Fomento Económico Mexicano, S.A.B. de C.V. (FMX) 29 Jul 212021 Q2 Earnings call transcript

Good morning, and welcome everyone to FEMSA's Second Quarter 2021 Financial Results Conference call. [Operator Instructions] During this conference call, management may discuss certain forward-looking statements concerning FEMSA's future performance and should be considered as good faith estimates made by the company. 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 can materially impact the company's actual performance. At this time, I will now turn the conference over to Juan Fonseca, FEMSA's Director of Investor Relations. sir. ahead, go Please

Development will Welcome us we Second Camacho, to quarter. effort. are Eugenio strategic Investor and Corporate everyone. who Jorge Conference Coke heads to then considerations, FEMSA's XXXX is comment Call. Officer, FEMSA's Corporate Finance the through our Today, joined numbers Garza, and some to morning, by the have Quarter follow walk Collazo, for FEMSA's Relations Results Chief the Director, Good by plan we Q&A, The today higher-level with on And and have Paco for as trends more remarks Eugenio and always. Paco

it with let So Paco Camacho. over me turn that, to

are Thank everyone. us you you, We joining Good well. for Thank morning, and safe doing your hope Juan. families today. you and

not health XXXX. know, these, the over. As results operations posted of second quarter is you Despite the emergency for solid our

and driven pandemic execute. in is While team's quickly Energy other and on discussing ensure effect superior communities, these operations. recovery, reallocated we for COVID stronger ago, and the resources this were impact were we economic our priorities help partially addressed, the out continuity our capability resulting the of to ways it of come the employees look the business. top-notch opportunities our prioritize being of and some were reflects crisis. full of customers, preserve mobility of safety the our to to to our to side the by X and and year Once a the ability and also increased operational lockdowns Exactly to these

the and consumer OXXO our by operations, Some OXXO in Gas, particularly mobility. were reductions of significant affected

are managed them many ago, cases, exist more not a activity or and yet. operations level out been results. achieving will were year our still to increase really Clearly, consumers levels in of much match performance we and have months results across exceed all or we uneven XXXX. proportion into and Coca-Cola in Vaccination our woods markets in concern. are of were in like they a their inverse of are resilient FEMSA restrictions orders to the at X that Today, levels XXXX deliver better than Some XXXX, decrease generally solid drugstore the and operating geography, some

as fact, a seems bit there what right in to in wave. know, In be third a you is of a now rebound cases

a taking going OXXO's learnings of into during So presentations. the is stage In and recovery continues and recovery markets. a bumpy set but translated the growth a compelling In developed it deliver restrictions Division, setting in of ride, to turn, This an like be led and by in place efficiencies mobility. there crisis most our this Mexico numbers the less forward. has an encouraging relevant with to combined categories is increase most us Proximity for our teams, in stringent customer clear recovery, in today our of beverages have steady single-serve helping

traditional categories some to pantry up spirits XXXX, items. during also as been maintain some the have able such other and that We momentum picked

such to store year is saw the than that as Chile back, demand pace largely as continued we Importantly, Health our a customers leverage demand we in some as soon fall territories, to consolidated they to our key consumers back is showing and stopped are our if seeing our Division, routines. their share the right platform come driving Mexico, the Even gradually as At regain our even of would normality like. sort lower their capabilities market in last we as deepest Colombia. in recovery comes increase vehicles, Fuel Division

operations our markets. across trends see continue part, to and its demand For logistics distribution better

normal to office and the end segments yet user activity levels. U.S., facilities such as education some hospitality, are in back Although not

same FEMSA Finally, would develop towards and volumes, mix the kept At Eugenio, drive line. recovering finding in business to go I the the continue digital now product Brazil ways who the Mexico. call help turn its a Ultimately adoption of helping Coca-Cola time, while platforms is detail. bottom results will to over smaller, more presentations. the that, over With in to profitable more

Paco. you, Thank

quarter from the effects where operational faced of Starting compare consider of with quarter MXN with numbers. not of And asset investment XX.X%, relative Heineken. MXN Mexican while the almost the quarter certain Given and this challenges the operations to complement billion, with operations XX%. billion income second X%, them authority, will, When our from to the full in XXXX FEMSA's many growth some XX% significantly increased was FEMSA's This story. income compared our increased consolidated helpful. base generally mainly the participation data Total the income of versus year, operations relative and increased increased to we we results revenues do at X.X X.X the XXXX, increased quarterly our even total to while in associates, by XXXX. net a the be impairments revenues second during lower in the therefore, we from in undemanding figures agreed reflecting tax second we payment XXXX, reached last of comparison comparison results of tell made XXXX. decrease which extraordinary reflected COVID

second In it position, during consolidated MXN end quarter, net June. at terms the of debt XX the our of reached billion

reflecting a in its not when XXXX, that part, base operations of the relevant of our suspended XX%, comparison noncritical investment activities. is most increased CapEx quarter second For

new opened reach Comercio's the last second openings quarter Proximity for discuss on to We XXX with XX the to months. Moving our XXX beginning operations during and net OXXO stores FEMSA Division.

to are -- our acceleration in full yet to pipeline XXX we are not of existing our pace, full speed achieve up target stores While yet are while Mexico, year we full months net and to not in supports we new with expansion our the come. on-track an

a OXXO even compared up were traffic X.X%. the XXX approval and store in XX.X% reflecting more customer growth rigorous discipline future commercial operations operating high-quality XXXX, XX.X%, recovery strict an in improved process XXXX, environment. reach in across Relative second points same-store to still that the an the income X.X% with store the income Division's sales of encouraging The the Income XXXX. quarter basis are XXXX, operating place against for to increased declined reflecting to of operating basis These ensure operating significantly put X.X%, operations. X.X% given When second increased points. in while from both to quarter programs and the second margin also compared have XX period will of decreased margin numbers We gross from locations. contracted sales quarter, increase operating Proximity supplier key and reflecting challenging partners. of leverage average same-store expense of promotional margin the ticket, same our

Moving on to FEMSA Health Commercial's Division.

to X,XXX by XX During an the net while XX.X%. total store for territories net new the drug Revenues XX.X%, additions increased across expanded reach second total a of of count XX months. at XXX last of stores average quarter, our the increased end units we same-store our June and sales

expanded activity points Mexico our steadily Gross We with contracted continue with XXX by Ecuador. South reflecting American Mexico. promotional in more leverage. operations in momentum basis our quarter, the Operating and partners margin conditions slowly basis and higher improving increased increased and efficiency in XXX in coupled offset Colombia, margin reflecting operations, and sales supplier effective operating see in partially institutional to but points, by our execution improved collaboration Chile, good at

remain to Comercio's compared second FEMSA same-station numbers, XXXX to quarter When not there, XX.X% low. sales on are increased relative to Moving Revenues of Fuel reflecting yet XXXX. levels the Division. that and grew mobility XX.X% we

this quarter, was partially During deleverage. while XX%, margin tight of operating operating reflecting control that total margin was gross X.X% revenues, expense offset

hospitality business. the different bit U.S., speeds different talk we historical their and activity, they logistics some reopening entertainment increased are and lagging end have distribution regions. user me And performance. about In of see continue Now our such still let categories, while their in a little to as

year. We to half improving expect second in further trends the of continue the

markets On Latin good Brazil, operations showed Mexico our its and trends again the main across front, logistics Colombia. American of

in than Even the countries those be continues U.S. in as recovery economic slower to

Finally, and South was double-digit Uruguay. top strong mainly to Colombia, America's America growth while Argentina XX.X%, driven Brazil, execution by FEMSA. with and solid recovering and driven mobility and Revenues moving Central performance Coca-Cola along by improving growth, with trends coupled line delivered in Mexico initiatives, trends. in volume on increased portfolio price/mix recovering

As consolidated exceeded by result, X.X%. levels a already volumes XXXX

final took comments. turn listen can let that some You to to a of quarterly place their call that, yesterday. with for Paco it back webcast And me

Eugenio. you, Thank

let Before initiatives. digital our on we questions, a the rollout the update quick call me give for open of you

is which First, program with after let deployed me loyalty more on Chihuahua now PREMIA an the a our state OXXO broadly. update rollout, test period being in begin of

by and this positive, complements So have relevant far, OXXO spin even results quite product. PREMIA our as been the is more OXXO

is Wrapping calidad, spin value testing the the This Travel fully validating market proposition de launch through comments. a OXXO operating Transitorio still the Article which recall, regulatory is of and up, waiting are may means under and for our regulation. or its Mexican definitive we the approval you to subsidiary, As Control few spin product.

versus and we and strength encouraged course, still our of proposition that as to a have big, the are our feel we value have way, team's levels. there abilities. mainly XXXX are, more they reflect because bit but here operating We deltas these The we work of the do by when compare results. discussed, We

down heads keep pushing moving our executing So forward. we to hard, action and and plans need keep our

We are confident about our strategy.

day. today are importantly, And path. call forward us questions. have every for members here resilient, your the we that open over and Thank we for to the your are can XXX,XXX And we Operator? We for continued that, you being help support. certain team with right on move extraordinary

of Bob And [Operator line the question first America. comes with Instructions] Ford from Bank of our

in PREMIA, Potosi. cross-channel your can you great a just progress. perspective, to how do an spin? that there, that you app curious, out respect so And results. with architecture some Paco, testing will I that, doing? regulatory approval very you about nicely just final behind from you and plan to Luis I so need maybe with making to much spin, leave what's talk Congratulations on was be you the integrate it And if right integrate drive roll bit appears how plan curious It's then you that get San usage. nationally. you maybe what mentioned any I'll A/B it could see -- to and Or now little to you're to was accelerating and And you

just that all we Well, requirements on the making approvals. regulatory proceed according to we get sure are the we to necessary have that front, the

to know us on need And know, allow doing. is loyalty team what requested, a significant that programs will Then other of to with give comply make to will we do and you to allow as are we loyalty that what for we to this that's consumer as what -- side, is the the that time to terms being I you preference. to that? You sure exactly takes want and that's it. in spin look us at guess add way a program boost Eugenio, the PREMIA,

as they're engage together marketing but product the Sure. the From they will again, right we us approval, out perspective, or broadly. do put an does roll still be And allow marketing with out architecture campaigns. not to campaigns regulatory what full in now, heavy separated it to more is spin

also, tinker to taking elements to sure with do the we've as way, seeing allow with good, rolled demographics cities had encouraged expect we're least and features, go testing with pricing and for where so AB we prop but ahead. we us and does rollout. out. make is we value -- advantage what and the so product the to with of use, with it But by that far, features different are So we're early success, full in we we initial results time, this different at prepare the And around the regards the do

mentioned was sounds just I so you're you Potosi it sorry. say, if Luis as I'm beyond city, going San now. to

with in rolling the to Chihuahua, are Correct. Aguascalientes by basically, end besides PREMIA be compelling other cities the X out where we product start the reach. roll again, has different expect would Potosi, the and San been And the in cities, be will we to expect of has spin Leon. positive At more as results. and out And this peer-to-peer say, right clearly we I case broaden And of all point, as now we San a Luis Luis, cities, started. more use we also with that beyond launched year. nationwide of we still number

question Alan comes the with next Alanis from Santander. Our line of

$X.X billion you than billion My of you questions $X do billion, capital deployment. to of you I bit more has have okay, with a And little have but mean, cash. debt, have $X --

So still. you're ammunition have basically -- I a lot mean of you

Or States? update thinking with, acquisitions And be So the you're that of case, is changed? you we logistics business the what terms of would in my thinking? indications question has deployment us question. size continuing mainly capital of thinking United to the it's Are the give That in that could of anything the you're criteria, States the the regarding if in an can you do terms is has strategy logistics be are consolidating what in the the United that seeing what indication, business. the that with that from worth still

think, you optionalities know, capital in I future as mean deployment. attractive I mean, terms I very portfolio our presents, of

small targets in both are large. them very I being distribution fragmented that You mentioned and a continue we that look we at that and one the of and and logistics complementary do business, industry, synergistic, -- participate mean to

for So businesses been made that where many as the other well carry. as investments capital well as and a future avenue and presents, cash in we've the we've deployment in good traditional Mexico I of other as think,

the capital we the but now, So sheet and that looking balance in overall, capital keeping for a returns have then terms time, see, being opportunities for it deployment. company diversity the as for complexity announcement described, I structure of consumer-oriented more for of liquidity markets the with terms do to our mean, further without, FEMSA but the to the provides adequate optionalities agreement within balance sheet both and why ample nice and also would I the new mind of shareholders. being as But of own capital participation mean right on protection, additional for verticals where only with industry also, deploying Juan for Coca-Cola, we're but mentioned before, opportunities, also and I characterize deploy ensure where creation think, exposure same within to value us of areas those We've very downside we in in optionality already creation not lot the also is opportunities. I to sense reached convex in portfolio at increasing a the the the at keeping upsiding provides That's also already, currencies, we're that its with great has in portfolio, Coke for allows investment in our complexity. in idea capital the value

follow-up. that part last that Actually, my you mentioned was

So you already answered it.

was very and clear that very, useful. So very

Luis to We'll Willard go GBM. with next

on Congrats results. the

XX, express So of know know, been as still early there that's some are probably less unprofitable you how have years? very quite let's of it's types recent, would platforms I do starting to services in industry these evolving next regarding minutes. I deliveries, say, tap But still the the this within than, context OXXO XX evolution appreciate maybe them. and into of your towards most for also the and then thoughts

ahead. Go Yes.

across volumes be all exponentially and delivery, you platforms that very, e-commerce delivery lot a to during the express carefully. at I grew something clearly, look channels continues we as very mean last-mile I Sure. as mean, the of pandemic, know, their

the compete that, kind in from there our attack But mean, category I to to justify terms hard adopt that to certain scale. cash, more of on financial that. go segment. against are a to in trying app, competing trying players a that bit of and mode, are, about at proposition, of think size little I a we OXXO new learn with point, the scale proximity way drop into burning perspective, it's in a focused consumers smaller some value that really And this start-up still and in

and sizes be think that I be Having where could option. categories, reunion as that, And categories probably be so that the apparel partially the are warehousing for Latin results using very I general, the in where said fulfill less-than-truckload whether gathering, e-commerce. mean, our actually the in opportunity you've et in our higher going health a an making larger companies, our is think we Divisions seen drop Logistics in companies, sense, clear America. in both for our the term, CPG services there, responsible more to services are and well I Warehouse in see short platforms Division division, care they but portfolio it's our it Logistics just our it not in seeing more cetera, traffic, LTL in companies, using e-commerce of more are and we as good to

greater A/Billion we we continue to Proximity of I except So size there double of Logistics in see Having end-to-end in model, also said cases do prop. there, value more how do opportunity offering profitable promise, the a at higher an occasions. goes, we the see that that, than in business in last-mile see Division's we Division drop than testing the think, to the but the

broad And that if future, I you I that will do as close Care to well business are have environment keep what if they have in a it. evolving. Division, said, assure can just we in Latin this is is looking this take actually last-mile see is And mean we mind to understanding in America. need that a Eugenio we very performing how clearly, in we today, our changing whole platform, think I add, really our may any thing for, delivery rapidly Luis, consumers because the opportunity some remain and that rest operations Health

take the the And open, convenient you will eyes sustainable imagine it’s can keep that forward, in when want we our a opportunity, terms So to but when business. moving opportunity comes. we having and we it see of we’ll move

to We'll Barclays. Hernandez, next Antonio go

mean the on formats. of those I cases? you that seeing seeing you've of My some basically the throughout pressure recovery any gradual is formats. you or there acceleration mentioned couple results. maybe of and last because COVID-XX the different competition quarters? you release overall in in you some acceleration OXXO, in having also any there your because promotional you the you're And Are seeing performance your on seen activities seeing Are regarding in Congrats some Are question your are press also, formats, regions environment? inflationary rising that

I with mean -- volumes. month, start a will if I month improvement Sure. in month-on-month go you seen overall by we've clearly,

as recent mobility, or waves be terms pandemic. saw With restrictions we to as the past in cases, much been the of there honest, the of in hasn't in uptick closure

sales, stores. in restrictions of -- still we So there that, we've I in mean elections, [indiscernible] example, certain for June, weekend In there there. our operation been had alcohol the said for was of having fortunate hours certain of terms of are also the the lost. so because a

saw it's drastic going past. a reading that, to full-fledged don't government the still from are by at going what So least bumpy stance, be a And said change taken we've been the government's like forward. from we've we we a ride in seen last measures from seeing in year. not Having lockdown expect the what we

Again, are of those other So see, encouraging maybe we [indiscernible] mean, operating signs. certainly, hours restrictions forward. and I going will terms in

of efficient to road, traffic that So other and OXXO traffic once ticket and then will and levels and this use encouraged normalize. X the we savings case cost things. as is but back, more on that profitable pantry frankly comes into the side, One the by will really those the future continue provide be items took that also cost for stick. the for a more advantage it pandemic typical trends pandemic, before bumpy be those we're will not that And a as were

I may, is of to adapt thing Antonio, the be significantly if the situations other efficiencies specific flexible of top to to team operations. the on add allowed has pandemic that I And will that

prone equipped and whenever to than stay increased continue around. the even will is and and to the means people, forward. teams lockdowns will these governments better react there. and and said, capture situation even whenever capabilities side, habit flexible out changing clearly, Nevertheless, if is And the there teams become heavy opportunities to to a would are less respond shifting, likely as on Eugenio ever there up, the a are, adaptable need say, happening that I the whatever more moving to to have situations. So that is And coming consumer these

schools not part, to for semester. this seems coming It have you yet. Antonio, remember, most the they and universities, are open that will

stores -- of restrictions that that also of are least come haven't bring if that in we hopefully case and there at further March back So for year. hours down, since customers already to will lock use some last will and terms our

also is that encouraging. So

activities Perfect. and pressure And side are seeing then the promotional and competition, you inflationary on any maybe there?

Sure.

Sorry, forgot about that.

activity that promotional partners, supplier margin. We of around gross tinkered are has increased our on with our seeing behalf and

usually, in line commercial As back the up make we see decrease, top income. then but you will it

different higher So CPG the the gross guys are to in the side, to. on trying you than it's margins consumption promote look But probably used really more occasions.

We the most like I OXXO Division. honest, inflationary we're the as be are the I [indiscernible] think, not, the in think But our retail has other in seeing at been, seeing it so part, goods, pressures, goods. and for hard of a some in than at to has subdued not the other [indiscernible] level little hard inflation bit more much the

price so any impacts consumer we've on margin impact our seen and our not in far. so And far, no elasticity

And in thought is be phase, this transitory now, consumer not Our the and elasticity permanent. of hopefully impact behavior. terms for an seeing not inflation are we will that

Álvaro next to go [Operator Instructions] García with BTG. We'll

sort Division, of more gross sales up Health margin strength Thanks Health Division. on Health of at But your sort a did institutional promotional on the contraction, My and activities. in in question more is for and you gross the we mentioned Division, OXXO. margin the see that clearing

forward? that I going how recurring So wondering was might be

higher with Sure. to we or at last also COVID with mix. we frankly, quarter, -- this options see will were a COVID seeing That prevention margins. lot And treatment do, of has year,

itself drive to to the that's well. activity we America liquidity especially little in adapt and the to that seen in the selling. taste incomes, And South given lot in of more in the pumped promotional pricing hurting to And customer to where think, in institutional have do, more a the and with we're are more adjusted sales, the terms America that a the traffic especially the one our to as of disposable withdrawals and and fund Chile, driving that been South through trying pension where -- that reasons stores. in into I adjusted to more bit system So products is of traffic continuing drive stores, has nondrug has you've mix that --

So wouldn't longer this. I see that trend I say in to would continue a

I think else. of than now temporary that's bunch more just margin, anything mix different that a factors yes, gross the also But including affected of non-COVID related products.

On need the faced the add working that, that positive with keep to -- efficiencies significant compensated in that side, just situation to was America our compensated you this gross South the mind to on in Mexico in also side, suppliers. the was we by margin

that will, course, forward. of we moving keep So

Yes. basis recoveries we're at points mean, In product XXX seeing, categories of in more month-to-month, gross I Mexico, margin. I or similar mean,

So is that encouraging of and Mexico itself in for business. the

greater on That's end given great your greater scale... just function power to of a buying hear. And your that's

strategy power regards think, power, Correct. SKUs, margins. shift out ones I then right working better and to concentrating the with with our move also, purchasing put commercial greatest the the we where can get Greater in that in pricing less the to a of terms -- suppliers

imagine, having you getting can better team also The a working efficiencies has, operation. on strongly as and

So helping. that is also

with Stanley. of question Ricardo Next Morgan line the comes Alves from

the you to discussed previous OXXO was? surprised sectors. alluded the in of right, one call, what to about to improve, OXXO to that, don't were sales findings will when think little strong you traffic upside, around stickier of your your maybe performance, with about the are So then your well. a your the question center your quarter? be in we given these will alluded back sales, if average top how and have performance question curious evidence performance that going post-COVID, discussions going fact is perform? you some I second the myself to lot I'll mean limit ticket But OXXO this know you I go the to same-store mean if items key average say same-store in bit to And we increases. what you on you ticket that insisting a further if there. maybe But could that mobility I some as how forward? of have line the as hear

alluded to price. consumers' then the you're we Clearly, I to mentioning, made were this and the have ticket helping also calling in items, will of it. portfolio been more I the price. ticket has ticket needs traditional that see are the But past pantry when a importantly, we helping I some in very adapting one team look that the sticky offering has quick as added in and the the the what is some of we we to in in as in aided add call, stores, the also mentioned in the we that we in OXXO, mean, let by at start mean that spirit product being Eugenio being -- year. it you continue just

-- the because consumers ticket find stay their that to forward consumers but in things the is moving adjusted helping these So more that is they to price. shopping in solutions stores. that the same are at coming will And expect we find back stores, they the what are have time, stores. It

you stay there. is shouldn't there reason a Eugenio? So why

of Sure. I I in sticking, mean services. I spirits items, would say, what’s I would say, terms pantry and think

keeping pandemic. heat back X average store been. buying than and are drinks the ones are lowering continue have to in that continue ticket future are will a the X it consumers I personal with those those soft ones in – the categories the that items, that are like that But of I would I and that items smaller I from ticket are snack fact the coming the the think, that will think and hopefully, into amortizing, higher the also are future. would the And trends what are personal that saw we otherwise say, the probably think the the

comes Our Alcantara Rodrigo next from question the line of with UBS.

I to as well. X will limit myself

how to of we can saw year? any this So and any what margins And basis. my on integration much that of or I or cost can attribute leverage control you quarter-over-quarter level was question. be wondering comment assets. we the the may comment can U.S. if here expect about there? if you sequential margin full That these update the we was wondering EBITDA I a for initiatives just operating on about on synergies improvement would

Sure.

If I very of Paco the start, review OXXO, in I complement. during there was, strong want, you cost I'll you mean a pandemic, of as can the savings [indiscernible]. same and think,

of And more on on of back. volumes OUS. the came it. So think, that efforts a of terms efficient chunk management lowering as part then SG&A And good is, being a well in lot I both as

to I -- comparing quarter think we're the second was remember, beer year. no transportation There whatsoever. last obviously

volume I that also the as we on more, on And the then margins both warehousing and So well leverage. are getting as better contributes side more on stickier think with operating LTL contracts to side.

pickup I higher significant higher-margin products. So been, think, quality, in there's

those expect, dynamics, there sorry, I but again, to So be that going -- you the move logistics do operates should again, mean states business the will different improvement the which, with continue the see upside, distribution some encouraging under the we into future, to balanced in and forward. are news margins to margin the

along we more in the will only when is should benefiting forward. And add they And what couple from I second, that things that to along we become the that that, are to distribution businesses integration it is benefits fact plan, the also also is significantly consistent come. Yes. just businesses they And to we said synergies made the Eugenio of should with expected. way to continue operations with efficient moving integrate integration in of the calls, the coming the that those have reference comes in help is continue Solistica to it to we our The also and U.S., and that the is according that coming as to had see operate. business, previous that what other the months the in doing,

the from with comes question line Rodrigo next Scotiabank. of Our Echagaray

in this will more a we I through should last-mile, interested ventures launch. example, I you particularly exposure which on full to could learnings like And the wanted color launch? given on FEMSA be if launch mentioned, spin I'm initiatives, loyalty? could had last-mile start-ups also the the on revisit what you've And but expect of for especially as the you add at that and guess at what to the Saldazo the be strategy, Houston. some spin briefly beyond capabilities there any changes result is, question

can So all I'm curious together? we how as just to put it

start, to it's value been, I'll look, as process the let add market the Well, test of and -- then we to we in But proposition. the it. are really as said, first using fine-tune Eugenio

the they how open make are, that's and experience what that the test. these we it. moment, that the are service, improvements we other consumers up want, And cities based need what provide so and And to and precisely of improve we at using we pilot understanding and modifications services to purpose learnings. the the changes is the will on And

have that the the -- As can pandemic. better do we the we that as with habits. questions, previous And to of it business changing see at that, see lot. so one type their today. we this are that part environment whole the provide in way economics. can are, may as But which said, a a course, an experience don't ticket a of for size a Eugenio we Consumers we that attractive consumers that sustainable actually practices using last-mile, out will this as opportunity stage, that We is We a our we platform makes of the sustainable have of the arise see said business. those as clearly economics service see have changing as we when that see we whole of way using to said in

Eugenio we the ventures, learnings participations see OXXO, also taking use My you some in through and learnings before. way I'm But Eugenio, And we the we to with have we're Now have FEMSA those future. of either as will that? indeed, said that add to want yes, sure those. a in And to

Sure.

as open and a Saldazo, we're question the product, Saldazo makes Your to basically Saldazo consumers with letting regards last by spin remains sense decide for them. whether way,

store. coexist So at they will the

spin. on quickly Just

pay then think the do and right being now. peer-to-peer stores the ability functionalities through you to wallet, earn allows you cash out OXXO store. bill the of PREMIA what can cash those -- of also And it ability them also includes to And is new our OXXO PREMIA, integrated points OXXO payments. are in I kind and I transfer to so basically The the at at transfers at asked mean OXXO and for launched then MVP it account.

that Per] we're in a mean I we're on So also consumer, do items average be high mean, is, credit. And it, can also but and companies stuff there Che for other use that's said, and making, as that ticket -- adding mean, the last-mile, there We the Clearly, are limitless. I will certain it in key I that learning platform, sense. Gusto, And last-mile starting both now. a thing where is only will in bigger I not forward, sense, has the do others cases other, certain it lot lot we're is won't right like mom-and-pop be in distribution [Gusto, very will and from where where mean optionality investments to the the but like ticket I more a that's categories just mean, what attacking call the -- end We heavy stores. volume and of make the includes. there MVP but make -- going Reunion our can Paco

we sake being channels the wary to or adopt will platform. So through product of burning come digital the offering be customers cash have also having consumer, a but just make our unprofitable just very robust into of we'll sure to for our and

of terms network that delivery cannot added mean a perspective. value that we'll from both in try the offer, the -- a there's speed, right platforms the availability be and economic offer, product from OXXO and of I lot lot think we and things an of other to convenience I can do there's to

like equation. Makes is obviously, important it. component sounds very sense. the the of a ticket, Got It

line question Next Marcella from of Suisse. the Recchia Crédit from comes

seen is open in been [indiscernible] question great as well. your you that. has And that plans. about We know be in being Brazil. more I to hear ultimately, here also more lot But a here it would on OXXO updated stores My expansion new from of related and market have expectations roadshow talking to the to

how it about be impressions that are the if And your So market that, would main on share adapted. great it will compares can difference get initial and what dynamics be to you Mexico? the likely to

Sure.

the happy with there. with partnership is way very going the We’re [indiscernible]

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the Laboy Carlos comes line HSBC. with Our last from of question

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Francisco today. that for conference additional posing have remarks. is we the the back turn all time over I now gentlemen, to and questions Camacho for will Ladies for

today. all that’s that you great Thank think you I participation. your day. Thank for for your for have Well, support, and a very much

for you you and nice the you participation, replay FEMSA's Relations your this disconnect. if and day. This have conference for now website. ladies wish And to a may Thank Thank today. concludes parties our you. do All webcast so at Investor call, for gentlemen, may