FEMSA(US:FMX)2025-04-24 20:39Debt 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].