Fomento Económico Mexicano, S.A.B. de C.V. (FMX) Q1 2025 Earnings Call Transcript

2025-04-28 17:45:21 ET

Fomento Económico Mexicano, S.A.B. de C.V. (FMX)

Q1 2025 Earnings Conference Call

April 28, 2025, 10:00 AM ET

Company Participants

Juan Fonseca - IR

Jose Antonio Fernandez Carbajal - CEO

Martin Arias - CFO

Conference Call Participants

Tiago Bortoluci - Goldman Sachs

Ben Theurer - Barclays

Bob Ford - Bank of America

Ricardo Alves - Morgan Stanley

Alvaro Garcia - BTG

Hector Maya - Scotiabank

Ulises Argote - Santander

Froylan Mendez - JP Morgan

Rodrigo Alcantara - UBS

Presentation

Operator

Welcome to the FEMSA's First Quarter 2025 Results Conference Call. My name is Ellen and I'll be your coordinator for today's event. Please note, this call is being recorded and for the duration, your lines will be on listen-only. However, you will have the opportunity to ask questions at the end. [Operator Instructions] I will now hand you over to your host, Juan Fonseca to begin first. Thank you.

Juan Fonseca

Thank you. Good morning, everyone. Welcome to FEMSA's first quarter 2025 results conference call. Today, we are joined by Jose Antonio Fernandez Garza-Laguera, CEO of our Proximity and Health Division; Martin Arias, our CFO; and Jorge Collazo, who heads Coca-Cola FEMSA's Investor Relations team. The plan for today is for Jose to open the conversation with some comments on the performance of the business during the first quarter, particularly at Proximity Americas and then to provide a quick update of our retail portfolio. After Jose's remarks, Martin will provide more detail on our quarterly results. Finally, we will open the call for your questions.

Jose, please go ahead.

Jose Antonio Fernandez Carbajal

Thank you, Juan. Good morning, everyone. During the first quarter, FEMSA was able to navigate a challenging environment across several markets, particularly in Mexico taking advantage of its resilient geographically diversified business platform. Within Proximity and Health, however, Mexico is by far the biggest component and the division results will inevitably reflect whatever is happening in these core markets.

Our results for the first quarter reflect a challenging set of headwinds particularly in Proximity Americas. Combining a persistently soft consumer environment in Mexico with a tough calendar setup and against a demanding comparison base. Therefore, I would like for my remarks today to provide you with three things. First, our assessment of the causes of the underwhelming numbers, particularly related to same-store traffic in OXXO Mexico. Second, an overview of some of the actions we're taking to offset or mitigate the impact in Mexico. And finally, our expectations for the remainder of the year, including what we foresee will be a better second half in Mexico that should help us deliver a solid full year result despite the slow start. After that, we will give you an update on the rest of the operations....

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