FEMSA Announces Ordinary Dividend Proposal for 2021

Rhea-AI Summary

Fomento Económico Mexicano (FEMSA) announced a proposed ordinary dividend of Ps. 7,687 million for 2021, subject to shareholder approval at the annual meeting on March 24, 2021. This dividend reflects a decrease of 25.8% from the previous year, illustrating a cautious strategy following a difficult year impacted by the global pandemic, which reduced cash flow from various investments and operations.

Positive

• Proposed dividend amounting to Ps. 7,687 million to be paid in 2021.
• Reflects FEMSA's commitment to returning value to shareholders despite challenges.

Negative

• Dividend decrease of 25.8% compared to 2020, indicating reduced cash flow.
• Impacts from the pandemic led to a decline in cash flow from investments and operations.

MONTERREY, Mexico, March 02, 2021 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) announces that its Board of Directors has proposed an ordinary dividend in the amount of Ps. 7,687 million, to be paid during 2021. The dividend is subject to approval of the annual shareholders meeting to be held on March 24, 2021. This proposal represents a decrease of 25.8% compared to the dividend paid during 2020. It reflects a prudent approach after a challenging year, in which the global pandemic drove a reduction in FEMSA’s cash flow received from certain investments and operations.

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 FEMSA Comercio, comprising a Proximity Division operating OXXO, a small-format store chain, a Health Division, which includes drugstores and related activities, and a Fuel Division, which operates the OXXO GAS chain of retail service stations. In the beverage industry, it participates through Coca-Cola FEMSA, a public bottler of Coca-Cola products; and in the beer industry, as a shareholder of HEINEKEN, a brewer with operations in over 70 countries. Additionally, through its Strategic Businesses unit, it provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA's business units and third-party clients. FEMSA also participates in the specialized distribution industry in the United States. Through its business units, FEMSA has more than 320,000 employees in 13 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index, among other indexes that evaluate its sustainability performance.

FAQ

What is the proposed dividend amount for FMX in 2021?

FEMSA has proposed an ordinary dividend of Ps. 7,687 million for 2021.

When will the proposed dividend for FMX be paid?

The proposed dividend is subject to approval at the annual shareholders meeting on March 24, 2021.

How much did the dividend decrease compared to 2020 for FMX?

The proposed dividend reflects a decrease of 25.8% compared to the dividend paid in 2020.

What factors influenced the dividend decrease for FMX?

The decrease is attributed to reduced cash flow caused by the global pandemic.

Is FMX participating in sustainable practices?

Yes, FEMSA is a member of various sustainability indexes, reflecting its commitment to economic and social value.