Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) Q4 2024 Earnings Conference Call February 27, 2025 10:00 AM ET Company Participants Juan Fonseca - Director, Investor Relations José Antonio Fernández Carbajal - Chief Executive Officer & Chairman Martin Arias - Chief Financial Officer Jorge Collazo - Coca-Cola, Investor Relations Conference Call Participants Ricardo Alves - Morgan Stanley Lisa Lane - Bank of America Hector Maya - Scotiabank Rodrigo Alcantara - UBS Renata Cabral - Citibank Ulises Argote ...

Core Insights - FEMSA reported strong operational and financial results for Q4 and the full year of 2024, with double-digit growth in revenues, gross profit, and income from operations across most business units, driven by platform strength and team efforts, alongside favorable foreign exchange conditions [4][8]. Financial Performance - Total consolidated revenues grew by 12.8% in Q4 and 11.2% year-to-date (YTD) 2024, while income from operations increased by 31.5% in Q4 and 19.8% YTD 2024 [2][8]. - Proximity Americas saw total revenues rise by 13.2% in Q4 and 10.3% YTD 2024, with income from operations increasing by 18.7% in Q4 and 11.2% YTD 2024 [2][8]. - Coca-Cola FEMSA's total revenues and income from operations grew by 14.3% and 25.0%, respectively, in Q4 compared to Q4 2023 [8]. Business Unit Highlights - Proximity Europe achieved a revenue growth of 21.5% in Q4 and 14.2% YTD 2024, with a gross profit increase of 17.5% in Q4 [2]. - The Health division reported a significant income from operations growth of 109.7% in Q4, although same-store sales showed a slight decline of 0.3% [2][8]. - The Fuel segment experienced a revenue growth of 8.0% in Q4 and 11.7% YTD 2024, with income from operations increasing by 6.9% in Q4 [2]. Strategic Initiatives - FEMSA continued to execute its capital allocation framework, returning record amounts of capital through dividends and share repurchases, with plans to accelerate this process in 2025 and 2026 [6]. - The company is facing a challenging consumer environment in many markets, particularly in Mexico, but remains confident in its strategic opportunities and team capabilities [8]. Governance - The Corporate Practices and Nominations Committee has initiated the succession process for the CEO position, indicating a focus on governance and leadership continuity [7].

Exhibit 99.1 Investor Contact (52) 818-328-6167 investor@femsa.com.mx femsa.gcs-web.com Media Contact (52) 555-249-6843 comunicacion@femsa.com.mx femsa.com 4Q and Full Year 2024 Results February 27, 2025 February 27, 2025 | Page 1 HIGHLIGHTS Monterrey, Mexico, February 27, 2025 — Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today its operational and financial results for the fourth quarter and full year of 2024. Financial Summary for the Fourth Quarter a ...

Company Overview - Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) is a company focused on creating economic and social value through its various business units and aims to be the best employer and neighbor in the communities it operates [2] - FEMSA operates in the retail industry through its Proximity Americas Division, which includes OXXO, a small-format store chain, and Proximity Europe, which encompasses Valora, a European retail unit [2] - The company also has a Health Division that includes drugstores and digital financial services initiatives under Digital@FEMSA, such as Spin by OXXO and Spin Premia [2] - In the beverage sector, FEMSA is the largest franchise bottler of Coca-Cola products globally by volume through Coca-Cola FEMSA [2] - The company employs over 392,000 individuals across 18 countries and is recognized in various sustainability indexes, including the Dow Jones Sustainability MILA Pacific Alliance and the FTSE4Good Emerging Index [2] Upcoming Events - FEMSA will hold its Fourth Quarter and Full Year 2024 Conference Call on February 27, 2025, at 10:00 AM Eastern Time [1] - The quarterly results will be released on the same day before markets open, and the conference call will be available via live webcast [2]

Fomento Economico Mexicano S.A.B. de C.V. (FMX) , alias FEMSA, shares have rolled down 35.7% in the past year. With this decline, FMX shares have underperformed the broader industry and the Consumer Staples sector’s dip of 6.7% and 4.4%, respectively. The company’s shares have also underperformed the S&P 500’s rally of 23.6% in the same period.FMX’s One-Year Stock Performance Image Source: Zacks Investment Research At the current price of $83.59, the FMX stock trades at a 41.7% discount to its 52-week high ...

Core Strategy - FEMSA is focused on its Forward Strategy, which emphasizes long-term value creation in its core businesses [1][3] - The company is executing its Forward plan through strategic divestments, including the recent sale of its plastics solutions operations to AMMI for 3,165 million pesos [1][2][3] Recent Transactions - FEMSA has completed the divestiture of its refrigeration and food service equipment operations to Mill Point Capital LLC for approximately 4,060 million pesos, supporting its balance sheet and strategic focus [4] - Both transactions are cash-free and debt-free, indicating a clean financial transition [1][4] Market Performance - FEMSA's shares have declined by 17.6% over the past three months, which is more significant than the industry average drop of 9.1% [5] - The company is facing a challenging consumer environment in Mexico, impacting same-store sales due to reduced customer traffic [5] Digital Initiatives - FEMSA is performing well in the digital space through its Digital@FEMSA unit, which aims to create a value-added digital and financial ecosystem [6] - The Coca-Cola FEMSA division is advancing its omnichannel approach, while the Proximity division is enhancing digital initiatives within OXXO stores [7]

Group 1 - FEMSA successfully closed the divestiture of its plastics solutions operations to AMMI for an amount of 3,165 million pesos on a cash-free, debt-free basis [1] - The divestiture was previously disclosed on October 28, 2024, indicating a strategic move by FEMSA to streamline its operations [1] - AMMI is a diversified corporation focused on non-GMO corn production and sustainable plastic packaging, highlighting its commitment to sustainability [1][3] Group 2 - FEMSA operates in various sectors including retail through its OXXO store chain and beverage through Coca-Cola FEMSA, employing over 392,000 people across 18 countries [2] - AMMI has 59 years of experience and operates the world's largest non-GMO corn production plant, serving food and beverage industries globally [3] - AMMI aims to become carbon neutral by 2030, reflecting its strong focus on sustainability [3]

Group 1 - FEMSA is identified as a quality business available at a significant discount, which is considered rare in current market conditions [1] - The company operates in the services sector and has a long-standing presence of over 25 years in the financial and investment industry [1] - The analyst expresses a personal beneficial long position in FEMSA shares, indicating confidence in the company's future performance [1]

Core Strategy - FEMSA has reaffirmed its commitment to long-term value creation by focusing on core business verticals, aligning with the "FEMSA Forward" strategy introduced in early 2023 [1][3] - The strategy includes exploring alternatives for strategic businesses, including potential divestments [3] Recent Divestitures - FEMSA has completed the divestiture of its refrigeration and food service equipment operations to Mill Point Capital LLC for approximately 4,060 million Mexican pesos on a cash-free, debt-free basis [2] - The company sold 13.9% of its outstanding shares in Heineken in 2023, reducing its stake to less than 1% [4] Financial Performance - FEMSA reported solid revenue growth of 8.3% year-over-year, reaching $10 billion, with gross profit increasing by 12.1% [8] - Operating income rose by 14.6%, supported by effective cost management and strategic investments [9] - The company maintains a robust cash position of approximately $7.9 billion, positioning it well for future growth [9] Digital Initiatives - FEMSA is advancing in the digital space through its tech and innovation unit, Digital@FEMSA, which aims to build a value-added digital and financial ecosystem [5] - The digital wallet, OXXO Premia, and loyalty program have shown strong performance, with Spin by OXXO reaching 12.5 million active users, a 42.2% year-over-year increase [7]

Group 1 - FEMSA successfully closed the divestiture of its refrigeration and foodservice equipment operations, Imbera and Torrey, to Mill Point Capital LLC for a total amount of 8,000 million pesos on a cash-free, debt-free basis [1] - The divestiture was previously disclosed on July 17, 2024, indicating a strategic move by FEMSA to streamline its operations [1] Group 2 - FEMSA operates in the retail industry through its Proximity Americas Division, which includes the OXXO small-format store chain, and Proximity Europe, which encompasses Valora, its European retail unit [2] - The company also has a Health Division that includes drugstores and digital financial services initiatives under Digital@FEMSA, such as Spin by OXXO and Spin Premia [2] - FEMSA is the largest franchise bottler of Coca-Cola products in the world by volume through its beverage division, Coca-Cola FEMSA [2] - The company employs over 392,000 individuals across 18 countries and is recognized in various sustainability indexes, including the Dow Jones Sustainability MILA Pacific Alliance and the FTSE4Good Emerging Index [2] Group 3 - Mill Point Capital LLC is a private equity firm that focuses on control investments in lower-middle market companies across the Business Services, Industrials, and IT Services sectors in North America [3] - The firm aims to enhance portfolio company value through strategic initiatives and operational improvements [3]