Fomento Económico Mexicano, S.A.B. de C.V. Q1 FY2026 earnings call

• Changed reporting segments: OXO Medico on its own, new segment Americas and Mobility. - OXO Mexico had strong performance with revenue growth, gross margin expansion, etc. - Americas and Mobility segment had strong revenue growth. - Europe, health, and Coca-Cola Pensa had respective performances. - Organizational changes completed with renewed senior leadership teams. - SPIN had good quarter with 11 million active users and over 100 million monthly transactions.

OXO Mexico: 8.3% revenue growth, driven by same-store sales beating industry, with growth in tobacco and soft drink categories. Gross margin expanded. Selling expense contained. Americas and Mobility: Total revenues 25 billion pesos, up 12.9%, with strong performance across OXXO Latinx and consolidation of OXXO Brazil. Europe: Total revenues 12.9 billion pesos, stable in peso terms. Health: Total revenues 22.2 billion pesos, grew 0.9% year-over-year. Coca-Cola Pensa: Remains as before with focused strategies.

• Expect CapEx deployment to accelerate through the rest of the year. - Anticipate shareholder returns with ordinary and extraordinary dividends, and share repurchase program. - Optimistic but cautious about the macro environment, especially the second half of the year.

• Credit risk in Colombian healthcare institutional business due to funding gaps and potential insolvency of certain MPSs. - Challenges in traffic improvement in OXO Mexico despite progress. - Macro environment uncertainties affecting performance.

Q: On EBITDA difference relative to last year, A: Decline in spin losses and cost-containment efforts.

Q: Impact of Pacific area issues on traffic, A: Traffic better than average but still not fully satisfied.

Q: Oxford gross margin and World Cup contribution, A: No major contribution yet, but expecting more in second quarter.

Q: Affordability strategy beyond World Cup, A: Focus on food and coffee, daily replenishment.

Q: Portfolio simplification and pharma business, A: Always studying portfolio, pharma has potential but Mexico underperforms.

Q: New store productivity, A: Niche stores impact, pruning underperforming stores.

Q: Ticket growth in OXO Mexico, A: Big portion related to tax pass-through.

Q: Leverage and capital allocation, A: Likely below target two times net debt to EBITDA by end of year.

Q: Bar expansion in north, A: Encouraging performance, accelerating store expansion.

Q: Merchandise margins in Americas, A: Comparable excludes Brazil, Colombia maturing well.

Q: OXO Mexico margin expansion drivers, A: Mix of commercial income, etc.

Q: SPIN performance and tender, A: Encouraging results, aiming for higher tender participation