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] - Operating income increased by 4.3% year over year, reflecting inflationary effects on costs and expenses, partially offset by efficiency efforts [30] - 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 reported same-store sales growth of 1.7%, with average ticket rising 4.9% and average traffic contracting 3.1% [19][34] - Total revenues for Proximity Americas grew 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 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 a decade of continuous store growth, with a leadership transition to Carlos Arroyo [10] - Coca-Cola FEMSA showed gradual improvement in volume, particularly in South America, despite a slight decline in Mexico [41] - Valora in Europe reported total revenues increased by 10.1% in pesos, driven by higher Swiss retail sales [38] Company Strategy and Development Direction - The FEMSA Forward strategy focuses on maximizing long-term value creation by concentrating on core verticals: retail and beverages, supported by digital initiatives [8] - The company plans to distribute approximately $7.8 billion in capital through dividends and share buybacks between March 2024 and March 2027 [8] - Future growth opportunities are seen in OXXO Brazil, OXXO Colombia, and Bara, with significant potential for value creation [11][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of business units despite a sluggish year in Mexico, with positive signs of recovery in traffic and market share gains [9][20] - The company is cautiously optimistic about the upcoming year, anticipating improvements in the operating environment and benefiting from the FIFA World Cup [42] - Management acknowledged challenges from a recent tax increase in Mexico but believes adjustments can be made to maintain return on investment [12] 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: Details on 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 the 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 plans - Management discussed ongoing efforts to streamline corporate overhead and indicated potential for significant savings, with further details expected in future calls [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]

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 the consolidation of OXXO USA [29] - Operating income increased by 4.3% year over year, reflecting inflationary effects on costs and expenses, partially offset by efficiency efforts [29] - 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 [29][30] Business Line Data and Key Metrics Changes - Proximity Americas reported same-store sales growth of 1.7%, with average ticket rising 4.9% and average traffic declining 3.1% [19][33] - Total revenues for Proximity Americas grew 9.2%, driven by the expansion of the store network by 1,370 stores year on year [34] - OXXO Mexico continues to show strong performance with a decade of continuous store growth and world-class returns on capital [9] Market Data and Key Metrics Changes - In Europe, Valora's total revenues increased by 10.1% in pesos, driven by higher Swiss retail sales [37] - Coca-Cola FEMSA experienced a slight decline in total volume, primarily due to a challenging environment in Mexico, while South America showed resilient performance with volume growth [40] 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 of assets and a capital allocation framework targeting $7.8 billion in capital distribution by 2027 [6][7] - There is a strong emphasis on expanding the OXXO platform in Brazil, Colombia, and the U.S., with significant growth opportunities identified [25][57] - The company aims to enhance its value proposition in food and coffee categories, with ongoing experimentation to launch new offerings [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of business units despite a sluggish year in Mexico, highlighting improvements in competitive positions in key categories [8][20] - The company anticipates a better operating environment in Mexico, aided by the FIFA World Cup and improvements in consumption trends [41] - Management acknowledged challenges from a recent tax increase in Mexico but believes adjustments can be made to maintain return on investment [11] Other Important Information - The company distributed a total of 11.8 billion pesos in dividends during the quarter, with no share buybacks executed [40] - The effective tax rate for the quarter was 29.3%, showing improvement from earlier in the year [30] Q&A Session Summary Question: Insights on same-store sales performance and traffic dynamics at OXXO - Management noted a sequential improvement in traffic and market share gains in key categories, with optimism for the fourth quarter [44][46] Question: Details on gross margin performance at OXXO Mexico - Management indicated that gross margin improvements were driven by service mix and pricing strategies, with expectations for continued gains [51][54] Question: Update on health business performance in Mexico and Chile - Management reported strong growth in Chile despite a competitive environment, while acknowledging challenges in Mexico that require operational fixes [61][63] Question: Corporate restructuring and SG&A reduction plans - Management outlined plans for fit-for-purpose initiatives to streamline corporate overhead and achieve significant cost savings [68][70] Question: Increase in interest expense 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 [85]

Group 1 - The overseas box office revenue of Chinese films has exceeded last year's total, reaching approximately $140 million (about 1 billion RMB) as of October 20, 2025, with 46 countries and regions involved in the release [1] - A total of 13 films have surpassed the $1 million mark in overseas box office, with 7 films earning over $5 million, 2 films over $10 million, and 1 film over $50 million [1] - The performance indicates that Chinese content is gaining stronger global market competitiveness, with significant potential for genre and animated films in international markets [1] Group 2 - The salary reduction crisis at Peak has escalated, with employees receiving ultimatums regarding salary cuts, which began in mid-September 2025 [2] - The company has implemented a collective tiered salary reduction, significantly impacting employees in the direct sales system [2] - This situation poses a brand trust crisis for Peak, which is seeking a return to the capital market and brand revival, highlighting the challenge of balancing cost-cutting with employee morale [2] Group 3 - Coca-Cola HBC has signed a final agreement to acquire 75% of Coca-Cola Beverages Africa (CCBA) for a total price of $2.6 billion, valuing CCBA at $3.4 billion [3] - This acquisition represents a significant step for Coca-Cola in re-establishing control in the African market, which, despite uncertainties, holds substantial growth potential [3] - The move is seen as a long-term investment in local production and regional integration [3] Group 4 - Pop Mart expects its overall revenue for the third quarter of 2025 to increase by 245% to 250% year-on-year, with domestic revenue growing by 185% to 190% and overseas revenue by 365% to 370% [4] - The substantial growth in the overseas market indicates the initial success of its "trendy toys going global" strategy [4] - The domestic market growth reflects the company's transformation from collectible toys to a "trendy cultural brand" [4]