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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2023

FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.

(Exact name of Registrant as specified in its charter)

Mexican Economic Development, Inc.

(Translation of Registrant’s name into English)

United Mexican States

(Jurisdiction of incorporation or organization)

General Anaya No. 601 Pte.
Colonia Bella Vista
Monterrey, Nuevo León 64410
México

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports

under cover of Form 20-F or Form 40-F:

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(1): _______

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(7): _______

Indicate by check mark whether by furnishing the information contained in this

Form, the registrant is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If "Yes" is marked, indicate below the file number assigned to the registrant in

connection with Rule 12g3-2(b): 82-_____________

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the

registrant has duly caused this report to be signed on its behalf of the

undersigned, thereunto duly authorized.

	FOMENTO ECONÓMICO MEXICANO, S.A. DE C.V.

	By:	/s/ Eugenio Garza y Garza
		Eugenio Garza y Garza
		Director of Finance and Corporate Development

Date: February 24, 2023

Exhibit 99.1

4Q and Full Year 2022 Results

February 24, 2023

(GRAPHIC)

Investor Contact

(52) 818-328-6167

investor@femsa.com.mx

femsa.gcs-web.com

Media Contact

(52) 555-249-6843

comunicacion@femsa.com.mx

femsa.com

HIGHLIGHTS

Monterrey, Mexico, February 24, 2023 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today its operational and financial results for the fourth quarter and full year of 2022.

●

FEMSA: Total Consolidated Revenues grew 23.0% against 4Q21.

●

PROXIMITY AMERICAS: Total Revenues increased 17.1% against 4Q21.

●

HEALTH: Same-store sales grew 8.3% against 4Q21 on a currency-neutral¹ basis.

●

DIGITAL: Spin by OXXO had 3.9 million active users² while OXXO Premia had 12.9 million active loyalty users³ and a 21.0% tender³.

●

COCA-COLA FEMSA: Total volume grew 4.6% against 4Q21, driven by growth across all its geographies.

Financial Summary for the Fourth Quarter and Full Year 2022

Change vs. comparable period

	Revenues						Gross Profit						Income from Operations						Same-Store Sales
	4Q22			YTD22			4Q22			YTD22			4Q22			YTD22			4Q22			YTD22
FEMSA Consolidated		23.0	%		21.0	%		21.0	%		17.8	%		12.2	%		14.3	%
Proximity Americas		17.1	%		17.8	%		12.3	%		15.9	%		17.4	%		27.9	%		11.4	%		6.0	%
Fuel		25.4	%		29.8	%		16.8	%		24.5	%		41.1	%		58.9	%		19.7	%		22.4	%
Health		1.0	%		2.4	%		(0.9	%)		1.1	%		9.3	%		4.7	%		(4.5	%)		(1.0	%)
Logistics & Distribution		34.2	%		49.8	%		36.7	%		52.9	%		(14.0	%)		43.7	%
Coca-Cola FEMSA		14.9	%		16.4	%		12.9	%		13.2	%		15.9	%		12.5	%

Daniel Rodríguez Cofré, FEMSA’s Chief Executive Officer, commented:

“We closed the year on a high note, with our fourth quarter performance continuing the strong momentum seen throughout most of 2022. In particular, we note the continued strength of operating trends at OXXO Mexico, where traffic again grew by several percentage points and contributed to our double-digit same-store sales increase, that also reflected good growth from important categories linked to the Gathering consumer occasion, especially relevant during the holiday season. Beyond Mexico, Proximity continued to grow at a good pace in most markets, and we are reporting Valora’s results for the first time following its consolidation in early October. FEMSA Health again delivered stable results against a demanding comparison base while facing a challenging macroeconomic environment, particularly in Chile, while OXXO Gas had another strong quarter on the back of increased volume recovery and strong operating leverage.

On the Digital front, we continued to add OXXO Premia and Spin by OXXO customers at a solid pace, even as we focus on generating engagement and measuring those users that are interacting with our platform on a recurring basis. We are also making progress launching our loyalty Coalition platform, where we recently announced an exciting partnership with Volaris, and we are working on much more to come. Coca-Cola FEMSA had a strong close to a year that saw them achieve a record set of results, driven by their excellent execution, and leveraging their enhanced cooperation framework with the Coca-Cola Company to invest and grow the business. Finally, Logistics and Distribution had a strong quarter that was partially overshadowed by one-time charges at Envoy Solutions.

This strong close to 2022 positions us well to drive more growth in 2023, as we begin to execute the focused strategy laid out in our FEMSA Forward vision as presented last week. We look forward to an exciting year, and beyond.”

¹	Calculated by translating comparable period figures at the foreign currency exchange rates used in the current period.

²	Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days.

Active User for OXXO Premia: User that has transacted at least once with OXXO Premia within the last 90 days.

³	Tender: MXN sales with OXXO Premia redemption or accrual / Total OXXO MXN Sales, during the period.

February 24, 2023 | Page 1

QUARTERLY RESULTS

Results are compared to the same period of previous year

FEMSA CONSOLIDATED

4Q22 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.)

	4Q22		4Q21		Var.			Org.
Revenues		186,467		151,542		23.0	%		13.5	%
Income from Operations		17,405		15,509		12.2	%		9.0	%
Income from Operations Margin (%)		9.3		10.2		(90	bps)
Operative Cash Flow (EBITDA)		26,562		23,446		13.3	%		7.3	%
Operative Cash Flow (EBITDA) Margin (%)		14.2		15.5		(130	bps)
Net Income		8,838		10,100		(12.5	%)

Consolidated Net Debt

Amounts expressed in millions of Mexican Pesos (Ps.)

As of December 31, 2022	Ps.			US$³
Cash		83,439			4,280
Short-term debt		16,333			838
Long-term debt⁴		170,989			8,770
Net debt⁴		103,883			5,328
Net debt / EBITDA⁵		1.12	x		-

Total revenues increased 23.0% in 4Q22 compared to 4Q21, driven by growth across our business units. On an organic¹ basis, total revenues increased 13.5%.

Gross profit increased 21.0%. Gross margin contracted 60 basis points, reflecting margin contractions across our business units.

Income from operations increased 12.2%. On an organic¹ basis, income from operations increased 9.0%. Consolidated operating margin decreased 90 basis points to 9.3% of total revenues, reflecting margin expansion at Coca-Cola FEMSA, Proximity, Health and Fuel Divisions, offset by margin contractions at FEMSA’s Logistics & Distribution business and the consolidation of the Proximity Europe Division.

Our effective income tax rate was 23.7% in 4Q22 compared to 32.2% in 4Q21. Our income tax was Ps. 2,345 million in 4Q22.

Net consolidated income was Ps. 8,838 million, reflecting: i) higher income from operations; and ii) a slight decrease in net interest expenses, during the quarter. This was offset by: i) a Ps. 4,299 non-cash, negative swing in foreign exchange losses, related to FEMSA’s U.S. dollar-denominated cash position as impacted by the appreciation of the Mexican peso and, ii) a decrease in other non-operating expenses, reflecting a demanding comparison base that included dividends received from our investment in Jetro Restaurant Depot.

Net majority income was Ps. 1.35 per FEMSA Unit¹² and US$0.69 per FEMSA ADS.

Capital expenditures amounted to Ps. 14,242 million, driven by ongoing investment activities across our business units.

¹ Excludes the effects of significant mergers and acquisitions in the last twelve months.

² FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of December 30, 2022 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

³The exchange rate published by the Federal Reserve Bank of New York for December 30, 2022 was 19.4960 MXN per USD.

⁴ Includes the effect of derivative financial instruments on long-term debt. Excludes long-term leases.

⁵ Net Debt excluding long-term leases / LTM EBITDA.

February 24, 2023 | Page 2

PROXIMITY AMERICAS

4Q22 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales

	4Q22	4Q21	Var.		Org.
Same-store sales (thousands of Ps.)	932.2	836.8	11.4	%
Revenues	62,652	53,510	17.1		16.5
Income from Operations	7,941	6,766	17.4	%	18.4
Income from Operations Margin (%)	12.7	12.6	10	bps
Operative Cash Flow (EBITDA)	10,972	9,647	13.7	%	14.4
Operative Cash Flow (EBITDA) Margin (%)	17.5	18.0	(50	bps)

Total revenues increased 17.1% in 4Q22 compared to 4Q21. On an organic¹ basis, total revenues increased 16.5%, reflecting a 11.4% average same-store sales increase, driven by 6.8% growth in average customer ticket and an increase of 4.3% in store traffic. These figures reflect the strong performance of the gathering consumer occasion, including beer, snacks and spirits, as well as the sustained recovery of mobility-driven occasions. During the quarter the Proximity Division’s store base expanded by 559 units to reach 1,027 total net store additions for the last twelve months. This includes 120 stores from our acquisition of OK Market in Chile. As of December 31, 2022, the Proximity Division had a total of 21,458 OXXO stores.

Gross profit reached 44.2% of total revenues, reflecting commercial activity and promotional programs from key suppliers, driven mainly by the December holiday season, offset by the impact from OXXO’s fast-growing loyalty program, and a decrease of the contribution of financial services, compared with 4Q21.

Income from operations amounted to 12.7% of total revenues, driven by higher operating leverage. Operating expenses increased 10.3% to Ps. 19,758 million, below revenues, reflecting enduring expense efficiencies and tight expense control, partially offset by our continuing initiative to gradually shift from commission-based store teams to employee-based teams.

Grupo Nós²

Total Revenues for the period grew 145% year-over-year, reaching R$185.3 million³. This figure reflects the successful evolution and expansion of the OXXO and Shell Select value propositions, as well as the addition of 193 net new stores for the last twelve months. As of December 31, 2022, the store network of Grupo Nós included 1,468 stores in Brazil, including 217 company owned and operated OXXO stores.

¹Excludes the effects of significant mergers and acquisitions in the last twelve months.

²OXXO’s non-consolidated joint-venture with Raízen in Brazil.

³ The exchange rate published by the Federal Reserve Bank of New York for December 30, 2022 was 5.2860 BRL per USD.

February 24, 2023 | Page 3

PROXIMITY EUROPE

4Q22 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.)

			4Q22
Revenues			9,809
Income from Operations			332
Income from Operations Margin (%)			3.4
Operative Cash Flow (EBITDA)			1,163
Operative Cash Flow (EBITDA) Margin (%)			11.9

Total¹ revenues for Proximity Europe during the period amounted to Ps. 9,809 million, reflecting a sequential traffic and ticket recovery driven by increased mobility. As of the end of the period Proximity Europe had 2,766 points of sale.

Gross profit reached 46.9% of total revenues, reflecting the recovery of the foodservice category, which has a structurally higher margin.

Income from operations amounted to 3.4% of total revenues, driven by the contribution of foodservice as well as the integration of recent acquisitions.

¹ Shows 2 months and [23] days of Valora’s results

February 24, 2023 | Page 4

FUEL

4Q22 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.) except same-station sales

	4Q22	4Q21	Var.
Same-station sales (thousands of Ps.)	7,603.2	6,353.0	19.7	%
Revenues	13,875	11,065	25.4	%
Income from Operations	614	435	41.1	%
Income from Operations Margin (%)	4.4	3.9	50	bps
Operative Cash Flow (EBITDA)	920	702	31.1	%
Operative Cash Flow (EBITDA) Margin (%)	6.6	6.3	30	bps

Total revenues increased 25.4% in 4Q22 compared to 4Q21, reflecting a 19.7% average same-station sales increase, driven by 17.9% growth in average volume and 1.5% increase in the average price per liter, as well as volume growth in our institutional and wholesale customer network. The OXXO Gas network had 568 points of sale as of December 31, 2022. This figure reflects the net addition of 1 total net station for the last twelve months.

Gross profit was 13.2% of total revenues, reflecting a negative mix impact driven by volume growth in our institutional and wholesale customer network.

Income from operations amounted to 4.4% of total revenues. Operating expenses increased 7.5% to Ps. 1,211 million, below revenues, reflecting tight expense control and positive operating leverage.

February 24, 2023 | Page 5

HEALTH

4Q22 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales

	4Q22		4Q21		Var.
Same-store sales (thousands of Ps.)		1,267.5		1,327.7		(4.5	%)
Revenues		18,774		18,581		1.0	%
Income from Operations		1,014		928		9.3	%
Income from Operations Margin (%)		5.4		5.0		40	bps
Operative Cash Flow (EBITDA)		1,946		1.810		7.5	%
Operative Cash Flow (EBITDA) Margin (%)		10.4		9.7		70	bps

Total revenues increased 1.0% in 4Q22 compared to 4Q21, mainly reflecting positive trends in Colombia and Ecuador, partially offset by a demanding comparison base in Chile and Mexico, and by a negative currency translation effect related to the depreciation of the Chilean and Colombian pesos relative to the Mexican peso. During the quarter, the Health Division’s store base expanded by 124 units reaching a total of 4,095 points of sale across its territories as of December 31, 2022. This figure reflects the addition of 434 net stores for the last twelve months. Same-store sales for drugstores decreased an average of -4.5%, reflecting the trends described above. On a currency-neutral¹ basis, total revenues grew 6.2% while same-store sales increased by 8.3%.

Gross profit represented 30.3% of total revenues, reflecting improved efficiency and more effective collaboration and execution with key supplier partners, offset by a negative mix effect reflecting the strong growth of the Health Division’s operations in Colombia.

Income from operations amounted to 5.4% of total revenues. Operating expenses decreased 2.8% to Ps. 4,675 million, reflecting tight expense control and efficiency gains across our operations.

¹Calculated by translating comparable period figures at the foreign currency exchange rates used in the current period.

February 24, 2023 | Page 6

LOGISTICS & DISTRIBUTION

4Q22 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.)

	4Q22		4Q21		Var.			Org.
Revenues		19,595		14,603		34.2	%		8.5	%
Income from Operations		497		578		(14.0	%)		(46.5	%)
Income from Operations Margin (%)		2.5		4.0		(150	bps)
Operative Cash Flow (EBITDA)		1,483		1,542		(3.8	%)		(19.4	%)
Operative Cash Flow (EBITDA) Margin (%)		7.6		10.6		(300	bps)

Total revenues increased 34.2% in 4Q22 compared to 4Q21. On an organic¹ basis, total revenues increased 8.5%, reflecting better trends in several categories in the United States.

Gross profit represented 22.2% of total revenues, reflecting a positive mix effect driven by the strong growth of our United States operations which have a higher structural gross margin level.

Income from operations represented 2.5% of total revenues. Operating expenses increased 47.9% to Ps. 3,860 million, reflecting the inorganic expansion of our distribution platform in the United States, coupled with increased transportation and labor costs across markets as well as one-off provisions related to past-due institutional customer accounts and obsolete inventories in our operations in the United States.

¹ Excludes the effects of significant mergers and acquisitions in the last twelve months.

February 24, 2023 | Page 7

RESULTS FOR THE FULL YEAR OF 2022
Results are compared to the same period of previous year

FEMSA CONSOLIDATED

Financial Summary for the Full Year 2022

Amounts expressed in millions of Mexican Pesos (Ps.)

	2022		2021		Var.			Org.
Revenues		673,202		556,261		21.0	%		15.5	%
Income from Operations		59,416		51,993		14.3	%		11.5	%
Income from Operations Margin (%)		8.8		9.3		(50	bps)
Operative Cash Flow (EBITDA)		92,812		82,422		12.6	%		9.6	%
Operative Cash Flow (EBITDA) Margin (%)		13.8		14.8		(100	bps)
Net Income		35,591		37,678		(5.5	%)

Total revenues increased 21.0%. On an organic basis,¹ total revenue increased 15.5% reflecting growth across all operations.

Gross profit increased 17.8%. Gross margin decreased 100 basis points to 37.4% of total revenues, reflecting gross margin expansion at the Logistics & Distribution business, offset by contractions at FEMSA’s Proximity Division, Coca-Cola FEMSA and FEMSA’s Health and Fuel operations.

Income from operations increased 14.3%. On an organic basis,¹ income from operations increased 11.5%. Our consolidated operating margin decreased 50 basis points to 8.8% of total revenues, reflecting margin expansion at FEMSA’s Proximity, Fuel, and Health Divisions, offset by a margin contraction at Coca-Cola FEMSA and FEMSA’s Logistics & Distribution operations.

Net consolidated income decreased to Ps. 35,591 million, reflecting: i) higher income from operations across our business units; and ii) a decrease in net interest expense. These were partially offset by, i) a Ps. 5,043 non-cash, negative swing in foreign exchange losses, related to FEMSA’s U.S. dollar-denominated cash position as impacted by the appreciation of the Mexican peso, ii) a Ps. 3,769 negative swing in other non-operating expenses which reflect a demanding comparison base that included dividends received from our investment in Jetro Restaurant Depot, and; iii) by a decrease in our participation in associates’ results, which mainly reflects the results of our investment in Heineken.

Net majority income per FEMSA Unit²was Ps.6.92 (US$3.55 per ADS).

Capital expenditures amounted to Ps. 34,410 million, reflecting the reactivation of ongoing investment activities at most of our business units.

¹Excludes the effects of significant mergers and acquisitions in the last twelve months.

²FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of December 30, 2022 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

February 24, 2023 | Page 8

PROXIMITY

Financial Summary for the Full Year 2022

Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales

	2022		2021		Var.			Org.
Same-store sales (thousands of Ps.)		914.3		862.2		6.0	%
Revenues		233,958		198,586		17.8	%		17.3	%
Income from Operations		23,513		18,387		27.9	%		29.1	%
Income from Operations Margin (%)		10.1		9.3		80	bps
Operative Cash Flow (EBITDA)		35,542		29,704		19.7	%		20.2	%
Operative Cash Flow (EBITDA) Margin (%)		15.2		15.0		20	bps

Total revenues increased 17.8%. On an organic¹ basis, total revenues increased 17.3%. OXXO’s same-store sales increased an average of 6.0%, driven by a 2.3% increase in average customer ticket, coupled with a 3.6% increase in store traffic.

Gross profit reached 41.7% of total revenues.

Income from operations amounted to 10.1% of total revenues, reflecting long-lasting operating efficiencies. Operating expenses increased 12.6% to Ps. 74,073 million.

FUEL

Financial Summary for the Full Year 2022

Amounts expressed in millions of Mexican Pesos (Ps.) except same-station sales

	2022		2021		Var.
Same-station sales (thousands of Ps.)		7,191.3		5,877.5		22.4	%
Revenues		51,813		39,922		29.8	%
Income from Operations		2,250		1,416		58.9	%
Income from Operations Margin (%)		4.3		3.5		80	bps
Operative Cash Flow (EBITDA)		3,371		2,402		40.3	%
Operative Cash Flow (EBITDA) Margin (%)		6.5		6.0		50	bps

Total revenues increased 29.8%. Same-station sales increased an average of 22.4%, reflecting a 6.2% increase in the average price per liter, coupled with a 15.2% increase in average volume.

Gross profit reached 12.7% of total revenues.

Income from operations amounted to 4.3% of total revenues. Operating expenses increased 11.9% to Ps. 4,310 million.

¹ Excludes the effects of significant mergers and acquisitions in the last twelve months.

February 24, 2023 | Page 9

HEALTH

Financial Summary for the Full Year 2022

Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales

	2022	2021	Var.
Same-store sales (thousands of Ps.)	1,300.3	1,313.4	(1.0	%)
Revenues	74,800	73,027	2.4	%
Income from Operations	3,938	3,762	4.7	%
Income from Operations Margin (%)	5.3	5.2	10	bps
Operative Cash Flow (EBITDA)	7,623	7,228	5.5	%
Operative Cash Flow (EBITDA) Margin (%)	10.2	9.9	30	bps

Total revenues increased 2.4%. Same-store sales for drugstores decreased an average of 1.0%, reflecting positive trends in our operations in Mexico, Colombia and Ecuador, and stable trends at our Chilean operations, partially offset by the depreciation of the Chilean and Colombian pesos, against the Mexican peso.

Gross profit reached 29.4% of total revenues.

Income from operations amounted to 5.3% of total revenues. Operating expenses increased 0.4% to Ps. 18,045 million.

LOGISTICS & DISTRIBUTION

Financial Summary for the Full Year 2022

Amounts expressed in millions of Mexican Pesos (Ps.)

	2022	2021	Var.		Org.
Revenues	72,539	48,412	49.8	%	12.8	%
Income from Operations	3,063	2,132	43.7	%	(10.1	%)
Income from Operations Margin (%)	4.2	4.4	(20	bps)
Operative Cash Flow (EBITDA)	6,205	4,961	25.1	%	9.2	%
Operative Cash Flow (EBITDA) Margin (%)	8.6	10.2	(160	bps)

Total revenues increased 49.8%. On an organic¹ basis, total revenues increased 12.8%, reflecting positive demand dynamics in our operations in Latin America, coupled with robust recovery trends and effective cross-selling initiatives at Envoy Solutions operations in the United States.

Gross profit reached 22.3% of total revenues, reflecting an increasing contribution of our United States distribution operations which command a higher gross margin level, partially offset by an increased fuel and leasing costs in our Latin America operations.

Income from operations represented 4.2% of total revenues. Operating expenses increased 55.3% to Ps. 13,103 million, reflecting strong inorganic growth at our distribution operations in the United States.

¹Excludes the effects of significant mergers and acquisitions in the last twelve months.

February 24, 2023 | Page 10

COCA-COLA FEMSA

Coca-Cola FEMSA’s financial results and discussion thereof are incorporated by reference from Coca-Cola FEMSA’s press release, which is attached to this press release or may be accessed by visiting coca-colafemsa.com.

RECENT DEVELOPMENTS

●

On November 7, 2022, FEMSA announced that its subsidiaries have signed an agreement to acquire all of the outstanding shares of NET PAY, S.A.P.I DE C.V. (“NetPay”), a merchant aggregator that offers several payment services and solutions to micro, small and medium-sized businesses in Mexico. FEMSA had acquired a minority equity stake in NetPay and it agreed with NetPay’s majority shareholders to acquire all of the remaining outstanding shares of the company, to take FEMSA’s ownership to 100%. The transaction is subject to closing conditions and government approvals customary for this type of transactions and is expected to close during the first quarter of 2023.

●

On November 15, 2022, FEMSA announced the placement of Mexican Peso-denominated sustainability linked bonds in the Mexican market for a total of Ps. 9,273,843,400.00. The issued bonds were purchased by 33 institutional investors and the issuance was oversubscribed 1.9x times. This issuance received credit ratings of mxAAA from Standard & Poor’s and AAA (mex) from Fitch Ratings. The proceeds from this issuance will be used for general corporate purposes.

●

On January 23, 2023, FEMSA announced that it signed, an agreement with Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V. (“Volaris”), the ultra-low-cost carrier serving Mexico, the United States, Central, and South America to become the first third-party partner of FEMSA’s coalition loyalty program (the “Program”). This Program will offer exclusive benefits for its users, allowing them to accrue and redeem reward points with OXXO, Volaris and future allies.

●

On February 15, 2023, FEMSA announced that its Board of Directors had approved a new long-range plan to maximize value creation, as well as a series of decisions resulting from its strategic review process.

During 2022 FEMSA carried out a thorough strategic review of its business platform, including the bottom-up definition of long-range plans for each business unit, as well as the top-down analysis of the optimal corporate and capital structure, to ensure full alignment between the Board and management as to how to pursue and maximize value creation. Consistent with this vision, FEMSA determined that the best path to maximize long term value creation is by focusing on its core business verticals which have the highest strategic relevance, growth potential, and financial and competitive strength:

○

Retail, with excellent long-term growth opportunities, comprised of Proximity, Health, and Fuel.

○

Coca-Cola FEMSA, leveraging its leading competitive position and excellent execution, combined with significant financial strength and strategic opportunities.

○

Digital, building a powerful value-added financial ecosystem, while playing a key role in leveraging the connection among FEMSA’s core business units.

●

On February 17, 2023, FEMSA announced the pricing of the sale by its wholly-owned subsidiary CB Equity LLP of existing issued ordinary shares (the “Shares”) of both Heineken N.V. and Heineken Holding N.V. (together, the “Heineken Group”) in the total amount of EUR 3.2 billion (approximately 7% of the combined interest in the Heineken Group) (the “Equity Offering”). The Company also announces today the pricing of an offering of senior unsecured exchangeable bonds in the aggregate principal amount of EUR 500 million (the “Bonds”), exchangeable into Shares of Heineken Holding N.V. (the “Exchangeable Offering” and together with the Equity Offering, the “Offering”).

February 24, 2023 | Page 11

●

Consequently, FEMSA announced that it had commenced offers to purchase for cash FEMSA’s outstanding debt issuances for an aggregate purchase price, excluding Accrued Interest and Additional Amounts, if any, of up to US$2.0 billion. For more information, please see here.

●

During the fourth quarter of 2022, FEMSA through Envoy Solutions completed the following acquisitions in the United States, which recorded aggregated sales for approximately US$220 million per year prior to their acquisition:

○

The Enterprises (KSS)

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GPMI

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United Packaging

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Penn Paper Supply

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CONFERENCE CALL INFORMATION

Our Fourth Quarter and Full Year 2022 Conference Call will be held on: Friday, February 24, 2023, 9:00 AM Eastern Time (8:00 AM Mexico City Time). The conference call will be webcast live through streaming audio.

Telephone:	Toll Free US:	(866) 580 3963
	International:	+1 (786) 697 3501

Webcast:	https://edge.media-server.com/mmc/p/yis4hrb7

Conference ID:	1219864

If you are unable to participate live, the conference call audio will be available on https://femsa.gcs-web.com/financial-reports/quarterly-results

ABOUT FEMSA

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, an operator of convenience and foodvenience formats present in 5 countries in Europe. 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.

The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the noon buying rate for Mexican pesos as published by the Federal Reserve Bank of New York on December 30, 2022, which was 19.4960 Mexican pesos per US dollar.

February 24, 2023 | Page 12

FORWARD-LOOKING STATEMENTS

This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

Eight pages of tables and Coca-Cola FEMSA’s press release to follow

February 24, 2023 | Page 13

FEMSA – Consolidated Income Statement

Amounts expressed in millions of Mexican Pesos (Ps.)

	For the fourth quarter of:															For the twelve months of:
	2022			% of rev.		2021			% of rev.		% Var.			% Org.^(A)		2022		% of rev.		2021			% of rev.		% Var.			% Org.^(A)
Total revenues		186,467			100.0		151,542			100.0		23.0			13.5		673,202		100.0		556,261			100.0		21.0			15.5
Cost of sales		113,979			61.1		91,630			60.5		24.4					421,534		62.6		342,548			61.6		23.1
Gross profit		72,488			38.9		59,912			39.5		21.0					251,668		37.4		213,713			38.4		17.8
Administrative expenses		10,934			5.9		7,876			5.2		38.8					34,486		5.1		27,219			4.9		26.7
Selling expenses		44,080			23.7		36,499			24.1		20.8					157,340		23.4		134,079			24.1		17.3
Other operating expenses (income), net ⁽¹⁾		69			-		28			-		146.4					426		0.1		422			0.1		0.9
Income from operations ⁽²⁾		17,405			9.3		15,509			10.2		12.2			9.0		59,416		8.8		51,993			9.3		14.3			11.5
Other non-operating expenses (income)		1,018					341					(198.5	)				1,164				(2,667	)				143.6
Interest expense		4,324					4,186					3.3					16,314				16,938					(3.7	)
Interest income		1,162					583					99.3					3,842				1,464					162.4
Interest expense, net		3,162					3,603					(12.2	)				12,472				15,474					(19.4	)
Foreign exchange loss (gain)		3,520					(779	)				N.S.					3,729				(1,314	)				N.S.
Other financial expenses (income), net		(194	)				(389	)				(50.1	)				179				(776	)				(123.1	)
Financing expenses, net		6,488					2,435					166.4					16,380				13,384					22.4
Income before income tax and participation in associates results		9,899					12,733					(22.3	)				41,872				41,276					1.4
Income tax		2,345					4,094					(42.7	)				13,547				14,278					(5.1	)
Participation in associates results ⁽³⁾		1,284					1,461					(12.1	)				7,266				10,680					(32.0	)
Consolidated net income (Loss)		8,838					10,100					(12.5	)				35,591				37,678					(5.5	)
Net majority income		4,817					6,717					(28.3	)				24,757				28,495					(13.1	)
Net minority income		4,021					3,383					18.9					10,834				9,183					18.0

Operative Cash Flow & CAPEX	2022		% of rev.		2021		% of rev.		% Inc.		% Org.^(A)		2022		% of rev.		2021		% of rev.		% Inc.		% Org.^(A)
Income from operations		17,405		9.3		15,509		10.2		12.2		9.0		59,416		8.8		51,993		9.3		14.3		11.5
Depreciation		7,736		4.1		6,542		4.3		18.3				27,831		4.1		25,294		4.5		10.0
Amortization & other non-cash charges		1,421		0.8		1,395		1.0		1.9				5,565		0.9		5,134		1.0		8.4
Operative cash flow (EBITDA)		26,562		14.2		23,446		15.5		13.3		7.3		92,812		13.8		82,422		14.8		12.6		9.6
CAPEX ⁽⁴⁾		14,242				8,827				61.3				34,410				24,055				43.0

^(A) Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.

⁽¹⁾ Other operating expenses (income), net = other operating expenses (income) +(-) equity method from operated associates.

⁽²⁾ Income from operations = gross profit – administrative and selling expenses – other operating expenses (income), net.

⁽³⁾ Mainly represents the equity method participation in Heineken’s and Raizen convenience stores results, net.

⁽⁴⁾ At the end of December, the CAPEX effectively paid is equivalent to $34,356M.

February 24, 2023 | Page 14

FEMSA – Consolidated Balance Sheet

Amounts expressed in millions of Mexican Pesos (Ps.)

ASSETS	Dec-22		Dec-21		% Inc.
Cash and cash equivalents		83,439		97,407		(14.3	)
Investments		51		24,415		(99.8	)
Accounts receivable		45,541		33,898		34.3
Inventories		62,224		50,896		22.3
Other current assets		35,208		24,102		46.1
Total current assets		226,463		230,718		(1.8	)
Investments in shares		103,669		107,299		(3.4	)
Property, plant and equipment, net		134,001		115,147		16.4
Right of use		83,966		56,994		47.3
Intangible assets ⁽¹⁾		190,354		158,138		20.4
Other assets		60,168		69,204		(13.1	)
TOTAL ASSETS		798,621		737,500		8.3
LIABILITIES & STOCKHOLDERS’ EQUITY
Bank loans		1,862		2,003		(7.0	)
Current maturities of long-term debt		14,471		2,637		N.S.
Interest payable		2,075		1,968		5.4
Current maturities of long-term leases		12,095		7,306		65.5
Operating liabilities		143,363		122,809		16.7
Total current liabilities		173,866		136,723		27.2
Long-term debt ⁽²⁾		170,989		179,857		(4.9	)
Long-term leases		81,222		55,048		47.5
Laboral obligations		7,048		7,600		(7.3	)
Other liabilities		26,840		23,155		15.9
Total liabilities		459,965		402,383		14.3
Total stockholders’ equity		338,656		335,117		1.1
TOTAL LIABILITIES AND STOCKHOLERS’ EQUITY		798,621		737,500		8.3

	December 30, 2022
DEBT MIX ⁽²⁾	% of Total			Average Rate
Denominated in:
Mexican pesos		44.1	%		8.3	%
U.S. Dollars		22.5	%		4.2	%
Euros		23.2	%		1.1	%
Swiss Francs		0.6	%		0.8	%
Colombian pesos		0.6	%		0.2	%
Argentine pesos		0.0	%		0.0	%
Brazilian reais		7.5	%		12.4	%
Chilean pesos		0.9	%		9.1	%
Uruguayan Pesos		0.5	%		6.3	%
Guatemalan Quetzal		0.0	%		0.0	%
Total debt		100.0	%		5.9	%

Fixed rate ⁽²⁾		86.7	%
Variable rate ⁽²⁾		13.3	%

DEBT MATURITY PROFILE		2023				2024				2025				2026				2027				2028+
% of Total Debt			0.0	%			3.0	%			1.1	%			1.6	%			5.7	%			81.1	%

⁽¹⁾ Includes mainly the intangible assets generated by acquisitions.

⁽²⁾ Includes the effect of derivative financial instruments on long-term debt.

February 24, 2023 | Page 15

Proximity Americas Division – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

	For the fourth quarter of:															For the twelve months of:
	2022		% of rev.		2021			% of rev.			% Var.			% Org.^(A)		2022		% of rev.		2021		% of rev.		% Var.			% Org.⁽¹⁾
Total revenues		62,652		100.0		53,510			100.0			17.1			16.5		233,958		100.0		198,586		100.0		17.8			17.3
Cost of sales		34,953		55.8		28,835			53.9			21.2					136,372		58.3		114,390		57.6		19.2
Gross profit		27,699		44.2		24,675			46.1			12.3					97,586		41.7		84,196		42.4		15.9
Administrative expenses		1,694		2.7		1,875			3.5			(9.7	)				6,066		2.6		6,145		3.1		(1.3	)
Selling expenses		18,057		28.8		16,115			30.2			12.1					67,842		28.9		59,542		29.9		13.9
Other operating expenses (income), net		7		-		(81	)		(0.2	)		(108.6	)				165		0.1		122		0.1		35.2
Income from operations		7,941		12.7		6,766			12.6			17.4			18.4		23,513		10.1		18,387		9.3		27.9			29.1
Depreciation		2,870		4.6		2,693			5.0			6.6					11,101		4.7		10,454		5.3		6.2
Amortization & other non-cash charges		161		0.2		188			0.4			(14.4	)				928		0.4		863		0.4		7.5
Operative cash flow (EBITDA)		10,972		17.5		9,647			18.0			13.7			14.4		35,542		15.2		29,704		15.0		19.7			20.2
CAPEX		3,156				1,946						62.2					9,931				7,179				38.3

Information of OXXO Stores
Total stores																	21,458				20,431				5.0
Stores Mexico																	20,883				20,121				3.8
Stores South America																	575				310				85.5

Net new convenience stores:
vs. Last quarter		559				434						28.8
Year-to-date		1,027				865						18.7
Last-twelve-months		1,027				865						18.7

Same-store data: ⁽¹⁾
Sales (thousands of pesos)		932.2				836.8						11.4					914.3				862.2				6.0
Traffic (thousands of transactions)		18.1				17.4						4.3					17.8				17.2				3.6
Ticket (pesos)		51.4				48.1						6.8					51.3				50.2				2.3

^(A) Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.
⁽¹⁾ Monthly average information per store, considering same stores with more than twelve months of operations, income from services are included.

February 24, 2023 | Page 16

Fuel – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

	For the fourth quarter of:												For the twelve months of:
	2022		% of rev.		2021			% of rev.		% Var.			2022			% of rev.		2021			% of rev.		% Var.
Total revenues		13,875		100.0		11,065			100.0		25.4			51,813			100.0		39,922			100.0		29.8
Cost of sales		12,050		86.8		9,503			85.9		26.8			45,253			87.3		34,653			86.8		30.6
Gross profit		1,825		13.2		1,562			14.1		16.8			6,560			12.7		5,269			13.2		24.5
Administrative expenses		78		0.6		78			0.7		-			227			0.4		290			0.7		(21.7	)
Selling expenses		1,122		8.1		1,051			9.5		6.8			4,084			8.0		3,571			9.0		14.4
Other operating expenses (income), net		11		0.1		(2	)		-		N.S.			(1	)		-		(8	)		-		(87.5	)
Income from operations		614		4.4		435			3.9		41.1			2,250			4.3		1,416			3.5		58.9
Depreciation		270		1.9		250			2.3		8.0			1,054			2.0		966			2.4		9.1
Amortization & other non-cash charges		36		0.3		17			0.1		111.8			67			0.2		20			0.1		N.S.
Operative cash flow (EBITDA)		920		6.6		702			6.3		31.1			3,371			6.5		2,402			6.0		40.3
CAPEX		99				34					187.7			157					243					(35.4	)

Information of OXXO GAS Service Stations
Total service stations														568					567					0.2
Net new service stores:
vs. Last quarter		0				1					(100.0	)
Year-to-date		1				9					(88.9	)
Last-twelve-months		1				9					(88.9	)

Volume (millions of liters) total stations		689				591					16.6			2,603					2,153					20.9

Same-store data: ⁽¹⁾
Sales (thousands of pesos)		7,603.2				6,353.0					19.7			7,191.3					5,877.5					22.4
Volume (thousands of liters)		373.7				316.8					17.9			357.1					309.9					15.2
Average price per liter		20.3				20.1					1.5			20.1					19.0					6.2

^(A) Unaudited consolidated financial information.

⁽¹⁾ Monthly average information per station, considering same stations with more than twelve months of operations.

February 24, 2023 | Page 17

Health Division – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

	For the fourth quarter of:													For the twelve months of:
	2022			% of rev.			2021		% of rev.		% Var.			2022			% of rev.		2021		% of rev.		% Var.
Total revenues		18,774			100.0			18,581		100.0		1.0			74,800			100.0		73,027		100.0		2.4
Cost of sales		13,085			69.7			12,843		69.1		1.9			52,817			70.6		51,291		70.2		3.0
Gross profit		5,689			30.3			5,738		30.9		(0.9	)		21,983			29.4		21,736		29.8		1.1
Administrative expenses		783			4.2			906		4.9		(13.6	)		2,918			3.9		3,255		4.5		(10.4	)
Selling expenses		3,903			20.8			3,856		20.7		1.2			15,139			20.2		14,620		20.0		3.5
Other operating expenses (income), net		(11	)		(0.1	)		48		0.3		(122.9	)		(12	)		-		99		0.1		(112.1	)
Income from operations		1,014			5.4			928		5.0		9.3			3,938			5.3		3,762		5.2		4.7
Depreciation		731			3.9			721		3.9		1.4			2,934			3.9		2,864		3.9		2.4
Amortization & other non-cash charges		201			1.1			161		0.8		24.8			751			1.0		602		0.8		24.8
Operative cash flow (EBITDA)		1,946			10.4			1,810		9.7		7.5			7,623			10.2		7,228		9.9		5.5
CAPEX		1,604						1,041				54.2			2,868					2,049				39.9

Information of Stores
Total stores															4,095					3,652				12.1
Stores Mexico															1,575					1,428				10.3
Stores South America															2,520					2,224				13.3

Net new stores:
vs. Last quarter		124						112				10.7
Year-to-date		434						284				52.8
Last-twelve-months		434						284				52.8

Same-store data: ⁽¹⁾
Sales (thousands of pesos)		1,267.5						1,327.7				(4.5	)		1,300.3					1,313.4				(1.0	)

⁽¹⁾ Monthly average information per store, considering same stores with more than twelve months of all the retail operations of the Health Division.

February 24, 2023 | Page 18

Logistics & Distribution – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

	For the fourth quarter of:																		For the twelve months of:
	2022			% of rev.			2021			% of rev.			% Var.			% Org.⁽¹⁾			2022			% of rev.		2021			% of rev.			% Var.			% Org.⁽¹⁾
Total revenues		19,595			100.0			14,603			100.0			34.2			8.5			72,539			100.0		48,412			100.0			49.8			12.8
Cost of sales		15,237			77.8			11,416			78.2			33.5						56,374			77.7		37,843			78.2			49.0
Gross profit		4,358			22.2			3,187			21.8			36.7						16,165			22.3		10,569			21.8			52.9
Administrative expenses		1,981			10.1			1,301			8.9			52.3						6,247			8.6		4,533			9.4			37.8
Selling expenses		1,894			9.7			1,465			10.0			29.3						6,858			9.5		4,060			8.4			68.9
Other operating expenses (income), net		(15	)		(0.1	)		(157	)		(1.1	)		(90.4	)					(2	)		-		(155	)		(0.3	)		(98.7	)
Income from operations		497			2.5			578			4.0			(14.0	)		(46.5	)		3,063			4.2		2,132			4.4			43.7			(10.1	)
Depreciation		680			3.5			552			3.8			23.2						2,134			2.9		1,859			3.8			14.8
Amortization & other non-cash charges		306			1.6			412			2.8			(25.7	)					1,008			1.5		970			2.0			3.9
Operative cash flow (EBITDA)		1,483			7.6			1,542			10.6			(3.8	)		(19.4	)		6,205			8.6		4,961			10.2			25.1			9.2
CAPEX		171						124						37.9						1,140					557						104.7

⁽¹⁾ Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.

February 24, 2023 | Page 19

Coca-Cola FEMSA – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

	For the fourth quarter of:													For the twelve months of:
	2022		% of rev.		2021		% of rev.		% Var.			% Org.⁽¹⁾		2022		% of rev.		2021		% of rev.		% Var.			% Org.⁽¹⁾
Total revenues		61,209		100.0		53,273		100.0		14.9			13.7		226,740		100.0		194,804		100.0		16.4			15.4
Cost of sales		34,142		55.8		29,288		55.0		16.6					126,441		55.8		106,206		54.5		19.1
Gross profit		27,068		44.2		23,985		45.0		12.9					100,300		44.2		88,598		45.5		13.2
Administrative expenses		3,049		5.0		2,232		4.2		36.6					11,263		5.0		9,012		4.6		25.0
Selling expenses		14,819		24.2		13,672		25.6		8.4					57,718		25.4		51,709		26.6		11.6
Other operating expenses (income), net		187		0.3		303		0.6		(38.3	)				481		0.2		474		0.2		1.5
Income from operations		9,013		14.7		7,778		14.6		15.9			15.3		30,838		13.6		27,402		14.1		12.5			11.9
Depreciation		2,397		3.9		2,277		4.3		5.3					9,657		4.3		8,949		4.6		7.9
Amortization & other non-cash charges		210		0.4		593		1.1		(64.6	)				2,171		0.9		2,499		1.2		(13.1	)
Operative cash flow (EBITDA)		11,620		19.0		10,648		20.0		9.1			8.5		42,666		18.8		38,849		19.9		9.8			9.3
CAPEX		8,489				5,681				49.4					19,665				13,865				41.8

Sales Volumes
(Millions of unit cases)
Mexico and Central America		547.9		55.0		531.8		55.9		3.0					2,188.4		58.3		2,057.9		59.5		6.3
South America		151.7		15.2		147.4		15.5		2.9					550.6		14.7		496.8		14.4		10.8
Brazil		295.8		29.7		272.1		28.6		8.7					1,016.2		27.1		903.2		26.1		12.5
Total		995.3		100.0		951.3		100.0		4.6					3,755.2		100.0		3,457.9		100.0		8.6

⁽¹⁾ Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.

February 24, 2023 | Page 20

FEMSA Macroeconomic Information

	Inflation						End-of-period Exchange Rates
							Dec-22				Dec-21
	4Q 2022			LTM ⁽¹⁾ Dec-22			Per USD		Per MXN		Per USD		Per MXN
Mexico		1.09	%		7.82	%		19.36		1.0000		20.58		1.0000
Colombia		2.57	%		13.12	%		4,810.20		0.0040		3,981.16		0.0052
Brazil		1.07	%		5.79	%		5.22		3.7107		5.58		3.6885
Argentina		10.53	%		94.80	%		177.16		0.1093		102.72		0.2004
Chile		1.02	%		12.79	%		855.86		0.0226		850.25		0.0242
Euro Zone		-0.20	%		9.20	%		0.94		20.6519		0.89		23.2463

⁽¹⁾ LTM = Last twelve months.

February 24, 2023 | Page 21

Mexico City, February 23, 2023, Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFUBL, NYSE: KOF) (“Coca-Cola FEMSA”, “KOF” or the “Company”), the largest Coca-Cola franchise bottler in the world by sales volume, announces results for the fourth quarter and full year of 2022.

FOURTH QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS

●	Consolidated volumes increased 4.6%, driven mainly by volume growth in Brazil, Mexico, Guatemala, Argentina, and Uruguay, partially offset by a slight volume decline in Colombia. On a comparable basis, volume increased 3.6%.

●	Total revenues increased 14.9%, while comparable revenues increased 18.9%, driven mainly by favorable price-mix effects, coupled with volume growth. These effects were partially offset by unfavorable currency translation effects.

●	Operating income increased 15.9%, while comparable operating income increased 18.0%. Our solid top-line growth, raw material hedging strategies, and operating expense efficiencies were partially offset by higher raw material costs.

●	Majority net income increased 23.0%, resulting in earnings per share¹ of Ps. 0.43 (Earnings per unit were Ps. 3.40, and per ADS were Ps. 34.00.).

FULL YEAR OPERATIONAL AND FINANCIAL HIGHLIGHTS

●	Consolidated volumes increased 8.6% driven by volume growth across all our territories, including double-digit increases in Brazil, Colombia, Argentina, and Guatemala coupled with a solid performance in Mexico and Uruguay. On a comparable basis, excluding M&A, our volume increased 7.5%.

●

Total revenues increased 16.4%, while comparable revenues increased 17.8%, driven mainly by our pricing initiatives, favorable price-mix effects, and volume growth. These factors were partially offset by a decline in beer revenues related to the transition of the beer portfolio in Brazil and unfavorable currency translation effects.

●

Operating income increased 12.5%, while comparable operating income increased 11.6% driven mainly by solid top-line and operating expense efficiencies. These effects were partially offset by higher raw material costs, coupled with a tough comparison base that includes the recognition of non-recurring tax effects in Brazil during 2021.

●	Majority net income increased 21.2%, resulting in earnings per share¹ of Ps. 1.13 (Earnings per unit were Ps. 9.06, and per ADS were Ps. 90.60.).

RESULTS FINANCIAL SUMMARY

Change vs. same period of last year

		Total Revenues				Gross Profit					Operating Income					Majority Net Income
		4Q 2022		FY 2022			4Q 2022		FY 2022			4Q 2022		FY 2022			4Q 2022		FY 2022
	Consolidated	14.9	%	16.4	%		12.9	%	13.2	%		15.9	%	12.5	%		23.0	%	21.2	%
As Reported	Mexico & Central America	9.7	%	13.1	%		5.1	%	8.1	%		2.6	%	11.2	%
	South America	22.0	%	21.2	%		25.6	%	22.5	%		41.0	%	15.5	%

	Consolidated	18.9	%	17.8	%		16.9	%	14.6	%		18.0	%	11.6	%
Comparable ⁽²⁾	Mexico & Central America	10.9	%	13.5	%		6.1	%	8.5	%		3.6	%	11.6	%
	South America	30.9	%	24.4	%		36.1	%	26.4	%		46.1	%	11.6	%

Ian Craig, Coca-Cola FEMSA’s CEO, commented:

“2022 was a positive year for Coca-Cola FEMSA. In the face of an inflationary environment, our company was able to deliver its highest ever top-line, operating income, and operating cash flow levels. Notably, we were able to deliver double-digit top-line growth across our territories, reflecting our company’s ability to execute the right strategies locally, our revenue growth management initiatives, and effective point-of-sale execution. Simultaneously, we leveraged our enhanced cooperation framework with The Coca-Cola Company to increase investments in the business, advanced the rollout of our B2B omnichannel platform, and expand our multi-category strategy to explore new revenue streams in key territories.

Looking ahead, I am encouraged by the opportunities we see for our company. I am convinced that we have a talented team, clear rights-to-win, and positive momentum to enter a new chapter of growth and sustainable value creation for Coca-Cola FEMSA.”

⁽¹⁾

Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 million shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units.

⁽²⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

RECENT DEVELOPMENTS

●	On November 3, 2022, Coca-Cola FEMSA paid the second installment of the ordinary dividend approved during 2022.

●	On November 29, 2022, Coca-Cola FEMSA announced that the Board of Directors appointed Mr. Gerardo Cruz Celaya to succeed Mr. Constantino Spas Montesinos as Coca-Cola FEMSA´s Chief Financial Officer. Mr. Cruz´s appointment became effective January 1, 2023.

●

On December 19, 2022, Coca-Cola FEMSA announced it had been included in the Dow Jones Sustainability MILA Pacific Alliance Index for the sixth year. Additionally, it announced it is the only company in the Latin America beverage industry included in the Dow Jones Sustainability Emerging Markets Index, for which it was included for the tenth consecutive year.

CONFERENCE CALL INFORMATION

CONSOLIDATED FOURTH QUARTER RESULTS

	As Reported							Comparable ⁽¹⁾
Expressed in millions of Mexican pesos	4Q 2022		4Q 2021		Δ%			Δ%
Total revenues		61,209		53,273		14.9	%		18.9	%
Gross profit		27,068		23,985		12.9	%		16.9	%
Operating income		9,013		7,778		15.9	%		18.0	%
Operating cash flow ⁽²⁾		11,954		10,648		12.3	%		16.5	%

Volume increased 4.6% to 995.3 million unit cases, driven mainly by volume growth in Brazil, Mexico, Guatemala, Argentina, and Uruguay. This increase was partially offset by a slight volume decline in Colombia. On a comparable basis, our volume would have increased 3.6%.

Total revenues increased 14.9% to Ps. 61,209 million. This increase was driven mainly by our pricing initiatives to offset increases in raw material costs, favorable price-mix effects, and volume growth. These effects were partially offset by unfavorable currency translation effects of most of our operating currencies into Mexican Pesos. On a comparable basis, total revenues would have increased 18.9%.

Gross profit increased 12.9% to Ps. 27,068 million, and gross margin decreased 80 basis points to 44.2%. This gross margin decrease was driven by higher raw material costs, mainly PET and sweeteners. These effects were partially offset by our top-line growth, the appreciation of the Mexican Peso as applied to our U.S. dollar-denominated raw material costs, and favorable raw material hedging initiatives. On a comparable basis, gross profit would have increased 16.9%.

Operating income increased 15.9% to Ps. 9,013 million, and operating margin increased 10 basis points to 14.7%. This increase was driven mainly by our solid top-line performance, operational leverage, coupled with operating expense efficiencies across our operations. These effects were partially offset by increases in raw material costs. On a comparable basis, operating income would have increased 18.0%.

⁽¹⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

⁽²⁾

Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

Comprehensive financing result recorded an expense of Ps. 1,092 million, compared to an expense of Ps. 748 million in the same period of 2021.

This increase was driven mainly by a foreign exchange loss of Ps. 281 million as compared to a gain of Ps. 79 million recorded during the same period of 2021, as our cash exposure in U.S. dollars was negatively impacted by the quarterly appreciation of the Mexican Peso.

In addition, we recorded higher interest expenses of Ps. 1,833 million as compared to Ps. 1,592 million recorded during the same period of 2021. This is a result of increases in interest rates.

Moreover, we recognized a lower gain in monetary position in inflationary subsidiaries of Ps. 128 million during the fourth quarter of 2022, as compared to a gain of Ps. 270 during the same period of the previous year.

Finally, this quarter we recognized a lower gain in the market value of financial instruments of Ps. 72 million, as compared to a gain of Ps. 131 million during the fourth quarter of 2021.

These effects were partially offset by higher interest income for Ps. 821 million as compared to a gain of Ps. 365 million recorded during the same period of 2021, related to an increase in interest rates.

Income tax as a percentage of income before taxes was 7.7% as compared to 14.1% during the same period of the previous year. This lower effective tax rate was mainly driven by deferred tax effects.

Net income attributable to equity holders of the company was Ps. 7,144 million as compared to Ps. 5,809 million during the same period of the previous year, driven mainly by solid operating results, coupled with a decline in the effective tax rate. Earnings per share¹ were Ps. 0.43 (Earnings per unit were Ps. 3.40 and per ADS were Ps. 34.0.).

CONSOLIDATED FULL YEAR RESULTS

(GRAPHIC)

CONSOLIDATED FULL YEAR RESULTS

	As Reported							Comparable ⁽¹⁾
Expressed in millions of Mexican pesos	FY 2022		FY 2021		Δ%			Δ%
Total revenues		226,740		194,804		16.4	%		17.8	%
Gross profit		100,300		88,598		13.2	%		14.6	%
Operating income		30,838		27,402		12.5	%		11.6	%
Operating cash flow ⁽²⁾		43,001		38,849		10.7	%		11.4	%

Volume increased 8.6% to 3,755.2 million unit cases, driven mainly by volume growth across all of our territories, including double-digit increases in Brazil, Colombia, Argentina and Guatemala, coupled with solid performances in Mexico and Uruguay. On a comparable basis, excluding M&A, our volume would have increased 7.5%.

Total revenues increased 16.4% to Ps. 226,740 million. This increase was driven mainly by volume growth, our pricing initiatives to offset increases in raw material costs, and favorable price-mix effects. These factors were partially offset by a decline in beer revenues related to the transition of the beer portfolio in Brazil and unfavorable currency translation effects from most of our operating currencies into Mexican Pesos. On a comparable basis, excluding M&A and currency translation effects, total revenues would have increased 17.8%.

Gross profit increased 13.2% to Ps. 100,300 million, and gross margin decreased 130 basis points to 44.2%. This decrease in gross margin was driven mainly by (i) a tough comparison base due to the recognition of an extraordinary Ps. 1,083 million during the second quarter of 2021, related to credits on concentrate purchased from the Manaus Free Trade Zone in Brazil; and (ii) higher raw material costs, mainly PET and sweeteners. These effects were partially offset by top-line growth and favorable raw material hedging initiatives. On a comparable basis, gross profit would have increased 14.6%.

Operating income increased 12.5% to Ps. 30,838 million, and operating margin decreased 50 basis points to 13.6%. This operating margin decrease was driven mainly by higher raw material costs, coupled with a tough comparison base that included the recognition of non-recurring tax income of Ps. 620 million during the third quarter of 2021. These effects were partially offset by our solid top-line performance, coupled with operating expense efficiencies across our territories. On a comparable basis, operating income would have increased 11.6%.

⁽¹⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

⁽²⁾

Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

Comprehensive financing result recorded an expense of Ps. 4,549 million, compared to an expense of Ps. 4,219 million in 2021.

This increase was driven mainly by a foreign exchange loss of Ps. 324 million as compared to a gain of Ps. 227 million recorded during the same period of 2021, as our cash exposure in U.S. dollars was negatively impacted by the appreciation of the Mexican Peso.

In addition, we recognized a loss in the market value of financial instruments of Ps. 672 million, as compared to a gain of Ps. 80 million during 2021.

Additionally, we recorded an increase in interest expense. During the year, interest expenses were Ps. 6,500 million, as compared to an expense of Ps. 6,192 million during 2021. This increase was mainly driven by increases in interest rates, partially offset by the tender offer completed during the third quarter of 2022.

Finally, we recognized a lower gain in monetary position in inflationary subsidiaries, recording Ps. 536 million during 2022, as compared to a gain of Ps. 734 million during the previous year.

These effects were partially offset by higher interest income, resulting in Ps. 2,411 million during 2022, as compared to a gain of Ps. 932 million recorded during 2021. This increase is related to an increase in interest rates.

Income tax as a percentage of income before taxes was 25.4% as compared to 28.9% during the same period of the previous year, mainly driven by deferred tax effects.

Net income attributable to equity holders of the company was Ps. 19,034 million as compared to Ps. 15,708 million during the same period of the previous year, an increase of 21.2%. This was driven mainly by operating income growth, coupled with a decline in our effective tax rate during the year. Earnings per share¹ were Ps. 1.13 (Earnings per unit were Ps. 9.06, and per ADS were Ps. 90.61.).

MEXICO & CENTRAL AMERICA DIVISION FOURTH QUARTER RESULTS

(Mexico, Guatemala, Costa Rica, Panama, and Nicaragua)

(GRAPHIC)

MEXICO & CENTRAL AMERICA DIVISION RESULTS

	As Reported							Comparable ⁽¹⁾
Expressed in millions of Mexican pesos	4Q 2022		4Q 2021		Δ%			Δ%
Total revenues		33,792		30,792		9.7	%		10.9	%
Gross profit		15,678		14,918		5.1	%		6.1	%
Operating income		5,212		5,083		2.6	%		3.6	%
Operating cash flow ⁽²⁾		6,902		6,835		1.0	%		4.5	%

Volume increased 3.0% to 547.9 million unit cases, driven by volume growth across our territories in the division, including 11.0% growth in Guatemala and 2.3% growth in Mexico.

Total revenues increased 9.7% to Ps. 33,792 million, driven mainly by our pricing initiatives to offset increases in raw material costs, favorable price-mix effects, and volume growth in all our territories. These factors were partially offset by unfavorable currency translation effects into Mexican Pesos. On a comparable basis, total revenues would have increased 10.9%.

Gross profit increased 5.1% to Ps. 15,678 million, and gross margin contracted 200 basis points to 46.4%. This margin contraction was driven mainly by increases in raw material costs such as PET and sweeteners. These effects were partially offset by our favorable price-mix effects, coupled with the appreciation of the Mexican Peso as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 6.1%.

Operating income increased 2.6% to Ps. 5,212 million, and operating margin contracted 110 basis points to 15.4%. This margin contraction was driven mainly by higher raw material costs that were partially offset by a non-cash operating foreign exchange gain, resulting from the appreciation of the Mexican Peso. On a comparable basis, operating income would have increased 3.6%.

⁽¹⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

⁽²⁾

Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

(GRAPHIC)

SOUTH AMERICA DIVISION FOURTH QUARTER RESULTS

(Brazil, Argentina, Colombia, and Uruguay)

(GRAPHIC)

SOUTH AMERICA DIVISION RESULTS

	As Reported							Comparable ⁽¹⁾
Expressed in millions of Mexican pesos	4Q 2022		4Q 2021		Δ%			Δ%
Total revenues		27,417		22,481		22.0	%		30.9	%
Gross profit		11,390		9,066		25.6	%		36.1	%
Operating income		3,801		2,695		41.0	%		46.1	%
Operating cash flow ⁽²⁾		5,052		3,813		32.5	%		38.7	%

Volume increased 6.6% to 447.4 million unit cases, driven mainly by the solid performance achieved in Brazil, Argentina, and Uruguay. Growth in these markets was partially offset by a slight volume decline in Colombia. On a comparable basis, excluding M&A, our volume for the division would have increased 4.4%.

Total revenues increased 22.0% to Ps. 27,417 million, driven mainly by our pricing initiatives to offset increases in raw material costs, favorable price-mix effects, and volume growth. These effects were partially offset by unfavorable currency translation effects of most of our operating currencies into Mexican pesos. On a comparable basis, total revenues would have increased 30.9%.

Gross profit increased 25.6% to Ps. 11,390 million, and gross margin expanded 120 basis points to 41.5%. This growth was driven mainly by favorable price-mix effects and volume growth. These effects were partially offset by increases in raw material costs such as PET and sweeteners. On a comparable basis, gross profit would have increased 36.1%.

Operating income increased 41.0% to Ps. 3,801 million, resulting in a margin expansion of 190 basis points to 13.9%. This increase was driven mainly by operating leverage resulting from our solid top-line performance in the division, coupled with operating expense efficiencies. On a comparable basis, operating income would have increased 46.1%.

⁽¹⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

⁽²⁾

Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

(GRAPHIC)

DEFINITIONS

Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.

Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.

Operating income is a non-GAAP financial measure computed as “gross profit – operating expenses – other operating expenses, net + operative equity method (gain) loss in associates.”

Operating cash flow is a non-GAAP financial measure computed as “operating income + depreciation + amortization & other operating non-cash charges.”

Earnings per share are equal to “quarterly earnings / outstanding shares.” Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806,658,096 shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units.

COMPARABILITY

In an effort to provide our readers with a more useful representation of our company’s underlying financial and operating performance, as of the first quarter 2020, we adjusted our methodology to calculate our comparable figures, no longer excluding hyperinflationary operations. Due to this change, our “comparable” term means, with respect to a year-over-year comparison, the change of a given measure excluding the effects of: (i) mergers, acquisitions, and divestitures; and (ii) translation effects resulting from exchange rate movements. In preparing this measure, management has used its best judgment, estimates, and assumptions in order to maintain comparability.

ABOUT THE COMPANY

Stock listing information: Mexican Stock Exchange, Ticker: KOFUBL | NYSE (ADS), Ticker: KOF | Ratio of KOFUBL to KOF = 10:1

Coca-Cola FEMSA files reports, including annual reports and other information with the U.S. Securities and Exchange Commission, or the “SEC,” and the Mexican Stock Exchange (Bolsa Mexicana de Valores, or the “BMV”) pursuant to the rules and regulations of the SEC (that apply to foreign private issuers) and of the BMV. Filings we make electronically with the SEC and the BMV are available to the public on the Internet at the SEC’s website at www.sec.gov, the BMV’s website at www.bmv.com.mx, and our website at www.coca-colafemsa.com.

Coca-Cola FEMSA, S.A.B. de C.V. is the largest Coca-Cola franchise bottler in the world by sales volume. The Company produces and distributes trademark beverages of The Coca-Cola Company, offering a wide portfolio of 131 brands to a population of more than 266 million. With over 80 thousand employees, the Company markets and sells approximately 3.5 billion unit cases through 2 million points of sale a year. Operating 49 manufacturing plants and 260 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value for all of its stakeholders across the value chain. The Company is a member of the Dow Jones Sustainability Emerging Markets Index, Dow Jones Sustainability MILA Pacific Alliance Index, FTSE4Good Emerging Index, and the Mexican Stock Exchange’s IPC and Social Responsibility and Sustainability Indices, among others. Its operations encompass franchise territories in Mexico, Brazil, Guatemala, Colombia, and Argentina, and, nationwide, in Costa Rica, Nicaragua, Panama, Uruguay, and Venezuela through its investment in KOF Venezuela. For further information, please visit www.coca-colafemsa.com.

(GRAPHIC)

ADDITIONAL INFORMATION

All of the financial information presented in this report was prepared under International Financial Reporting Standards (IFRS).

This news release may contain forward-looking statements concerning Coca-Cola FEMSA’s future performance, which should be considered as good faith estimates by Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA’s control, which could materially impact the Company’s actual performance. References herein to “US$” are to United States dollars. This news release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations should not be construed as representations that Mexican peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated.

(6 pages of tables to follow)

COCA-COLA FEMSA
Consolidated Income Statement

Millions of Pesos ⁽¹⁾

	For the Fourth Quarter of:																		For Full Year:
	2022			% of Rev.			2021			% of Rev.			Δ% Reported			Δ% Comparable ⁽⁷⁾			2022			% of Rev.			2021			% of Rev.			Δ% Reported			Δ% Comparable ⁽⁷⁾
Transactions (million transactions)		5,987.7						5,564.3						7.6	%		6.6	%		22,315.1						19,490.9						14.5	%		13.4	%
Volume (million unit cases)		995.3						951.3						4.6	%		3.6	%		3,755.2						3,457.8						8.6	%		7.5	%
Average price per unit case		59.54						54.31						9.6	%					58.75						52.99						10.9	%
Net revenues		61,005						53,092						14.9	%					226,222						193,899						16.7	%
Other operating revenues		204						181						12.9	%					518						905						-42.7	%
Total revenues ⁽²⁾		61,209			100.0	%		53,273			100.0	%		14.9	%		18.9	%		226,740			100.0	%		194,804			100.0	%		16.4	%		17.8	%
Cost of goods sold		34,142			55.8	%		29,288			55.0	%		16.6	%					126,441			55.8	%		106,206			54.5	%		19.1	%
Gross profit		27,068			44.2	%		23,985			45.0	%		12.9	%		16.9	%		100,300			44.2	%		88,598			45.5	%		13.2	%		14.6	%
Operating expenses		17,868			29.2	%		15,905			29.9	%		12.3	%					68,981			30.4	%		60,721			31.2	%		13.6	%
Other operative expenses, net		226			0.4	%		323			0.6	%		NA						673			0.3	%		560			0.3	%		20.2	%
Operative equity method (gain) loss in associates⁽³⁾		(40	)		-0.1	%		(20	)		0.0	%		NA						(192	)		-0.1	%		(85	)		0.0	%		NA
Operating income ⁽⁵⁾		9,013			14.7	%		7,778			14.6	%		15.9	%		18.0	%		30,838			13.6	%		27,402			14.1	%		12.5	%		11.6	%
Other non operative expenses, net		(34	)		-0.1	%		30			0.1	%		NA						310			0.1	%		247			0.1	%		NA
Non Operative equity method (gain) loss in associates ⁽⁴⁾		(52	)		-0.1	%		(54	)		-0.1	%		NA						(194	)		-0.1	%		(3	)		0.0	%		NA
Interest expense		1,833						1,592						15.1	%					6,500						6,192						5.0	%
Interest income		821						365						125.3	%					2,411						932						158.7	%
Interest expense, net		1,012						1,227						-17.6	%					4,089						5,260						-22.3	%
Foreign exchange loss (gain)		281						(79	)					NA						324						(227	)					NA
Loss (gain) on monetary position in inflationary subsidiries		(128	)					(270	)					-52.3	%					(536	)					(734	)					-27.1	%
Market value (gain) loss on financial instruments		(72	)					(131	)					NA						672						(80	)					NA
Comprehensive financing result		1,092						748						45.9	%					4,549						4,219						7.8	%
Income before taxes		8,008						7,053						13.5	%					26,173						22,940						14.1	%
Income taxes		611						978						-37.5	%					6,547						6,609						-0.9	%
Result of discontinued operations		-						-						NA						-						-						NA
Consolidated net income		7,396						6,076						21.7	%					19,626						16,331						20.2	%
Net income attributable to equity holders of the company		7,144			11.7	%		5,809			10.9	%		23.0	%					19,034			8.4	%		15,708			8.1	%		21.2	%
Non-controlling interest		253			0.4	%		267			0.5	%		-17.6	%					592			0.3	%		623			0.3	%		NA

Operating Cash Flow & CAPEX	2022			% of Rev.			2021			% of Rev.			Δ% Reported			Δ% Comparable ⁽⁷⁾			2022			% of Rev.			2021			% of Rev.			Δ% Reported			Δ% Comparable ⁽⁷⁾
Operating income ⁽⁵⁾		9,013			14.7	%		7,778			14.6	%		15.9	%					30,838			13.6	%		27,402			14.1	%		12.5	%
Depreciation		2,397						2,277						5.3	%					9,657						8,946						8.0	%
Amortization and other operative non-cash charges		544						593						-8.2	%					2,506						2,501						0.2	%
Operating cash flow ⁽⁵⁾⁽⁶⁾		11,954			19.5	%		10,648			20.0	%		12.3	%		16.5	%		43,001			19.0	%		38,849			19.9	%		10.7	%		11.4	%
CAPEX		8,489						5,681						49.4	%					19,665						13,865						41.8	%

	⁽¹⁾	Except volume and average price per unit case figures.
	⁽²⁾	Please refer to page 14 for revenue breakdown.
	⁽³⁾	Includes equity method in Jugos del Valle and Leão Alimentos, among others.
	⁽⁴⁾	Includes equity method in PIASA, IEQSA, Beta San Miguel, IMER, and KSP Participacoes, among others.
	⁽⁵⁾	The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
	⁽⁶⁾	Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
	⁽⁷⁾	Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
	⁽⁸⁾	For the Full year of 2022, total CAPEX effectively paid was Ps. 19,665 million.

MEXICO & CENTRAL AMERICA DIVISION

RESULTS OF OPERATIONS

Millions of Pesos ⁽¹⁾

	For the Fourth Quarter of:																		For Full Year:
	2022			% of Rev.			2021			% of Rev.			Δ% Reported			Δ% Comparable ⁽⁶⁾			2022			% of Rev.			2021			% of Rev.			Δ% Reported			Δ% Comparable ⁽⁶⁾
Transactions (million transactions)		2,921.2						2,816.4						3.7	%		3.7	%		11,633.2						10,610.0						9.6	%		9.6	%
Volume (million unit cases)		547.9						531.8						3.0	%		3.0	%		2,188.4						2,057.9						6.3	%		6.3	%
Average price per unit case		61.69						57.85						6.6	%					59.85						56.24						6.4	%
Net revenues		33,797						30,765												130,981						115,731
Other operating revenues		(5	)					26												21						63
Total Revenues ⁽²⁾		33,792			100.0	%		30,792			100.0	%		9.7	%		10.9	%		131,002			100.0	%		115,794			100.0	%		13.1	%		13.5	%
Cost of goods sold		18,114			53.6	%		15,873			51.6	%								68,967			52.6	%		58,428			50.5	%
Gross profit		15,678			46.4	%		14,918			48.4	%		5.1	%		6.1	%		62,035			47.4	%		57,366			49.5	%		8.1	%		8.5	%
Operating expenses		10,451			30.9	%		9,666			31.4	%								40,829			31.2	%		38,049			32.9	%
Other operative expenses, net		39			0.1	%		203			0.7	%								394			0.3	%		615			0.5	%
Operative equity method (gain) loss in associates ⁽³⁾		(25	)		-0.1	%		(34	)		-0.1	%								(136	)		-0.1	%		(140	)		-0.1	%
Operating income ⁽⁴⁾		5,212			15.4	%		5,083			16.5	%		2.6	%		3.6	%		20,948			16.0	%		18,841			16.3	%		11.2	%		11.6	%
Depreciation, amortization & other operating non-cash charges		1,690			5.0	%		1,753			5.7	%								7,380			5.6	%		7,040			6.1	%
Operating cash flow ⁽⁴⁾⁽⁵⁾		6,902			20.4	%		6,835			22.2	%		1.0	%		4.5	%		28,329			21.6	%		25,881			22.4	%		9.5	%		10.5	%

	⁽¹⁾	Except volume and average price per unit case figures.
	⁽²⁾	Please refer to page 14 for revenue breakdown.
	⁽³⁾	Includes equity method in Jugos del Valle, among others.
	⁽⁴⁾	The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
	⁽⁵⁾	Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
	⁽⁶⁾	Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

SOUTH AMERICA DIVISION

RESULTS OF OPERATIONS

Millions of Pesos ⁽¹⁾

	For the Fourth Quarter of:																	For Full Year:
	2022			% of Rev.			2021		% of Rev.			Δ% Reported			Δ% Comparable ⁽⁶⁾			2022			% of Rev.			2021			% of Rev.			Δ% Reported			Δ% Comparable ⁽⁶⁾
Transactions (million transactions)		3,066.5						2,747.9					11.6	%		9.6	%		10,681.9						8,880.9						20.3	%		17.8	%
Volume (million unit cases)		447.4						419.6					6.6	%		4.4	%		1,566.8						1,400.0						11.9	%		9.2	%
Average price per unit case		56.91						49.81					14.3	%					57.21						48.21						18.7	%
Net revenues		27,208						22,327											95,241						78,168
Other operating revenues		209						154											497						841
Total Revenues ⁽²⁾		27,417			100.0	%		22,481		100.0	%		22.0	%		30.9	%		95,738			100.0	%		79,010			100.0	%		21.2	%		24.4	%
Cost of goods sold		16,027			58.5	%		13,415		59.7	%								57,473			60.0	%		47,778			60.5	%
Gross profit		11,390			41.5	%		9,066		40.3	%		25.6	%		36.1	%		38,265			40.0	%		31,232			39.5	%		22.5	%		26.4	%
Operating expenses		7,417			27.1	%		6,238		27.7	%								28,152			29.4	%		22,671			28.7	%
Other operative expenses, net		187			0.7	%		119		0.5	%								279			0.3	%		(56	)		-0.1	%
Operative equity method (gain) loss in associates ⁽³⁾		(15	)		-0.1	%		14		0.1	%								(55	)		-0.1	%		55			0.1	%
Operating income ⁽⁴⁾		3,801			13.9	%		2,695		12.0	%		41.0	%		46.1	%		9,890			10.3	%		8,561			10.8	%		15.5	%		11.6	%
Depreciation, amortization & other operating non-cash charges		1,251			4.6	%		1,118		5.0	%								4,782			5.0	%		4,407			5.6	%
Operating cash flow ⁽⁴⁾⁽⁵⁾		5,052			18.4	%		3,813		17.0	%		32.5	%		38.7	%		14,672			15.3	%		12,968			16.4	%		13.1	%		13.1	%

	⁽¹⁾	Except volume and average price per unit case figures.
	⁽²⁾	Please refer to page 14 for revenue breakdown.
	⁽³⁾	Includes equity method in Leão Alimentos and Verde Campo, among others.
	⁽⁴⁾	The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
	⁽⁵⁾	Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
	⁽⁶⁾	Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

COCA-COLA FEMSA

CONSOLIDATED BALANCE SHEET

Millions of Pesos

Assets	Dec-22			Dec-21			% Var.
Current Assets
Cash, cash equivalents and marketable securities		40,277			47,248			-15	%
Total accounts receivable		16,318			13,014			25	%
Inventories		11,888			11,960			-1	%
Other current assets		10,729			8,142			32	%
Total current assets		79,211			80,364			-1	%
Non-Current Assets
Property, plant and equipment		125,293			113,827			10	%
Accumulated depreciation		(54,088	)		(51,644	)		5	%
Total property, plant and equipment, net		71,205			62,183			15	%
Right of use assets		2,069			1,472			41	%
Investment in shares		8,452			7,494			13	%
Intangible assets and other assets		103,122			102,174			1	%
Other non-current assets		13,936			17,880			-22	%
Total Assets		277,995			271,567			2	%


Liabilities & Equity	Dec-22		Dec-21		% Var.
Current Liabilities
Short-term bank loans and notes payable		8,524		2,453		247	%
Suppliers		26,834		22,745		18	%
Short-term leasing Liabilities		472		614
Other current liabilities		22,129		20,409		8	%
Total current liabilities		57,959		46,221		25	%
Non-Current Liabilities
Long-term bank loans and notes payable		70,146		83,329		-16	%
Long Term Leasing Liabilities		1,663		891
Other long-term liabilities		16,351		13,554		21	%
Total liabilities		146,119		143,995		1	%
Equity
Non-controlling interest		6,491		6,022		8	%
Total controlling interest		125,384		121,550		3	%
Total equity		131,876		127,572		3	%
Total Liabilities and Equity		277,995		271,567		2	%

	December 30, 2022
Debt Mix	% Total Debt ⁽¹⁾			% Interest Rate Floating ^{(1) (2)}			Average Rate
Currency
Mexican Pesos		62.0	%		7.3	%		8.3	%
U.S. Dollars		17.4	%		30.9	%		4.3	%
Colombian Pesos		1.4	%		0.0	%		7.0	%
Brazilian Reals		18.0	%		67.2	%		12.4	%
Uruguayan Pesos		1.2	%		0.0	%		6.3	%
Total Debt		100	%		23.2	%		8.3	%

⁽¹⁾ After giving effect to cross- currency swaps and financial leases.

⁽²⁾ Calculated by weighting each year´s outstanding debt balance mix.

Debt Maturity Profile


Financial Ratios	FY 22			FY 2021			Δ%
Net debt including effect of hedges ⁽¹⁾⁽³⁾		38,104			35,243			8.1	%
Net debt including effect of hedges / Operating cash flow ⁽¹⁾⁽³⁾		0.89			0.91
Operating cash flow/ Interest expense, net ⁽¹⁾		10.34			7.39
Capitalization ⁽²⁾		38.9	%		40.7	%

⁽¹⁾ Net debt = total debt - cash

⁽²⁾ Total debt / (long-term debt + shareholders’ equity)

⁽³⁾ After giving effect to cross-currency swaps.

COCA-COLA FEMSA

QUARTERLY VOLUME, TRANSACTIONS & REVENUES

Volume

	4Q 2022										4Q 2021										YoY
	Sparkling		Water ⁽¹⁾		Bulk ⁽²⁾		Stills		Total		Sparkling		Water ⁽¹⁾		Bulk ⁽²⁾		Stills		Total		Δ %
Mexico		335.3		25.0		74.8		33.6		468.7		337.6		21.3		67.7		31.6		458.1		2.3	%
Guatemala		36.0		1.1		-		2.1		39.2		32.5		0.9		-		2.0		35.3		11.0	%
CAM South		32.6		1.7		0.1		5.4		39.9		31.9		1.7		0.1		4.6		38.4		4.1	%
Mexico and Central America		404.0		27.8		75.0		41.1		547.9		401.9		23.9		67.8		38.2		531.8		3.0	%
Colombia		66.0		9.0		3.4		6.9		85.4		66.9		8.7		3.8		6.9		86.2		-1.0	%
Brazil ⁽³⁾		250.0		20.3		2.8		22.7		295.8		234.8		16.6		2.3		18.5		272.1		8.7	%
Argentina		41.1		5.0		1.1		4.3		51.6		38.2		4.0		1.2		3.8		47.2		9.3	%
Uruguay		12.4		1.8		-		0.6		14.7		12.1		1.6		-		0.4		14.0		5.1	%
South America		369.5		36.1		7.4		34.5		447.4		352.0		30.8		7.3		29.5		419.6		6.6	%
TOTAL		773.5		63.9		82.3		75.6		995.3		753.9		54.7		75.1		67.7		951.3		4.6	%

⁽¹⁾ Excludes water presentations larger than 5.0 Lt ; includes flavored water.

⁽²⁾ Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water

Transactions
	4Q 2022								4Q 2021								YoY
	Sparkling		Water		Stills		Total		Sparkling		Water		Stills		Total		Δ %
Mexico		1,888.8		179.8		239.3		2,307.8		1,871.3		154.7		226.4		2,252.4		2.5	%
Guatemala		271.2		10.9		20.6		302.7		250.2		8.5		20.0		278.6		8.7	%
CAM South		237.6		11.6		61.4		310.6		225.2		11.3		48.8		285.4		8.8	%
Mexico and Central America		2,397.6		202.3		321.3		2,921.2		2,346.7		174.5		295.2		2,816.4		3.7	%
Colombia		481.4		94.2		70.4		645.9		455.2		93.8		66.9		615.9		4.9	%
Brazil ⁽³⁾		1,579.3		177.6		324.5		2,081.5		1,470.8		147.2		205.3		1,823.2		14.2	%
Argentina		201.9		32.0		37.0		270.8		188.5		25.3		28.6		242.5		11.7	%
Uruguay		56.0		7.0		5.2		68.2		56.4		6.3		3.5		66.2		3.0	%
South America		2,318.6		310.8		437.1		3,066.5		2,170.9		272.7		304.3		2,747.9		11.6	%
TOTAL		4,716.2		513.1		758.4		5,987.7		4,517.6		447.2		599.5		5,564.3		7.6	%

Revenues

Expressed in million Mexican Pesos	4Q 2022	4Q 2021	Δ%
Mexico	27,388	24,857	10.2	%
Guatemala	3,130	2,927	6.9	%
CAM South	3,275	3,007	8.9	%
Mexico and Central America	33,792	30,792	9.7	%
Colombia	3,567	4,146	-14.0	%
Brazil ⁽⁴⁾	19,293	14,558	32.5	%
Argentina	3,273	2,640	24.0	%
Uruguay	1,283	1,137	12.9	%
South America	27,417	22,481	22.0	%
TOTAL	61,209	53,273	14.9	%

⁽³⁾ Volume and transactions in Brazil do not include beer.

⁽⁴⁾ Brazil includes beer revenues of Ps. 1,742.4 million for the fourth quarter of 2022 and Ps. 1,429.4 million for the same period of the previous year.

⁽¹⁾

Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.

⁽²⁾

Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for fountain which represents multiple transactions based on a standard 12 oz. serving.

COCA-COLA FEMSA

FY VOLUMES, TRANSACTIONS & REVENUES

Volume
	FY 2022										FY 2021										YoY
	Sparkling		Water ⁽¹⁾		Bulk ⁽²⁾		Stills		Total		Sparkling		Water ⁽¹⁾		Bulk ⁽²⁾		Stills		Total		Δ %
Mexico		1,348.8		104.4		300.6		135.1		1,888.9		1,304.0		82.3		281.4		122.3		1,790.0		5.5	%
Guatemala		133.7		4.8		-		8.7		147.2		120.3		3.8		-		7.2		131.3		12.1	%
CAM South		124.2		6.5		0.7		20.9		152.3		113.5		6.4		0.5		16.2		136.6		11.5	%
Mexico and Central America		1,606.7		115.6		301.3		164.7		2,188.4		1,537.8		92.5		282.0		145.6		2,057.9		6.3	%
Colombia		254.6		34.0		12.5		29.0		330.1		234.6		26.7		15.1		21.6		297.9		10.8	%
Brazil ⁽³⁾		854.6		66.5		10.7		84.5		1,016.2		786.3		48.4		7.9		60.7		903.3		12.5	%
Argentina		139.4		16.0		3.8		14.6		173.9		125.1		11.8		5.4		13.1		155.4		11.9	%
Uruguay		39.2		5.7		-		1.6		46.6		37.7		4.9		-		0.8		43.4		7.5	%
South America		1,287.8		122.2		27.1		129.7		1,566.8		1,183.7		91.8		28.3		96.2		1,400.0		11.9	%
TOTAL		2,894.5		237.8		328.4		294.4		3,755.2		2,721.4		184.3		310.3		241.9		3,457.9		8.6	%

⁽¹⁾ Excludes water presentations larger than 5.0 Lt ; includes flavored water.

⁽²⁾ Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water

Transactions
	FY 2022								FY 2021								YoY
	Sparkling		Water		Stills		Total		Sparkling		Water		Stills		Total		Δ %
Mexico		7,569.8		739.5		967.1		9,276.4		7,105.8		604.8		859.0		8,569.5		8.2	%
Guatemala		1,027.3		48.0		85.5		1,160.8		922.5		39.1		73.5		1,035.2		12.1	%
CAM South		920.5		38.8		236.7		1,196.0		797.7		41.7		165.8		1,005.3		19.0	%
Mexico and Central America		9,517.6		826.3		1,289.3		11,633.2		8,826.0		685.6		1,098.4		10,610.0		9.6	%
Colombia		1,834.4		361.5		307.8		2,503.7		1,557.1		289.6		199.5		2,046.2		22.4	%
Brazil ⁽³⁾		5,478.5		581.6		954.3		7,014.5		4,798.5		419.5		648.6		5,866.6		19.6	%
Argentina		713.6		103.8		122.0		939.5		599.3		71.7		94.8		765.8		22.7	%
Uruguay		187.3		22.4		14.6		224.2		175.0		18.6		8.5		202.1		10.9	%
South America		8,213.8		1,069.3		1,398.8		10,681.9		7,130.0		799.4		951.5		8,880.9		20.3	%
TOTAL		17,731.4		1,895.6		2,688.1		22,315.1		15,956.0		1,485.1		2,049.9		19,490.9		14.5	%

Revenues

Expressed in million Mexican Pesos	FY 2022		FY 2021		Δ %
Mexico		106,911		94,762		12.8	%
Guatemala		12,059		10,535		14.5	%
CAM South		12,031		10,497		14.6	%
Mexico and Central America		131,002		115,794		13.1	%
Colombia		16,800		14,180		18.5	%
Brazil ⁽⁴⁾		63,944		53,051		20.5	%
Argentina		10,917		8,408		29.8	%
Uruguay		4,078		3,371		21.0	%
South America		95,738		79,010		21.2	%
TOTAL		226,740		194,804		16.4	%

⁽³⁾ Volume and transactions in Brazil do not include beer.

⁽⁴⁾ Brazil includes beer revenues of Ps. 5,599.9 million for the full year of 2022 and Ps. 10,677.2 million for the same period of the previous year.

⁽¹⁾

⁽²⁾

COCA-COLA FEMSA
MACROECONOMIC INFORMATION

Inflation ⁽¹⁾
	4Q22			FY 22
Mexico		1.54	%		7.82	%
Colombia		3.41	%		13.12	%
Brazil		0.76	%		5.79	%
Argentina		18.24	%		94.80	%
Costa Rica		-1.22	%		7.88	%
Panama		0.24	%		2.07	%
Guatemala		1.09	%		9.24	%
Nicaragua		2.89	%		11.59	%
Uruguay		0.11	%		8.30	%

⁽¹⁾Source: inflation estimated by the company based on historic publications from the Central Bank of each country.

Average Exchange Rates for each period ⁽²⁾
	Quarterly Exchange Rate (Local Currency per USD)							Year to Date Exchange Rate (Local Currency per USD)
	4Q22		4Q21		Δ %			FY 22		FY 21		Δ %
Mexico		19.70		20.75		-5.1	%		20.13		20.28		-0.8	%
Colombia		4,808.38		3,879.98		23.9	%		4,256.19		3,744.25		13.7	%
Brazil		5.26		5.58		-5.9	%		5.16		5.40		-4.3	%
Argentina		162.54		100.50		61.7	%		130.72		95.10		37.5	%
Costa Rica		614.10		638.48		-3.8	%		650.75		624.10		4.3	%
Panama		1.00		1.00		0.0	%		1.00		1.00		0.0	%
Guatemala		7.85		7.73		1.6	%		7.75		7.74		0.2	%
Nicaragua		36.14		35.43		2.0	%		35.87		35.17		2.0	%
Uruguay		39.97		43.98		-9.1	%		41.17		43.55		-5.5	%

End-of-period Exchange Rates
	Closing Exchange Rate (Local Currency per USD)							Closing Exchange Rate (Local Currency per USD)
	Dec-22		Dec-21		Δ %			Sep-22		Sep-21		Δ %
Mexico		19.36		20.58		-5.9	%		20.31		20.31		0.0	%
Colombia		4,810.20		3,981.16		20.8	%		4,532.07		3,834.68		18.2	%
Brazil		5.22		5.58		-6.5	%		5.41		5.44		-0.6	%
Argentina		177.16		102.72		72.5	%		147.32		98.74		49.2	%
Costa Rica		601.99		645.25		-6.7	%		632.72		629.71		0.5	%
Panama		1.00		1.00		0.0	%		1.00		1.00		0.0	%
Guatemala		7.85		7.72		1.7	%		7.88		7.73		1.9	%
Nicaragua		36.23		35.52		2.0	%		36.05		35.34		2.0	%
Uruguay		40.07		44.70		-10.3	%		41.74		42.94		-2.8	%

⁽²⁾Average exchange rate for each period computed with the average exchange rate of each month.