FEMSA Announces First Quarter 2023 Results

MONTERREY, Mexico, April 28, 2023 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today its operational and financial results for the first quarter of 2023.

• FEMSA: Total Consolidated Revenues grew 21.9% against 1Q22.
• FEMSA Retail¹: Proximity Americas total Revenues increased 21.9% against 1Q22.
• DIGITAL: Spin by OXXO had 4.2 million active users² while Spin Premia had 12.7 million active loyalty users³ and an average tender³ of 20.5%.
• COCA-COLA FEMSA: Total volume grew 6.6% against 1Q22, driven by growth across all its geographies.

Financial Summary for the First Quarter 2023
Change vs. comparable period
	Revenues	Gross Profit	Income from Operations	Same-Store Sales
	1Q23	1Q23	1Q23	1Q23
FEMSA Consolidated	21.9%	23.0%	5.5%
Proximity Americas	21.9%	19.8%	19.7%	18.3%
Health	(0.4%)	4.9%	(6.1%)	(5.5%)
Fuel	20.6%	21.9%	38.7%	17.4%
Coca-Cola FEMSA	12.0%	12.6%	12.9%
Envoy Solutions	23.7%	23.2%	(10.0%)

Daniel Rodríguez Cofré, FEMSA’s Chief Executive Officer, commented:

“During the first quarter, we were able to carry the momentum created by our FEMSA Forward announcement and follow up with a very compelling set of results, particularly driven by strong organic top-line growth at most of our operations. Within Retail, Proximity Americas increased revenues by almost 22 percent, driven by excellent same-store sales trends at OXXO reflecting strong traffic significantly outperforming the market. This strong double-digit revenue growth performance extended across formats and across markets, including Proximity Europe. Health revenues were stable, reflecting a challenging comparison base in Chile as well as currency headwinds. Of note, Fuel had another robust quarter of double-digit revenue growth. For its part, Coca-Cola FEMSA again had remarkable increases across its income statement, while Envoy Solutions delivered strong revenue growth driven by recent acquisitions. On the Digital side, we continued to add users at a rapid pace, with active users growing well above 200 percent year-over-year. Importantly, we just launched the transition of OXXO Premia into Spin Premia, our coalition loyalty program, as we make progress toward our ambition of an integrated ecosystem under the Spin brand umbrella.

On the balance sheet front, our leverage ratio is now within our stated target levels, putting us in a good position to allocate incremental capital according to the priorities stated in FEMSA Forward. We will keep you posted of any new developments.

I want to extend my heartfelt thanks to our hardworking team who contributed to these strong results. I am excited about the future of our Company, and we are certainly starting this year on a very positive note.”  

To obtain the full text of this earnings release, please visit our Investor Relations website at https://femsa.gcs-web.com/ under the Financial Reports section

CONFERENCE CALL INFORMATION
Our First Quarter 2023 Conference Call will be held on: Friday, April 28, 2023, 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/r9wkia49
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; and in the beer industry, as a shareholder of Heineken, one of the world’s leading brewers with operations in over 70 countries. FEMSA also participates in the logistics and distribution industry through its Strategic Business Unit, which additionally provides point-of-sale refrigeration and plastic solutions to its business units and third-party clients. Across its business units, FEMSA has more than 350,000 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.

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