- The Annual Report highlights the company’s strategy to maximize long-term value creation and focus on its key business verticals from 2023 onwards: Commerce, Coca-Cola FEMSA and Digital@FEMSA.
- In 2022, FEMSA’s total revenues increased 21% compared to 2021.
Monterrey, Nuevo Leon, Mexico. March 31, 2023 – Mexican Economic Development, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) presented its 2022 Integrated Annual Report: The Annual Report highlights the company’s strategy to maximize long-term value creation and focus on its key business verticals from 2023 onwards: Commerce, Coca-Cola FEMSA and Digital@FEMSA, which have the greatest strategic relevance, growth potential and financial and competitive strength.
“In 2022, FEMSA began a thorough review of our strategy, with the purpose of ensuring that we have what is necessary to continue and maximize the creation of value for all our stakeholders in the long term; therefore, we conducted an exhaustive analysis, based on three components: FEMSA’s strategic priorities and how we want to achieve them; comprehensive long-term plans to execute these priorities and strategic approach to achieve this long-term vision,” explained Daniel Rodríguez Cofré, CEO of FEMSA.
In the strategic axes, the Trade structure is projected, with excellent opportunities for long-term growth, made up of Proximity (Americas and Europe), Fuels and Health; Coca-Cola FEMSA, with a market-leading position and excellent operational execution, combined with its financial strength and strategic and Digital@FEMSA opportunities, as a powerful value-added financial and digital ecosystem, plays a key role in leveraging the link between FEMSA’s key business units.
In addition to participation in other complementary sectors including point-of-sale refrigeration, food processing equipment and plastic solutions. In 2022 it participated in the beer sector through the investment in HEINEKEN.
Here are some relevant data from FEMSA’s 2022 Integrated Annual Report.
Solid sustainable growth
In 2022, total revenue increased 21% compared to 2021 , to Ps. 672,202 million, which reflected growth in all its business units. Consolidated operating income increased 14.3% to Ps. 59,416 million in 2022 compared to Ps. 51,993 million in 2021.
During the year, FEMSA received authorization to operate in Mexico as an institution using technology to offer financial services, allowing it to expand its presence in the financial services and remittances market. Its loyalty program, OXXO Premia, and digital fund account, Spin by OXXO, grew at a rapid pace in 2022, registering more than 12.9 million and 3.9 million users, respectively.
Novel and exciting ways have also been found to combine FEMSA’s supply chain expertise with digital enablers for orders and payment solutions. Coca-Cola FEMSA’s multi-category omnichannel digital commerce platform continued to grow, with digital sales accounting for approximately 11% of total sales. OXXO and Coca-Cola FEMSA also initiated pilot tests with new ways to work together to reach new informal sector customers, typically underserved, using digital tools of the FEMSA ecosystem.
Balanced risk/return profile
In 2022, the geographic footprint continued to expand in key strategic markets. One example is the closing of the acquisition of OK Market, a chain of small-format proximity stores in Chile. The transaction added 120 stores to the existing footprint of FEMSA Proximity business in this important market, bringing the total to 272 locations to better serve Chilean consumers.
Moreover, the unique opportunity to grow and develop the small format proximity business outside Latin America – in a new continent – was capitalized by joining forces with Valora, one of the main food convenience platforms in Europe. Will bring together extensive digitalization experience, scale and philosophies to accelerate new and exciting avenues of growth and potential.
The company has set out to put people first, create social value and identify green solutions that drive efficiencies and reduce pollution. To complement these actions, FEMSA Foundation cultivates shared prosperity by investing in solutions to complex challenges related to water security, circular economy, early childhood, and art.
In 2022, 58% of FEMSA electricity needs were supplied with renewable sources and in the efficient use of water by Coca-Cola FEMSA, currently only 1.46 liters of water per liter of beverage is used, in addition to recycling +38,000 tons of plastic and +80% of PTM products made with recycled materials.
Moreover, progress continues in leadership in sustainable finance. Coca-Cola FEMSA became the first non-financial organization in the Americas and the first company in the Coca-Cola System to issue a social bond, which facilitates the financing of social projects. This aligns with the environmental, social and governance (ESG) transformation project Coca-Cola FEMSA undertook during the year to redefine its ambition, goals, and sustainability strategy to remain ahead of market, regulatory and consumer trends. Its vision is to become a world leader in sustainability, to be an example of ESG excellence in Latin America and to elevate these practices in the region and in the world.
Promotion of talent and culture
Committed to the integral development of the more than 354,000 employees, FEMSA offers a respectful, inclusive and collaborative work environment where they can grow and excel; with decent working conditions based on three priorities: Human and labor rights, Diversity, equity and inclusion and Integral well-being.
Furthermore, in 2022, 27% of women hold executive positions and 6,700 elderly or disabled people are employed.
Proactive engagement with audiences
As a testimony to the transparency of the communication channels that the organization seeks to maintain with all its stakeholders, the report can be consulted in full here: https://informeanual.femsa.com/
FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Division operating OXXO, a small-format store chain, OXXO Gas, a chain of retail service stations, and Valora, our European retail unit with convenience store and food service operations. In the retail industry it also participates though a Health Division, which includes drugstores and related activities and Digital@FEMSA, which includes Spin by OXXO and OXXO Premia, among other loyalty and digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume; and in the beer industry, as the second largest shareholder of Heineken, one of the world’s leading brewers with operations in over 70 countries. FEMSA also participates in the logistics and distribution industry through its Strategic Business Unit, which additionally provides point-of-sale refrigeration and plastic solutions to its business units and third-party clients. Across its business units, FEMSA has more than 350,000 employees in 18 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index: S&P/BMV Total México ESG, among other indexes that evaluate its sustainability performance.