FEMSA Announces 1Q22 Financial Results

MONTERREY, Mexico, May 02, 2022 (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 2022.

• FEMSA’s Total Consolidated Revenues grew 18.6% against 1Q21, and 27.3% against 1Q19.
• Proximity EBITDA margin expanded 130 basis points year-on-year to reach 13.3%, 130 bps above the 1Q20 pre-COVID-19 margin and the highest-ever for a first quarter.
• Health EBITDA margin increased 150 bps compared to 1Q21 to reach 10.7%, also a record for a first quarter.
• Logistics and Distribution achieved 12.2% organic¹ total revenue growth compared to 1Q21.
• Spin by OXXO reached 2.0 million users (over 63% active²), while OXXO Premia surpassed 8.5 million loyalty users (over 65% active²), and a 6% tender³.
• Coca-Cola FEMSA’s total volume grew 10.1%, driven by volume growth across all its geographies.

Financial Summary for the First Quarter 2022

Information includes figures in millions of Ps. and variations as change vs. comparable period

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

"We had a strong first quarter across the company. We were able to carry the momentum that began to build at the end of last year, reflecting the combination of successful growth strategies and an improving demand environment in most markets, coupled with leaner and more efficient operations that are generating powerful leverage. At Proximity, we recorded the highest-ever margins for a first quarter at the gross, operating and EBITDA levels, while Health achieved record operating and EBITDA margins for a comparable period. The Fuel business is not yet back to pre-pandemic levels, but it finally saw a meaningful improvement in its demand environment, recording good growth across its income statement. And our Digital efforts continued to advance in customer acquisition, with Spin by OXXO reaching 2 million users and OXXO Premia exceeding 8.5 million users.

For their part, our Logistics and Distribution operations also had a good quarter, as we continued to see an improvement in facility occupancy trends in the United States, as well as solid numbers in our Latin American logistics platform. And Coca-Cola FEMSA delivered another strong set of results in a challenging environment, realizing double-digit growth in consolidated volume, revenues, gross profit, operating income and EBITDA.

Certainly, we need to stay vigilant regarding Inflation and supply-chain pressures across markets, as well as the continued evolution of pandemic-related developments. But all in all, we remain optimistic about our opportunity set and our ability to go after it.”

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 Division operating OXXO, a small-format store chain, and OXXO Gas, a chain of retail service stations; through a Health Division, which includes drugstores and related activities; and through FEMSA’s Digital Division, which includes Spin by OXXO and OXXO Premia, among other loyalty and 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 the second largest 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 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.

¹ Excludes the effects of significant mergers and acquisitions in the last twelve months.
² Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days. Active User for OXXO Premia: User that has transacted at least once with OXXO Premia within the last 90 days.
³ Tender: Accumulated sales with OXXO Premia redemption or accrual / Total OXXO Sales.