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 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]

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]

Core Insights - FEMSA reported a 9.1% increase in total consolidated revenues and a 4.3% rise in income from operations for the third quarter of 2025 compared to the same period in 2024 [7] - The company experienced a modest sequential improvement in Mexico, despite facing a challenging consumption environment [4][5] - The diversified geographical presence helped mitigate softer trends in Mexico, with positive contributions from South America and Europe [5] Financial Performance - Total Revenues for FEMSA Consolidated grew by 9.1% in 3Q25 and 8.4% year-to-date [2] - Gross Profit increased by 8.0% in 3Q25 and 8.6% year-to-date [2] - Income from Operations rose by 4.3% in 3Q25 and 3.0% year-to-date [2] Segment Performance - Proximity Americas saw total revenues grow by 9.2% and income from operations increase by 7.1% compared to 3Q24 [7] - Proximity Europe reported a 10.1% increase in total revenues and a significant 29.1% rise in income from operations [2] - Coca-Cola FEMSA's total revenues and income from operations grew by 3.3% and 6.8%, respectively, against 3Q24 [7] User Engagement - Spin by OXXO had 9.9 million active users, representing a 20.5% growth compared to 3Q24 [7] - Spin Premia had 27.7 million active loyalty users, reflecting a 16.4% increase compared to 3Q24 [7] - The average tender at OXXO Mexico increased to 48.2% from 38.5% in 3Q24 [7] Future Outlook - The company is cautiously optimistic about continued improvement in results across business units in the fourth quarter of 2025 [6] - Anticipation for significant events in 2026, including the FIFA World Cup and Coca-Cola's 100th anniversary in Mexico, is noted [6]

Core Insights - FEMSA reported a mixed set of results for Q2 2025, facing challenges in Mexico due to a soft consumer environment and adverse weather, while operations outside Mexico showed strong performance [3][4]. Financial Performance - Total consolidated revenues grew by 6.3% in Q2 2025 compared to Q2 2024, while income from operations increased by 1.2% [5]. - Proximity Americas saw total revenues increase by 6.9%, but income from operations decreased by 2.8% compared to Q2 2024 [5]. - Coca-Cola FEMSA's total revenues and income from operations grew by 5.0% and 0.2%, respectively, against Q2 2024 [5]. Operational Highlights - Proximity Americas Mexico experienced weak traffic numbers, particularly in convenience categories like soft drinks, beer, and tobacco, which underperformed compared to other categories [4]. - Spin by OXXO had 9.4 million active users, representing an 18.8% growth compared to Q2 2024, while Spin Premia had 26.6 million active loyalty users, reflecting a 16.9% growth [5]. - The retail operations outside of Mexico showed encouraging signs, with improvements in competitive positioning and strong results in certain South American markets [4][5]. Strategic Focus - The company is focused on reversing traffic and volume trends while managing costs and expenses in the second half of the year [5]. - FEMSA is working with supplier partners to adjust product assortments and pricing strategies to remain competitive as they approach the key selling season in Q4 [4].

Core Insights - FEMSA has completed the divestiture of a significant portion of its logistics operations under the Solistica brand to Grupo Traxión for 4,040 million Mexican pesos, marking a strategic realignment in its portfolio [1][8] - The transaction includes FEMSA's transportation management and contract logistics operations in Mexico, Colombia, and Brazil, excluding its less-than-truckload operations in Brazil [2][8] - This divestiture aligns with FEMSA's long-term goals of portfolio optimization and enhancing its focus on high-margin retail and beverage operations [3][4] FEMSA Forward Strategy - The divestiture is part of the FEMSA Forward strategy initiated in early 2023, aimed at driving long-term value across core business units while exploring alternatives for non-core assets [4] - FEMSA has streamlined its portfolio by reducing its stake in Heineken, merging Envoy Solutions with BradyIFS, and selling its refrigeration and food service equipment businesses [4] - The restructuring allows FEMSA to redeploy capital towards high-growth areas, particularly in its Retail division, including the expansion of its OXXO convenience store network [5] Digital and Fintech Growth - FEMSA is scaling its digital and fintech platforms, with its digital wallet, Spin by OXXO, and loyalty program, Spin Premia, achieving 13.8 million and 55.7 million active users, respectively [6] - Spin by OXXO has been fully authorized as a fintech in Mexico, positioning FEMSA to enhance customer engagement and cross-platform synergies [6] Challenges and Market Conditions - Despite strategic progress, FEMSA faces challenges such as soft consumer demand in Mexico, leading to declining store traffic and margin compression in its Proximity Americas segment [7] - Broader cost pressures from inflation and rising labor expenses are impacting profitability across key divisions, including Proximity Europe and Coca-Cola FEMSA [7] - Increasing competitive intensity and reliance on Coca-Cola trademark products pose risks to sustainable margin expansion and earnings visibility [7]

Core Insights - FEMSA reported a total revenue growth of 11.1% and an increase in income from operations by 4.9% for the first quarter of 2025 compared to the same period in 2024 [5] - The company faced challenges in the Proximity Americas segment, with total revenues growing by 6.8% but income from operations decreasing by 11.8% [5] - Coca-Cola FEMSA achieved a revenue growth of 10.0% and an income from operations increase of 7.4% compared to the first quarter of 2024 [5] Financial Performance - Total revenues for FEMSA reached a growth of 11.1% in Q1 2025 [5] - Gross profit increased by 15.8% in the same period [2] - Income from operations rose by 4.9% compared to Q1 2024 [5] Segment Analysis - Proximity Americas experienced a revenue growth of 6.8% but faced a significant decline in income from operations by 11.8% [2][5] - Proximity Europe saw a revenue increase of 18.0% but a decline in income from operations by 14.6% [2] - The Health segment reported a revenue growth of 21.0% and a substantial increase in income from operations by 27.4% [2] - The Fuel segment had a modest revenue growth of 1.8% but faced a decline in income from operations by 13.9% [2] User Engagement - Spin by OXXO had 8.9 million active users, representing a growth of 20.9% compared to Q1 2024 [5] - Spin Premia recorded 25.2 million active loyalty users, reflecting a growth of 15.9% compared to the same period last year [5] - The average tender for Spin Premia increased to 42.5% from 35.1% in Q1 2024 [5] Management Commentary - The CEO highlighted the company's ability to navigate a challenging environment, particularly in Mexico, leveraging a geographically diversified business platform [3] - The company anticipates a recovery in its Mexico business as the year progresses, projecting momentum in the second half of 2025 [6] - Management expressed confidence in the initiatives being implemented to drive revenues and lower costs [7]

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].