Fomento Económico Mexicano, S.A.B. de C.V. (FMX) 2 May 222022 Q1 Earnings call transcript

Good morning. And welcome everyone to FEMSA's First Quarter 2022 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise [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. to company's and actual subject materially which are the impact performance. results future uncertainties, events can Actual At this time, over to I will now Camacho Chief turn Beltran, Corporate Officer. Francisco the conference sir. ahead, go Please

hope Thank and whom you Welcome you, Juan FEMSA's XXXX are Fonseca, Today, quarter you conference first morning, Garza, joined operator. everyone. by to and families Eugenio are Good your okay. call. we well. results know I our CFO;

team. Coke Without Jorge have Collazo the FEMSA's also start Investor leads our Relations delay, we always, As with further line, on just let's who call.

the We encouraged achieved very business are our units the by results quarter. by first all during

three remember, As happening at may and start here. things with continued we you are a the positive I momentum things closed XXXX year. of improve to this have there believe

our execution has and one operators that working to First, been to growth superior every momentum are fit for. develop their everyone the skills -- business leveraging units successful strategies our known always of situation, hard

as through positive of Second, streaming also last challenges, particularly and operating the in cost these to accelerated often leverage. positive finally, of in are and to activity these the continues quarter, see years effects during sequentially consumer the mobility At OXXO, with to continuing becoming the revenue COVID favorable structure we worked to visible resulted the efficient. included adapt trends trends reopen, And and teams the more month the business in world March. the and these couple

of as the of levels OXXO international, great schools our able for acquisition OK XXX result first of [Indiscernible], growth during venture mobility more the reopening space, positive operating activity level gross, the our trend team closed the demand our and across a the in of at board. fuel of joint at organic was [Indiscernible] and At opened result, to as Brazil, including and deliver quarter. increased a customers higher business their Market a vehicle the margins record also saw their we continued As the quarter. EBITDA where store we

strong statement, quarter their delivering EBITDA getting income operations health the high on first line. for operating more again comparable have a that Our and a quarter keeps margins demanding at and all base across time building

the distribution Our supply improving States quarter, people March with the and more business the led the also logistics particularly segment in reflecting in America, performance in as a facility sequentially office. month operations. quarter, demand saw we good the dynamics by warehousing return had United also in better Latin And to of improved

Together, logistics remain Sigma acquire announce that the were products worth distribution, of the we strengthening complement incremental south national that Supply, distributor platform. well, US and Jan-San recently, packaging our important presence happy an is Jan-San solutions topic and it door mentioning deploying higher the and into Most the leg for of we an service and for consumables our Jan-San, call agreement facility and Staying a we supplies. and legs you on the what three food think are food, opportunities this of packaging. opening compelling can Envoy tool, these a market. of minute, Solutions legs as route where capital to and build On footprint committed key service cross-selling offers fits to to Texas Each our to density. comprise across topic

in generating leg And of benefit consume has the all they and need customers our packaging of products [cost] their returns need more often operations, most three. and from on As than high one capital. added

our are interested to in also addition of platform. our will there. be I about many we to know a an important talk progress want digital platforms Supply little monitoring our Sigma So since you

OXXO are and we and million much internal networks. about seamless working performance at acquisition networks the growing X between first of both metrics registered cost industry ensuring and the customer on but just exceeding Spin XX% on at below pretty million are and proposition, Premia. that, digital functionalities physical we Having and on focus customer adding user for expansion Our also numbers engagement keep quarter experience all X.X line to by good and services, OXXO baseline increasing product key At customer our users said expectations. with not tender our or in a like grow cases, interaction closed accelerating and indicators continue users In pace. active new at partnership our value by improving and our and a ARPU

progress and our going are posted keep forward. we'll signs you by We these on encouraged early

Eugenio, Before beyond. the it our at And high growth teams business first that, turn to Eugenio. the year the the by unit The positioning during with our in it of me to this I over remarkable compelling sustained we recognize want performing level and to quarter. and over I is as outlook to rest look turn job to done let for

first This and denominated loss was increased dollar line. interest related an net peso noncash morning Heineken total the the of FEMSA's the our mainly with improved impacted reflects income good operations FEMSA's XX.X%, a of investment FEMSA's quarterly of to operations income XX.X%. participation by compared during from expense. decrease by foreign US increased the offset Mexican good increase to and to revenues associates revenues ‘XX position quarter from Monday organic exchange as decreased in X.X% income appreciation the in our in a quarter first and results, relative cash Starting of billion first higher everyone Paco, quarter. total income XXXX. reflecting net from the in increased you, during Thank which results and quarter -- numbers, reached operations to On the on while pesos, and consolidated basis, XX.X% increased X.X XX.X%

of OXXO openings to Moving new last Proximity. opened net a first stores on XXX to discuss months. leaving depleted new little the quarter active our the during operations, last start a the year. for beginning fourth at very were the year quarter We which of than quarter stores, more below opened Openings trend, XX reach during for pipeline net XX coming our with this we after XXX to

in gathering still was by by a comparison coupled in first of on of we and is well are and pipeline base as our revenues trend record March, station driven average by suppliers. numbers operating from relative XXX restrictions. Mexico growth increased COVID margin strong OXXO confident operations of XXXX our structure during coming operating are driven commercial expect to XX.X% the recover. points to X.X%. month, were year. sales relatively X.X% At stores expense and vehicle same recovery the and XX.X% being and Difficulty] the quarter, the back and XXX These ticket for net while certainly grew a related OXXO programs points of XXX increased Income this quarter an recovery above increased target period in levels, increase customer with XX.X% Gross and same reach [Indiscernible], new a mobility sales in same-store However, leaner promotional margin basis compared the resulting our XX.X% to to up pre-COVID demanding affected basis XXXX, the on XXXX mobility which of reflecting reach February sustained which for increased with continued first in in key to leverage. and the to first reflects income XX.X%, consumption hit [Technical for of replenished XX.X% quarter traffic,

quarter, while reached tight operating this and During reflecting X.X%, was expense margin gross improved XX.X% margin leverage. control operating

FEMSA's to on Moving health operations.

increased and across for by territories During a new continue neutral an to XXX XX across additions see revenues the X.X%, stores our commercial have Revenues expense total strategies well demanding. of base across where margin that more comparison all as X,XXX applying the expanded same-store supplier we across team average expanded in particularly while surfaced our had reach increased XX leverage execution to quarter, last months. other with at of by good a Mexico, did the drugstore units the quarter, of On momentum our increased our same-store points basis, XX.X% as basis operations, XXX operations points, end the key X.X%. in territories. has during Operating reflecting markets. operating partners and tight success some and net efficiency grow count Gross sales more first margin we sales and collaboration March XX and net and X.X% improved the basis improved our reflecting increased control even the effective of currency becomes total

America, logistics of acquisitions recovering Latin organic to partially Moving the first the margin basis, business. our at by a increasing past basis in and good Solutions. by to across transportation to reflecting XX.X%, improved the back XX business. driven operating made on dynamics total largely operations warehousing by an operations, office, Envoy reflecting offset quarter in people pace relative facility in Envoy, months expanded and revenues demand increased segment XXXX, our in was XX.X% with expense. increased gradually labor of which the coupled our supply On Operating the XXX steady points, distribution leverage reflecting an going particularly Revenues

a strategies strong in income business increased all, raw Operating efficiencies. cost results materials. top-line to to reflecting disruptions coupled and pressures despite raw the increased chain certain FEMSA. the All with solid operating contributing in with Finally, such material hedging XX.X% growth. showed and supply on Coke XX%, favorable moving Coca-Cola environment. markets XX.X% on XX.X% grew Volumes Revenues FEMSA gross expense in even volatile most grew profit

can as terms cannot up fitness feel Certainly, supply before, as with and in of to trivialize of chain ahead. our across the operations. mentioned business And can to call about Wrapping the listen and the remain the Paco road the that like call all we learn we'll are and our a coexist we headwinds units, But control You up what webcast level macro for place questions. we vigilant that, quarterly Operator? with good open Friday. your took and shocks. promising COVID of inflation start up must we of we last to of

comes from [Operator Instructions] of Benjamin the first Barclays. question Your from Theurer line

the a it how well want Just you on segment strategy growth Sigma going future to What a the in how going as here strong your bit in have own logistics segment? coming this it’s to to you the you Supply growth results perspective what years? about development? perspective some out Is and a stand there organic Just ask be where very you do operating so? what little acquisitions and underlying understand think is allocation, US of do years income this and from think an maybe combines We've can how you together? -- to in capital you M&A, wanted then or take size all M&A, think from organic from just incremental recently in you've seen do guide to us throwing out through with some in laid to investments? a all coming out with is obviously, will you portfolio maybe this building where think about it two balanced and and do So expertise

food the distributed Envoy, there as I the the on similar obtain long same strategy. good as we of a a mean, are believe across attracted were small ahead Jan-San road an know, disposable widely but results we as these big also into Besides contains the States are platforms in industry throughout side, allows the you that an was sizes, mean, consolidation that, the of lot are business, States. United United couple of side, that got still of that the industry packaging following the there us fragmented I small distributors, of bundle dynamic the segment, to drop with when side another a segment we by and that and in the regional highly both our product rest service markets is And distributors.

still on terms bundle feel you some consolidation we there. So as side, supplier the long there. way is that And is ahead create relatively usually bundle a supply value of consolidation of immediately our there accretive that quickly in and partners can

add inorganic growth probably business mid-double-digit years So number growth, the And to we you potential in -- continue then come. could for mid-single-digit of at do can still grow in the trends the for result do to a secular that growth. believe this if

still allocation opportunities we that significant that So out can there be there believe value relatively quickly. are capital acretive

both disciplined, from be perspective, to do balance portfolio. grow well But really and believe as to capital the fourth we this perspective allocation platform as still that again continue become will FEMSA. evaluation we could we this significantly a from business a for So

a most stronger to in allows in the us mentioned, as Ben, in is that south to the add to just And as of acquisition you Sigma, way, Texas. recent the enter path all categories. our consolidating it And national it particularly the importantly, mentioned, we platform in

the from next comes of of Ford America. Your line question from Bob Bank

have the data, maybe Spin talk how corresponded with specific pretty you big services was and And little bit can activity within capturing you that's stores other are at the impacting wondering the how about are to way able evolving payment maybe I Premia business? a Eugenio, you now and well. those as transactions you're banking if bill clients. and And certainly identify and

but closer was think how I first the back. those is traffic, that we have we at to doing the he kind we’re that store in store ticket in Premia Premia easy side of but necessarily, price you is way on the so are terms and not and to customer success, who And all. for patterns mean, using customers as how a quarter average especially buying tender in what what of ticket seeing at get only time affiliate of at is, increasing the XX% And are frequently But giving now, again, the he's detect their tickets pickup I what it are is it's how strong the above are going. able it themselves. as have in point what what to seeing said, are we're it, Premia consistently not fast we comes had the much customers this customers in X%,

doing customer obviously promotions to peso an much level. surely slower ticket So we're to being targeted than individual ticket for And start OXXO. closer the talking we're rather at customer testing average but have average about the to a slowly Premia XX

to on that on but a So clearly through. side mean, to I and given how starting of see from that giving traffic coming proposition as that we’re more term efficiently it’s is lot new try we hopefully, whole short us, extract at gross those side. we the results data fast will the use Again, to least growing, likely the value margin

you think it's a product. transaction the bill the as with product, is Spin done before, a at said It's consumer otherwise store. it's not right now, it I the that would've the what wallet And On basically is relatively simple payments. capturing doing marginal

that the our that pricing stuff product product partnership believe services that credit, the Premia think, at will the into capturing that put that do the making as changing for Spin the without it is points and along with by marginal more-and-more OXXO. us the it become, to the functionality use US, think our for The the in we more architecture start segment, to the product, remittances category, other such consumer market compelling, on I category the we case allowing to wider. So fact a I is cross-selling Spin start services from and earning you is categories also using eventually of

super it's OXXO entire believe to we overall, So accretive the ecosystem.

to complement just add And to that, to that both.

the a and the into that store be not physical lot competitive store. think in surprising in of Obviously, people that, of a of be advantage. not only also but mentioning program worth the the is world source continue tremendous visiting transactions world, digital lot get the the a to by I it’s proving to

of stores, combination having the way platform on of the those an the digital four where is So just great things. continuity to having

you seeing acquire why replicated new Can but that And they mentioned important cohorts as clients. talk as terms ticket, about of subsequent there more that average Eugenio, Spin, more your early you some new be that cohorts are are particularly you that evolution is expect earlier to frequency you or at you I cohorts, and in users? with the evolution in you becoming in look think

which I just per point, now, transacting is average network our lot function about peer-to-peer that where is become from starting as I peers user valuable. times basically spin to spinners, across were. up significantly people it's month, money Bob, cohorts of more become XX early think the sending think And more is a on right the effect, the

the seeing network of in are the and So shared value part of that effect. the more we play out proposition just more terms

of people can highlight, some that's do other that We of realizing themselves. women this facilitates user certain their it's of so just that it's they than would sons. product, obviously, other -- maybe lot of they power to way are And a beauty in some kind are have entrepreneurial. maybe using there with much Joe, more product, the type And A they them Spin. are I and average. is big life they sell sending realize are seeing money product things differentiating that your here his products,

didn't be we So I realizing lives, something something anticipate. professional think and their people their like are that necessarily can useful this how that's for

question Alanis comes next Alan of Santander. the your from And line from

a mean traffic I more same-store Mexico your as inflation inflation? you the basically compare clearly you sales I did XXXX? how we versus the going the question there and in see average traffic. of about with have higher of regarding But mean, forward this business capturing becoming in I How And everywhere. thinking OXXO, levels ticket. are are inflation pervasive

back said of On on are we’re terms traditional to OXXO coming mixed There the to levels the traffic store cities, view of gathering, et the replenishment On such categories. we below Because stations, urban categories, et the within where locations the traffic the stations, heavy such XXXX basis. number bag. traffic traffic a present shifting classes question, ticket, their But office drill but basis, or cetera, levels coming are actually patterns not mean, hybrid model. you I And that to went we a people more average. that Those closer a as those up. adapting to percent continue as Why? locations as locations now started that, are sales back bus up up. into that more have still are are still are in is buildings to same-store traffic still lag. well now cetera, hundred other still the say need a the some you still of as down a know, I certain back. -- Having traffic schools would home in

it bag ticket new said traffic and of resilient the regards the of the Having we cost been bit obviously in keeping that at are terms helping. that, So little with the sure to mixed has of is terms a level store in of is making the reality a patterns that.

we So on we're the product then being cetera. I take very you strategic bundle that want the et know And to it, Paco, about start put stores, we the how don't inflation if point.

for Alan, inflation, to is is carry cash another flexible is that is and as with a because spend that small, their of the the us you And reality Proximity good that offered. we know, the terms And items money the how for channel is wisely. for out pocket thing very outlay. fast consumers right the in enough strong portfolio how manage And products we very we

partners consumers shouldn't forward are persists out it and confident will options that with sure be until we that work protect as moving handle to pocket, with whether there of that make is we continue difficulties work we we their we and So our provide inflation to lower. cannot commercial the that

way much to regarding XXXX levels? seeing But to lower the what's are back in to traffic that we the XXXX. still we need catch-up be Roughly still traffic just below, aggregate to go how being than

all… down low-double-digits the across in XXXX roughly It’s from

Sergio from comes Your the Citi. from Matsumoto next of question line

out wanted And you're obviously, to have you Premia long the changed with lately. kind a consumers? tracked And preferred prefer the the for consumers to that things cash context being to of of transactions of has the circumvent long kind and what financial do seeing hear time, ask changed. time Mexican success the but they their and wanted way for think a in that Because I transactions just always you, went Spin Mexican about the cash. from

products? So last you in launch mind, obviously, what your do led the these in years, think you to of new changed couple

in change change, fundamental that a terms don't the utilization. for being, of a is there think or the major time at I cash least

transact to that their for seeing think are with money and to consumers opportunity the use differently simply opportunities I giving the them.

cash. Spin, the owners transact the to have question as back when going made businesses transactions regarding the cohorts. Eugenio comes mean, to that a I was Bob can it clear just of small differently actually that, those mean, that I some and are using we the new So not of highlighting, it's cohort in

Some different are of those transactions a nature. of

trying So is number you have I'm to continue that transactions. that there. I what are tell favor of They cash we to consumers guess that

are some different And to we we cash. We I continue some of number to as are platform, we'll think from consumers, move transaction consumers of see them from serve as of other same them that that them that. the our adding add of different non abilities properly. But a forward and we transactions, more

the the points. As they have that then something it way the they been for buy just store, the in way mean, Premia, are, transact I they and accumulate fact they doing is consumers

And do its the they change some non-transaction positioned But forward? the a very transaction in before to that’s that happens, to when likely. at But that also capture Is are think with cash. that cash what is I non point. trend. becomes so It's that as moving going we was -- it origin perfectly that point majority the point, then of

an we capture any move are of say fluid, in the this it's positioned all that forward. and would So to I well evolution, as we is very all, two

X.X mean, economic population, context there million. users it Putting active nearly into active Mexico Sergio, is in now XX right population the of I and Spin million is

they number their be use we Spin and a maybe to that, people that get across is now for of say especially they them. but the I for will that Spin to is use peer-to-peer And good two, cash very regards use kinds Mexico. we not there find long more we network product activities again, for a still changing functionalities, with these still still bigger for the but sending will add it's again, And cases, there money day-to-day this. is feel of one the runway effect early it's that So stages extent functionality right that number that just to they're would primarily one, case

the comes question next Your of Alvaro Garcia from from line BTG.

a on you and bump architecture pricing at My we've seen questions margins, Spin Can Proximity. obviously big there. users mention the gross in the same,

So if wondering commercial profitable beer, with how perhaps has gross had to gross is, that be margin I that gains beer something better there? that given business to more income Any more your maybe dynamics, do color great. margin was if with or do on would

think increase headwinds activity years combination tail I a perspective. over bunch big think, of have mixed mean, more pandemic initiatives taking gross that a whatnot, it’s few been, from the were passed the in but a bunch also in different maybe specifically and margin a past to Alvaro, starting that and are terms We're of commercial ground beer that of providing, I of supplier by I because seeing of partners. the we see in category

starting in. We for also OXXO replenishment distribution usually in at higher of think traffic taking on and side offering overall are includes other category are I baked core the in. pay-off home starts a case to back also products, and I and lot gross use more were in as and -- the kick higher is core the that that consumption importantly, store, the think That gathering the the of margin but efficiencies tickets of the categories slowly to the OXXO within

little of factors, combination a of bunch a So Alvaro. it's

bit yet? move you a cost things are payments, subsidizing And bill into a just maybe internally -- sphere maybe Is the on architecture. not on as digital that sort of like more those boost follow-up thinking pricing architecture of we there pricing there or traffic, to maybe want transaction transaction that any changing on

what digital is engaging The of precisely elasticity figure those strategies actively be. would testing team in the out products to

with kinds obviously, those also to as cannibalize the but engaging experiments consumer actively are we try the there. value to possible of continue come as business our solution, create for So up of best in to little to

comes the question of next GBM Group. from Luis Willard line Your from

you you would with report. apologize users already that your quick or organic discussed a share were actually million in users, have still conversions X -- one, the us the there Just customers? and that or XXX% be if have if previous they That from From Saldazo this earlier. some are Can you they I are Spin first.

sense want a and I is that expired comes mean, everybody in in or one, it organic to card have they never they or and their card lost had they like open a previous this. this had the a they new and product whether

any to card. it's So transmission going going hopefully consumers users obtain that fill product at Spin get look are to Saldazo -- a the there isn't application and of that their see and compelling an and an automatic they're then and

So mostly organic. the are numbers seeing you are

card, -- think the opening were Saldazo you some is no account. be there might in There or sense Saldazo as have But have question, are asking thought the users. speak. I the that in past requested people that about Saldazo of we is this most basically, their are an positively the users still using

we that us. now [Technical to customer is main -- Difficulty] belongs that actually The complement

We data. have their

where we the We with have mean, information on pattern a had, the before customers, their consumption customer. I less Saldazo lot as

proposition. they not. And I But, to begin enrollment to individual the automatic yes, and I value open whether their accrue consumer obviously, have will or improving rewards, we account hopefully perspective, Spin up from and they each think it's the in Premia keep to a

question from next comes line Your the UBS. of from Alcantara Rodrigo

Back on Sigma, quite you you’ve think the you smaller logistics active and company. part a acquired that distribution, I also that the in were said,

basis. was distribution on L&D, new think term should that this the a main are strategic the that wanted EBITDA logistics could sale this. long-term FEMSA? you very be of to potential capture, we curious, Or larger doing. a more investments the core How long, about these just the margin perhaps a just as that that question, you create long but know to cashing we like your behind reason quite thoughts So the about also like saw? as a division it's on synergies, And platform, thinking generated sequential contraction I all know for

question, first just EBITDA margins. your On with to regards

issue direct If sale we're synergies little you used think, accrue. logistics the doesn't division? bit back to and is Paco were And but that business. in the that affected did depreciation is certain on that's see what of the business that of think EBITDA know, and Juan, I actually a more, look don't at line. transaction The we're our of carrier actually, of we reflecting and line a the the a in the EBIT able business, logistics that long-term doing underlying the kind lease the reflect do transaction Mexican clearly economics view it contract you contraction is margin, want why I in EBITDA the that I our being of margin, a take to or trucks you financial that

would just -- put it in integrate of that of company distribution what before, into extent, enter market, industry saw we to months, as the And knowledge becoming to have same and context. an the industries. expertise When see to is, we since to at of I we national the that very And have over First items those we have the combined what powerful the highly have tremendous we different and true. proven platform. learned the have, points this, we the of we we last of say, some opportunity premises decided have and still at to those expertise XX/XX leverage businesses FEMSA time, US Eugenio fragmented said to the is we the was that a all do as be all, to decided acquired different to consolidating

continue there time. platform, strengthening that see before, on be the packaging said is see the the Sigma now into national is I to we which a platform. we And also industry as the work we our is to take some what going to also, consolidate mean, way providing. opportunities and opportunities, So

we that the proposition there. continues started envisioned when to be So this we long-term

we capture strategies We the are packaging confident have the about for are said three to food as value. we And categories, those also that cross we because selling the platforms. that customers opportunities and for three service enormous, buy usually before have these Jan-San,

opportunities. and on the strong also organic as So stage, a at of integrate side platform, inorganic we see the this consolidate very see opportunity lot we and we

our to to out shareholders. So in confident the provide have are And we’ll longer we we that we FEMSA to targets value to continue business. term for we work strategic business and figured that that continue a are

operation the -- we think that's that increasing business. look the size real. very already meaningfully earlier well X are Paco. once we’ll closes at US in the we be as And Eugenio transaction the business, said think Sigma in that for exactly I Right I of right of just now the as is revenues potential north billion

quickly the growth a certainly very to that steep we're original know American same continue from the pretty but don't at I double going to still. it's transaction. And [Indiscernible] North curve pace grow So

from Thiago from of comes question line And your Sachs. Bertolucci next Goldman the

Grupo like are I'd expansion, that conversation and really to Brazil shift bit Mexico. up Nós back from store the when little a the to It seems scaling out especially to fastly. comes it growth

road, So in Brazil do Mexico? how say compared core five, the XX the footprint years very you long think the to down teem, let's could be in OXXO

XXX store that of of the in years quarter a happening gets But two you slope year pipeline start in has the my that's after close think in I we stores the you something something I think OXXO outside XXXth the you where about store very a Campinas. than Mexico XXX our opened we're high next look to the the it's the The in fact of already frame into and the And described mean, curve put for the confidence what what's hit a maybe growth opened a little think stores over the Grupo talked is certainly, think But the is would one Mexico. has and Nós, or mean, year. rebuilt. way model in relevant. growth, I like that I I number opened, happening OXXO in we of and the first that's flattened that very the Mexico fourth to if as I Mexico remarkable, terms think other what's level active of I Mexico that kind is coming this basically and after in quarter, XXX little at And year obviously especially, hiccups flowed be was bit. I question, we would in going year

anywhere Colombia, a now. per stores it's you If at XXX, contribute which OXXO Brazil, you're XXX you international, yes, year And looking joint Chile together overall between which look should at then right just venture. have and

plan they than guess can have of But a get I you year. for half So say more credit this we for those. XXX only

you're of a add Not stores, something XXX where continue Mexico to are in and like opening to in XXX fewer outside in to think scenario already I more So going looking are stores do South at -- you're Mexico, don't going we but stores plus the America. Mexico, those to Mexico think are converge. curves be be we a I to going opening lot because going

possible year you as So definitely Mexico. in describe, that adding it's equivalent timeframe, a number think of would an stores, international be I as five

just -- continue is have pretty as and where So that's in are proposition there, beginning especially the profitability, think level to that Chile to very have get you begin powerful, that, per have we than not you we a you scale, are you to already make at of very, Mexico. are your but And and because course, scale actual And see certain and company is right, the it you XXX what close to in to we now going you as see obviously, Columbia, some above there Chile more to store stores. at store is already money. beginning assuming soon to And I need value level. the are more revenue --

part company, big will very the profitability contribute it. of are is and the So international we optimistic to that scale increasingly of a

other think equal of And looking number the for model I then in contributing South so work. America years we’ll course Mexico. And time, as keep an five places be could could you having where

of additional little Just bit to perspective a on that. add, Thiago,

the Juan what which on in when the I that, that specifically the is of think it the that at it goes the Brazil, agree we America XX have see in Brazil the today, the actually different look think and I in one the that's adapt see to value terms proposition the model just about those to different hand. more the across the adapt next travels say, value On cities. properly look and well to of other to fact been would we of also and have Latin is in markets second the the also same in And to today the teams we today, I countries. beyond to, as have proposition market, Mexico each that live years, consumer very needs numbers stores, number how in we modify reason goes it with and it opportunity of to Mexico we I There we same five on able to tweak consumers and you in and And And it point in that. improve to different fact is have that the number stores market. doubt when strong that is in as Brazil non the and is have definitely importantly question. your way

example, a lot development, to that at look to of you proposition And in for San can vertical Brazil, Pablo, store reflect see in São are see we the that an doing you go people close and a adapted when a in have live well. stores have So we Paulo, where very and example. example, OXXO that store that is of when for lot you you for by,

positively expand the platform OXXO So opportunities outside we us chances giving that look to at Mexico. the is our confidence very and to have

in in should be America, five very to particularly Proximity exciting Brazil. in next and I the would So years for Latin XX business say

comes next Laboy the from And of HSBC. question line Carlos your from

to discount Eugenio share are any are the discount? FEMSA’s models doing may on we OXXO and how is and of give job, this. us great I'd on from can like think to the that And the great. Paco NAV? about board board they operators keep hear all FEMSA great the does what there a and a you But Coke to Gentlemen, know insight repair and the source price this approach of business

mean, I that’s now right us. Listen, clearly mind top for of

shareholders. was us more kind market where time, it involved proven different capital cost cost obviously I of given access you capital think OXXO for capital, those that for giving debt businesses [Indiscernible] for longest has given being initiatives has to longest that whatnot. a in us really it has is patience about that umbrella multi-business and to lower And that play to the If capital in the has FEMSA several valuable and much of out, to come we've and a as company there for us time, for bode of today, also because think incubate the initiatives a us to to require by well longest difficult patience is it proven the I be able be it of all think the such and time,

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

continued See for Thank you time. you and in thank your the today, you call participating businesses to next support and very much team. its for its FEMSA,

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