WMMVY - Another Tough Quarter For FEMSA But Recovery Comes Next

• FEMSA reported inline revenue and EBITDA despite modestly weaker-than-expected same-store sales at OXXO, as renewed lockdowns in January and February hit the business.
• A reopening of Mexico's economy should drive sequential improvements in same-store sales for OXXO, and management is ready to continue expanding the geographic store footprint beyond Mexico.
• The launch of spin, FEMSA's digital wallet product, is a promising near-term opportunity given the scale of eligible transactions and the need for more consumer finance options in Mexico.
• Long-term revenue and FCF growth in the neighborhood of 7% can support a long-term annualized return of over 10% from today's price.

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