SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of July 2024

 

FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.

(Exact name of Registrant as specified in its charter)

 

Mexican Economic Development, Inc.

(Translation of Registrant’s name into English)

 

United Mexican States

(Jurisdiction of incorporation or organization)

 

General Anaya No. 601 Pte.
Colonia Bella Vista
Monterrey, Nuevo León 64410
México

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports

under cover of Form 20-F or Form 40-F:

 

Form 20-F x Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(7): ¨

 

Indicate by check mark whether by furnishing the information contained in this

Form, the registrant is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ¨   No x

 

If "Yes" is marked, indicate below the file number assigned to the registrant in

connection with Rule 12g3-2(b): 82-_____________

 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the

registrant has duly caused this report to be signed on its behalf of the

undersigned, thereunto duly authorized.

 

  FOMENTO ECONÓMICO MEXICANO, S.A. DE C.V.
   
  By: /s/ Martin Felipe Arias Yaniz
  Martin Felipe Arias Yaniz
  Director of Finance and Corporate Development

 

Date: July, 24, 2024

 

 

 

Exhibit 99.1

 

 

 

 

2Q 2024

Results

July 24, 2024

 

 

  

Investor Contact

(52) 818-328-6167

investor@femsa.com.mx

femsa.gcs-web.com

 

Media Contact

(52) 555-249-6843

comunicacion@femsa.com.mx

femsa.com

 

 

 

July 24, 2024  |  Page 1

 

 

HIGHLIGHTS

 

Monterrey, Mexico, July 24, 2024 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today its operational and financial results for the second quarter of 2024.

 

•FEMSA: Total Consolidated Revenues grew 12.2% compared to 2Q23.
•FEMSA Retail1: Proximity Americas total Revenues increased 8.9% versus 2Q23.
•DIGITAL: Spin by OXXO had 7.9 million active users2 representing a 37.0% growth compared to 2Q23 while Spin Premia had 22.8 million active loyalty users2 representing a 44.3% growth compared to 2Q23 and an average tender3 of 36.1%.
•COCA-COLA FEMSA: Total volume and revenues grew 7.5% and 13.1%, respectively against 2Q23.

 

Financial Summary for the Second Quarter 2024

Change vs. comparable period

 

   Total Revenues   Gross Profit   Income from Operations   Same-Store Sales 
   2Q24   YTD24   2Q24   YTD24   2Q24   YTD24   2Q24   YTD24 
FEMSA Consolidated   12.2%   11.6%   19.1%   14.9%   15.8%   14.9%          
Proximity Americas   8.9%   11.8%   17.2%   18.4%   7.6%   9.1%   4.1%   6.6%
Proximity Europe   5.8%   7.0%   8.8%   9.9%   41.0%   82.3%   N.A.    N.A. 
Health   (0.4)%   (1.3)%   (0.2)%   (4.4)%   (14.8)%   (28.0)%   (1.1)%   (0.3)%
Fuel   16.2%   14.7%   12.5%   7.8%   24.1%   13.1%   15.9%   14.6%
Coca-Cola FEMSA   13.1%   12.7%   17.2%   15.0%   13.8%   13.0%          

 

José Antonio Fernandez Carbajal, FEMSA’s Chief Executive Officer, commented:

 

During the second quarter, we continued to see good momentum and strong performance from our core business units. Once again, most of our operations, including the two that contribute most to our results, delivered solid numbers. Proximity Americas saw a deceleration in the pace of same-store sales growth in Mexico against a tough comparison base, due in part to a shift in the timing of Holy Week celebrations, volatile weather, and the restriction of alcohol sales ahead of the national election, but offset by stellar gross margin and solid store expansion. Despite a challenging expense environment, Proximity Americas generated solid growth in operating income. For its part, Coca-Cola FEMSA delivered a remarkable set of numbers showing double-digit increases across its own income statement, driven once again by strong volume and revenue growth in its major markets.

 

We continued to see good results at Valora and OXXO Gas, with both businesses delivering double-digit growth in operating income. However, at our Health division we again faced competitive headwinds in Mexico offset by a stable performance in Chile and continued solid results in Colombia retail, and we are laser-focused with our plans to change the trajectory in Mexico to bring it in line with the positive dynamics we see elsewhere at FEMSA. Finally, at Digital, we continued to add users and advance towards our ecosystem objectives.

 

During the quarter, we also made strides on the execution of our capital allocation framework, actively utilizing both the dividend and share buyback levers to return capital to shareholders. And in early July, we received the remaining payments for the divestiture of our stake in Jetro Restaurant Depot, and we signed agreements to divest our refrigeration and foodservice equipment operations, as we continue to act on our stated objectives.

 

I want to thank our entire team for yet another quarter of excellent effort and results. We are maintaining the push into the second half of the year, confident that we can further maintain our positive momentum.

  

 

1  FEMSA Retail: Proximity Americas & Europe, Fuel and FEMSA Health.

2  Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days.

    Active User for Spin Premia: User that has transacted at least once with OXXO Premia within the last 90 days.

3 Tender: OXXO MXN sales with Spin Premia redemption or accrual / Total OXXO MXN Sales, during the period.

 

July 24, 2024  |  Page 2

 

 

QUARTERLY RESULTS

Results are compared to the same period of previous year

 

FEMSA CONSOLIDATED

 

2Q24 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.)

 

    2Q24    2Q23    Var. 
Total Revenues   198,745    177,169    12.2%
Gross Profit   82,440    69,204    19.1%
     Gross Profit Margin (%)   41.5    39.1    240bps
Income from Operations   17,626    15,216    15.8%
     Operating Margin (%)   8.9    8.6    30bps
Adjusted EBITDA2   28,614    24,525    16.7%
     EBITDA Margin (%)   14.4    13.8    60bps
Net Income   15,669    8,926    75.5%

 

Net Debt ex-KOF1

Amounts expressed in millions of Mexican Pesos (Ps.)

 

As of June 30, 2024  Ps.   US$3 
Cash and Investments   131,153    7,182 
Financial Debt   68,946    3,776 
Lease Liabilities   98,226    5,379 
Net debt   36,020    1,972 
ND / Adjusted EBITDA   0.64x   - 

 

Total revenues increased 12.2% in 2Q24 compared to 2Q23, driven by growth across most of our business units and despite Holy week holidays having occurred in 2Q23 vs. in 2Q24, and volatile weather conditions.

 

Gross profit increased 19.1%. Gross margin increased 240 basis points, mainly reflecting margin expansions in Proximity Americas, Proximity Europe and Coca-Cola Femsa; and stable margins in FEMSA’s Health and Fuel operations.

 

Income from operations increased 15.8% mainly driven by growth in most of our business units, which was partially offset by a decrease in the Health division. The consolidated operating margin was 8.9% as a percentage of total sales, an expansion of 30 basis points, mainly explained by an expansion in the Proximity Europe division and stable margins in Proximity Americas, Coca-Cola FEMSA, and Fuel operations.

 

Our effective income tax rate was 29.6% in 2Q24 compared to 28.9% in 2Q23. Our income tax provision was Ps. 6,555 million in 2Q24.

 

Net consolidated income was Ps. 15,669 million, compared to Ps. 8,926 million in 2Q23, increasing 75.5%, reflecting: i) a non-cash foreign exchange gain of Ps. 6,131 million related to FEMSA’s U.S. dollar-denominated cash position and derivative financial instruments positively impacted by the depreciation of the Mexican peso; ii) a non-operating expense of Ps. 137 million compared to an income of Ps. 9,511 million in the 2Q23, mostly reflecting the divestment of FEMSA’s minority stake in Jetro and dividends received from Heineken in 2023; iii) a higher interest income of Ps. 4,136 million related to an increase in our cash balance; and iv) a higher interest expense of Ps. 5,599 million, compared to Ps. 2,399 million in 2Q23, reflecting a benefit in the 2Q23 from a one-time gain related to the repurchase of debt.

 

Net majority income was Ps. 3.52 per FEMSA Unit4 and US$1.93 per FEMSA ADS3.

 

Net Debt / EBITDA. As of June 30, 2024, the cash and investments were Ps. 131,153 million and total debt was Ps. 167,172 million, resulting in a net debt of Ps. 36,019 million. Net Debt / EBITDA ratio ex-KOF was 0.6x.

 

Capital expenditures amounted Ps. 11,312 million, 5.7% as a percentage of total sales, and an increase of 35.1% compared to the 2Q23, mainly driven by higher investments in Coca-Cola FEMSA and Proximity Americas on ongoing investment initiatives aimed at organic growth and improving our productivity, efficiency, and competitiveness.

 

 

1 ex-KOF: FEMSA Consolidated reported information – Coca-Cola FEMSA Consolidated reported information.

2 Adjusted EBITDA: Operating Income + Depreciation + Amortizations + other non-cash charges.

Adjusted EBITDA ex-KOF: FEMSA Consolidated EBITDA as described above – Coca-Cola FEMSA’s Consolidated EBITDA + Dividends received by FEMSA from Coca-Cola FEMSA and other investments.

All Net Debt calculations are shown on an Ex-KOF basis. For a detailed reconciliation of this metric please see table on page 16 of this document.

3 The exchange rate published by the Federal Reserve Bank of New York for June 30, 2024 was 18.2610 MXN per USD.

4 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of June 30, 2024 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

 

July 24, 2024  |  Page 3

 

PROXIMITY AMERICAS

OXXO (Mexico & Latam1)

  

 

2Q24 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales

 

    2Q24    2Q23    Var. 
Same-store sales (thousands of Ps.)   1,057.8    1,016.4    4.1%
Total Revenues   78,526    72,099    8.9%
Gross Profit   34,627    29,543    17.2%
     Gross Profit Margin (%)   44.1    41.0    310bps
Income from Operations   7,757    7,211    7.6%
     Income from Operations Margin (%)   9.9    10.0    (10)bps
Adjusted EBITDA   11,781    10,473    12.5%
    Adjusted EBITDA Margin (%)   14.7    14.5    20bps

 

Net Additions

Vs. comparable quarter

Store Base

As of 2Q24 LTM

Same-Store Sales

In thousands of Ps.

Adjusted EBITDA

In millions of Ps.

       
     

 

Total revenues increased 8.9% in 2Q24 compared to 2Q23, reflecting 4.1% average same-store sales for the Proximity Americas Division, driven by 4.7% growth in average customer ticket and a decrease of 0.6% in store traffic. These figures reflect a solid performance given that the Holy Week occurred in the 1Q24 vs. 2Q24, a strong comparison base, volatile weather conditions, and the restriction of alcohol sales ahead of the national election. Categories such as water and candy posted positive results, which were partially offset by a negative mix effects with declines in beer and soft drinks. During the quarter, the OXXO store base in Mexico & Latam expanded by 390 units to reach 1,621 total net store additions for the last twelve months. As of June 30, 2024, Proximity Americas had a total of 23,680 OXXO stores. The decline in net additions in the 2Q24 vs. 2Q23 is mainly related to a stronger start of openings this year than usual and does not reflect a change in the total expected openings in Mexico this year.

 

Gross profit reached 44.1% of total revenues, reflecting a 310-basis points expansion resulting from higher contribution of financial services and an increase in commercial income, as well as revenue growth management initiatives which contributed to better pricing dynamics.

 

Income from operations represented 9.9% of total revenues, 10 basis points below 2Q23. Operating expenses increased 20.3% to Ps. 26,870 million, mainly reflecting higher operating expenses as we build our platform in South America, an increase in labor expenses across operations, and our ongoing investments to enhance our commercial capabilities such as market segmentation and product assortment.

 

 

1 OXXO Latam: OXXO Colombia, Chile and Peru.

 

July 24, 2024  |  Page 4

 

 

PROXIMITY AMERICAS

Other formats

  

 

Bara1

 

Total revenues increased by 36.6% in 2Q24 compared to 2Q23, driven by an average same-store sales increase of 14.7%, driven by strong performance in groceries and home hygiene categories and the addition of 93 net new Bara stores for the last twelve months. During the quarter, the Bara store base expanded by 15 units reaching a total of 389 Bara stores as of June 30, 2024.

 

Grupo Nós2

 

Total revenues of OXXO Brazil in 2Q24 grew 88.9%3 year-over-year. This figure reflects the successful evolution and expansion of the OXXO value proposition in the region which resulted in same-store sales growth of 22.0%3, as well as the addition of 179 net new OXXO stores for the last twelve months. During the quarter, the store base expanded by 14 units. As of June 30, 2024, we had a total of 525 OXXO stores.

 

 

1 Bara store count and results are not consolidated within the Proximity Americas reported figures.

2 OXXO’s non-consolidated joint-venture with Raízen in Brazil. 

3 In local currency, BRL 

 

July 24, 2024  |  Page 5

 

 

PROXIMITY EUROPE

Valora

 

2Q24 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.)

 

    2Q24    2Q23    Var. 
Total Revenues   11,466    10,833    5.8%
Gross Profit   4,964    4,561    8.8%
     Gross Profit Margin (%)   43.3    42.1    120bps
Income from Operations   445    316    41.0%
     Income from Operations Margin (%)   3.9    2.9    100bps
Adjusted EBITDA   1,666    1,518    9.7%
     Adjusted EBITDA Margin (%)   14.5    14.0    50bps

 

Total revenues increased 5.8% in 2Q24 compared to 2Q23, reflecting robust performance across all countries. This was primarily driven by strong promotional income, and growth in both the retail sales and B2B business; this was partially offset by adverse weather conditions during the quarter. By the end of the period, Proximity Europe had 2,789 points of sale an increase of 17 points of sale in the last twelve months.

 

Gross profit reached 43.3% of total revenues, reflecting a 120 basis-point expansion driven by a sustained positive performance in the foodservice category and B2B business, a positive price-mix effect, and higher promotional income.

 

Income from operations represented 3.9% of total revenues, driven by contributions from the foodservice category and B2B business, and proportional increase of operating expenses to sales. Operating expenses rose by 6.4% to Ps. 4,519 million, primarily due to higher costs of rent and labor.

 

July 24, 2024  |  Page 6

 

 

HEALTH

 

2Q24 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales

 

    2Q24    2Q23    Var. 
Same-store sales (thousands of Ps.)   1,102.8    1,114.8    (1.1)%
Total Revenues   18,894    18,962    (0.4)%
Gross Profit   5,719    5,728    (0.2)%
     Gross Profit Margin (%)   30.3    30.2    10bps
Income from Operations   775    910    (14.8)%
     Income from Operations Margin (%)   4.1    4.8    (70)bps
Adjusted EBITDA   1,766    1,934    (8.7)%
     Adjusted EBITDA Margin (%)   9.3    10.2    (90)bps

 

 

Net Additions

Vs. comparable quarter

Locations

As of 2Q24 LTM

Same-Store Sales

In thousands of Ps.

Adjusted EBITDA

In millions of Ps.

       

 

Total revenues decreased 0.4% in 2Q24 compared to 2Q23, impacted by several factors such a persistent negative competitive environment in Mexico coupled with a decline in Ecuador, these effects were partially offset by revenue growth in Chile and Colombia. During the quarter, the store base increased by 56 units reaching a total of 4,496 locations across our territories, as of June 30, 2024. This figure reflects the addition of 229 net new locations in the last twelve months. Same-store sales decreased by an average of 1.1%, reflecting the trends described above.

 

Gross profit was 30.3% of total revenues, stable year on year, reflecting higher retail sales in our operation in Colombia, and increased promotional activities in our operations in South America. These was partially offset by lower sales in Mexico and Ecuador.

 

Income from operations amounted to 4.1% of total revenues, resulting in a decline of 14.8%, which represents a sequential improvement compared to the 40% decline in the 1Q24, mainly explained by income from operations growth in Colombia and stable results in Chile, which were offset by declines in Mexico and Ecuador. Operating expenses increased 2.6% to Ps. 4,954 million, explained by expenses incurred from strategic adjustments to our value proposition in Mexico and the expansion of stores in Colombia, which were partially offset by tight expense control.

 

July 24, 2024  |  Page 7

 

 

FUEL

  

2Q24 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.) except same-station sales

 

    2Q24    2Q23    Var. 
Same-station sales (thousands of Ps.)   8,643.9    7,457.6    15.9%
Total Revenues   16,796    14,455    16.2%
Gross Profit   1,954    1,736    12.5%
     Gross Profit Margin (%)   11.6    12.0    (40)bps
Income from Operations   704    567    24.1%
     Income from Operations Margin (%)   4.2    3.9    30bps
Adjusted EBITDA   1,026    861    19.2%
     Adjusted EBITDA Margin (%)   6.1    6.0    10bps

 

Net Additions

Vs. comparable quarter

Service Station Base

As of 2Q24 LTM

Same-Station Sales

In thousands of Ps.

Adjusted EBITDA

In millions of Ps.

       
     

 

Total revenues increased 16.2% in 2Q24 compared to 2Q23, reflecting a 15.9% average same-station sales increase, driven by 10.0% growth in average volume and 5.4% increase in the average price per liter. These results were driven by a higher volume of retail and institutional sales, coupled with pricing strategies implemented during the quarter. The OXXO Gas retail network had 570 points of sale as of June 30, 2024.

 

Gross profit was 11.6% of total revenues compared to 12.0% in 2Q23, mainly reflecting our revenue growth management initiatives and higher revenues from our institutional sales.

 

Income from operations accounted for 4.2% of total revenues. Operating expenses increased 1.9% to Ps. 1,191 million driven by effective expense control and favorable operating leverage.

 

July 24, 2024  |  Page 8

 

 

FEMSA Retail Operations Summary

 

Currency-neutral terms where applicable

 

Total Revenue Growth (% vs year ago)

 

    2Q24 
Proximity Americas     
OXXO1   8.9%
Mexico   8.5%
OXXO Latam2   25.3%
      
Other Proximity Americas formats     
Bara   36.6%
OXXO Brazil3   88.9%
      
Proximity Europe4   12.6%
OXXO Gas   17.6%
      
FEMSA Health5     
Chile   5.9%
Colombia   (3.3)%
Ecuador   (12.5)%
Mexico   (5.0)%

 

 

1 OXXO Consolidated figures shown in MXN including currency effects.
2 Includes OXXO Colombia, Chile and Peru.
3 Operated through Grupo Nós, our joint-venture with Raízen.
4 Local currency (CHF).
5 FEMSA Health Include franchised stores in Ecuador.

 

Total Unit Growth (% vs year ago)

 

    2Q24 
Proximity Americas     
OXXO   7.3%
Mexico   5.9%
OXXO Latam1   52.5%
      
Other Proximity Americas formats     
Bara   31.4%
OXXO Brazil2   51.7%
      
Proximity Europe3   0.6%
OXXO Gas   0.0%
      
FEMSA Health     
Chile   3.9%
Colombia   12.1%
Ecuador   1.8%
Mexico   5.1%

 

 

1 Includes OXXO Colombia, Chile and Perú.
2 Operated through Grupo Nós, our joint-venture with Raízen.
3 Includes company owned and franchised units.

 

Same-Store Sales

 

    2Q24 
Proximity Americas     
OXXO1   4.1%
Mexico   4.2%
OXXO Latam2   0.1%
      
Other Proximity Americas formats     
Bara   14,7%
OXXO Brazil3   22.0%
      
Proximity Europe4   N.A. 
OXXO Gas   15.9%
      
FEMSA Health5     
Chile   2.3%
Colombia   18.3%
Ecuador   (5.3)%
Mexico   (4.8)%

 

 

1 OXXO Consolidated figures shown in MXN including currency effects.
2 Includes OXXO Colombia, Chile and Peru.
3 Operated through Grupo Nós, our joint-venture with Raízen.
4 Local currency (CHF).
5 Only includes retail sales. FEMSA Health Include franchised stores in Ecuador.

 

July 24, 2024  |  Page 9

 

 

DIGITAL@FEMSA1  

 

Spin by OXXO

 

Spin by OXXO acquired 0.9 million users during the quarter to reach 11.8 million total users in 2Q24, compared to 7.6 million users in 2Q23. This represents an increase of 56.2% YoY and a 3.8% compound monthly growth rate. Active users2 represented 66.9% of the total acquired user base representing 37.0% growth and reaching 7.9 million. Total transactions per month increased 13.4%3 during the quarter to reach an average of 57.5 million per month in 2Q24, reflecting an increase in user engagement.

 

Spin Premia

 

Spin Premia acquired 3.1 million users during the quarter to reach 47.2 million total users in 2Q24, compared to 32.7 million users in 2Q23. This represents an increase of 44.1% YoY and a 3.1% compound monthly growth rate. Active users4 represented 48.3% of the total acquired user base representing 44.3% growth and reaching 22.8 million. The average tender5 during the quarter was 36.1%.

 

COCA-COLA FEMSA  

 

Coca-Cola FEMSA’s financial results and discussion thereof are incorporated by reference from Coca-Cola FEMSA’s press release, which may be accessed by visiting coca-colafemsa.com.

 

 

1 Digital@FEMSA’s results are included within the Other business segment

2 Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days.

3 Represents the quarter-over-quarter growth of average monthly transactions.

4 Active User for Spin Premia: User that has transacted at least once with OXXO Premia within the last 90 days.

5 Tender: OXXO MXN sales with Spin Premia redemption or accrual / Total OXXO MXN Sales, during the period.

 

July 24, 2024  |  Page 10

 

 

RESULTS FOR THE FIRST SIX MONTHS OF 2024

Results are compared to the same period of previous year

 

FEMSA CONSOLIDATED  

 

Financial Summary for the First Six Months

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   2024   2023   Var. 
Total Revenues   375,507    336,594    11.6%
Gross Profit   150,779    131,258    14.9%
Gross Profit Margin (%)   40.2%   39.0%   120bps
Income from Operations   30,582    26,607    14.9%
Operating Margin (%)   8.1    7.9    20bps
Adjusted EBITDA1   51,919    45,320    14.6%
Adjusted EBITDA Margin (%)   13.8    13.5    30bps
Consolidated Net Income   21,450    59,252    N.S. 

 

Total revenues increased 11.6% reflecting growth across most of our operations.

 

Gross profit increased 14.9%. Gross margin increased 120 basis points to 40.2% of total revenues, reflecting a gross margin expansion at Proximity Americas, Coca-Cola FEMSA and the Proximity Europe Division. This was partially offset by margin contractions at the Fuel, and Health Divisions.

 

Income from operations rose by 14.9%. Our consolidated operating margin increased 20 basis points to 8.1% of total revenues, reflecting margin expansion at Proximity Europe, flat margins in Coca-Cola FEMSA and Fuel, partially offset by margin contractions at Health and Proximity Americas.

 

Our effective income tax rate was 31.9% for the six months of 2024, compared to 29.6% in 2023. Our income tax provision was Ps. 9,936 million for the six months of 2024.

 

Net consolidated income was Ps. 21,450 million reflecting; i) a challenging comparative base from the first six months of 2023, which included a gain of Ps. 40,606 million from the reclassification of FEMSA’s investment in Heineken to discontinued operations; ii) a non-operating expense of Ps. 624 million compared to an income of Ps. 9,471 million in the 2Q23, mostly reflecting the divestment of FEMSA’s minority stake in Jetro and dividends received from Heineken in 2023; iii) lower interest income of Ps. 6,837 million compared to Ps. 9,862 million in of 2023 attributable to a gain from the purchase of debt of US$1.7 billion during 2023; and iv) a higher interest expense amounting to Ps. 10,271 million compared to Ps. 5,653 in million reflecting a benefit in the 2023 from a one-time gain related to debt repurchase. This was partially offset by a non-cash foreign exchange gain of Ps. 5,008 million related to FEMSA’s U.S. dollar-denominated cash position and financial derivatives positive impacted by the depreciation of the Mexican peso.

 

Net majority income per FEMSA Unit2 was Ps.4.32 (US$2.37 per ADS).

 

Capital expenditures amounted to Ps. 18,882 million, an increase of 39.5% compared to 2023, reflecting our store expansion in Proximity Americas and higher investments in core capabilities across our business units.

 

 

1 Adjusted EBITDA: Operating Income + Depreciation + Amortizations.

2 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of June 30, 2024 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

 

July 24, 2024  |  Page 11

 

 

RECENT DEVELOPMENTS

 

·In preparing our consolidated financial statements for the second quarter and six months ended June 30, 2024, we identified that certain transactions related to our non-core discontinued operations (Solistica and AlPunto) were incorrectly classified for the first quarter ended March 31, 2024 and the comparable period in 2023. We have attached to this press release reclassified information for the quarter ended March 31, 2024, that shows the variations from the previously reported information and the 2023 reclassified comparable figures; this can be found on page 23-24. It is important to highlight that these corrections do not impact the consolidated net profit of the Company in either period or the results of the business units which are reported individually for those periods.

 

No reclassification is required in our audited financial statements for the year ended December 31, 2023, and the information included in this press release for the second quarter and the six months ended June 30, 2024 reflects the correct classification.

 

·On June 10, 2024, FEMSA announced that it has entered into a new derivative instrument in the form of an accelerated share repurchase transaction (“ASR”) to repurchase the Company’s American Depositary Shares (“ADSs”). Under the terms of this new ASR, FEMSA has agreed to repurchase up to USD $600 million of its ADSs. The total number of ADSs ultimately repurchased under this ASR will be based on the daily volume-weighted average price of the Company’s ADSs during the term of the ASR and subject to certain limitations. The final settlement of the ASR is expected to be completed, at the latest, in the fourth quarter of 2024.

 

Additionally, the Company announces the completion of the ASR announced in March 2024, with the final delivery of the shares repurchased thereunder made on May 28, 2024. The Company repurchased a total of approximately 3.2 million ADSs at an average price of USD $123.27 per ADS, for a total amount of USD $400 million.

 

·On July 1, 2024, FEMSA received all remaining amounts related to the divestment of our stake in Jetro Restaurant Depot corresponding to USD $945 million.

 

·On July 8, 2024, FEMSA announced that on June 4, 2024, it made a partial buyback offer in international markets (the “Repurchase Offer”), with respect to debt securities denominated in United States dollars, issued previously by FEMSA, through which it agreed to repurchase debt securities due 2050 for a principal amount of US$ 206.7 million. The settlement of the buyback was carried out on June 20, 2024, and simultaneously FEMSA canceled the total amount of securities repurchase.

 

·On July 17, 2024, FEMSA announced it has reached a definitive agreement with Mill Point Capital LLC, a US based private equity firm, to divest FEMSA’s refrigeration and foodservice equipment operations, Imbera and Torrey, for a total amount of $8,000 million pesos (approximately USD $450 million), on a cash-free, debt-free basis.

 

This transaction represents an additional step in the continued execution of the FEMSA Forward plan that was communicated in February of 2023. The transaction is subject to regulatory approvals and other customary conditions, and is expected to close by the end of the year.

 

July 24, 2024  |  Page 12

 

 

CONFERENCE CALL INFORMATION

 

Our Second Quarter 2024 Conference Call will be held on: Wednesday, July 24, 2024, 11:00 AM Eastern Time (9:00 AM Mexico City Time). The conference call will be webcast live through streaming audio.

 

Telephone: Toll Free US: (866) 580 3963
  International: +1 (786) 697 3501  
     
Webcast: https://edge.media-server.com/mmc/p/u8qgeyf5/
   
Conference ID: FEMSA

 

If you are unable to participate live, the conference call audio will be available on https://femsa.gcs-web.com/financial-reports/quarterly-results

 

 

ABOUT FEMSA

 

FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Americas Division operating OXXO, a small-format store chain, and other related retail formats, and Proximity Europe which includes Valora, our European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates though a Health Division, which includes drugstores and related activities and Digital@FEMSA, which includes Spin by OXXO and Spin Premia, among other digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume. Across its business units, FEMSA has more than 392,000 employees in 18 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index: S&P/BMV Total México ESG, among other indexes that evaluate its sustainability performance.

 

The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the noon buying rate for Mexican pesos as published by the Federal Reserve Bank of New York on June 30, 2024, which was 18.2610 Mexican pesos per US dollar.

 

FORWARD-LOOKING STATEMENTS

 

This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

 

Ten pages of tables to follow

 

July 24, 2024  |  Page 13

 

 

FEMSA – Consolidated Income Statement

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the second quarter of:   For the six months of: 
   2024   %
of rev.		   2023   %
of rev.		   % Var.   2024   %
of rev.		   2023   %
of rev.		   % Var. 
Total revenues   198,745    100.0    177,169    100.0    12.2    375,507    100.0    336,594    100.0    11.6 
Cost of sales   116,305    58.5    107,965    60.9    7.7    224,728    59.8    205,336    61.0    9.4 
Gross profit   82,440    41.5    69,204    39.1    19.1    150,779    40.2    131,258    39.0    14.9 
Administrative expenses   9,476    4.8    9,104    5.1    4.1    17,840    4.8    15,770    4.7    13.1 
Selling expenses   55,170    27.8    44,224    25.0    24.7    101,969    27.2    88,369    26.3    15.4 
Other operating expenses (income), net (1)   168    0.1    660    0.4    (74.6)   388    0.1    512    0.2    (24.1)
Income from operations (2)   17,626    8.9    15,216    8.6    15.8    30,582    8.1    26,607    7.9    14.9 
Other non-operating expenses (income)   137         (9,511)        (101.4)   624         (9,471)        (106.6)
Interest expense   5,599         2,399         133.4    10,271         5,653         81.7 
Interest income   4,136         1,546         167.4    6,837         9,862         (30.7)
Interest expense, net   1,463         852         71.7    3,434         (4,209)        (181.6)
Foreign exchange loss (gain)   (6,131)        6,527         (193.9)   (5,008)        9,183         (154.5)
Other financial expenses (income), net   47         (303)        (115.4)   337         8          N.S.  
Financing expenses, net   (4,621)        7,077         (165.3)   (1,237)        4,982         (124.8)
Income before income tax and participation in associates results   22,109         17,649         25.3    31,195         31,096         0.3 
Income tax   6,555         5,109         28.3    9,936         9,190         8.1 
Participation in associates results (3)   (300)        (228)        31.7    (334)        (424)        (21.4)
Continued Operations net income (Loss)   15,255         12,372         23.3    20,925         21,486         (2.6)
Discontinued Operations net income (Loss)   414         (3,446)        (112.0)   525         37,766         (98.6)
Consolidated net income (Loss)   15,669         8,926         75.5    21,450         59,252         (63.8)
Net majority income   12,590         6,164         104.3    15,457         54,239         (71.5)
Net minority income   3,078         2,762         11.5    293         5,013         (94.2)

 

Operative Cash Flow & CAPEX  2024   %
of rev.		   2023   %
of rev.		   % Var.   2024   %
of rev.		   2023   %
of rev.		   % Var. 
Income from operations   17,626    8.9    15,216    8.6    15.8    30,582    8.1    26,607    7.9    14.9 
Depreciation   7,981    4.0    7,663    4.3    4.1    15,870    4.2    15,286    4.5    3.8 
Amortization & other non-cash charges   3,008    1.5    1,646    0.9    82.7    5,466    1.5    3,427    1.0    59.5 
Adjusted EBITDA   28,614    14.4    24,525    13.8    16.7    51,919    13.8    45,320    13.5    14.6 
CAPEX   11,312    5.7    8,375         35.1    18,882         13,531         39.5 

 

 

(1) Other operating expenses (income), net = other operating expenses (income) +(-) equity method from operated associates.

(2) Income from operations = gross profit – administrative and selling expenses – other operating expenses (income), net.

(3) Mainly represents the results of our joint-venture with Raízen, Grupo Nós, net of taxes.

 

July 24, 2024  |  Page 14

 

 

FEMSA – Consolidated Balance Sheet

Amounts expressed in millions of Mexican Pesos (Ps.)

 

ASSETS  Jun-24   Dec-23   % Inc. 
Cash and cash equivalents   121,429    165,112    (26.5)
Investments   47,995    26,728    79.6 
Accounts receivable   39,744    38,863    2.3 
Inventories   57,769    58,222    (0.8)
Other current assets   55,962    41,415    35.1 
Current Assets Available for sale   28,373    25,819    9.9 
Total current assets   351,272    356,159    (1.4)
Investments in shares   27,449    26,247    4.6 
Property, plant and equipment, net   150,440    141,530    6.3 
Right of use   91,340    87,941    3.9 
Intangible assets (1)   142,293    143,218    (0.6)
Other assets   57,623    50,761    13.5 
TOTAL ASSETS   820,417    805,856    1.8 

 

LIABILITIES & STOCKHOLDERS’ EQUITY  Jun-24   Dec-23   % Inc. 
Bank loans   2,898    2,453    18.1 
Current maturities of long-term debt   3,058    8,955    (65.9)
Interest payable   1,578    1,677    (5.9)
Current maturities of long-term leases   12,784    12,236    4.5 
Operating liabilities   171,260    148,447    15.4 
Short term liabilities available for sale   12,848    11,569    11.1 
Total current liabilities   204,425    185,337    10.3 
Long-term debt (2)   131,542    125,417    4.9 
Long-term leases   87,581    83,838    4.5 
Laboral obligations   7,554    6,920    9.2 
Other liabilities   24,054    25,975    (7.4)
Total liabilities   455,156    427,487    6.5 
Total stockholders’ equity   365,261    378,369    (3.5)
TOTAL LIABILITIES AND STOCKHOLERS’ EQUITY   820,417    805,856    1.8 

 

   June 30, 2024 
DEBT MIX (2)  % of Total   Average
Rate		 
Denominated in:          
Mexican pesos   54.2%   9.1%
U.S. Dollars   26.8%   3.4%
Euros   7.1%   2.6%
Swiss Francs   0.0%   0.0%
Colombian pesos   0.7%   6.3%
Argentine pesos   0.3%   50.8%
Brazilian reais   10.0%   9.2%
Chilean pesos   1.0%   7.0%
Total debt   100.0%   7.2%
           
Fixed rate (2)   82.9%     
Variable rate (2)   17.1%     

 

DEBT MATURITY PROFILE  2024   2025   2026   2027   2028   2029+ 
% of Total Debt   3.7%   2.0%   9.3%   7.0%   11.7%   66.4%

 

 

(1) Includes mainly the intangible assets generated by acquisitions.

(2) Includes the effect of derivative financial instruments on long-term debt.

 

July 24, 2024  |  Page 15

 

 

Net Debt & Adjusted EBITDA ex-KOF

Amounts expressed in millions of US Dollars (US.)

 

   Twelve months ended June 30, 2024 
   Reported Adj. EBITDA   Adjustments   Adj. EBITDA Ex-KOF3 
Proximity Americas & Europe   2,667    -    2,667 
Fuel   213    -    213 
Health Division   414    -    414 
Envoy Solutions   -    -    - 
Coca-Cola FEMSA1   2,785    (2,785)   - 
Other2   (405)   -    (405)
FEMSA Consolidated   5,674    (2,785)   2,889 
                
Dividends Received3   -    174    174 
                
FEMSA Consolidated ex-KOF   5,674    (2,611)   3,063 

 

   As of June 30, 2024 
   Reported   Adjustments   Ex-KOF 
Cash & Equivalents   7,182    -    7,182 
Coca-Cola FEMSA Cash & Equivalents   2,096    (2,096)   - 
Cash & Equivalents   9,278    (2,096)   7,182 
                
Financial Debt4   3,776    -    3,776 
Coca-Cola FEMSA Financial Debt   3,754    (3,754)   - 
Lease Liabilities   5,379    -    5,379 
Coca-Cola FEMSA Lease Liabilities   117    (117)   - 
Debt   13,026    (3,871)   9,155 
                
FEMSA Net Debt   3,748    (1,775)   1,972 

 

Translated to USD for readers’ convenience using the exchange rate published by the Federal Reserve Bank of New York for June 30, 2024 which was 18.2610 MXN per USD.

 

 

1 Coca-Cola FEMSA adjustment represents 100% of its LTM EBITDA.

2 Includes FEMSA Other Businesses (including Bara and Digital@FEMSA), FEMSA corporate expenses and the effects of consolidation adjustments

3 Reflects cash dividends received from Coca-Cola FEMSA for approximately US$164 mm and EUR$8 mm during the last twelve months.

4 Includes EUR€ 500.0 mm in notes convertible to Heineken Holding N.V. shares. 

 

July 24, 2024  |  Page 16

 

 

Proximity Americas – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the second quarter of:   For the six months of: 
   2024  

%

of rev.

   2023  

%

of rev.

   % Var.   2024  

%

of rev.

   2023  

%

of rev.

   % Var. 
Total revenues  78,526   100.0   72,099   100.0   8.9   148,611   100.0   132,970   100.0   11.8 
Cost of sales  43,898   55.9   42,556   59.0   3.2   84,562   56.9   78,881   59.3   7.2 
Gross profit  34,627   44.1   29,543   41.0   17.2   64,049   43.1   54,089   40.7   18.4 
Administrative expenses  1,916   2.4   1,650   2.3   16.1   3,439   2.3   2,770   2.1   24.2 
Selling expenses  24,857   31.7   20,632   28.6   20.5   47,687   32.1   39,577   29.8   20.5 
Other operating expenses (income), net  97   0.1   50   0.1   94.6   188   0.1   70   0.1   167.9 
Income from operations  7,757   9.9   7,211   10.0   7.6   12,735   8.6   11,672   8.8   9.1 
Depreciation  2,989   4.1   3,033   4.2   (1.5)  5,882   4.2   6,055   4.6   (2.9)
Amortization & other non-cash charges  1,036   0.8   229   0.3   N.S.   1,893   0.8   443   0.3   N.S. 
Adjusted EBITDA  11,781   14.7   10,473   14.5   12.5   20,510   13.6   18,170   13.7   12.9 
CAPEX  4,749       3,258       45.8   8,020       5,606       43.0 
                                         
Information of OXXO Stores                                        
Total stores                      23,680       22,059       7.3 
Stores Mexico                      22,658       21,389       5.9 
Stores South America                      1,022       670       52.5 
                                         
Net new convenience stores:                                        
vs. Last quarter  390       444       (12.2)                    
Year-to-date  814       601       35.4                     
Last-twelve-months  1,621       1,391       16.5                     
                                         
Same-store data: (1)                                        
Sales (thousands of pesos)  1,057.8       1,016.4       4.1   1,009.3       946.4       6.6 
Traffic (thousands of transactions)  18.8       19.0       (0.6)  18.2       18.1       0.7 
Ticket (pesos)  56.1       53.6       4.7   55.5       52.4       5.9 

 

 

(1) Monthly average information per store, considering same stores with more than twelve months of operations, income from services are included.

 

July 24, 2024  |  Page 17

 

 

Proximity Europe – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the second quarter of:   For the six months of: 
   2024  

%

of rev.

   2023  

%

of rev.

   % Var.   2024  

%

of rev.

   2023  

%

of rev.

   % Var. 
Total revenues  11,466   100.0   10,833   100.0   5.8   22,405   100.0   20,944   100.0   7.0 
Cost of sales  6,502   56.7   6,272   57.9   3.7   12,711   56.7   12,120   57.9   4.9 
Gross profit  4,964   43.3   4,561   42.1   8.8   9,694   43.3   8,824   42.1   9.9 
Administrative expenses  826   7.2   768   7.1   7.6   1,675   7.5   1,520   7.3   10.2 
Selling expenses  3,700   32.3   3,503   32.3   5.6   7,220   32.2   6,897   32.9   4.7 
Other operating expenses (income), net  (8)  (0.1)  (26)  (0.2)  (70.9)  (34)  (0.2)  (50)  (0.2)  (32.6)
Income from operations  445   3.9   316   2.9   41.0   833   3.7   457   2.2   82.3 
Depreciation  1,108   9.7   1,071   9.9   3.5   1,108   4.9   2,182   10.4   (49.2)
Amortization & other non-cash charges  112   1.0   131   1.2   (14.2)  1,395   6.2   207   1.0    N.S.  
Adjusted EBITDA  1,666   14.5   1,518   14.0   9.7   3,336   14.9   2,846   13.6   17.2 
CAPEX  288       80        N.S.    669       275       143.3 

 

July 24, 2024  |  Page 18

 

 

Health – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the second quarter of:   For the six months of: 
   2024  

%

of rev.

   2023  

%

of rev.

   % Var.   2024  

%

of rev.

   2023  

%

of rev.

   % Var. 
Total revenues  18,894   100.0   18,962   100.0   (0.4)  37,048   100.0   37,536   100.0   (1.3)
Cost of sales  13,175   69.7   13,234   69.8   (0.4)  26,103   70.5   26,090   69.5   0.1 
Gross profit  5,719   30.3   5,728   30.2   (0.2)  10,945   29.5   11,446   30.5   (4.4)
Administrative expenses  1,181   6.2   765   4.0   54.3   2,125   5.7   1,469   3.9   44.7 
Selling expenses  3,773   20.0   4,011   21.2   (5.9)  7,442   20.1   8,032   21.4   (7.3)
Other operating expenses (income), net  (10)  (0.1)  42   0.2   (123.6)  1   0.0   33   0.1   (96.2)
Income from operations  775   4.1   910   4.8   (14.8)  1,376   3.7   1,912   5.1   (28.0)
Depreciation  720   3.8   767   4.0   (6.1)  1,532   4.1   1,550   4.1   (1.2)
Amortization & other non-cash charges  270   1.4   257   1.4   5.2   536   1.4   500   1.3   7.3 
Adjusted EBITDA  1,766   9.3   1,934   10.2   (8.7)  3,445   9.3   3,962   10.6   (13.1)
CAPEX  391       385       1.5   559       618       (9.5)
                                         
Information of Stores                                        
Total stores                      4,496       4,267       5.4 
Stores Mexico                      1,743       1,659       5.1 
Stores South America                      2,753       2,608       5.6 
                                         
Net new stores:                                        
vs. Last quarter  56       81       (30.9)                    
Year-to-date  22       161       (86.3)                    
Last-twelve-months  229       369       (37.9)                    
                                         
Same-store data: (1)                                        
Sales (thousands of pesos)  1,102.8       1,114.8       (1.1)  1,099.8       1,103.1       (0.3)

 

 

(1) Monthly average information per location, considering same locations with more than twelve months of all the operations of the Health Division.

 

July 24, 2024  |  Page 19

 

 

Fuel – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the second quarter of:   For the six months of: 
   2024   %
of rev.		   2023   %
of rev.		   % Var.   2024   %
of rev.		   2023   %
of rev.		   % Var. 
Total revenues   16,796    100.0    14,455    100.0    16.2    31,652    100.0    27,595    100.0    14.7 
Cost of sales   14,842    88.4    12,719    88.0    16.7    28,018    88.5    24,224    87.8    15.7 
Gross profit   1,954    11.6    1,736    12.0    12.5    3,634    11.5    3,371    12.2    7.8 
Administrative expenses   53    0.3    68    0.5    (22.7)   128    0.4    129    0.5    (0.7)
Selling expenses   1,143    6.8    1,101    7.6    3.9    2,259    7.1    2,151    7.8    5.0 
Other operating expenses (income), net   (5)   (0.0)   -    -    N.S.    (17)   (0.1)   -    -    N.S. 
Income from operations   704    4.2    567    3.9    24.1    1,234    3.9    1,091    4.0    13.1 
Depreciation   249    1.5    281    1.9    (11.5)   194    0.6    559    2.0    (65.2)
Amortization & other non-cash charges   74    0.4    13    0.1     N.S.     438    1.4    30    0.1     N.S.  
Adjusted EBITDA   1,026    6.1    861    6.0    19.2    1,866    5.9    1,680    6.1    11.1 
CAPEX   86    0.5    44         97.5    94    0.3    68         38.9 
                                                   
Information of OXXO GAS Service Stations                                                  
Total stores                            570         570         -  
Net new convenience stores:                                                  
vs. Last quarter   0         0         -                          
Year-to-date   (1)        2          N.S                          
Last-twelve-months   0         1          N.S                          
Volume (millions of liters) total stations   661         616         7.3                          
Same-store data: (1)                                                  
Sales (thousands of pesos)   8,643.9         7,457.6         15.9    8,218.5         7,169.2         14.6 
Traffic (thousands of liters)   396.5         360.4         10.0    382.2         348.1         9.8 
Average price per liter   21.8         20.7         5.4    21.5         20.6          4.4 

 

 

(1) Monthly average information per station, considering same stations with more than twelve months of operations.

 

July 24, 2024  |  Page 20

 

Coca-Cola FEMSA – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the second quarter of:   For the six months of: 
   2024   %
of rev.		   2023   %
of rev.		   % Var.   2024   %
of rev.		   2023   %
of rev.		   % Var. 
Total revenues   69,456    100.0    61,428    100.0    13.1    133,685    100.0    118,641    100.0    12.7 
Cost of sales   37,495    54.0    34,161    55.6    9.8    73,124    54.7    65,985    55.6    10.8 
Gross profit   31,961    46.0    27,267    44.4    17.2    60,561    45.3    52,657    44.4    15.0 
Administrative expenses   3,538    5.1    3,521    5.7    0.5    6,703    5.0    6,591    5.6    1.7 
Selling expenses   18,096    26.1    15,274    24.9    18.5    34,735    26.0    29,979    25.3    15.9 
Other operating expenses (income), net   595    0.9    (89)   (0.1)    N.S.     742    0.6    (182)   (0.2)    N.S.  
Income from operations   9,746    14.0    8,562    13.9    13.8    18,380    13.7    16,269    13.7    13.0 
Depreciation   2,657    3.8    2,403    3.9    10.6    5,219    3.9    4,717    4.0    10.6 
Amortization & other non-cash charges   1,519    2.2    473    0.8     N.S.     2,349    1.8    944    0.8    148.9 
Adjusted EBITDA   13,922    20.0    11,439    18.6    21.7    25,949    19.4    21,930    18.5    18.3 
CAPEX   5,410         4,243         27.5    8,733         6,749         29.4 
                                                   
Sales Volumes                                                  
(Millions of unit cases)                                                  
Mexico and Central America   695.6    63.5    643.3    63.1    8.1    1,275.4    60.6    1,180.7    60.3    8.0 
South America   130.8    11.9    135.3    13.3    (3.3)   271.4    12.9    276.6    14.1    (1.9)
Brazil   269.4    24.6    240.4    23.6    12.1    557.6    26.5    501.3    25.6    11.2 
Total   1,095.8    100.0    1,018.9    100.0    7.5    2,104.4    100.0    1,958.5    100.0    7.5 

 

July 24, 2024  |  Page 21

 

FEMSA Macroeconomic Information

 

   Inflation   End-of-period Exchange Rates 
   2Q 2024   LTM (1) Jun-24   Jun-24   Jun-23 
           Per USD   Per MXN   Per USD   Per MXN 
Mexico   0.46%   4.78%   18.38    1.0000    17.07    1.0000 
Colombia   0.65%   3.96%   4,148.04    0.0044    4,191.28    0.0041 
Brazil   0.70%   2.46%   5.56    3.3059    4.82    3.5425 
Argentina   6.29%   80.30%   912.00    0.0202    256.70    0.0665 
Chile   0.74%   3.88%   944.34    0.0195    801.66    0.0213 
Euro Zone   0.26%   2.05%   0.93    19.6711    0.91    18.7056 

 

July 24, 2024  |  Page 22

 

FEMSA – Consolidated Income Statement

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   As Reported   Adjusted 
   2024   %
of rev.		   2023   %
of rev.		   % Var.   2024   %
of rev.		   2023   %
of rev.		   % Var. 
Total revenues   178,204    100.0    160,107    100.0    11.3    176,334    100.0    159,630    100.0    10.5 
Cost of sales   107,980    60.6    96,781    60.4    11.6    108,157    61.3    97,599    61.1    10.8 
Gross profit   70,224    39.4    63,326    39.6    10.9    68,178    38.7    62,031    38.9    9.9 
Administrative expenses   8,419    4.7    6,636    4.1    26.9    8,348    4.7    6,728    4.2    24.1 
Selling expenses   46,773    26.2    44,034    27.5    6.2    46,678    26.5    44,033    27.7    6.0 
Other operating expenses (income), net (1)   265    0.1    (256)   (0.2)   (203.5)   216    0.1    (256)   (0.2)   (184.6)
Income from operations (2)   14,767    8.3    12,912    8.1    14.4    12,935    7.3    11,526    7.2    12.2 
Other non-operating expenses (income)   2,426         307         690.2    487         228         113.6 
Interest expense   4,716         3,574         32.0