[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

Debt and Currency Risks - As of December 31, 2024, Mexican peso-denominated debt represented 52.2% of the total debt of the company[99]. - The Mexican peso depreciated by approximately 23.4% against the U.S. dollar compared to 2023[100]. - Future currency devaluations or exchange controls in operating countries may increase operating costs, adversely affecting financial results[102]. Market and Economic Conditions - The company experienced significant volatility in financial markets, affecting results due to variations in exchange rates and commodity prices[101]. - Economic conditions in the U.S. and other emerging markets may adversely affect the Mexican economy and, consequently, the company's financial performance[113]. Political and Regulatory Environment - Political events in Mexico, including the recent presidential election, could significantly impact the company's operations and financial condition[104]. - The company is subject to potential changes in laws and regulations due to recent constitutional reforms in Mexico, which could introduce operational risks[105]. - FEMSA is organized under Mexican laws, making it difficult for investors to enforce civil liabilities against its directors and officers in the U.S.[121]. Operational Challenges - The company faces risks from increasing criminal activity in Mexico, which could negatively impact sales and customer traffic[107]. - The company cannot assure that future developments in emerging markets will not have a material adverse effect on its financial condition and results[109]. Financial Structure - The voting trust owned 39.90% of the capital stock and 75.75% of the capital stock with full voting rights as of April 11, 2025, influencing management decisions[114]. - The company's cash flow is primarily derived from dividends and distributions from subsidiaries, which currently have no contractual obligations to pay dividends to FEMSA[122]. - As of April 24, 2025, FEMSA had no restrictions on its ability to pay dividends to shareholders[122].

Core Viewpoint - FEMSA's shares have increased by 24.3% year-to-date, outperforming the broader industry and Consumer Staples sector, which grew by 10.7% and 5.7% respectively, while also surpassing the S&P 500's decline of 12.6% in the same period [1]. Stock Performance - At the current price of $106.23, FMX stock is trading at a 13.7% discount to its 52-week high of $123.09 and reflects a 31% premium from its 52-week low of $81.08 [5]. - The stock is above its 50 and 200-day moving averages, indicating a bullish sentiment [5]. Growth Strategies - FEMSA is focused on the FEMSA Forward Strategy, aimed at long-term value creation in its core businesses, including retail, Coca-Cola FEMSA, and Digital@FEMSA [6]. - The retail business, particularly the Proximity division, presents substantial long-term growth opportunities [6]. Digital Initiatives - FEMSA is advancing in the digital space through Digital@FEMSA, which aims to create a value-added digital and financial ecosystem [7]. - The company is investing in digital offerings, loyalty programs, and fintech platforms within its OXXO chains to strengthen its long-term position [8]. Business Unit Performance - FEMSA is experiencing solid growth trends across all business units, with significant opportunities in the Proximity and Health retail sectors [9]. - OXXO Mexico is a key pillar of FEMSA's retail operations, with a store network exceeding 1,000 locations and increasing productivity per store [11]. Valuation Perspective - FEMSA is trading at a forward 12-month price-to-earnings ratio of 19.79X, which is above the industry average of 12.49X, indicating a premium valuation [12]. - This premium is justified by FEMSA's consistent financial performance and growth prospects, driven by successful digital initiatives and strong performances in OXXO Mexico and OXXO Gas [13]. Investment Potential - The focus on the FEMSA Forward strategy, digital expansion, and potential in Proximity and Health retail businesses offers significant long-term growth opportunities [15].

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]

Core Viewpoint - FEMSA is set to hold its Annual Ordinary Shareholders' Meeting on April 11, 2025, in Monterrey, Mexico, with detailed proposals and nominations available on its website [1][2]. Company Overview - FEMSA creates economic and social value through various companies and institutions, aiming to be the best employer and neighbor in its operational communities [3]. - The company operates in the retail industry through its Proximity Americas Division, which includes the OXXO small-format store chain, and Proximity Europe, which encompasses Valora and other retail formats [3]. - FEMSA's Health Division includes drugstores and digital financial services initiatives like Spin by OXXO and Spin Premia [3]. - In the beverage sector, FEMSA is the largest franchise bottler of Coca-Cola products globally by volume through Coca-Cola FEMSA [3]. - The company employs over 392,000 individuals across 18 countries and is recognized in various sustainability indexes, including the Dow Jones Best-in-Class World Index and FTSE4Good Emerging Index [3].

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]

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].