Fomento Economico Mexicano S.A.B. de C.V. - ADR

OXXO Mexico recovery continues (key positive): - Revenue +8.3% YoY, driven by same-store sales +6% and 158 net new stores. - Gross margin +140 bps YoY to 46.2%, supported by supplier cooperation, higher distribution income and warehouse savings. - Operating income +20.9% YoY, with margin expansion +80 bps to 7.6%. - Market share gains vs traditional trade, but traffic still slightly negative (important “not yet fully fixed” point). - Disruption in late February caused store closures (some still open/impacting), and snacks/sweets/alternative beverages underperformed vs other categories.

Segment reporting change (important for tracking): - New standalone reporting for OXXO Mexico. - New segment “Americas & Mobility” combines OXXO outside Mexico + fuel business (in Mexico and the U.S.). - Europe, Health, and Coca-Cola FEMSA remain unchanged—meant to improve investor visibility into different growth/trajectory stages.

Americas & Mobility momentum, but profitability still early-stage (good + mixed): - Segment revenues +12.9% YoY (+10.5% comparable & currency-neutral), including 2 months of consolidated OXXO Brazil. - Strong same-store sales ex Brazil (LatAm): >20% local-currency growth (Colombia/Chile/Peru). - Brazil same-store sales +6.9%, U.S. +1.7% (local currency). - Profitability: operating margin ~1.1% (operating income 281m pesos), explained by OXXO Brazil still generating an operating loss in this stage; management expects gradual margin improvement as scale/operating leverage increases.