FEMSA(US:FMX)2021-10-29 20:35Financial Data and Key Metrics Changes - Total revenues during Q3 2021 increased by 12.6% compared to Q3 2020, and income from operations increased by 14% [11] - Net income reached MXN 16 billion, reflecting higher income from operations and non-operating income, partially offset by high interest expense [12] - Consolidated net debt position reached MXN 70 billion at the end of September [12] Business Line Data and Key Metrics Changes - In the Proximity Division, same-store sales in Mexico were stable, with a 9.7% increase in same-store sales for Q3 2021 compared to 2020, but a decline of 3.5% compared to Q3 2019 [14] - The Health Division expanded its drugstore count by 81 net additions, with revenues increasing by 8.2% and same-store sales up by 4.2% [15] - The Fuel Division saw revenues increase by 20.5% and same-station sales grow by 16.7% compared to Q3 2020 [17] Market Data and Key Metrics Changes - The Fuel Division continues to see improving demand numbers, although still below pre-pandemic levels [8] - Coca-Cola FEMSA experienced a volume growth of 5.8% over the last year, with revenues increasing by 3.4% despite supply chain disruptions [19] Company Strategy and Development Direction - The company aims to open at least 10,000 more stores in Mexico over the next decade, with a focus on accelerating openings in Colombia and Chile [21][22] - Digital initiatives, including the OXXO Premia loyalty program and the spin platform, are seen as key growth opportunities [23][35] - The logistics and distribution operations are gaining momentum, with a focus on expanding geographical footprint in the U.S. [26] Management's Comments on Operating Environment and Future Outlook - Management noted gradual improvements in health and mobility trends, with expectations for continued recovery in consumer behavior [6] - The company is optimistic about its growth potential in Latin America, particularly in Colombia and Chile, and is focused on enhancing its digital capabilities [22][29] Other Important Information - CapEx increased by 38% due to a low comparison base in Q3 2020 [12] - The company is making progress in its beer portfolio in Brazil and testing additional distribution categories [9] Q&A Session Summary Question: What are the strategic and capital allocation priorities for the future? - Management indicated that a detailed discussion on strategic priorities will occur in January, with a focus on the current quarter [39][40] Question: Expectations for OXXO and pharmacy openings next year? - Management expects to target around 1,000 new store openings in 2022, with pharmacy growth projected at double digits [48][54] Question: Update on Jetro and OK Market acquisition status? - The OK Market acquisition in Chile has been approved, and the company is optimistic about the Jetro partnership and potential growth opportunities [84][85]