Financial Data and Key Metrics Changes - Total revenues increased by 4.6% in Q4 2023, with EBITDA rising by 3.6% compared to Q4 2022 [31] - Net consolidated income decreased by 20.7% to MXN 6.3 billion, impacted by a non-cash foreign exchange loss of MXN 6.3 billion and a MXN 3.2 billion net loss from discontinued operations [173] Business Line Data and Key Metrics Changes - Proximity Americas added 514 stores in Q4 2023, totaling 1,408 new stores for the year, with a gross margin growth of 17.2% [11][12] - Coca-Cola FEMSA reported a total volume increase of 6.1% and total revenues grew by 8.1%, with an operating margin of 14.6% [15] - The Health division expanded by 127 net new drug store additions, reaching a total of 4,474 units [187] Market Data and Key Metrics Changes - In Mexico, same-store sales grew by 8.5%, driven by strong consumer demand [167] - In Colombia, the company is shifting towards more retail and less institutional exposure due to challenges in the institutional health industry [207] Company Strategy and Development Direction - The company is focused on three strategic priorities: accelerating growth, increasing digital capabilities, and balancing risk/return profiles [4] - The long-range plan includes strengthening the core, developing new growth avenues, and expanding the footprint beyond Mexico [28] - The company aims to achieve a net debt-to-EBITDA ratio of two times within two to three years [166] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and opportunities in the market, emphasizing a commitment to creating value for stakeholders [18] - The company is optimistic about the performance in 2024, despite some expected headwinds [125] Other Important Information - Significant leadership changes were announced, with the CFO and Chief Corporate Officer set to leave by the end of April [5] - The company is poised to begin deploying its capital allocation strategy, which includes share buybacks and extraordinary dividends [148] Q&A Session All Questions and Answers Question: What is the outlook for same-store sales and the impact of competitive pressures? - Management noted that the current mix of sales is more normalized and expects future performance to align with recent results rather than previous higher growth rates [37] Question: Can you elaborate on the management changes and their impact on the company's strategy? - Management confirmed that the outgoing executives will assist until the end of April, ensuring a smooth transition while maintaining strategic focus [39][40] Question: How will the company achieve its target leverage and manage excess cash? - The company plans to reach a two times net debt-to-EBITDA ratio through a combination of share repurchases, special dividends, and organic/inorganic investments [46][61] Question: What are the drivers of margin pressure in the Proximity Americas segment? - Management indicated that labor costs and regulatory changes are significant factors contributing to margin pressure, alongside the need for operational efficiencies [115][203] Question: How is the company addressing competitive pressures in the health sector? - The company is adapting its strategy to focus more on retail and less on institutional operations in response to competitive dynamics [126]

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Has Fomento Economico (FMX) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Fomento Economico is one of 193 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the indi ...

Fomento Economico Mexicano, S.A.B. de C.V. (FMX) , or FEMSA, is slated to report fourth-quarter 2023 earnings on Feb 23. The company is likely to have witnessed top-line growth in the quarter under review.The Zacks Consensus Estimate for FMX’s fourth-quarter revenues is pegged at $11.2 billion, indicating growth of 18.4% from the year-ago quarter's reported figure.The Zacks Consensus Estimate for FMX’s 2023 earnings of $5.90 per share suggests 66.2% growth from the year-ago quarter’s reported figure. The co ...

Fomento Economico Mexicano S.A.B. de C.V. (FMX) alias, FEMSA, has provided further insights on its future capital allocation, aligning with its FEMSA Forward strategy that was introduced in February 2023. The company’s capital allocation strategy is focused on enhancing long-term intrinsic per-share value.With a robust portfolio of compelling investment opportunities at its disposal, the company is poised to channel substantial capital into core organic growth initiatives, predominantly within Mexico. In Me ...

MONTERREY, Mexico, Feb. 08, 2024 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or the “Company”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) is pleased to invite you to participate in its Fourth Quarter and Full Year 2023 Conference Call that will be held on: Friday, February 23, 202410:00 AM Eastern Time(9:00 AM Mexico City Time) To participate in the conference call please dial:Toll Free US: (866) 580 3963International: +1 (786) 697 3501Conference ID: FEMSA The quarterly results will be ...

A day doesn’t go by when another large asset management firm discusses why they are abandoning China for other international stock picks. The reality is that China stocks are out, but you should still consider stocks from other foreign countries. On Jan. 20, Bloomberg reported that Vontobel Asset Management—the Zurich-based asset manager had assets under management of 207 billion Swiss francs ($239 billion) at the end of October—selling its China holdings and moving this cash into other emerging markets suc ...

Hey, guys. Good morning. Thanks so much for space for question. Just one quick one here from my side. On the release there, you're mentioning on the proximity formats, the decrease in the contribution of financial services. So just to understand there, if there's any change in competitive landscape or dynamics or if there's any kind of specific situation that are impacting that part of the business? I mean when you spoke already about kind of Banorte going back and forth, but it would be great if we could g ...

Moving on to discuss our operations and beginning with proximity Americas. We added 444 new units during the second quarter to reach 1,391 net new stores for the last 12 months. This quarter's strong expansion set us ahead of our yearly expansion target, and it underscores OXXO Mexico's strong growth potential. Having said that, we will stick to an objective of 900 net new OXXO stores just in Mexico for the time being, and the expansion curve for the rest of the year should be smoother than usual. OXXO same ...

Financial Data and Key Metrics Changes - Total revenues during the first quarter increased by 22%, while income from operations increased by 5.5% compared to the first quarter of 2022 [111] - On an organic basis, total revenues increased by 12.4% and income from operations increased by 3.3% [111] - Net consolidated income was Ps. 50.329 million, driven by a Ps. 40.6 million gain from the accounting remeasurement of FEMSA's investment in Heineken [95] - Gross margin was 40.3%, with a 160 basis points increase in the quarter, while operating margins decreased by 30 basis points [96][97] Business Line Data and Key Metrics Changes - OXXO same-store sales grew by 18.3% for the first quarter, the highest growth rate in the last 20 years, driven by an 11.9% increase in average customer ticket and a 5.7% growth in traffic [112] - The health division saw a slight decrease in revenues, with same-store sales down by an average of 5.5%, but on a currency-neutral basis, revenues grew by 14% [113] - Envoy Solutions reported a 23.7% increase in total revenues compared to the first quarter of 2022, although operating margin contracted by 140 basis points due to higher costs [114] Market Data and Key Metrics Changes - In Proximity Americas, 157 new units were added during the first quarter, reaching a total of 1,105 stores [10] - Coca-Cola FEMSA's total volume grew by 6.6%, with total revenues increasing by 12% and operating income growing by 12.9% [12] - Proximity Europe revenues were slightly above Ps. 10 billion, reflecting a recovery in traffic and ticket driven by improved customer mobility [11] Company Strategy and Development Direction - The company is focused on driving growth in core verticals and integrating its digital ecosystem with physical networks [6][8] - FEMSA Forward strategy aims to enhance value creation through sustainable practices and strategic alternatives for Envoy Solutions [7][24] - The company is committed to expanding its digital initiatives, including the integration of financial services and loyalty programs [31][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong business platform and ability to adapt to challenging environments, including high inflation and macroeconomic uncertainties [100] - The outlook for 2023 is positive, with expectations of strong unit growth in Mexico and continued performance improvements across various markets [45][46] - Management acknowledged the need for caution regarding future same-store sales growth, indicating that the 18% growth seen in Q1 may not be sustainable throughout the year [129] Other Important Information - The company has reduced its investment in Heineken from approximately 14% to 8%, which has positively impacted its leverage ratio, now at 1.8x [105] - The digital division is currently running a loss of about Ps. 900 million, with ongoing investments aimed at increasing user engagement and functionality [28][92] - The company is exploring opportunities for organic growth in its health division, particularly in Mexico, while also considering inorganic opportunities [153] Q&A Session Summary Question: What are the growth dynamics in the health division? - Management noted that growth in Colombia is driven by retail channels and customer affiliations, while Ecuador's growth is impacted by political and economic factors [16] Question: Can you elaborate on OXXO's same-store sales and average ticket increase? - Management confirmed that the increase in average ticket size is a consistent trend, driven by a broader product offering and recovering traffic [20][54] Question: What is the status of FEMSA Forward and Envoy negotiations? - Management stated that they are on track with FEMSA Forward and are exploring strategic alternatives for Envoy Solutions, with positive market conditions aiding their progress [24][70] Question: How does the company view cash returns to shareholders? - Management indicated that capital allocation decisions will be made with a focus on maximizing returns, considering share buybacks and dividends as potential options [36][70] Question: What are the plans for expanding the Bara format? - Management expressed strong ambitions for accelerating store openings in the Bara format, while also focusing on organic growth opportunities [39][66]

Table of Contents As filed with the Securities and Exchange Commission on April 21, 2023 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, 2022 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 ...