Financial Data and Key Metrics Changes - Total revenue growth for the third quarter of 2025 was 9.1%, driven by solid trends outside Mexico and currency tailwinds, particularly in Europe [30][31] - Operating income increased by 4.3% year over year, reflecting inflationary effects on costs and expenses, partially offset by efficiency efforts [30][31] - Net consolidated income decreased by 36.8% to 5.8 billion pesos, primarily due to a non-cash foreign exchange loss of 1.3 billion pesos [31][32] Business Line Data and Key Metrics Changes - Proximity Americas' same-store sales increased by 1.7%, with average ticket rising by 4.9% and average traffic contracting by 3.1% [19][34] - Total revenues for Proximity Americas grew by 9.2%, driven by the expansion of the store network and strong performance in LATAM markets [35] - Operating income for the health division declined by 4%, with same-store sales growing by 0.8%, primarily due to strong performance in Chile and Colombia [39][40] Market Data and Key Metrics Changes - In Mexico, OXXO continues to experience sluggish growth, but there are signs of improvement in market share for key categories like beer and snacks [10][20] - Coca-Cola FEMSA showed gradual improvement in volume, particularly in South America, despite a slight decline in Mexico [41] - Valora in Europe reported a 10.1% increase in total revenues, driven by higher retail sales in Switzerland [38] Company Strategy and Development Direction - The company is focused on maximizing long-term value creation through its FEMSA Forward strategy, which includes divesting nearly $11 billion in assets and setting clear capital allocation targets [8][9] - There is a strong emphasis on expanding the OXXO platform in Brazil and Colombia, with significant growth opportunities identified [10][26] - The company aims to enhance its digital capabilities and improve the value proposition of its retail offerings, particularly in coffee and food categories [24][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the upcoming year, noting signs of improvement in October data and the potential positive impact of the FIFA World Cup [42] - The recent tax increase in Mexico is expected to present challenges, but management believes they can adapt and maintain return on investment [12][30] - The incoming CEO emphasized the importance of urgency and excellence in management to drive future growth [94] Other Important Information - The company distributed a total of 11.8 billion pesos in dividends during the quarter, with no share buybacks executed [41] - The effective tax rate for the quarter improved to 29.3%, following a spike in the first half of the year [32][33] Q&A Session Summary Question: Insights on same-store sales performance and traffic dynamics at OXXO - Management noted a reversal of trends in OXXO Mexico, with improved traffic performance compared to the first half of the year, and expressed optimism for the fourth quarter [46][49] Question: Gross margin performance at OXXO Mexico - Management indicated that gross margin improvements were driven by commercial income growth and a favorable service mix, with expectations for continued gains [54][57] Question: Update on health business in Mexico and Chile - Management reported strong growth in Chile despite a competitive environment, while acknowledging challenges in Mexico and the need for operational improvements [70][71] Question: Corporate restructuring and SG&A reduction - Management discussed ongoing efforts to streamline corporate overhead and indicated potential for significant savings in the future [78][79] Question: Interest expense increase and its drivers - Management explained that the increase in interest expense was primarily due to lease accounting under IFRS and the consolidation of U.S. operations [95][96]

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].