- It registered a solid performance with a 7.9% growth in total revenues compared with 2018.
- Investments in Socofar, Jetro Restaurant Depot and Raízen Conveniências were the most notable.
- It reached approximately 300 thousand employees and served more than 290 million consumers in 12 countries.
Mexico City, Mexico. March 23rd, 2020.- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) presented its 2019 Annual Report. In 2019, FEMSA continued evolving as an organization that generates economic and social value through companies and institutions, in a balanced execution between satisfying the daily needs of its customers and promoting the wellbeing of its employees and the communities where it operates.
Highlights of the FEMSA Annual Integrated Report 2019
- A solid operational and financial performance across all of FEMSA’s Business Units in 2019.
- Total revenues increased 7.9% compared to last year, reaching MXN $506.7 billion (US $26.9 billion).
- Operating profit grew 13.4%, to reach MXN $47.1 billion (US $2.5 billion).
- Approximately 300 thousand collaborators of diverse backgrounds and abilities brought their talent to FEMSA every day. FEMSA served more than 290 million consumers in 12 countries.
- At the end of 2019, 73% of the total energy requirements in Mexico were covered with wind energy sources and, in the future, the number of establishments that will work with wind energy will continue to increase. More than 14 thousand FEMSA locations were supplied with renewable energy.
- FEMSA acquired a minority stake in Jetro Restaurant Depot; a leading company in the wholesale self-service segment for the food industry in the United States, with more than 130 stores.
- FEMSA Comercio surpassed 24,690 units across all its formats and markets and created more than 21 thousand new jobs in Mexico.
- FEMSA Comercio’s Proximity Division announced its entrance to Brazil by establishing a joint-venture with Raízen Conveniências. Raízen Conveniências has more than a thousand convenience stores under franchise or license from Shell Select within Raízen`s extensive network of service stations.
- Today, FEMSA Comercio’s Health Division owns 100% of its health platforms in Mexico and South America, following the acquisition of the 40% of Grupo Socofar that it didn´t own.
- The Proximity Division closed the year with 19,330 OXXO stores in Mexico, Colombia, Chile and Peru, serving more than 13 million consumers daily.
- In the Health Division, Mexico maintained its steady progress; in Colombia, the growth was dynamic; in Ecuador the integration process of the GPF Corporation began; while in Chile, despite of the challenging conditions, the results were satisfactory.
- The Fuel Division increased its total revenue by 2.0% compared to 2018.
- In 2019, based on the “One KOF” business strategy, the unification of the organization continued.
- Solistica took an important new step to build its growth strategy through the acquisition of AGV in Brazil, a leading value-added warehousing and distribution services company. By closing this transaction, Solistica became the first fully integrated supplier of third-party logistics services in the Brazilian market, a key differentiator among industry leaders.
- Since its beginnings in 2008, FEMSA Foundation has invested more than MXN $848.7 million (US $45.0 million) to benefit nearly 2,500 communities in 12 countries.
Message to shareholders
“The year was one of great activity in deploying capital to high growth, high return assets that align with our experience and capability set. We also saw strong consolidated operational and financial performance across FEMSA business units in 2019. We are actively working to build trust and create social value by living our mission, vision, and values every day”, said Jose Antonio Fernandez, Executive Chairman of the Board, and Eduardo Padilla, Chief Executive Officer.
The Annual Integrated Report 2019 “One Vision, One Platform, One Future” was developed under the guidelines of the International Integrated Reporting Council (IIRC) and in accordance with the ‘Essential’ option of GRI (Global Reporting Initiative) Standards. Furthermore, this Report communicates the company’s progress regarding its 2020 sustainability goals and its alignment with the United Nations’ Sustainable Development Goals.
The report also considers recommendations from the indexes and rankings in which the Company is included, such as the Mexican Stock Exchange Sustainable IPC; Dow Jones Sustainability Emerging Markets Index; FTSE4Good Emerging Index; Vigeo Eiris Emerging Market 70 Ranking; and Bloomberg Equality Index.
You can find the full report at: http://www.annualreport.femsa.com
FEMSA is a leading company that generates economic and social value through enterprises and institutions and aims to be the best employer and neighbor of the communities where it is present. It participates in retail trade through FEMSA Comercio, which englobes the Proximity Division, a chain of small stores of which OXXO is a part; a Health Division which includes pharmacies and related activities; and a Fuel Division that operates the OXXO GAS chain of service stations. In the beverage industry it operates Coca-Cola FEMSA, a public bottler of Coca-Cola products; and in the brewer sector it is a stockholder of Heineken, a Company present in more than 70 countries. Additionally, through Strategic Businesses FEMSA, it offers logistics services, refrigeration at selling points and plastic solutions to FEMSA companies and external clients. Through its Business Units it employs approximately 300 thousand collaborators in 12 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance Index, the FTSE4Good Emerging Index and the Sustainable IPC Index of the Mexican Stock Exchange among other indexes that evaluate its performance in sustainability.