Group 1 - The article discusses the initiation of coverage on Fomento Económico Mexicano, S.A.B. de C.V. (NYSE: FMX), commonly known as FEMSA, which operates a diverse range of businesses including soda bottling, convenience store operations, and retail [1] - The author has over 25 years of experience in the financial and investment industry, including roles in treasury management, financial performance analytics, and trading [1] - The investment ideas presented are likely to be a mix of contrarian, event-driven, and structured trades, reflecting a healthy interest in behavioral finance [1] Group 2 - The author holds a beneficial long position in the shares of FMX through stock ownership, options, or other derivatives [1] - The article emphasizes that the views expressed are personal opinions and not influenced by any business relationship with companies mentioned [1]

Core Insights - FEMSA reported a significant decline in net majority earnings per ADS for Q4 2024, with earnings at 91 cents compared to $1.70 in the previous year, reflecting a drop in adjusted net majority earnings to 46 cents [1][2] - Total revenues for the company increased by 12.8% year over year to $9.99 billion, driven by growth across all business units and favorable currency rates due to the depreciation of the Mexican Peso [2][3] Financial Performance - FEMSA's gross profit rose 16.7% year over year to Ps. 90,906 million ($4.36 billion), with a consolidated gross margin expansion of 140 basis points [3][4] - Operating income improved by 31.5% year over year to Ps. 22,634 million ($1.09 billion), with the consolidated operating margin increasing by 160 basis points to 10.9% [5] Segment Performance - Proximity Americas segment revenues increased by 13.2% year over year to Ps. 80,992 million ($3.9 billion), with same-store sales up by 3.8% [7][8] - Proximity Europe saw a revenue growth of 21.5% year over year to Ps. 13,870 million ($665 million), although the operating margin contracted by 50 basis points to 4.7% [9] - The Health Division reported revenues of Ps. 21,824 million ($1.05 billion), up 13.3% year over year, with a significant operating income increase of 109.7% [10] - Fuel Division revenues rose by 8% year over year to Ps. 16,331 million ($783 million), with average same-station sales increasing by 9.7% [11] - Coca-Cola FEMSA's revenues advanced 14.3% year over year to Ps. 75,528 million ($3.6 billion), with a 25% increase in consolidated operating income [12] Financial Position - As of December 31, 2024, FEMSA had cash and cash equivalents of Ps. 139,834 million ($6.7 billion) and long-term debt of Ps. 139,151 million ($6.7 billion) [13] - Capital expenditure for Q4 2024 totaled Ps. 20,694 million ($992.2 million), focusing on production and distribution capacity enhancements [13]

Financial Data and Key Metrics Changes - Consolidated revenue growth of 12.8% in Q4 2024, with operating income rising by 31.5% compared to the previous year [21] - Net consolidated income increased by 78.3% to nearly MXN 11 billion, driven by a non-cash change gain of MXN 2.7 billion and higher net income from discontinued operations of MXN 3.3 billion [21][22] - Gross margin expanded by 230 basis points to 47.7%, with operating margin increasing by 50 basis points to 11.7% of sales [25][26] Business Line Data and Key Metrics Changes - Proximity Americas division saw total revenues grow by 13.2%, with same-store sales growth of 3.8% despite a 2.8% decline in average traffic [24] - Health division revenues grew by 13.3%, with same-store sales increasing by 9.4% and operating income rising by 109.7% [29] - OXXO Gas reported a 9.7% increase in same-station sales and an 8% increase in total revenues [32] Market Data and Key Metrics Changes - Proximity Europe revenues increased by 21.5% in pesos, driven by retail revenue growth across countries [27] - Coca-Cola FEMSA recorded double-digit increases across their income statement, with income from operations rising by 25% [36] Company Strategy and Development Direction - FEMSA Forward initiative is nearing completion of planned divestitures, having monetized approximately $10.7 billion to focus on core business units [11][39] - Plans for 2025 include deploying nearly MXN 66 billion or $3.2 billion in capital returns, including ordinary and extraordinary dividends and share buybacks [14][15] - The company aims to maintain a disciplined approach to capital allocation, focusing on long-term intrinsic value per share [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainties and a softer consumer environment in Mexico, emphasizing the urgency to drive growth and profitability [46] - The company remains optimistic about growth opportunities across its business units, leveraging digital capabilities and operational efficiencies [10][46] Other Important Information - The succession process for the CEO position is underway, with a special committee formed to oversee the process [16][18] - The digital ecosystem has been rebranded as Spin, with significant growth in active users and sales linked to the loyalty program [34][35] Q&A Session Summary Question: Insights on shareholder remuneration and buybacks - Management plans to execute a mix of local buybacks in Mexico and accelerated share repurchases in the US, similar to previous years [55][56] Question: OXXO store expansion versus same-store sales trends - Management is confident in the ongoing expansion of OXXO stores, monitoring performance closely to ensure value creation [62][63] Question: Traffic decline attribution and operating leverage - Traffic decline is attributed to various factors, including weather and cannibalization, but management is confident in the store performance metrics [72][76] Question: Growth strategy in the US - The focus will be on organic growth through OXXO standalone stores and small bolt-on acquisitions, with an emphasis on profitability [90][91] Question: Financial services growth and potential banking license - The company is expanding financial services and plans to apply for a banking license, focusing on responsible growth in this area [100][101]

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]

Core Viewpoint - FEMSA's stock has declined by 35.7% over the past year, underperforming both the broader industry and the Consumer Staples sector, which saw dips of 6.7% and 4.4% respectively, while the S&P 500 increased by 23.6% during the same period [1]. Stock Performance - The current stock price of FMX is $83.59, which is a 41.7% discount from its 52-week high of $143.43 and reflects a 3.1% premium over its 52-week low [4]. - FMX shares are trading below their 50 and 200-day moving averages, indicating a bearish sentiment in the market [4]. Challenges Facing FEMSA - The company is experiencing a soft consumer environment, particularly in Mexico, leading to mixed sales trends in the Proximity Americas segment, which reported a year-over-year sales growth of 4.8% but flat same-store sales [5]. - Adverse weather conditions have negatively impacted key consumption occasions for OXXO, resulting in underperformance in beer, sparkling beverages, and water [6]. Strategic Initiatives - FEMSA is implementing the FEMSA Forward Strategy, focusing on long-term value creation across its core businesses, including retail and Coca-Cola FEMSA [8]. - The company is advancing in the digital space through its Digital@FEMSA unit, which aims to create a value-added digital and financial ecosystem [9]. Growth Opportunities - FEMSA's Proximity and Health retail businesses present significant long-term growth opportunities, with the company on track to accelerate earnings growth through organic expansion [11]. - The stock is trading at a forward 12-month price-to-earnings ratio of 15.55X, which is below its five-year high and the industry average, indicating attractive valuation for potential investors [12]. Investment Potential - The focus on digital expansion and the potential in retail businesses highlight the company's resilience in a dynamic market, although a soft consumer environment in Mexico may impact near-term results [13].

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]