. With this rise, FMX shares have outperformed the broader industry and the Consumer Staples sector’s growth of 10.7% and 5.7%, respectively. The company’s shares have also surpassed the S&P 500’s decline of 12.6% in the same period.FMX’s YTD Stock Performance Image Source: Zacks Investment Research At the current price of $106.23, the FMX stock trades at a 13.7% discount to its 52-week high of ...

Core Points - FEMSA held its Annual Shareholders' Meeting on April 11, 2025, where shareholders approved the consolidated financial statements for the year ended December 31, 2024, the CEO's annual report, and the Board of Directors' opinion for 2024 [1] - The meeting resulted in the election of the board of directors and various committee members for 2025 [2] - An ordinary cash dividend was declared, amounting to Ps. 0.95475 per Series "D" share and Ps. 0.7638 per Series "B" share, totaling Ps. 4.5826 per "BD" Unit and Ps. 45.826 per ADS, to be paid in four installments [2] - An extraordinary cash dividend was also approved, amounting to Ps. 2.1060 per Series "D" share and Ps. 1.6848 per Series "B" share, totaling Ps. 10.1084 per "BD" Unit and Ps. 101.084 per ADS, to be paid in four installments [3] Company Overview - FEMSA creates economic and social value through its various companies and institutions, aiming to be the best employer and neighbor in its operating communities [4] - The company operates in the retail industry through its Proximity Americas Division, which includes OXXO, and Proximity Europe, which encompasses Valora [4] - FEMSA's Health Division includes drugstores and digital financial services initiatives, while its beverage segment is represented by Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products globally by volume [4] - The company employs over 392,000 individuals across 18 countries and is recognized in several global indices for its performance and sustainability [4]

MONTERREY, Mexico, March 03, 2025 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or the “Company”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announces it will hold its Annual Ordinary Shareholders’ Meeting on April 11, 2025, in Monterrey, Nuevo Leon, Mexico (the “Shareholders’ Meeting”). A copy of the formal call for the Shareholders’ Meeting is available in the following link: https://femsa.gcs-web.com/shareholder-meeting-information. The detailed proposals for each item of the agendas o ...

Core Viewpoint - The shares of Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) have been underperforming due to concerns regarding softer consumption in Mexico and limited free cash flow [1] Company Summary - FEMSA is identified as a leading retailer in Mexico and Latin America [1] - The company's stock performance has been negatively impacted since the last update, indicating ongoing challenges in the market [1]