0001628280-24-017454 | 20-F | XBRL Viewer | Mexican Economic Development INC

$ 190,772

$ 158,138

(3,295)

(2,696)

$ (2,694)

Rights to Produce and Distribute Coca-Cola Trademark Products

$ 8,475

143,218

190,772

158,138

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

75,756

75,396

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

73,952

75,756

75,396

Goodwill

85,704

57,351

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

45,522

85,704

57,351

Trademark rights

9,044

8,073

Other Indefinite Lived Intangible Assets

12,898

9,044

8,073

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

1,265

1,413

Total Unamortized Intangible Assets

1,483

1,265

1,413

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

171,769

142,233

Technology Costs and Management Systems

133,855

171,769

142,233

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

3,884

4,247

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

4,602

3,884

4,247

Customer Relationships

10,336

9,192

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

169

10,336

9,192

Alcohol Licenses

1,038

1,168

1,037

1,038

1,168

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

3,745

1,298

Total Amortized Intangible Assets

3,555

3,745

1,298

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

19,003

15,905

Accumulated depreciation, amortisation and impairment

9,363

19,003

15,905

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(12,898)

(10,032)

(8,961)

(3,295)

(2,696)

(2,694)

(4,337)

370

1,152

890

Changes in value on the recognition of inflation effects

968

(1,227)

787

(78)

(95)

(54)

(36)

Accumulated depreciation, amortisation and impairment | Trademark rights

(10,632)

(12,898)

(10,032)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(36)

Accumulated depreciation, amortisation and impairment | Total Unamortized Intangible Assets

(36)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(36)

Accumulated depreciation, amortisation and impairment | Technology Costs and Management Systems

(36)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(7,021)

(6,414)

(6,469)

(1,519)

(1,312)

(1,473)

(276)

161

992

789

Changes in value on the recognition of inflation effects

578

(193)

792

(78)

(94)

(53)

Accumulated depreciation, amortisation and impairment | Customer Relationships

(7,603)

(7,021)

(6,414)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(3,152)

(1,608)

(827)

(1,113)

(915)

(791)

(4,010)

157

Changes in value on the recognition of inflation effects

188

(786)

Accumulated depreciation, amortisation and impairment | Alcohol Licenses

(67)

(3,152)

(1,608)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(939)

(838)

(736)

(116)

(104)

(102)

Changes in value on the recognition of inflation effects

(15)

Accumulated depreciation, amortisation and impairment | Other

(1,040)

(939)

(838)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(1,786)

(1,172)

(929)

(547)

(365)

(328)

(51)

209

101

Changes in value on the recognition of inflation effects

187

(248)

(15)

(1)

Accumulated depreciation, amortisation and impairment | Total Amortized Intangible Assets

(1,886)

(1,786)

(1,172)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(12,898)

(10,032)

(8,961)

(3,295)

(2,696)

(2,694)

(4,337)

370

1,152

890

Changes in value on the recognition of inflation effects

968

(1,227)

787

(78)

(95)

(54)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(10,596)

(12,898)

(10,032)

Gross carrying amount

203,670

168,170

164,462

Acquisitions from business combinations (see Note 4)

3,405

2,232

2,517

4,302

37,335

8,879

455

398

(46,412)

(597)

(925)

(1,133)

Changes in value on the recognition of inflation effects

(7,998)

(2,860)

(5,468)

Business combinations from disposals

(4,995)

(770)

(1,149)

1,950

Gross carrying amount | Rights to Produce and Distribute Coca-Cola Trademark Products

153,850

203,670

168,170

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

75,756

75,396

76,649

(1,568)

(756)

(1,255)

Gross carrying amount | Goodwill

73,952

75,756

75,396

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

85,704

57,351

52,820

Acquisitions from business combinations (see Note 4)

3,918

33,715

7,940

(12,273)

(2,557)

(25,036)

(2)

(12)

(3,744)

(2,057)

(2,303)

Business combinations from disposals

(4,995)

(770)

(1,094)

1,950

Gross carrying amount | Trademark rights

45,522

85,704

57,351

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

Acquisitions from business combinations (see Note 4)

9,044

8,073

8,647

1,077

(810)

(106)

(584)

(55)

Gross carrying amount | Other Indefinite Lived Intangible Assets

12,934

9,044

8,073

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

1,265

1,413

1,376

127

(2)

(10)

(158)

(80)

Gross carrying amount | Total Unamortized Intangible Assets

1,483

1,265

1,413

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

171,769

142,233

139,492

Acquisitions from business combinations (see Note 4)

129

3,944

35,908

8,005

(4,590)

(2,557)

(28,113)

(4)

(2)

(22)

(6,077)

(3,077)

(4,222)

Business combinations from disposals

(4,995)

(770)

(1,149)

1,950

Gross carrying amount | Technology Costs and Management Systems

133,891

171,769

142,233

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

10,905

10,661

10,873

Acquisitions from business combinations (see Note 4)

1,966

672

1,140

292

262

(197)

(891)

(973)

(424)

(641)

Gross carrying amount | Customer Relationships

12,205

10,905

10,661

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

Acquisitions from business combinations (see Note 4)

13,488

10,800

9,850

188

873

5,162

2,955

(17,788)

(3)

(814)

(264)

Gross carrying amount | Alcohol Licenses

236

13,488

10,800

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

1,977

2,006

1,897

261

145

(50)

(161)

(29)

(36)

Gross carrying amount | Other

2,077

1,977

2,006

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

5,531

2,470

2,350

Acquisitions from business combinations (see Note 4)

1,174

1,476

1,103

1,054

(295)

(15)

(262)

(235)

(102)

Changes in value on the recognition of inflation effects

(683)

466

(682)

Gross carrying amount | Total Amortized Intangible Assets

5,441

5,531

2,470

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

31,901

25,937

24,970

Acquisitions from business combinations (see Note 4)

3,401

2,198

2,388

1,427

874

5,045

2,955

(3)

(593)

(923)

(1,111)

Changes in value on the recognition of inflation effects

(1,921)

217

(1,246)

Gross carrying amount | Coca-Cola FEMSA | Rights to Produce and Distribute Coca-Cola Trademark Products

19,959

31,901

$ 25,937

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

Acquisitions from business combinations (see Note 4)

1,116

Gross carrying amount | Coca-Cola FEMSA | Trademark rights

(12)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

Acquisitions from business combinations (see Note 4)

7,683

(3,009)

Gross carrying amount | Coca-Cola FEMSA | Other Indefinite Lived Intangible Assets

(224)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

(56)

Gross carrying amount | Coca-Cola FEMSA | Technology Costs and Management Systems

227

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

Acquisitions from business combinations (see Note 4)

145

$ 373

Gross carrying amount | Coca-Cola FEMSA | Other

(482)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

Acquisitions from business combinations (see Note 4)

(117)

Gross carrying amount | Coca-Cola FEMSA | Total Amortized Intangible Assets

(29)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

Acquisitions from business combinations (see Note 4)

358

(18,299)

Disclosure of reconciliation of changes in intangible assets and goodwill [line items]

Investments in subsidiaries, joint ventures and associates reported in separate financial statements [abstract]

$ 6,250

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Bank Loans and Notes Payable - Rollforward, Liabilities Arising from Financing Activities (Details) - MXN ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Beginning balance	$ 285,058	$ 252,940	$ 246,973
Cash Flows	(48,354)	5,973	1,146
Acquisitions / Disposal	51	28,114	1,540
New leases	20,698	10,686	7,871
Foreign exchange income (loss)	(18,107)	(9,390)	(123)
Other	(6,449)	11,513	7,863
Ending balance	232,897	285,058	252,940
Aggregate continuing and discontinued operations
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Cash Flows		(8,805)	(11,184)
Discontinued operations
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Cash Flows		330	(5)
Total Liabilities From Financing Activities
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Beginning balance	191,741	190,585	188,665
Cash Flows	(32,183)
Acquisitions / Disposal	3	6,181
New leases	0	0
Foreign exchange income (loss)	(16,216)	(9,034)	675
Other	(6,521)	(2,294)	104
Ending balance	136,824	191,741	190,585
Total Liabilities From Financing Activities \| Aggregate continuing and discontinued operations
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Cash Flows		6,303	1,141
Bank loans
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Beginning balance	12,893	7,580	19,430
Cash Flows	(1,526)
Acquisitions / Disposal	3	6,181
New leases	0	0
Foreign exchange income (loss)	(852)	(78)	(939)
Other	0	(375)	104
Ending balance	10,518	12,893	7,580
Bank loans \| Aggregate continuing and discontinued operations
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Cash Flows		(415)	(11,015)
Notes payable
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Beginning balance	178,848	183,005	169,235
Cash Flows	(30,657)
Acquisitions / Disposal	0	0
New leases	0	0
Foreign exchange income (loss)	(15,364)	(8,957)	1,614
Other	(6,521)	(1,919)	0
Ending balance	126,306	178,848	183,005
Notes payable \| Aggregate continuing and discontinued operations
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Cash Flows		6,718	12,156
Lease liabilities
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Beginning balance	93,317	62,355	58,308
Cash Flows	(16,171)
Acquisitions / Disposal	48	21,933	1,540
New leases	20,698	10,686	7,871
Foreign exchange income (loss)	(1,891)	(356)	(798)
Other	72	13,807	7,759
Ending balance	$ 96,073	93,317	62,355
Lease liabilities \| Aggregate continuing and discontinued operations
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Cash Flows		$ (15,108)	$ (12,325)

Equity Method Accounted Investees

12 Months Ended

Dec. 31, 2023

Equity Method Accounted Investees

As of December 31, 2023 and 2022, Company’s equity method accounted investees are as follows:



			Ownership Percentage					Carrying Value
Investee	Principal Activity	Place of Incorporation	December 31, 2023		December 31, 2022			December 31, 2023		December 31, 2022
Heineken (1) (2)	Beverages	The Netherlands	—	%	14.8	%	Ps.	—	Ps.	92,282
IFS TopCo LLC (4)	Distribution	United States	37.1	%	—	%		15,032		—
Coca-Cola FEMSA:
Joint ventures:
Dispensadoras de Café, S.A.P.I. de C.V.	Services	Mexico	50.0	%	50.0	%		223		189
Fountain Agua Mineral, L.T.D.A.	Beverages	Brazil	50.0	%	50.0	%		808		752
Planta Nueva Ecología De Tabasco, S.A. de C.V.	Recycling	Mexico	50.0	%	50.0	%		1,139		578
Associates:
Promotora Industrial Azucarera, S.A. de C.V. (“PIASA”)	Sugar production	Mexico	36.4	%	36.4	%		3,454		3,632
Industria Envasadora de Querétaro, S.A. de C.V. (“IEQSA”)	Canned bottling	Mexico	26.5	%	26.5	%		215		157
Industria Mexicana de Reciclaje, S.A. de C.V. (“IMER”)	Recycling	Mexico	35.0	%	35.0	%		99		100
Jugos del Valle, S.A.P.I. de C.V.	Beverages	Mexico	28.2	%	29.3	%		2,831		2,267
Leao Alimentos e Bebidas, L.T.D.A.	Beverages	Brazil	25.1	%	25.1	%		298		388
Alimentos de Soja S.A.U.	Beverages	Argentina	10.7	%	10.7	%		23		282
Other investments in Coca-Cola FEMSA	Various	Various	Various		Various			156		107
Proximity Americas Division:
Joint ventures:
Raizen Conveniências	Proximity	Brazil	50.0	%	50.0	%		1,636		2,371
Other investments (1) (3)	Various	Various	Various		Various			333		564
							Ps.	26,247	Ps.	103,669

(1)Associate.

(2)As of December 31, 2022 comprised of 8.63% of Heineken, N.V. and 12.26% of Heineken Holding, N.V., which represented an economic interest of 14.76% in Heineken Group. The Company had significant influence, mainly, because it participated in the Board of Directors of Heineken Holding, N.V. and the Supervisory Board of Heineken N.V. During the first semester of 2023, the Company completed the Heineken share offering, leaving less than 1% of economic interest in Heineken Group, therefore the Company no longer maintains significant influence over this Group.

(3)Joint ventures.

(4)As a result of the merger between Envoy Solutions and BradyIFS during October 2023, the Company owns 37.1% of the shares of IFS TopCo LLC, having significant influence over this investee, mainly because it has appointed directors who participate in the Board of IFS TopCo LLC (see Note 4).

Coca-Cola FEMSA's investments

During 2023 Coca-Cola FEMSA received dividends from Promotora Mexicana de Embotelladores, S.A. de C.V. ("PIASA") for the amount of Ps. 79.

During 2023 Coca-Cola FEMSA made capital contributions to Jugos del Valle, S.A.P.I. de C.V. for the amount of Ps. 466, and sale of shares for an amount of Ps. 24, also its ownership decreased due to a corporate restructuring.

During 2023, Coca-Cola FEMSA recognized an impairment on its investment in Alimentos de Soja S.A.U. for an amount of Ps. 143 recognized in the South America segment.

During 2023 and 2022 Coca-Cola FEMSA made capital contributions to Planta Nueva Ecología de Tabasco S.A. de C.V. for the amounts of Ps. 506, and Ps. 560, respectively. There were no changes in the ownership percentage as a result of capital contributions made by the other shareholders.

During 2022, Coca-Cola FEMSA's ownership in Jugos del Valle, S.A.P.I. de C.V. increased due to a corporate reestructuring and its ownership in Leao Alimentos e Bebidas, LTDA, Trop Frutas do Brasil, LTDA increased due to acquisition of CVI.

During 2022 Coca-Cola FEMSA received dividends from Industria Envasadora de Querétaro, S.A. de C.V. ("IEQSA") for the amount of Ps. 16.

During 2021 Coca-Cola FEMSA made capital contributions to Jugos del Valle, S.A.P.I. de C.V. for the amount of Ps. 44 and there were no changes in the ownership percentage as a result of capital contributions made by the other shareholders.

During 2021 Coca-Cola FEMSA reduced its capital on Leao Alimentos y Bebidas LTDA. for the amount of Ps. 46, and there were no changes in the ownership percentage as a result of the capital reduction.

During 2021, Coca-Cola FEMSA recognized an impairment on its investment in Trop Frutas Do Brasil LTDA. for the amount of Ps. 250.

On September 30, 2020, Coca-Cola FEMSA announced that its joint venture with The Coca-Cola Company (Compañía Panameña de Bebidas, S.A.P.I. de C.V.) successfully sold 100% of its stock interest in Estrella Azul, a dairy products company in Panama. As part of the transaction, Coca-Cola FEMSA agreed with the buyer that it could receive payments in the future if the business of Estrella Azul achieves certain volume and EBITDA targets during the 2022-2027 period. Coca-Cola FEMSA estimated the amount of the payments to be received based on the forecasts of the business and calculated their net present value.

For the years ended December 31, 2023, 2022 and 2021 the equity earnings recognized for associates of Coca-Cola FEMSA were Ps. 25, Ps. 194 and Ps. 85, respectively.

For the years ended December 31, 2023, 2022 and 2021 the equity earnings recognized for joint ventures of Coca-Cola FEMSA were Ps. 190, Ps. 192 and Ps. 3, respectively.

Heineken

On April 30, 2010, the Company acquired an economic interest of 20% of Heineken Group. Heineken’s main activities are the production, distribution and marketing of beer worldwide. The economic interest as of December 31, 2022 was 14.8%. The Company’s share of the net income attributable to equity holders of Heineken Group exclusive of amortization of adjustments amounted to Ps. 8,316 for the year ended December 31, 2022.

On February 17, 2023, the Company, through several block transactions, sold 20,879,120 Heineken N.V. shares and 17,333,518 Heineken Holding N.V. shares, from which Heineken N.V. repurchased 7,782,100 Heineken N.V. shares and 3,891,050 Heineken Holding shares from the Company. In addition, on May 31, 2023, the Company sold 28,828,083 Heineken N.V. shares and 12,756,044 Heineken Holding shares, from which Heineken N.V. repurchased 2,531,462 Heineken N.V. shares and 1,265,731 Heineken Holding shares from the Company.

Consequently, the Company and its subsidiaries sold a total of 49,697,203 shares of Heineken N.V. and 30,089,562 shares of Heineken Holding N.V., representing 8.63% and 10.45% of the capital stock of each of them, respectively, and which together represent an economic interest of 13.9% in Heineken Group. As a result of the transactions described

above, the Company no longer maintains significant influence over the Heineken Group, and the equity method over this investment was discontinued, considering reclassifications from other comprehensive income to the profit and losses (see Note 4).

The Company recognized equity method income of Ps. 7,359 and Ps. 10,775 net of taxes based on its economic interest in Heineken Group for the years ended December 31, 2022 and 2021, respectively. For the three months ended from January 1st to March 31st of 2023, the Company recognized equity method income of Ps. 619 from Heineken Group (see Note 4.3.1).

Summarized financial information in respect of the associate Heineken Group accounted for under the equity method is set out below.



	December 31, 2022
Amounts in millions	Peso		Euro
Total current assets	Ps.	227,480	€.	11,015
Total non-current assets		854,803		41,391
Total current liabilities		293,050		14,190
Total non-current liabilities		336,543		16,296
Total equity		452,690		21,920
Equity attributable to equity holders		403,765		19,551
Total revenue and other income	Ps.	598,072	€.	28,866
Total cost and expenses		509,333		24,583
Net income	Ps.	62,965	€.	3,039
Net income attributable to equity holders		55,568		2,682
Other comprehensive income		6,257		302
Total comprehensive income	Ps.	69,222	€.	3,341
Total comprehensive income attributable to equity holders		62,965		3,039

Reconciliation from the equity of the associate Heineken Group to the investment of the Company.



		December 31, 2022
Amounts in millions		Peso			Euro
Equity attributable to equity holders of Heineken		Ps.	403,765		€.	19,551
Economic ownership percentage	%		14.76	%		14.76
Investment in Heineken investment exclusive of goodwill and other adjustments		Ps.	59,560		€.	2,884
Effects of fair value determined by purchase price allocation			14,528			704
Goodwill			18,194			881
Heineken investment		Ps.	92,282		€.	4,469

As of December 31, 2022, the fair value of the Company’s investment in Heineken N.V. Holding and Heineken N.V. represented by shares equivalent to 14.8% of its outstanding shares amounted to Ps. 143,638 (€.6,912 million) based on quoted market prices of those dates.

During the years ended December 31, 2023, 2022 and 2021, the Company received dividends distributions from Heineken Group, amounting to Ps. 3,428, Ps. 2,635 and Ps. 2,005, respectively.

IFS TopCo LLC

On October 31, 2023, the Company entered into a definitive agreement with BradyIFS to create a new distribution platform for the facility cleaning, food disposables and packaging industries in the United States. The Company received Ps. 24,468 (U.S. $1.5 billion) in cash and will maintain a 37.1% equity interest in the new combined entity IFS TopCo LLC. Due to the timing of the acquisition in the fourth quarter of 2023, the Company continues to obtain the information to complete the purchase price allocation and will record adjustments, if any, during the 12 month measurement period. Goodwill and intangibles assets pending allocation would include primarily trademark rights and customer relationships of which the majority are expected to be indefinite life. Any potential adjustments would be reflected within the equity method investment for this entity given that the Company does not control but does have significant influence over it. The fair value of the investment derived from the transaction was Ps. 15,032 (U.S. $890 million) (see Note 4.3.2).

Reconciliation from the equity of the associate IFS TopCo LLC to the investment of the Company.


		December 31, 2023
Amounts in millions		Peso			U.S. dollars
Fair value of IFS TopCo		Ps.	36,169		$.	2,141
Economic ownership percentage	%		37.08	%		37.08
Investment in IFS TopCo investment exclusive of goodwill and other adjustments		Ps.	13,412		$.	794
Goodwill pending to be allocated			1,620			96
IFS TopCo investment (1)		Ps.	15,032		$.	890

(1)IFS TopCo purchase price allocation will be finalized during the twelve month remeasurement period after the acquisition date.

For the year ended December 31, 2023, 2022 and 2021, the Company’s share of other comprehensive income from equity investees, net of taxes are as follows:



	2023		2022		2021
Items that may be reclassified to consolidated net income:
Valuation of the effective portion of derivative financial instruments	Ps.	(526)	Ps.	(286)	Ps.	32
Exchange differences on translating foreign operations		6,623		2,655		2,893
Total	Ps.	6,097	Ps.	2,369	Ps.	2,925
Items that may not be reclassified to consolidated net income in subsequent periods:
Remeasurements of the net defined benefit liability	Ps.	897	Ps.	267	Ps.	590

For the years ended December 31, 2023, 2022 and 2021 the equity earnings (loss) recognized for other associates were Ps. (621), Ps. 287, and Ps. (98), respectively.

Employee Benefits - Rollforward, Balance of the Defined Benefit Obligation (Details) - MXN ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of net defined benefit liability (asset) [line items]
Non-cash movements in post-employment and other non-current employee benefits obligations	$ 910	$ 854	$ 684
Pension and Retirement Plans \| Defined benefit obligation
Disclosure of net defined benefit liability (asset) [line items]
Initial balance	15,113	8,015	7,679
Non-cash movements in post-employment and other non-current employee benefits obligations	489	534	390
Past service cost	288	163	2,881
Interest expense	820	687	527
Gain on settlement	(243)	(280)	(2,884)
Remeasurements of the net defined benefit obligation	531	(2,073)	(42)
Foreign exchange (gain) or loss	(48)	(79)	28
Benefits paid	(1,504)	(1,146)	(564)
Business Acquisitions	0	9,189	0
Employees contributions	119	103
Plan amendments	4
Ending balance	15,366	15,113	8,015
Pension and Retirement Plans \| Defined benefit obligation \| Discontinued operations
Disclosure of net defined benefit liability (asset) [line items]
Discontinued operations	(195)
Post-Retirement Medical Services \| Defined benefit obligation
Disclosure of net defined benefit liability (asset) [line items]
Initial balance	556	647	812
Non-cash movements in post-employment and other non-current employee benefits obligations	32	32	44
Past service cost	13	26	236
Interest expense	54	52	57
Gain on settlement	(14)	(29)	(271)
Remeasurements of the net defined benefit obligation	5	(136)	(191)
Benefits paid	(43)	(36)	(40)
Discontinued operations	(49)	0	0
Ending balance	554	556	647
Seniority Premiums \| Defined benefit obligation
Disclosure of net defined benefit liability (asset) [line items]
Initial balance	2,068	2,108	1,763
Non-cash movements in post-employment and other non-current employee benefits obligations	345	328	290
Past service cost	21	7	836
Interest expense	191	160	124
Gain on settlement	(21)	(13)	(839)
Remeasurements of the net defined benefit obligation	66	(342)	112
Benefits paid	(254)	(180)	(178)
Ending balance	2,181	2,068	2,108
Seniority Premiums \| Defined benefit obligation \| Discontinued operations
Disclosure of net defined benefit liability (asset) [line items]
Discontinued operations	$ (235)	$ 0	$ 0

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Statement [Line Items]

Schedule of Fair value of Financial Instruments

The following table summarizes the Company’s financial assets and liabilities measured at fair value, as of December 31, 2023, and 2022:



	December 31, 2023		December 31, 2022
	Level 1	Level 2	Level 1	Level 2
Financial instruments (current asset)	228	203	351	9,710
Financial instruments (non-current asset)	14,279	11,394	14,540	21,201
Financial instruments (current liability)	202	536	64	404
Financial instruments (non-current liability)	—	8,653	—	5,651

Fair Value of Company's Publicly Traded Debt

The fair value of the Company’s publicly traded debt is based on quoted market prices as of December 31, 2023 and 2022, which is considered to be level 1 in the fair value hierarchy.



	December 31, 2023		December 31, 2022
Carrying value	Ps.	136,824	Ps.	191,741
Fair value		125,043		163,312

Disclosure of Outstanding Interest Rate Swap Agreements

As of December 31, 2023, the Company has the following outstanding interest rate swap agreements:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2023		December 31, 2023
2024	Ps.	2	Ps.	—	Ps.	65
2032		8,447		(1,381)		—

As of December 31, 2022, the Company has the following outstanding interest rate swap agreements:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2022		December 31, 2022
2023	Ps.	11,675	Ps.	—	Ps.	236
2024		2,227		—		129
2032		9,681		(1,728)		—

Disclosure of Outstanding Forward Agreements to Purchase Foreign Currency

As of December 31, 2023, the Company had the following outstanding forward agreements to purchase foreign currency:

Notional

Fair Value Liability

Fair Value Asset

Maturity Date

Amount

December 31, 2023

2024

Ps.

11,449

Ps.

(573)

Ps.

As of December 31, 2022, the Company had the following outstanding forward agreements to purchase foreign currency:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2022		December 31, 2022
2023	Ps.	10,828	Ps.	(399)	Ps.	61
2024		2		—		—

Disclosure of Outstanding Cross Currency Swap Agreements

As of December 31, 2023, the Company had the following outstanding cross–currency swap agreements:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2023		December 31, 2023
2024	Ps.	954	Ps.	(35)	Ps.	103
2025		49,834		(2)		119
2026		6,045		(1,017)		98
2027		8,949		(1,391)		9
2028		6,009		—		89
2029		20		—		337
2030		13,633		(803)		—
2032		845		(51)		—
2033		4,931		—		117
2035		10,000		(3,809)		—
2043		5,398		—		1,877
2050		3,471		—		1,235

As of December 31, 2022, the Company had the following outstanding cross–currency swap agreements:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2022		December 31, 2022
2023	Ps.	27,804	Ps.	(7)	Ps.	9,435
2024		497		(3)		247
2025		1,010		—		385
2026		5,971		(924)		364
2027		17,809		(689)		95
2029		14,620		—		1,664
2030		3,679		(104)		110
2035		10,000		(2,203)		—
2043		8,869		—		505

Disclosure of Fair Value of Commodity Price Contracts

As of December 31, 2023, Coca-Cola FEMSA had the following sugar price contracts:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2023		December 31, 2023
2024	Ps.	2,593	Ps.	(130)	Ps.	206
2025		745		(72)		—

As of December 31, 2022, Coca-Cola FEMSA had the following sugar price contracts:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2022		December 31, 2022
2023	Ps.	1,688	Ps.	(46)	Ps.	328
2024		468		—		21

As of December 31, 2023, Coca-Cola FEMSA had the following aluminum price contracts:

Notional

Fair Value Liability

Fair Value Asset

Maturity Date

Amount

December 31, 2023

2024

Ps.

647

Ps.

—

Ps.

As of December 31, 2022, Coca-Cola FEMSA had the following aluminum price contracts:

Notional

Fair Value Liability

Fair Value Asset

Maturity Date

Amount

December 31, 2022

2023

Ps.

662

Ps.

(18)

Ps.

Disclosure of Net Effects of Expired Contracts Met Hedging Criteria



	Impact in Consolidated
	Income Statement	2023		2022		2021
Cross-currency swaps (1)	Interest expense	Ps.	(392)	Ps.	1	Ps.	—
Cross-currency swaps (1)	Foreign exchange		(747)		(5)		—
Interest rate swaps	Interest expense		—		—		—
Forward agreements to purchase foreign currency	Foreign exchange		180		565		41
Commodity price contracts	Cost of goods sold		430		599		1,245
Options to purchase foreign currency	Cost of goods sold		—		—		—
Forward agreements to purchase foreign currency	Cost of goods sold		(1,834)		(681)		(788)

(1)This amount corresponds to the settlement of cross-currency swaps portfolio in Brazil presented as part of the other financial activities.

Disclosure of Net Effect of Changes in Fair Value of Derivative Financial Instruments Did Not Meet Hedging Criteria for Accounting Purposes



	Impact in Consolidated
Type of Derivatives	Income Statement	2023		2022		2021
Cross currency swaps and interest rate swaps	Market value gain (loss) on financial instruments	Ps.	141	Ps.	(2,270)	Ps.	80

Disclosure of Sensitivity Analysis of Market Risks Management

The following disclosures provide a sensitivity analysis of the market risks management considered to be reasonably possible at the end of the reporting period based on a stress test of the exchange rates according to an annualized volatility estimated with historic prices obtained for the underlying asset over a period, in the cases of derivative financial instruments related to foreign currency risk, which the Company is exposed to as it relates to in its existing hedging strategy:



	Change in
Foreign Currency Risk	Exchange Rate	Effect on Equity
2023
FEMSA (1)	+11% MXN/USD	Ps.	9
	‑11% MXN/USD		(9)
	+7% CHF/EUR		78
	‑7% CHF/EUR		(78)
	+7% EUR/USD		(6)
	‑7% EUR/USD		6
Coca-Cola FEMSA	+11% MXN/USD		465
	‑11% MXN/USD		(465)
	+12% BRL/USD		521
	‑12% BRL/USD		(521)
	+16% COP/USD		225
	‑16% COP/USD		(225)



	Change in
Foreign Currency Risk	Exchange Rate	Effect on Equity
	+120% ARS/USD		685
	‑120% ARS/USD		(685)
	+5% UYU/USD		20
	‑5% UYU/USD		(20)
	+7% CRC/USD		15
	-7% CRC/USD		(15)

2022
FEMSA (1)	+10% MXN/USD	Ps.	6
	‑10% MXN/USD		(6)
	+10% MXN/EUR		1
	‑10% MXN/EUR		(1)
	+7% CHF/EUR		44
	‑7% CHF/EUR		(44)
Coca-Cola FEMSA	+10% MXN/USD		512
	‑10% MXN/USD		(512)
	+18% BRL/USD		550
	‑18% BRL/USD		(550)
	+7% UYU/USD		25
	‑7% UYU/USD		(25)
	+17% COP/USD		112
	‑17% COP/USD		(112)
	+3% ARS/USD		10
	‑3% ARS/USD		(10)
	+7% CRC/USD		24
	-7% CRC/USD		(24)

2021
FEMSA (1)	+11% MXN/USD	Ps.	4
	‑11% MXN/USD		(4)
	+16% BRL/USD		37
	‑16% BRL/USD		(37)
Coca-Cola FEMSA	+11% MXN/USD		298
	‑11% MXN/USD		(298)
	+16% BRL/USD		284
	‑16% BRL/USD		(284)
	+4% UYU/USD		7
	‑4% UYU/USD		(7)
	+11% COP/USD		81
	‑11% COP/USD		(81)
	+1% ARS/USD		3
	‑1% ARS/USD		(3)
	+3% CRC/USD		10
	‑3% CRC/USD		(10)

(1)Does not include Coca-Cola FEMSA



	Change in
Cross Currency Swaps (1)	Exchange Rate	Effect on Equity		Effect on Profit or Loss
2023
FEMSA (2)	+14% CLP/USD	Ps.	—	Ps.	678
	‑14% CLP/USD		—		(678)
	+11% MXN/USD		—		1,796
	‑11% MXN/USD		—		(1,796)
	+16% COP/USD		—		425
	‑16% COP/USD		—		(425)
	+12% BRL/USD		—		34
	‑12% BRL/USD		—		(34)
	+8% EUR/USD		—		742
	‑8% EUR/USD		—		(742)
Coca-Cola FEMSA	+11% MXN/USD		1,314		—
	‑11% MXN/USD		(1,314)		—
	+12% BRL/USD		1,683		—
	‑12% BRL/USD		(1,683)		—

2022
FEMSA (2)	+21% CLP/USD	Ps.	—	Ps.	966
	‑21% CLP/USD		—		(996)
	+10% MXN/USD		—		2,647
	‑10% MXN/USD		—		(2,647)
	+21% COP/USD		—		354
	‑21% COP/USD		—		(354)
	+18% USD/BRL		—		18
	‑18% USD/BRL		—		(18)
	+10% EUR/USD		—		1,315
	‑10% EUR/USD		—		(1,315)
	+10% EUR/MXN		—		902
	‑10% EUR/MXN		—		(902)
Coca-Cola FEMSA	+10% MXN/USD		1,220		—
	‑10% MXN/USD		(1,220)		—
	+18% BRL/USD		2,893		—
	‑18% BRL/USD		(2,893)		—

2021
FEMSA (2)	+13% CLP/USD	Ps.	—	Ps.	552
	‑13% CLP/USD		—		(552)
	+11% MXN/USD		—		3,404
	‑11% MXN/USD		—		(3,404)
	+11% COP/USD		—		235
	‑11% COP/USD		—		(235)
	+15% MXN/BRL		—		123
	‑15% MXN/BRL		—		(123)
	+6% EUR/USD		—		1,049
	‑6% EUR/USD		—		(1,049)
Coca-Cola FEMSA	+11% MXN/USD		1,645		—
	‑11% MXN/USD		(1,645)		—


+16% BRL/USD	2,300	—
‑16% BRL/USD	(2,300)	—

(1)Includes the sensitivity analysis effects of all derivative financial instruments related to foreign exchange risk.

(2)Does not include Coca-Cola FEMSA.

Change in

Net Cash in Foreign Currency

Exchange Rate

Effect on Profit or Loss

2023

FEMSA (1)

+11% EUR/ +11 % USD

Ps.

14,617

‑11% EUR/ -11 % USD

(14,617)

Coca-Cola FEMSA

+11% USD

1,797

‑11% USD

(1,797)

2022

FEMSA (1)

+10% EUR/ +10 % USD

Ps.

1,779

‑10% EUR/ -10 % USD

(1,779)

Coca-Cola FEMSA

+10% USD

2,282

‑10% USD

(2,282)

2021

FEMSA (1)

+10% EUR/ +11 % USD

Ps.

4,931

‑10% EUR/ -11 % USD

(4,931)

Coca-Cola FEMSA

+11% USD

3,200

‑11% USD

(3,200)

(1)Does not include Coca-Cola FEMSA.



	Change in
Commodity Price Contracts	U.S.$ Rate		Effect on Equity
2023
Coca-Cola FEMSA	Sugar -29	%	Ps.	(765)
	Alumimum -22	%	Ps.	(2,812)

2022
Coca-Cola FEMSA	Sugar -22	%	Ps.	(333)
	Alumimum -35	%	Ps.	(4,520)

2021
Coca-Cola FEMSA	Sugar -28	%	Ps.	(714)
	Aluminum -24	%	Ps.	(39)

Summary of Sensitivity Analysis of Interest Rate Risks Management

The following disclosures provide a sensitivity analysis of the interest rate risks management considered to be reasonably possible at the end of the reporting period, which the Company is exposed to as it relates to its fixed and floating rate borrowings, which it considers in its existing hedging strategy:

Change in

Interest Rate Swap (1)

Bps.

Effect on Equity

2023

FEMSA (2)

(100 Bps.)

Ps.

(9)

2022

FEMSA (2)

(100 Bps.)

Ps.

(90)

2021

FEMSA (2)

(100 Bps.)

Ps.

(212)

(1)The sensitivity analysis effects include all subsidiaries of the Company.

(2)Does not include Coca-Cola FEMSA.



Interest Effect of Unhedged Portion Bank Loans	2023		2022		2021
Change in interest rate		+100 Bps.		+100 Bps.		+100 Bps.
Effect on profit loss	Ps.	(250)	Ps.	(249)	Ps.	(627)

Summary of Maturity Analysis for Non-derivative and Derivative Financial Liabilities

The following table reflects all contractually fixed pay-offs for settlement, repayments and interest resulting from recognized financial liabilities. It includes expected net cash outflows from derivative financial liabilities that are in place as of December 31, 2023. Such expected net cash outflows are determined based on each particular settlement date of an instrument. The amounts disclosed are undiscounted net cash outflows for the respective upcoming fiscal years, based on the earliest date on which the Company could be required to pay. Cash outflows for financial liabilities (including interest and excluding lease liabilities) without fixed amount or timing are based on economic conditions (like interest rates and foreign exchange rates) existing on December 31, 2023.



	2024		2025		2026		2027		2028		2029 and thereafter		Total
Non-derivative financial liabilities:
Notes and bonds	Ps.	—	Ps.	1,728	Ps.	11,989	Ps.	9,321	Ps.	15,433	Ps.	88,010	Ps.	126,481
Loans from Banks		8,452		155		93		796		567		280		10,343
Derivative financial liabilities		(307)		45		(919)		(1,382)		89		(2,478)		(4,952)

Summary of Financial Instruments to Hedge Exposure to Foreign Exchange Rates and Interest Rates

As of December 31, 2023, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates are as follows:



	Maturity
	1‑6 months	6‑12 months		More than 12
Foreign exchange currency risk
Foreign exchange currency forward contracts
Net exposure	3,049	1,781		—
Average exchange rate MXN/USD	18.39	18.40		—
Net exposure	2,486	1,370		—
Average exchange rate BRL/USD	5.10	5.07		—
Net exposure	757	334		—
Average exchange rate COP/USD	4,436	4,316		—
Net exposure	150	—		—
Average exchange rate ARS/USD	668.06	—		—
Net exposure	344	163		—
Average exchange rate URY/USD	40.18	40.66		—
Net exposure	154	117		—
Average exchange rate CRC/USD	558.89	556.00		—
Net exposure	—	—		—
Average exchange rate ARS/MXN	—	—		—
Foreign exchange currency swap contracts
Net exposure	—	—		43,095
Average exchange rate MXN/USD	—	—		17.77
Net exposure	174	—		14,022
Average exchange rate BRL/USD	4.81	—		5.05
Net exposure	—	1,109		1,822
Average exchange rate COP/USD	—	3,601.94		3,743.16
Net exposure	—	286,246		2,082
Average exchange rate CLP/USD	—	870.50		764.40
Net exposure	—	—		10,939
Average exchange rate EUR/USD	—	—		1.09
Interest rate risk
Interest rate swaps
Net exposure	—	—		8,447
Interest rate average BRL	—	—		0.16	%
Net exposure	—	—		—
Interest rate average MXN	—	—		—
Net exposure	—	2		—
Interest rate average CLP	—	3.57	%	—
Net exposure	—	—		—
Interest rate average USD	—	—		—
Commodities risk
Aluminum	298	349		—
Average price (USD/Ton)	2,304	2,364		—
Sugar	1,703	890		745
Average price (USD cent/Lb)	22.43	22.18		22.62

As of December 31, 2022, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates are as follows:



	Maturity
	1‑6 months			6‑12 months		More than 12
Foreign exchange currency risk
Foreign exchange currency forward contracts
Net exposure	Ps.	3,405		Ps.	2,485	Ps.	2
Average exchange rate MXN/USD		20.71			20.88		24.33
Net exposure		1,857			746		—
Average exchange rate BRL/USD		5.34			5.55		—
Net exposure		407			207		—
Average exchange rate COP/USD		4,502			4,977		—
Net exposure		437			—		—
Average exchange rate ARS/USD		231.40			—		—
Net exposure		299			139		—
Average exchange rate URY/USD		42.51			42.74		—
Net exposure		332			182		—
Average exchange rate CRC/USD		686.50			664.50		—
Net exposure		293			—		—
Average exchange rate ARS/MXN		10.57			—		—
Foreign exchange currency swap contracts
Net exposure		12,670			1,743		29,324
Average exchange rate MXN/USD		12.67			19.00		18.11
Net exposure		—			9,294		6,874
Average exchange rate BRL/USD		—			4.00		5.28
Net exposure		345			250		2,313
Average exchange rate COP/USD		3,926			2,333.06		3,510.06
Net exposure		3,306			—		1,225
Average exchange rate CLP/USD		774.49			—		677
Net exposure		—			—		22,130
Average exchange rate EUR/USD		—			—		0.91
Interest rate risk
Interest rate swaps
Net exposure		—			—		9,681
Interest rate average BRL		—			—		0.16	%
Net exposure		—			—		11,403
Interest rate average MXN		—			—		7.17	%
Net exposure		271			—		—
Interest rate average CLP		5.79	%		—		—
Net exposure		—			—		3
Interest rate average USD		—			—		3.57	%
Commodities risk
Aluminum		294			368		—
Average price (USD/Ton)		2,483			2,480		—



	Maturity
	1‑6 months		6‑12 months		More than 12
Sugar		1,058		631		468
Average price (USD cent/Lb)		17.62		17.08		17.14

Reconciliation Per Category of Equity Components and Analysis of OCI Components, Net of Tax Generated by Cash Flow Hedges

As of December 31, 2023, a reconciliation per category of equity components and an analysis of OCI components, net of tax; generated by the cash flow hedges were as follows:



	Hedging
	reserve
Balances at beginning of the period	Ps.	1,881
Cash flows hedges
Fair value changes:
Foreign exchange currency risk – Purchase of stock		(1,950)
Foreign exchange currency risk – Other stock		(360)
Interest rate risk		64
Commodity price contracts – Purchase of stock		145
The amounts reclassified to profit and loss:
Foreign exchange currency risk – Other stock		2,671
Interest rate risk		201
The amounts included in non-financial costs:
Foreign exchange currency risk – Purchase of stock		1,806
Commodity price contracts – Purchase of stock		(363)
Taxes due to changes in reserves during the period		(3,140)
Balances at the end of the period	Ps.	956

Schedule of Reconciliation of Each Component of Equity and Analysis of Other Comprehensive Income

Set out below is the reconciliation of each component of equity and the analysis of other comprehensive income:



	Foreign currency option		Cross-currency swaps		Interest rate swaps		Commodity price contracts		Equity holders of the parent		Non-controlling interest		Total
As at January 1, 2022	Ps.	(124)	Ps.	3,403	Ps.	(34)	Ps.	141	Ps.	3,385	Ps.	736	Ps.	4,121
Financial instruments – purchases		(223)		(2,080)		—		(23)		(2,326)		(269)		(2,595)
Change in fair value of financial instruments recognized in OCI		(211)		(3,231)		199		133		(3,110)		(1,500)		(4,610)
Amount reclassified from OCI to profit or loss		303		2,674		—		(289)		2,688		(79)		2,609
Foreign currency revaluation of the net foreign operations		—		513		—		—		513		670		1,183
Effects of changes in foreign exchange rates		2		1		—		1		4		6		10
Tax effect		30		769		(54)		59		804		359		1,163
As at December 31, 2022	Ps.	(223)	Ps.	2,049	Ps.	111	Ps.	22	Ps.	1,958	Ps.	(77)	Ps.	1,881
Financial instruments – purchases		(350)		50		—		(59)		(359)		(608)		(967)
Change in fair value of financial instruments recognized in OCI		(595)		(1,514)		64		128		(1,917)		(2,078)		(3,995)
Amount reclassified from OCI to profit or loss		848		2,698		201		(171)		3,576		746		4,322
Foreign currency revaluation of the net foreign operations		—		1,277		—		—		1,277		1,577		2,854
Effects of changes in foreign exchange rates		2		—		—		(1)		1		—		1
Tax effect		45		(3,335)		(19)		33		(3,276)		136		(3,140)
As at December 31, 2023	Ps.	(273)	Ps.	1,224	Ps.	357	Ps.	(48)	Ps.	1,260	Ps.	(304)	Ps.	956

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Intangible assets other than goodwill [abstract]

Summary of Reconciliation of Changes in Intangible Assets and Goodwill



	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships (1)		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
Cost as of January 1, 2021	Ps.	76,649	Ps.	52,820	Ps.	8,647	Ps.	1,376	Ps.	139,492	Ps.	10,873	Ps.	9,850	Ps.	1,897	Ps.	2,350	Ps.	24,970	Ps.	164,462
Additions		2		—		—		127		129		1,140		—		145		1,103		2,388		2,517
Acquisitions from business combinations (see Note 4)		—		7,940		65		—		8,005		—		873		—		1		874		8,879
Transfer of completed development systems		—		—		—		—		—		262		—		—		(262)		—		—
Disposals		—		(12)		—		(10)		(22)		(973)		—		(36)		(102)		(1,111)		(1,133)
Effect of movements in exchange rates		(1,255)		(2,303)		(584)		(80)		(4,222)		(641)		77		—		(682)		(1,246)		(5,468)
Changes in value on the recognition of inflation effects		—		—		—		—		—		—		—		—		62		62		62
Impairment		—		(1,094)		(55)		—		(1,149)		—		—		—		—		—		(1,149)
Cost as of December 31, 2021	Ps.	75,396	Ps.	57,351	Ps.	8,073	Ps.	1,413	Ps.	142,233	Ps.	10,661	Ps.	10,800	Ps.	2,006	Ps.	2,470	Ps.	25,937	Ps.	168,170

(1)Includes customer relationships related to the acquisitions through Envoy Solutions disclosed in Note 4.



	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships (1)		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
Cost as of January 1, 2022	Ps.	75,396	Ps.	57,351	Ps.	8,073	Ps.	1,413	Ps.	142,233	Ps.	10,661	Ps.	10,800	Ps.	2,006	Ps.	2,470	Ps.	25,937	Ps.	168,170
Additions		—		22		—		12		34		672		—		50		1,476		2,198		2,232
Acquisitions from business combinations (see Note 4)		1,116		33,715		1,077		—		35,908		373		—		—		1,054		1,427		37,335
Changes in fair value of past acquisitions		—		(2,557)		—		—		(2,557)		—		2,955		—		—		2,955		398
Internal developments		—		—		—		—		—		10		—		—		—		10		10
Transfer of completed development systems		—		—		—		—		—		65		—		(50)		(15)		—		—
Disposals		—		—		—		(2)		(2)		(891)		(3)		(29)		—		(923)		(925)
Effect of movements in exchange rates		(756)		(2,057)		(106)		(158)		(3,077)		15		(264)		—		466		217		(2,860)
Changes in value on the recognition of inflation effects		—		—		—		—		—		—		—		—		80		80		80
Impairment		—		(770)		—		—		(770)		—		—		—		—		—		(770)
Cost as of December 31, 2022	Ps.	75,756	Ps.	85,704	Ps.	9,044	Ps.	1,265	Ps.	171,769	Ps.	10,905	Ps.	13,488	Ps.	1,977	Ps.	5,531	Ps.	31,901	Ps.	203,670

(1)Includes customer relationships related to the acquisitions through Envoy Solutions disclosed in Note 4.



	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
Cost as of January 1, 2023	Ps.	75,756	Ps.	85,704	Ps.	9,044	Ps.	1,265	Ps.	171,769	Ps.	10,905	Ps.	13,488	Ps.	1,977	Ps.	5,531	Ps.	31,901	Ps.	203,670
Additions		—		—		—		4		4		1,966		—		261		1,174		3,401		3,405
Acquisitions from business combinations (see Note 4)		—		3,918		26		—		3,944		145		188		—		25		358		4,302
Changes in fair value of past acquisitions		—		(12,273)		7,683		—		(4,590)		—		5,162		—		(117)		5,045		455
Business disposals		(12)		(25,036)		(3,009)		(56)		(28,113)		(482)		(17,788)		—		(29)		(18,299)		(46,412)
Transfer of completed development systems		(224)		—		—		227		3		292		—		—		(295)		(3)		—
Disposals		—		(2)		—		(2)		(4)		(197)		—		(161)		(235)		(593)		(597)
Effect of movements in exchange rates		(1,568)		(3,744)		(810)		45		(6,077)		(424)		(814)		—		(683)		(1,921)		(7,998)
Changes in value on the recognition of inflation effects		—		—		—		—		—		—		—		—		70		70		70
Impairment		—		(4,995)		—		—		(4,995)		—		—		—		—		—		(4,995)
Business combinations from disposals		—		1,950		—		—		1,950		—		—		—		—		—		1,950
Cost as of December 31, 2023	Ps.	73,952	Ps.	45,522	Ps.	12,934	Ps.	1,483	Ps.	133,891	Ps.	12,205	Ps.	236	Ps.	2,077	Ps.	5,441	Ps.	19,959	Ps.	153,850



Amortization and Impairment Losses	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
Amortization as of January 1 2021	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(6,469)	Ps.	(827)	Ps.	(736)	Ps.	(929)	Ps.	(8,961)	Ps.	(8,961)
Amortization expense		—		—		—		—		—		(1,473)		(791)		(102)		(328)		(2,694)		(2,694)
Disposals		—		—		—		—		—		789		—		—		101		890		890
Effect of movements in exchange rates		—		—		—		—		—		792		10		—		(15)		787		787
Changes in value on the recognition of inflation effects		—		—		—		—		—		(53)		—		—		(1)		(54)		(54)
Amortization as of December 31 2021	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(6,414)	Ps.	(1,608)	Ps.	(838)	Ps.	(1,172)	Ps.	(10,032)	Ps.	(10,032)
Amortization as of January 1 2022	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(6,414)	Ps.	(1,608)	Ps.	(838)	Ps.	(1,172)	Ps.	(10,032)	Ps.	(10,032)
Amortization expense		—		—		—		—		—		(1,312)		(915)		(104)		(365)		(2,696)		(2,696)
Disposals		—		—		—		—		—		992		157		3		—		1,152		1,152
Effect of movements in exchange rates		—		—		—		—		—		(193)		(786)		—		(248)		(1,227)		(1,227)
Changes in value on the recognition of inflation effects		—		—		—		—		—		(94)		—		—		(1)		(95)		(95)
Amortization as of December 31 2022	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(7,021)	Ps.	(3,152)	Ps.	(939)	Ps.	(1,786)	Ps.	(12,898)	Ps.	(12,898)
Amortization as of January 1 2023	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(7,021)	Ps.	(3,152)	Ps.	(939)	Ps.	(1,786)	Ps.	(12,898)	Ps.	(12,898)
Amortization expense		—		—		—		—		—		(1,519)		(1,113)		(116)		(547)		(3,295)		(3,295)
Disposals		—		—		—		—		—		161		—		—		209		370		370
Business disposals		—		—		—		—		—		276		4,010		—		51		4,337		4,337
Impairment		—		—		(36)		—		(36)		—		—		—		—		—		(36)
Effect of movements in exchange rates		—		—		—		—		—		578		188		15		187		968		968
Changes in value on the recognition of inflation effects		—		—		—		—		—		(78)		—		—		—		(78)		(78)
Amortization as of December 31 2023	Ps.	—	Ps.	—	Ps.	(36)	Ps.	—	Ps.	(36)	Ps.	(7,603)	Ps.	(67)	Ps.	(1,040)	Ps.	(1,886)	Ps.	(10,596)	Ps.	(10,632)



Carrying Amount	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
As of December 31 2021	Ps.	75,396	Ps.	57,351	Ps.	8,073	Ps.	1,413	Ps.	142,233	Ps.	4,247	Ps.	9,192	Ps.	1,168	Ps.	1,298	Ps.	15,905	Ps.	158,138
As of December 31 2022	Ps.	75,756	Ps.	85,704	Ps.	9,044	Ps.	1,265	Ps.	171,769	Ps.	3,884	Ps.	10,336	Ps.	1,038	Ps.	3,745	Ps.	19,003	Ps.	190,772
As of December 31 2023	Ps.	73,952	Ps.	45,522	Ps.	12,898	Ps.	1,483	Ps.	133,855	Ps.	4,602	Ps.	169	Ps.	1,037	Ps.	3,555	Ps.	9,363	Ps.	143,218

Schedule of Allocation of Amortization Expenses

For the years ended December 31, 2023, 2022 and 2021, allocation for amortization expense is as follows:



	2023		2022		2021

Cost of goods sold	Ps.	1,229	Ps.	207	Ps.	254
Administrative expenses		1,257		1,771		1,630
Selling expenses		809		718		810
	Ps.	3,295	Ps.	2,696	Ps.	2,694

Summary of Average Remaining Period for Company's Intangible Assets Subject to Amortization

The average remaining period for the Company’s intangible assets that are subject to amortization is as follows:



						Years
Technology Costs and Management Systems						3 - 10
Customer Relationships						6 - 25
Alcohol Licenses						12

Disclosure of Aggregate Carrying Amounts of Goodwill and Distribution Rights Allocated to Each CGU

The aggregate carrying amounts of goodwill, distribution rights and other indefinite lived intangible assets allocated to each CGU are as follows:



	December 31, 2023		December 31, 2022
Mexico	Ps.	56,662	Ps.	56,967
Guatemala		1,684		1,691
Nicaragua		404		404
Costa Rica		1,418		1,418
Panama		1,169		1,170
Colombia		3,635		3,583
Brazil		30,018		31,883
Argentina		245		426
Uruguay		2,381		2,512
Total	Ps.	97,616	Ps.	100,054

Details of Key Assumptions by CGU for Impairment Test

The key assumptions by CGU for impairment testing as of December 31, 2023 were as follows:



CGU	Pre-tax WACC		Post-tax WACC		Expected Annual Long-Term Inflation		Expected Volume Growth Rates
					2024‑2028		2024‑2028
Mexico	9.0	%	6.3	%	4.3	%	4.4	%
Brazil	10.1	%	6.8	%	3.8	%	3.8	%
Colombia	12.2	%	7.7	%	4.2	%	6.8	%
Argentina	20.8	%	16.1	%	70.8	%	4.8	%
Guatemala	9.3	%	7.3	%	4.0	%	14.9	%
Costa Rica	11.4	%	8.8	%	2.9	%	6.6	%
Nicaragua	23.3	%	16.4	%	2.6	%	6.5	%
Panama	11.6	%	8.6	%	2.0	%	7.8	%
Uruguay	9.7	%	7.4	%	5.7	%	3.7	%

The key assumptions by CGU for impairment testing as of December 31, 2022 were as follows:



	Pre-tax WACC		Post-tax WACC		Expected Annual Long-Term Inflation		Expected Volume Growth Rates
CGU					2023‑2027		2023‑2027
Mexico	9.5	%	6.5	%	4.3	%	2.4	%
Brazil	11.6	%	7.2	%	3.9	%	4.3	%
Colombia	13.9	%	8.0	%	3.9	%	9.5	%
Argentina	27.8	%	19.8	%	68.0	%	4.5	%
Guatemala	10.2	%	7.6	%	4.4	%	14.8	%
Costa Rica	15.4	%	10.2	%	3.3	%	6.4	%
Nicaragua	24.6	%	11.8	%	4.1	%	6.0	%
Panama	11.0	%	8.3	%	2.2	%	4.0	%
Uruguay	10.2	%	7.4	%	5.7	%	4.0	%

The key assumptions by the significant CGU (Chile) in the Health Division (Mexico, Colombia and Ecuador are insignificant) for impairment test as of December 31, 2023 was as follows:



CGU	Pre-tax WACC		Post-tax WACC		Expected Annual Long-Term Inflation 2024‑2028		Expected Sales Growth Rates 2024‑2028
Chile	7.3	%	6.4	%	2.6	%	0.2	%

The key assumptions by the significant CGU in the Health Division for impairment test as of December 31, 2022 was as follows:



CGU	Pre-tax WACC		Post-tax WACC		Expected Annual Long-Term Inflation 2023‑2027		Expected Sales Growth Rates 2023‑2027
Chile	9.3	%	6.5	%	4.9	%	0.6	%

Disclosure of Detailed Information About Sensitivity to Changes in Assumptions

CGU

Change in WACC

Change in Volume Growth CAGR (1)

Effect on Valuation

Mexico

+0.6

p.p.

-1.0

Passes by 3.2x

Brazil

+0.8

p.p.

-1.0

Passes by 0.9x

Colombia

+0.9

p.p.

-1.0

Passes by 1.1x

Argentina

+3.3

p.p.

-1.0

Passes by 0.9x

Guatemala

+0.7

p.p.

-1.0

Passes by 5.4x

Costa Rica

+0.8

p.p.

-1.0

Passes by 4x

Nicaragua

+3.3

p.p.

-1.0

Passes by 0.8x

Panama

+0.7

p.p.

-1.0

Passes by 2.2x

Uruguay

+0.3

p.p.

-1.0

Passes by 2x

(1)Compound Annual Growth Rate (“CAGR”).

CGU

Change in WACC

Change in Sales Growth CAGR

Effect on Valuation

Chile

0.7

p.p.

(0.5)

Passes by 1.85x

Balances and Transactions in Foreign Currencies - Balances (Details) - MXN ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of Balances and Transactions in Foreign Currencies [line items]
Short-Term Assets	$ 132,500	$ 40,637
Long-Term Assets	2,206	2,336
Short-Term Liabilities	6,038	11,455
Long-Term Liabilities	91,373	136,744
U.S. dollars
Disclosure of Balances and Transactions in Foreign Currencies [line items]
Short-Term Assets	128,143	40,557
Long-Term Assets	895	978
Short-Term Liabilities	5,534	11,049
Long-Term Liabilities	71,969	111,962
Euros
Disclosure of Balances and Transactions in Foreign Currencies [line items]
Short-Term Assets	4,311	34
Long-Term Assets	0	0
Short-Term Liabilities	498	400
Long-Term Liabilities	19,404	24,782
Other currencies
Disclosure of Balances and Transactions in Foreign Currencies [line items]
Short-Term Assets	46	46
Long-Term Assets	1,311	1,358
Short-Term Liabilities	6	6
Long-Term Liabilities	$ 0	$ 0

Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2023

Employee Benefits [Abstract]

Summary of Actuarial Assumptions

Actuarial calculations for pension and retirement plans, seniority premiums and post-retirement medical benefits, as well as the associated cost for the period, were determined using the following long-term assumptions for Mexico:



Mexico	December 31, 2023		December 31, 2022		December 31, 2021
Financial:
Discount rate used to calculate the defined benefit obligation	10.20	%	9.90	%	8.00	%
Salary increase	4.75	%	4.75	%	4.50	%
Future pension increases	3.75	%	3.75	%	3.50	%
Healthcare cost increase rate	6.00	%	6.00	%	5.10	%
Biometric:
Mortality (1)	EMSSA 2009		EMSSA 2009		EMSSA 2009
Disability (2)	IMSS 97		IMSS‑97		IMSS 97
Normal retirement age	60 years		60 years		60 years
Employee turnover table (3)	BMAR 2007		BMAR 2007		BMAR 2007

Measurement date December:

(1)EMSSA. Mexican Experience of social security.

(2)IMSS. Mexican Experience of Instituto Mexicano del Seguro Social.

(3)BMAR. Actuary experience.

Summary of Defined Benefit Plan Expected Future Benefit Payments

Based on these assumptions, the amounts of benefits expected to be paid out in the following years are as follows:



	Pension and Retirement Plans		Seniority Premiums		Post-Retirement Medical Services		Total
2024	Ps.	701	Ps.	359	Ps.	18	Ps.	1,078
2025		400		262		19		681
2026		402		242		20		664
2027		544		234		22		800
2028		549		226		24		799
2029 to 2033		3,888		1,157		155		5,200

Summary of Balances of the Liabilities for Employee Benefits



	December 31, 2023		December 31, 2022
Pension and Retirement Plans:
Defined benefit obligation	Ps.	15,560	Ps.	15,113
Pension plan assets at fair value		(14,061)		(14,324)
Effect due to asset ceiling		3,098		3,851
Discontinued operations		(195)		—
Net defined benefit liability	Ps.	4,402	Ps.	4,640
Seniority Premiums:
Defined benefit obligation	Ps.	2,416	Ps.	2,068
Seniority premium plan assets at fair value		(123)		(128)
Discontinued operations		(235)		—
Net defined benefit liability	Ps.	2,058	Ps.	1,940
Postretirement Medical Services:
Defined benefit obligation	Ps.	604	Ps.	556
Medical services plan assets at fair value		(95)		(88)
Discontinued operations		(49)		—
Net defined benefit liability	Ps.	460	Ps.	468
Total Employee Benefits	Ps.	6,920	Ps.	7,048

Summary of Trust Assets

Plan assets consist of fixed and variable return financial instruments recorded at fair value (Level 1), which are invested as follows:



	2023		2022
Fixed return:
Traded securities	4	%	2	%
Bank instruments	16	%	13	%
Federal government instruments of the respective countries	47	%	52	%
Variable return:
Publicly traded shares	33	%	33	%
	100	%	100	%

Summary of Amounts and Types of Securities in Related Parties Included in Portfolio Fund

In Mexico, the amounts and types of securities in related parties included in the portfolio fund are as follows:



	December 31, 2023		December 31, 2022
Debt:
BBVA Bancomer, S.A de C.V.	Ps.	46	Ps.	9
Grupo Industrial Bimbo, S.A.B. de C. V.		18		5

Equity:
Grupo Industrial Bimbo, S.A.B. de C. V.		1		—

Summary of Amount Recognized in Consolidated Income Statements and Consolidated Statements of Comprehensive Income



	Consolidated Income Statement								AOCI (1)
December 31, 2023	Current Service Cost		Past Service Cost		Gain or Loss on Settlement or Curtailment		Net Interest on the Net Defined Benefit Liability		Remeasurements of the Net Defined Benefit Liability
Pension and retirement plans	Ps.	489	Ps.	288	Ps.	(243)	Ps.	367	Ps.	1,311
Seniority premiums		345		21		(21)		178		117
Postretirement medical services		32		13		(14)		45		(29)
Total	Ps.	866	Ps.	322	Ps.	(278)	Ps.	590	Ps.	1,399
December 31, 2022
Pension and retirement plans	Ps.	534	Ps.	189	Ps.	(220)	Ps.	313	Ps.	1,686
Seniority premiums		328		21		(27)		150		38
Postretirement medical services		32		26		(29)		45		(35)
Total	Ps.	894	Ps.	236	Ps.	(276)	Ps.	508	Ps.	1,689
December 31, 2021
Pension and retirement plans	Ps.	390	Ps.	39	Ps.	(55)	Ps.	319	Ps.	1,757
Seniority premiums		290		1		(3)		114		853
Postretirement medical services		44		2		(24)		52		202
Total	Ps.	724	Ps.	42	Ps.	(82)	Ps.	485	Ps.	2,812

(1)Amounts accumulated in other comprehensive income as of the end of the period.

Summary of Remeasurements of Net Defined Benefit Liability Recognized in Accumulated Other Comprehensive Income

Remeasurements of the net defined benefit liability recognized in accumulated other comprehensive income are as follows:



	December 31, 2023		December 31, 2022		December 31, 2021
Amount accumulated in other comprehensive income as of the beginning of the period, net of tax	Ps.	1,661	Ps.	2,078	Ps.	2,099

Actuarial (gains) losses arising from exchange rates		(100)		(77)		11
Remeasurements during the year, net of tax		314		211		744
Actuarial (gains) and losses arising from changes in financial assumptions		223		(1,848)		(776)
Actuarial (gains) and losses arising from changes in demographic assumptions		(4)		(71)		—
Business Acquisitions		—		336		—
Return on plan assets		(92)		713		—
Changes in the effect of limiting a net defined benefit asset to the asset ceiling		(546)		319		—
Effect of settlement		(533)		—		—
Amount accumulated in other comprehensive income as of the end of the period, net of tax	Ps.	923	Ps.	1,661	Ps.	2,078

Summary of Changes in the Balance of the Defined Benefit Obligation for Post-employment



	December 31, 2023		December 31, 2022		December 31, 2021
Pension and Retirement Plans:
Initial balance	Ps.	15,113	Ps.	8,015	Ps.	7,679
Current service cost		489		534		390
Past service cost		288		163		2,881
Interest expense		820		687		527
Gain on settlement		(243)		(280)		(2,884)
Remeasurements of the net defined benefit obligation		531		(2,073)		(42)
Foreign exchange (gain) or loss		(48)		(79)		28
Benefits paid		(1,504)		(1,146)		(564)
Business Acquisitions		—		9,189		—
Employees contributions		119		103		—
Plan amendments		(4)		—		—
Discontinued operations		(195)		—		—
Ending balance	Ps.	15,366	Ps.	15,113	Ps.	8,015
Seniority Premiums:
Initial balance	Ps.	2,068	Ps.	2,108	Ps.	1,763
Current service cost		345		328		290
Past service cost		21		7		836
Interest expense		191		160		124
Gain on settlement		(21)		(13)		(839)
Remeasurements of the net defined benefit obligation		66		(342)		112
Benefits paid		(254)		(180)		(178)
Discontinued operations		(235)		—		—
Ending balance	Ps.	2,181	Ps.	2,068	Ps.	2,108
Postretirement Medical Services:
Initial balance	Ps.	556	Ps.	647	Ps.	812
Current service cost		32		32		44
Past service cost		13		26		236
Interest expense		54		52		57
Gain on settlement		(14)		(29)		(271)
Remeasurements of the net defined benefit obligation		5		(136)		(191)
Benefits paid		(43)		(36)		(40)
Discontinued operations		(49)		—		—
Ending balance	Ps.	554	Ps.	556	Ps.	647

Summary of Changes in the Balance of Plan Assets



	December 31, 2023		December 31, 2022		December 31, 2021
Total Plan Assets:
Initial balance	Ps.	14,540	Ps.	3,170	Ps.	3,001
Actual return on trust assets		522		(695)		152
Foreign exchange loss		(150)		60		—
Life annuities		6		(3)		17
Business Acquisitions		—		12,417		—
Benefits paid		(731)		(533)		—
Plan amendments		(126)		(101)		—
Employees´contributions		102		103		—
Employer´s contributions		130		133		—
Administration cost		(14)		(11)		—
Ending balance	Ps.	14,279	Ps.	14,540	Ps.	3,170

Summary of Amount of Defined Benefit Plan Expense and OCI Impact in Absolute Terms of Variation on Net Defined Benefit Liability

The following table presents the amount of defined benefit plan expense and OCI impact in absolute terms of a variation of 1% in the assumptions on the net defined benefit liability associated with the Company’s defined benefit plans. The sensitivity of this 1% on the significant actuarial assumptions is based on projected long-term discount rates for Mexico and a yield curve projection of long-term Mexican government bonds – CETES:

ctualiz

+1%:

Consolidated Income Statement

OCI(1)

(Gain) or

Effect of Net

Remeasurements

Discount rate used to calculate the defined benefit

Loss on

Interest on the Net

of the Net Defined

obligation and the net interest on the net defined

Current

Settlement or

Defined Benefit

Benefit Liability

benefit liability

Service Cost

Curtailment

Liability

Pension and retirement plans

Ps.

644

Ps.

(199)

Ps.

250

Ps.

1,289

Seniority premiums

346

(17)

164

108

Postretirement medical services

(10)

(20)

Total

Ps.

1,027

Ps.

(226)

Ps.

451

Ps.

1,377

Expected salary increase

Pension and retirement plans

Ps.

834

Ps.

(227)

Ps.

413

Ps.

1,358

Seniority premiums

382

(20)

189

137

Total

Ps.

1,216

Ps.

(247)

Ps.

602

Ps.

1,495

Assumed rate of increase in healthcare costs

Postretirement medical services

Ps.

(14)

Ps.

(39)



-1%:							OCI(1)
			(Gain) or		Effect of Net		Remeasurements
Discount rate used to calculate the defined benefit			Loss on		Interest on the Net		of the Net Defined
obligation and the net interest on the net defined	Current		Settlement or		Defined Benefit		Benefit Liability
benefit liability	Service Cost		Curtailment		Liability
Pension and retirement plans	Ps.	830	Ps.	(232)	Ps.	468	Ps.	1,384
Seniority premiums		387		(19)		194		128
Postretirement medical services		52		(14)		52		(39)
Total	Ps.	1,269	Ps.	(265)	Ps.	714	Ps.	1,473

Expected salary increase
Pension and retirement plans	Ps.	711	Ps.	(199)	Ps.	313	Ps.	1,327
Seniority premiums		346		(17)		166		102
Total	Ps.	1,057	Ps.	(216)	Ps.	479	Ps.	1,429

Assumed rate of increase in healthcare costs
Postretirement medical services	Ps.	36	Ps.	(9)	Ps.	37	Ps.	(20)

(1)Amounts accumulated in other comprehensive income as of the end of the period.

Summary of Employee Benefit Expenses Recognized in Consolidated Income Statements

For the years ended December 31, 2023, 2022 and 2021, employee benefits expenses recognized in the consolidated income statements as cost of goods sold, administrative and selling expenses are as follows:



	2023		2022		2021
Wages and salaries	Ps.	97,751	Ps.	83,433	Ps.	70,238
Social security costs		15,941		13,511		11,737
Employee profit sharing		2,419		2,598		2,035
Post-employment benefits		910		854		684
Share-based payments (Note 15)		943		866		854
	Ps.	117,964	Ps.	101,262	Ps.	85,548

Leases - Right-Of-Use Assets (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Leases

Right-of-use assets, beginning

$ 83,966

$ 56,994

22,630

10,686

Transfer (from)/to assets classified as held for sale

2,804

21,933

(7,339)

(6,097)

(1,541)

Remeasurements

9,090

6,722

Effects of changes in foreign exchange rates and restatement effects associated with hyperinflationary economies

(14,768)

(10,472)

(2,345)

(356)

Right-of-use assets, beginning

$ 5,204

87,941

83,966

Land and buildings

Leases

81,753

54,944

21,858

10,208

Transfer (from)/to assets classified as held for sale

2,774

21,414

(6,721)

(5,956)

(1,464)

Remeasurements

8,416

6,228

Effects of changes in foreign exchange rates and restatement effects associated with hyperinflationary economies

(13,889)

(9,366)

(2,184)

(211)

86,051

81,753

Right-of-use assets, beginning

Leases

2,213

2,050

772

478

Transfer (from)/to assets classified as held for sale

519

(618)

(141)

(77)

Remeasurements

674

494

Effects of changes in foreign exchange rates and restatement effects associated with hyperinflationary economies

(879)

(1,106)

(161)

(145)

1,890

$ 2,213

Leases

Summary of Dividends Declared and Paid

$ 2,827

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Equity (Tables)

12 Months Ended

Dec. 31, 2023

Equity [abstract]

Summary of Capital Stock

As of December 31, 2023, FEMSA’s capital stock is comprised as follows:



	“B” Units	“BD” Units	Total
Units	1,417,048,500	2,161,177,770	3,578,226,270
Shares:
Series “B”	7,085,242,500	2,161,177,770	9,246,420,270
Series “D”	—	8,644,711,080	8,644,711,080
Subseries “D-B”	—	4,322,355,540	4,322,355,540
Subseries “D-L”	—	4,322,355,540	4,322,355,540
Total shares	7,085,242,500	10,805,888,850	17,891,131,350

As of December 31, 2022, FEMSA’s capital stock is comprised as follows:



	“B” Units	“BD” Units	Total
Units	1,417,048,500	2,161,177,770	3,578,226,270
Shares:
Series “B”	7,085,242,500	2,161,177,770	9,246,420,270
Series “D”	—	8,644,711,080	8,644,711,080
Subseries “D-B”	—	4,322,355,540	4,322,355,540
Subseries “D-L”	—	4,322,355,540	4,322,355,540
Total shares	7,085,242,500	10,805,888,850	17,891,131,350

For the years ended December 31, 2023, 2022 and 2021 the dividends declared and paid by the Company and Coca-Cola FEMSA were as follows:



	2023		2022		2021
FEMSA	Ps.	12,247	Ps.	11,358	Ps.	7,687
Coca-Cola FEMSA (100% of dividend)		12,185		11,407		10,588

For the years ended December 31, 2023, 2022 and 2021 the dividends declared and paid per share by the Company are as follows:



Series of Shares	2023		2022		2021
“B”	Ps.	0.61070	Ps.	0.56600	Ps.	0.38333
“D”		0.76340		0.70850		0.47917

Bank Loans and Notes Payable

12 Months Ended

Dec. 31, 2023

Bank Loans and Notes Payable [Abstract]

Bank Loans and Notes Payable



		As of December 31, (1)
																			Carrying			Fair			Carrying
																			Value at			Value at			Value at
(in millions of Mexican pesos)	2024			2025			2026			2027			2028			2029 and Thereafter			December 31, 2023			December 31, 2023			December 31, 2022
Short-term debt:
Fixed-rate debt:
Euros
Bank loans	Ps.	15		Ps.	—		Ps.	—		Ps.	—		Ps.	—		Ps.	—		Ps.	15		Ps.	15			—
Interest rate		2.6	%		—	%		—	%		—	%		—	%		—	%		2.6	%		—			—	%
Argentine pesos
Bank loans		72			—			—			—			—			—			72			72		Ps.	—
Interest rate		130.0	%		—	%		—	%		—	%		—	%		—	%		130.0	%		—	%		—	%
Chilean pesos
Bank loans		633			—			—			—			—			—			633			633			1,072
Interest rate		9.6	%		—	%		—	%		—	%		—	%		—	%		9.6	%		—			12.3	%
Variable-rate debt:
Mexican pesos
Bank loans		979			—			—			—			—			—			979			978			790
Interest rate		13.3	%		—	%		—	%		—	%		—	%		—	%		13.3	%		—			12.5	%
Chilean pesos
Bank loans		754			—			—			—			—			—			754			754			—
Interest rate		9.2	%		—	%		—	%		—	%		—	%		—			9.2	%					—	%
Total short-term debt	Ps.	2,453		Ps.	—		Ps.	—		Ps.	—		Ps.	—		Ps.	—		Ps.	2,453		Ps.	2,452		Ps.	1,862

(1)All interest rates shown in this table are weighted average contractual annual rates.



		As of December 31, (1)

																			Carrying Value at December 31, 2023			Fair Value at December 31, 2023		Carrying Value at December 31, 2022⁽¹⁾
																2029 and Thereafter
(in millions of Mexican pesos)	2024			2025			2026			2027			2028
Long-term debt:
Fixed-rate debt:
Euro
Senior unsecured notes	Ps.	—		Ps.	—		Ps.	9,064		Ps.	—		Ps.	5,473		Ps.	4,451		Ps.	18,988		Ps.	18,088	Ps.	24,563
Interest rate		—	%		—	%		2.6	%		—	%		0.5	%		1.0	%		1.6	%		—		0.8	%
Promissory notes		616			—			—			168			—			280			1,064			1,064		2,448
Interest rate		1.1	%		—	%		—	%		2.1	%		—	%		2.4	%		1.3	%		—		1.4	%
Swiss franc		—
Promissory notes		463			—			—			—			—			—			463			463		482
Interest rate		0.8	%		—	%		—	%		—	%		—	%		—	%		0.8	%		—		0.8	%
U.S. dollars
Yankee bond (2)		—			—			—			—			—			36,352			36,352			33,719		41,429
Interest rate		—	%		—	%		—	%		—	%		—	%		3.1	%		3.1	%		—		3.1	%
Bank of NY (FEMSA USD 2023)		—			—			—			—			—			—			—			—		5,808
Interest rate (1)		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—		2.9	%
Bank of NY (FEMSA USD 2043)		—			—			—			—			—			7,121			7,121			6,379		13,405
Interest rate (1)		—	%		—	%		—	%		—	%		—	%		4.4	%		4.4	%		—		4.4	%
Bank of NY (FEMSA USD 2050)		—			—			—			—			—			26,162			26,162			19,917		48,170
Interest rate (1)		—	%		—	%		—	%		—	%		—	%		3.5	%		3.5	%		—		3.5	%
Bank loans		1,968			115			—			—			—			—			2,083			2,083		2,320
Interest rate		3.6	%		6.7	%		—	%		—	%		—	%		—	%		3.8	%		—		5.1	%
Mexican pesos
(CEBUR MXN L22-2L)		—			—			—			—			—			8,434			8,434			8,678		8,436
Interest rate (1)		—	%		—	%		—	%		—	%		—	%		9.7	%		9.7	%		—		9.7	%
Domestic senior notes		—			—			—			8,495			9,960			5,491			23,946			22,439		31,438
Interest rate		—	%		—			—			7.9	%		7.4	%		10.0	%		8.1	%		—		7.5	%
Bank loans		184			24			91			194			151			—			644			644		429
Interest rate		11.0	%		8.7	%		9.5	%		12.0	%		12.8	%		—	%		11.4	%		—		10.0	%
Brazilian reais
Bank loans		21			—			—			—			—			—			21			21		56
Interest rate		6.9	%		—	%		—	%		—	%		—	%		—	%		6.9	%		—		7.0	%
Chilean pesos
Bank loans		27			—			—			—			—			—			27			27		317
Interest rate		9.3	%		—	%		—	%		—	%		—	%		—	%		9.3	%		—		1.2	%
Uruguayan pesos
Bank loans		—			—			—			—			—			—			—			—		976
Interest rate		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—		6.3	%
Subtotal	Ps.	3,279		Ps.	139		Ps.	9,155		Ps.	8,857		Ps.	15,584		Ps.	88,291		Ps.	125,305		Ps.	113,522	Ps.	180,277

(1)All interest rates shown in this table are weighted average contractual annual rates.



		As of December 31, (1)

																			Carrying Value at December 31, 2023			Fair Value at December 31, 2023		Carrying Value at December 31, 2022⁽¹⁾
																2029 and Thereafter
(in millions of Mexican pesos)	2024			2025			2026			2027			2028
Variable-rate debt:
Euro
Promissory notes	Ps.	1,700		Ps.	—		Ps.	—		Ps.	—		Ps.	—		Ps.	—		Ps.	1,700		Ps.	1,700	Ps.	2,560
Interest rate		4.8	%		—	%		—	%		—	%		—	%		—	%		4.8	%		—		1.1	%
Swiss franc
Promissory notes		603			—			—			—			—			—			603			603		691
Interest rate		2.1	%		—	%		—	%		—	%		—	%		—	%		2.1	%		—		0.8	%
Mexican pesos
(CEBUR MXN L22)		—			—			—			826			—			—			826			832		827
Interest rate (1)		—	%		—	%		—	%		11.6	%		—	%		—	%		11.6	%		—		10.9	%
Domestic senior notes		—			1,728			2,925			—			—			—			4,653			4,650		4,650
Interest rate (1)		—	%		11.6	%		11.6	%		—	%		—	%		—	%		11.6	%		—		10.4	%
Bank Loans		410			10			—			434			416			—			1,270			1,270		542
Interest rate (1)		12.8	%		13.7	%		—	%		13.6	%		12.7	%		—	%		13.0	%		—		12.9	%
Brazilian reais
Bank loans		6			6			2			—			—			—			14			14		28
Interest rate		8.8	%		8.9	%		8.9	%		—	%		—	%		—	%		8.9	%		—		9.8	%
Colombian pesos
Bank loans		—			—			—			—			—			—			—			—		33
Interest rate		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—		5.9	%
Chilean pesos
Bank loans		—			—			—			—			—			—			—			—		271
Interest rate		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—		4.9	%
Subtotal	Ps.	2,719		Ps.	1,744		Ps.	2,927		Ps.	1,260		Ps.	416		Ps.	—		Ps.	9,066		Ps.	9,069	Ps.	9,602
Total long-term debt	Ps.	5,998		Ps.	1,883		Ps.	12,082		Ps.	10,117		Ps.	16,000		Ps.	88,291		Ps.	134,371		Ps.	122,591	Ps.	189,879
Current portion of long-term debt																				(5,998)					(16,479)
																			Ps.	136,824				Ps.	191,741

(1)All interest rates shown in this table are weighted average contractual annual rates.

(2)Interest rate derivatives that have been designated as fair value hedge relationships have been used by Coca-Cola FEMSA to mitigate the volatility in the fair value of existing financing instruments due to changes in floating interest rate benchmarks. Gains and losses on these instruments are recorded in “Market value (gain) loss on financial instruments” in the period in which they occur. During 2022, the Company applied hedging to a portion of the Senior Notes of US$ 705, which are linked to an interest rate swap. Starting in 2022, the hedging gain or loss adjust the carrying amount of the hedged item and is recognized in the consolidated income statement under “Market value (gain) loss in financial instruments”. During the year ended December 31, 2023, the Company recognized a loss of Ps. 371 in the consolidated income statement under “Market value (gain) loss in financial instruments”, which offsets the loss on interest rate derivatives used to hedge debt denominated in USD, that resulted from increases in interest rates.



															2029 and			Total			Total
Hedging Derivative Financial Instruments (1)	2024			2025			2026		2027			2028			Thereafter			2023			2022
	(notional amounts in millions of Mexican pesos)																					`
Cross-currency swaps:
U.S. dollars to Mexican pesos
Fixed to a variable (3) (4)	Ps.	—		Ps.	—		Ps.	—	Ps.	—		Ps.	—			6,031		Ps.	6,031		Ps.	15,082
Interest pay rate		—	%		—			—		—			—			56.1	%		56.1	%		7.4	%
Interest receive rate		—	%		—			—		—			—			3.6	%		3.6	%		3.9	%
Fixed to fixed		—			—			—		—			—			10,000			10,000			11,743
Interest pay rate		—	%		—			—		—			—			8.9	%		8.9	%		8.8	%
Interest receive rate		—	%		—			—		—			—			3.5	%		3.5	%		3.5	%
Fixed to fixed (2)
Interest pay rate		—			—			—		—			—			9.4	%		9.4	%		9.4	%
Interest receive rate		—			—			—		—			—			4.4	%		4.4	%		4.4	%
U.S. dollars to Euro
Fixed to fixed		—			—			—		—			6,009			4,931			10,940			22,130
Interest pay rate		—			—			—		—			1.7	%		2.1	%		1.9	%		2.4	%
Interest receive rate		—			—			—		—			0.5	%		1.0	%		0.7	%		3.5	%
U.S. dollars to Brazilian reais
Fixed to variable		—			—			—		4,223			1,689			—			5,912			6,777
Interest pay rate		—			—			—		12.4	%		2.8	%		—			11.6	%		11.5	%
Interest receive rate		—			—			—		2.1	%		2.8	%		—			2.3	%		2.1	%
Fixed to fixed		8,109			—			—		—			—			—			8,109			9,294
Interest pay rate		8.0	%		—			—		—			—			—			8.0	%		11.5	%
Interest receive rate		2.8	%		—			—		—			—			—			2.8	%		3.2	%
Colombian pesos
Fixed to fixed		—			—			—		—			987			—			987			1,476
Interest pay rate		—	%		—			—		—			6.3	%		—			6.3	%		6.8	%
Interest receive rate		—	%		—			—		—			2.8	%		—			2.8	%		2.6	%
Interest rate swaps:
Fixed to variable rate:		—			—			—		—			—			8,447			8,447			9,681
Interest pay rate		—			—			—		—			—			5.7	%		5.7	%		5.0	%
Interest receive rate		—			—			—		—			—			1.9	%		1.9	%		—	%
Variable to a fixed rate:		1,943			—			—		—			—			—			1,943			2,905
Interest pay rate		3.6	%		—	%		—		—			—			—			3.6	%		4.1	%
Interest receive rate		1.9	%		—	%		—		—			—			—			1.9	%		1.9	%
Variable to fixed rate (3):
Interest pay rate		—			—			—		—			—			—			—			7.2	%
Interest receive rate		—			—			—		—			—			—			—			7.0	%
Total		10,052			—			—		4,223			8,685			29,409			52,369			79,088

(1)All interest rates shown in this table are weighted average contractual annual rates.

(2)Cross Currency swaps which covers U.S. dollars to Mexican pesos with a notional of Ps.6,031, that have a starting date in 2023; receiving a fixed rate of 4.4% and pay a fixed rate of 9.4%.

(3)Interest rate swaps with a notional amount of Ps.8,447 that receive a variable rate of 7.0% and pay a fixed rate of 7.2%; joined with a cross-currency swaps, which covers U.S. dollars to Mexican pesos, that receives a fixed rate of 4.4% and pay a variable rate of 9.4%.

(4)In 2023, the Company had an unwind of part of its cross currency swaps related with the debt prepayment.

For the years ended December 31, 2023, 2022 and 2021, the interest expense is comprised as follows:



	2023		2022 (Revised)		2021 (Revised)
Interest on debts and borrowings	Ps.	8,555	Ps.	8,129	Ps.	9,356
Interest expense charges for employee benefits (Note 17.4)		590		553		476
Derivative instruments		(1,891)		1,795		1,970
Finance operating charges		821		(413)		(290)
Interest expense for leases liabilities (Note 12)		6,841		5,789		5,118
	Ps.	14,916	Ps.	15,853	Ps.	16,630

For the years ended December 31, 2023, 2022 and 2021, the interest income is comprised as follows:


	2023		2022 (Revised)		2021 (Revised)
Tender Offer gain	Ps.	6,961	Ps.	—	Ps.	—
Interest on investments		9,566		3,782		1,465
Finance operating products		514		—		—
Others		568		(13)		23
	Ps.	17,609	Ps.	3,769	Ps.	1,488

On May 7, 2013, the Company issued long-term debt on the NYSE (Yankee Bond) in the amount of U.S. $1,000, which was made up of senior notes of U.S. $300 with a maturity of 10 years and a fixed interest rate of 2.875%; and senior notes of U.S. $700 with a maturity of 30 years and a fixed interest rate of 4.375%. In March 2023, the Company made a tender offer in international markets for a principal amount of U.S. $147 related to this Yankee Bond, with a settlement price of U.S. $130, which includes accrued expenses. The difference between the settlement price and the book value of the debt at the date of prepayment was recognized in the consolidated income statement, representing a gain of Ps. 346. Then, in May 2023, the Company paid the senior notes of U.S. $300 which became to maturity. Finally, in November 2023, the Company made an additional tender offer for a principal amount of U.S. $127 related to the same senior notes.

On March 14, 2016, the Company issued long-term debt on the Irish Stock Exchange (“ISE”) in the amount of €.1,000, which was made up of senior notes with a maturity of 7 years, a fixed interest rate of 1.75%, and a spread of 155 basis points over the relevant benchmark mid-swap, for a total yield of 1.824%. The Company designated this non-derivative financial liability as a hedge on the net investment in Heineken. These senior notes were prepaid in May 2021, with a settlement price of €. 1,042, which includes accrued expenses. The difference between the settlement price and the book value of the debt at the date of prepayment was recognized in the consolidated income statement. As a result of this transaction, the net investment hedge was discontinued without any effects in the consolidated income statement. For the year ended December 31, 2021, up to the prepayment date, a foreign exchange gain, net of tax, had been recognized as part of the exchange differences on translation of foreign operations within the cumulative other comprehensive income of Ps. 232.

On January 16, 2020, the Company issued U.S. $1,500 3.500% Senior Unsecured Notes at an annual rate of 130 basis points over the relevant benchmark. In addition, on February 12, 2020, the Company placed a re-tap to its US-denominated SEC-registered Senior Unsecured Notes due 2050 and issued U.S. $300 3.500% at an annual rate of 137.5 basis points over the relevant benchmark, raising the total outstanding balance to U.S. $1,800 with an implied yield to maturity of 3.577%. In June 2020, the Company issued U.S. $700 3.500% Senior Unsecured Notes due 2050 with an implicit weighted performance of 3.358%. In March 2023, the Company made a tender offer in international markets for a principal amount of U.S. $943 related with these senior notes, with a settlement price of U.S. $715, which includes accrued expenses. The difference between the settlement price and the book value of the debt at the date of prepayment was recognized in the consolidated income statement, representing a gain of Ps. 4,199.

The Company has designated a portion of these non-derivative financial liabilities as a hedge on the net investment. During 2023, the Company divested its investments in JRD and Envoy; as a result of these transactions, the net investment hedge was discontinued, recycling the effects of Envoy’s hedge in the consolidated income statements, which amount to a gain of Ps. 3,910; while in the case of JRD’s hedge, it remained in other comprehensive income, as this investment was classified as FVOCI, which amount to a gain of Ps. 1,188.

In April 2021, the Company issued €. 500 and €. 700 in debt certificates at a fixed rate of 1.0%, maturing in 2033 and 0.5% maturing in 2028, respectively. In March 2023, the Company made a tender offer in international markets for a principal amount of €404 in debt securities maturing in 2028 and €259 in debt securities maturing in 2033, with a settlement price of €347 for maturing in 2028 and €197 for maturing in 2033, which includes accrued expenses. The difference between the settlement price and the book value of the debt at the date of prepayment was recognized in the consolidated income statement, representing a gain of Ps. 2,416.

On May 21, 2021, this non-derivative financial liability was designated as a hedge of the net investment in Heineken. During 2023, the Company divested its investment in Heineken. Therefore, the net investment hedge was discontinued, recycling the effects of Heineken’s hedge in the consolidated income statements, which amount to a gain of Ps. 5,763 (See Note 4.3.1).

In November 2022, the Company issued Ps. 8,446 and Ps. 827 in debt certificates at a fixed rate of 9.65%, maturing in 2032 and a floating rate of TIIE28 + 0.10%, maturing in 2027, respectively. The bond’s interest rate depends on the Company achieving key performance indicators, and in the event that such indicators are not met by the dates established in the offering documents, (2027 and 2032), the interest rate on the will increase by 25 basis points. As of December 31, 2023 the Company continues monitoring and expects to meet these key performance indicators. In accordance with the terms of the Bonds, they are linked to FEMSA's Sustainability-Linked Bond Framework, the which was adopted and published by the Company in relation to the issuance of the Sustainability-Linked Bond denominated in Euros issued in 2021 in the international capital market, for €700 in senior notes maturing in 2028, and €500 in senior notes maturing in 2033.

In February 2023, as part of Heineken Offering shares, the Company issued debt on the Frankfurt Stock Exchange (FWB) in the amount of EUR 500 million which was made up of senior unsecured Exchangeable Bonds (EB) due 2026; with a fixed interest rate of 2.625% per annum payable annually. The aggregate principal amount of the EB will be repayable with Heineken Holding N.V. shares or cash, considering an initial exchange price of EUR 95.625, being a premium of 27.5%, to EUR 75.00, being the clearing price of each share. As of the issuance date, the initial exchange option shall be comprised of 5,228,758 shares. See Note 14.2.

Coca-Cola FEMSA has the following bonds:

a)registered with the Mexican stock exchange:

i) Ps. 8,500 (nominal value) with a maturity in 2027 and a fixed interest rate of 7.87%; ii) Ps. 1,727 (nominal value) with a maturity date in 2025 and a floating interest rate of Equilibrium Interbank Interest Rate ("TIIE") + 0.08%; iii) Ps. 3,000 (nominal amount) with a maturity date in 2028 and fixed interest rate of 7.35%, iv) Ps. 6,965 (nominal amount) on a Sustainability-Linked Bond ("SLB") with a maturity date in 2028 and fixed rate of 7.36%, and v) Ps. 2,435 (nominal amount) on an SLB with a maturity date in 2026 and floating rate of TIIE + 0.05%, vi) Ps.5,500 (nominal amount) with a maturity date in 2029 and a fixed rate of 9.95%, vii) Ps.$500 (nominal amount) with a maturity date in 2026 and a floating rate of TIIE + 0.05%.

b)registered with the New York Stock Exchange:

i) Senior notes of U.S. $1,041 with a fixed interest rate of 2.75% and maturity on January 22, 2030; ii) Senior notes of US. $ 705 with interest at a fixed rate of 1.85% and maturity date on September 1, 2032 and iii) Senior notes of US. $ 489 with interest at a fixed rate of 5.25% and maturity date on November 26, 2043.

The Senior Notes are guaranteed by Coca-Cola FEMSA subsidiaries: Propimex, S. de R.L. de C.V., Comercializadora La Pureza de Bebidas, S. de R.L. de C.V., Controladora Interamericana de Bebidas, S. de R.L. de C.V., Grupo Embotellador Cimsa, S. de R.L. de C.V., Refrescos Victoria del Centro, S. de R.L. de C.V., and Yoli de Acapulco, S. de R.L. de C.V. (the “Guarantors”).

During the third quarter of 2021, Coca-Cola FEMSA issued the first SLB in the Mexican market for a total of Ps. 9,400 in the modality of communicating vessels with maturities in 2025 and 2026 and with those resources prepaid bilateral loans denominated in Mexican pesos of: i) Ps. 3,760 with a maturity date of February 2025 and ii) Ps. 5,640 with an expiration date of August 2026. The bond’s interest rate depends on us achieving key performance indicators, and in the event that such indicators are not met by the dates established in the offering

documents, (2024 and 2026), the interest rate on the bonds will increase by 25 basis points. As of December 31, 2023 Coca-Cola FEMSA continues monitoring and expects to meet these key performance indicators.

During the fourth quarter of 2022, Coca-Cola FEMSA repurchased a portion of the following notes registered with the SEC i) Senior notes of US. $ 209 with maturity date on January 2030, and ii) Senior notes of US. $111 with maturity date on November 2043, representing a net savings of Ps. 408 (nominal amounts). The amounts shown on the first paragraph already consider these repurchases.

Additionally during 2022, Coca-Cola FEMSA issued a social and sustainable bond in the Mexican Market on a dual-tranche transaction for an amount of Ps. 6,000.

During the second quarter of 2023, the Company paid on the maturity date May,12,2023 a Certificado Bursátil for i) Ps. 7,500 (nominal value) and a fixed interest rate of 5.46%.

Additionally, during 2023, the Company obtained bank loans in Argentina for Ps. 73.

The Company has financing from different institutions under agreements that stipulate different restrictions and covenants, which mainly consist of maximum levels of leverage and capitalization as well as minimum consolidated net equity and debt and interest coverage ratios. As of the date of these consolidated financial statements, the Company complied with all restrictions and covenants contained in its financing agreements.

19.1 Reconciliation of liabilities arising from financing activities



	Carrying												Carrying
	Value at												Value at
	January 1, 2023		Cash Flows		Non-cash effects								December 31, 2023
									Foreign
					Business		New leases		Exchange		Others (1)
					Acquisitions / Disposal				Income
									(Loss)
Bank loans	Ps.	12,893	Ps.	(1,526)	Ps.	3	Ps.	—	Ps.	(852)	Ps.	—	Ps.	10,518
Notes payable		178,848		(30,657)		—		—		(15,364)		(6,521)		126,306
Total liabilities from financing activities		191,741		(32,183)		3		—		(16,216)		(6,521)		136,824
Lease liabilities		93,317		(16,171)		48		20,698		(1,891)		72		96,073
Total financing activities	Ps.	285,058	Ps.	(48,354)	Ps.	51	Ps.	20,698	Ps.	(18,107)	Ps.	(6,449)	Ps.	232,897

(1) Includes mainly remeasurements of leases, and amortized costs.



	Carrying
	Value at												Carrying
	January												Value at
	1, 2022		Cash Flows (2)		Non-cash effects								December 31, 2022
									Foreign
					Acquisition		New leases		Exchange		Others (1)
									Income
									(Loss)
Bank loans	Ps.	7,580	Ps.	(415)	Ps.	6,181	Ps.	—	Ps.	(78)	Ps.	(375)	Ps.	12,893
Notes payable		183,005		6,718		—		—		(8,957)		(1,919)		178,848
Total liabilities from financing activities		190,585		6,303		6,181		—		(9,034)		(2,294)		191,741
Lease liabilities		62,355		(15,108)		21,933		10,686		(356)		13,807		93,317
Total financing activities	Ps.	252,940	Ps.	(8,805)	Ps.	28,114	Ps.	10,686	Ps.	(9,390)	Ps.	11,513	Ps.	285,058

(1)Includes mainly remeasurements of leases, and amortization of transaction costs.

(2)Cash flows of Total liabilities from financing activities include Ps. 5,973 from continuing operations and Ps. 330 from discontinued operations.



	Carrying
	Value at												Carrying
	January												Value at
	1, 2021		Cash Flows (2)		Non-cash effects								December 31, 2021
									Foreign
					Acquisition		New leases		Exchange		Others (1)
									Income
									(Loss)
Bank loans	Ps.	19,430	Ps.	(11,015)	Ps.	—	Ps.	—	Ps.	(939)	Ps.	104	Ps.	7,580
Notes payable		169,235		12,156		—		—		1,614		—		183,005
Total liabilities from financing activities		188,665		1,141		—		—		675		104		190,585
Lease liabilities		58,308		(12,325)		1,540		7,871		(798)		7,759		62,355
Total liabilities from financing activities		246,973		(11,184)		1,540		7,871		(123)		7,863		252,940

(1)Includes mainly remeasurements of leases, and amortization of transaction costs.

(2)Cash flows of Total liabilities from financing activities include Ps. 1,146 from continuing operations and Ps. (5) from discontinued operations.

Bonus Programs (Tables)

12 Months Ended

Dec. 31, 2023

Bonus Programs [Abstract]

Summary of Number of Shares Held by the Trust

As of December 31, 2023 and 2022, the changes in the number of shares held by the trust associated with the Company’s share-based payment plans are as follows:



	Number of Shares
	FEMSA UBD		KOF UBL
	2023	2022	2023	2022
Beginning balance	5,723,019	3,672,586	1,860,379	1,701,074
Shares acquired by the administrative trust to employees	4,844,120	4,256,433	1,139,180	1,266,283
Shares released from administrative trust to employees upon vesting	(3,283,941)	(2,206,000)	(1,095,319)	(1,106,978)
Ending balance	7,283,198	5,723,019	1,904,240	1,860,379

Taxes

12 Months Ended

Dec. 31, 2023

Taxes [Abstract]

Taxes

25.1 Recoverable taxes

Recoverable taxes are mainly the result of higher interim payments of value added tax and income tax in Mexico during 2023 compared to the current year's provision, which will be offset in future years. Operations in Guatemala, Panama, Nicaragua, and Colombia are subject to a minimum tax. In Guatemala and Colombia, this tax is recoverable only under certain circumstances. Guatemala's tax base is determined by considering the greater of total assets and net income; in Colombia, the taxable base is stockholders' equity.

25.1.1 Exclusion of the State Value Added Tax ("VAT") (ICMS) on the federal sale taxes (PIS / COFINS) calculate basis

On March 15, 2017 the Brazilian Federal Supreme Court (STF) ruled that the inclusion of the VAT (ICMS) on federal sales taxes (PIS and COFINS) taxable basis was unconstitutional. During 2019, the Company's subsidiaries in Brazil obtained conclusive favorable motions over this exclusion of VAT (ICMS) over PIS / COFINS calculation. The net favorable effects of each case are to be recorded at the time all formalities and legal procedures are finalized and recovery of the taxes paid becomes virtually certain. During 2023, 2022 and 2021, , the Company recorded in other operating revenues in the consolidated income statement the effects of the administrative formalities concluded (see Note 20).

As of December 31, 2023 and 2022 the amount of recoverable taxes in Brazil including PIS and COFINS is Ps. 745 and Ps. 1,060, respectively.

25.2 Taxation of beverages

As of December 31, 2023, all the countries where the Company operates, with the exception of Panama, impose value added tax on the sale of carbonated beverages, with a rate of 16.0% in Mexico, 12.0% in Guatemala, 15.0% in Nicaragua, 13% in Costa Rica, 19.0% in Colombia, 21.0% in Argentina, 22.0% in Uruguay, and in Brazil 16.0% in the state of Rio de Janeiro, 17.0% in the states of Goiás and Santa Catarina, 18.0% in the states of São Paulo, Minas Gerais and Paraná, and 20.0% in the states of Mato Grosso do Sul and Rio Grande do Sul. The states of Rio de Janeiro, Goiás and Paraná also charge an additional 2.0% on sales as a contribution to a poverty eradication fund.

In Brazil, value-added tax is calculated and added, along with federal sales tax, to the tax base. The Company is also responsible for collecting and paying the tax for its retailers in Brazil. This is calculated based on a survey conducted by each state's government. In 2023, the Company collected 16.3% of its net sales taxes.

Several of the countries in which the Company operates impose excise duties or other taxes, as follows:

•Mexico imposes a special tax on the production, sale and import of beverages with added sugar and high fructose corn syrup, which from January 1, to December 31, 2023 the excise tax was Ps.1.5086 per liter. This excise tax applies only to the first sale, and we are responsible for collecting and paying it. As of January 1, 2024, the excise duty was equal to Ps.1.5737 per liter. This excise tax rate will be in effect until December 31, 2024, and thereafter will be subject to an annual increase based on the previous year's inflation rate.

•Guatemala imposes an excise tax of 18 cents in local currency (Ps.0.40 as of December 31, 2023) per liter of carbonated beverage.

•Costa Rica imposes a specific tax on non-alcoholic carbonated bottled beverages based on the combination of packaging and flavor, currently assessed at 21.07 colones (Ps.0.68 as of December 31, 2023) per 250 ml, and an excise tax (which is a contribution to the National Institute of Rural Development) currently assessed at 7,254 colones (approximately Ps.0.23 as of December 31, 2023) per 250 ml.

•Nicaragua imposes a 15.0% tax on beverages, except water, and municipalities impose a 1.0% tax on our Nicaraguan gross income.

•Panama imposes a 7.0% excise tax on carbonated beverages with more than 7.5 grams of sugar or any caloric sweetener per 100 ml, and a 10.0% tax on syrups, powders and concentrates used to produce sugary drinks. Since January 1, 2020, Panama imposes a 5.0% excise tax on non-carbonated beverages with more than 7.5 grams of sugar or any caloric sweetener per 100 ml, whether imported or locally produced. Beverages derived from dairy products, grains or cereals, nectar, fruit and vegetable juices with natural fruit concentrates are exempt from this tax.

•Argentina applies an excise tax of 8.7% to carbonated beverages containing less than 5.0% lemon juice or less than 10.0% fruit juice, and a 4.2% excise tax to sparkling water and flavored carbonated beverages with a fruit juice content of 10.0% or more, although this excise tax is not applicable to some of our products.

•In Brazil, it applies an average excise tax on production of about 2.6% and an average sales tax of about 12.0% on net sales. Except for sales to wholesalers, these production and sales taxes apply only to the first sale, and the Company is responsible for collecting and paying these taxes from each of its retailers. In the case of sales to wholesalers, they are entitled to recover sales tax and collect this tax again for the resale of its products to retailers.

•Colombian municipalities impose a sales tax ranging from 0.35% to 1.2% of net sales. On November 1, 2023, a new tax of 18 Colombian pesos (approximately Ps.0.08 as of December 31, 2023) was applied to beverages with 6 to 10 grams of added sugar per 100 ml, while a tax of 35 Colombian pesos (approximately Ps.0.15 as of December 31, 2023) was applied to beverages with more than 10 grams of added sugar per 100 ml. The amount of this tax will increase in early 2024 and 2025, as detailed in a paragraph below.

•In Uruguay, an excise tax of 19.0% is levied on carbonated beverages, a 12.0% excise tax is levied on fruit juice-based beverages with a minimum content of 10.0% in natural fruit juices (or at least 5.0% natural content of fruit juices in the case of lemon) and an excise tax of 8.0% in the case of sparkling and still water.

25.3 Tax reforms

Mexico

In April 2021, the Mexican government amended the Federal Labor Law, the Federal Tax Code, and other laws that regulate labor benefits with the purpose of prohibiting the subcontracting of personnel, except in activities such as specialized works or services that are not part of a company's core business and that are provided by service providers registered with the Ministry of Labor and Social Welfare. As a result of this tax reform, the deduction of expenses related to subcontracting is prohibited, as well as the possibility of crediting the value added tax generated by expenses related to subcontracting and in extreme cases, the subcontracting of personnel can qualify as tax fraud. This reform entered into effect on September 1, 2021.

Pursuant to the amendments to Mexican tax laws effective January 1, 2022, Mexican issuers are jointly and severally liable for taxes payable on gains arising from the sale or disposition of their shares or securities representing their shares, as ADSs, by majority shareholders who are not residents of Mexico and do not have a permanent establishment in Mexico for tax purposes. To other Mexican non-residents who do not have a permanent establishment in Mexico for tax purposes, to the extent that such Mexican issuer fails to provide certain information regarding such sale or disposition to Mexican tax authorities. For the purposes of this rule, "majority shareholders" shall be understood as shareholders who are identified in the reports submitted by the Mexican issuer to the CNBV annually as (i) directors or officers who directly or indirectly own 1.0% or more of the Mexican issuer's share capital, (ii) shareholders who directly or indirectly own 5.0% or more of the Mexican issuer's share capital, or (iii) within the ten largest shareholders of the Mexican share capital of the Mexican issuer. issuer based on direct ownership of the shares of the share capital. Although in some cases the Mexican tax authorities have indicated that this reporting obligation would only apply to transfers of shares or securities representing shares that result in a change of control, there are no established criteria or general interpretations in this regard issued by the Mexican tax authorities. There is currently no obligation on the part of Mexican non-residents to report to Mexican issuers their sales or disposals of shares or securities representing shares, which limits our ability to comply with our reporting obligations to Mexican tax authorities. Therefore, the amount of a potential tax liability is uncertain and difficult to determine given the inherent mechanisms and procedures, including the application of any available tax treaty, applicable to the trading of publicly traded securities.

Colombia

In August 2021, a new tax reform came into force in Colombia. This reform increased the income tax rate from 30.0% to 35.0% for 2022 and limited the ability to deduct or deduct municipal sales taxes against income taxes to 50.0%.

In December 2022, a new tax reform was approved in Colombia, which began to be applied during 2023.

The main changes are as follows:

•Introduction of an excise duty on beverages with added sugar based on the following timetable:

◦From November 1, 2023 to December 30, 2023, a tax of 18 Colombian pesos (approximately Ps.0.08 as of December 31, 2023) was applied to beverages containing 6 to 10 grams of added sugar per 100 ml and a tax of 35 Colombian pesos (approximately Ps.0.15 as of December 31, 2023) for beverages with more than 10 grams of added sugar per 100 ml;

◦From January 1, 2024 to December 30, 2024, a tax of 28 Colombian pesos (approximately Ps.0.12 as of December 31, 2023) for beverages containing 6 to 10 grams of added sugar per 100 ml and a tax of 55 Colombian pesos (approximately Ps.0.24 as of December 31, 2023) for beverages with more than 10 grams of added sugar per 100 ml;

◦From January 1, 2025 to December 30, 2025, a tax of 38 Colombian pesos (approximately Ps.0.17 as of December 31, 2023) for beverages containing between 5 grams and 9 grams of added sugar per 100 ml and a tax of 65 Colombian pesos (approximately Ps.0.29 as of December 31, 2023) for beverages with more than 9 grams of added sugar per 100 ml;

◦From 2026, the corresponding tax will be increased annually by the same percentage as the UVT (Tax Value Unit).

•Introduction of a new tax on single-use plastics, with a rate of 0.00005 on the Tax Value Units per gram of plastic. One Tax Value Unit is equivalent to 42,412 Colombian pesos (approximately Ps.187.46 as of December 31, 2023). This new tax is applicable to our products that are not considered part of the market basket of goods

(currently two of our products fall into this category). However, this tax can be waived with a circular economy certification that will be issued in case recycled resin is incorporated into the packaging. Through legal resolution C-526/23, it was indicated that the responsible for the tax is the producer of single-use plastics.

•Increase in the income tax rate as of January 1, 2023, from 20.0% to 35.0% on taxable income obtained from free zones within Colombia. This change will go into effect on January 1, 2026 if a free zone company can demonstrate a 60.0% revenue increase in 2022 compared to fiscal year 2019. Despite this, the Supreme Court ruled that this law is not applicable to entities that have obtained its approval before December 13, 2022.

•The possibility of taking municipal sales taxes as a tax deduction against income tax was eliminated.

•Increase in the occasional income tax rate from 10.0% to 15.0% applicable to sales of fixed assets and introduction of a stamp duty at a rate between —% and 3.0%, on the sale price of real estate and other assets.

•Introduction of a minimum income tax rate of 15%, which must be calculated considering an adjusted income (UD). The Adjusted Tax Rate (TTD) will be the result of dividing an Adjusted Tax (ID) by the Adjusted Income (UD).

Costa Rica

Until December 31, 2022, the producer or importer was responsible for collecting value-added taxes on carbonated beverages from supply chain participants, with an effective value-added tax rate for carbonated beverages of 15.8%. On January 1, 2023, a new tax reform came into effect to reintroduce the standard debt and credit system for producers, wholesalers, and retailers with a tax rate of 13.0%, so our Costa Rican subsidiary is no longer responsible for collecting such tax along the entire supply chain.

Uruguay

On December 31, 2021, the Uruguayan government issued an executive decree that increased the excise tax on energy drinks from 19.0% to 22.0%. This increase went into effect as of January 2022.

Brazil

In early 2017, Brazil's Federal Supreme Court ruled that value-added tax would not be used as the basis for calculating federal sales tax, resulting in a reduction of federal sales tax. Our Brazilian subsidiaries initiated legal proceedings to determine their ability to calculate federal sales tax without using value-added tax as a basis, in accordance with the first ruling of the Brazilian Federal Supreme Court, and obtained a favorable final resolution in 2019. However, the Brazilian tax authorities appealed the decision of the Brazilian Federal Supreme Court and the appeal was denied in May 2021. In 2023, federal sales and production taxes together resulted in an average tax of 14.6% on net sales.

In recent years, the rate of excise duty on concentrate in Brazil has undergone recurring temporary fluctuations. The excise tax rate was increased from 4% to 8.0% from February 1, 2021 to February 24, 2022, decreased to 6.0% from February 25, 2022 to April 30, 2022, and increased again to 8.0% on May 1, 2022. The tax credit that we may recognize in our Brazilian operations in connection with concentrate purchases in the Manaus Free Trade Zone has been affected accordingly.

In December 2022, the Brazilian government published the new transfer pricing rules that will come into effect from January 1, 2024. The new transfer pricing rules aim to align the Brazilian transfer pricing system with the transfer pricing guidelines recommended by the Organization for Economic Co-operation and Development (OECD). During 2023, the Brazilian government issued specific regulatory instructions to regulate this new tax legislation and transfer pricing methods. In 2024, greater regulation of intangibles and the obligations to file transfer pricing tax returns is expected.

In March 2023, the value-added tax rate in the state of Paraná increased from 16.0% to 18.0%. As of January 1, 2024, the value-added tax rate in the state of Rio Grande do Sul is 18%. As of January 1, 2024, the state of Minas Gerais began applying an additional 2.0% charge on sales as a contribution to a poverty eradication fund.

In December 2023, the Brazilian government published a Provisional Measure, to establish that the amount of the credit of a final and unappealable judicial decision, which exceeds the value of R$ 10 million (approximately Ps. 34.9 million as of December 31, 2023) subject to compensation against tax debts, must observe the monthly limitation of 1/60 of the

total value of the credit. While taxpayers must observe this regulation as of January 1, 2024, this Interim Measure must become law during the following months; otherwise, this command is revoked.

In December 2023, the Brazilian government published a new law to tax investment subsidies granted by municipalities or states of the federation as of January 1, 2024. These subsidies will be taxed by Income Tax and Social Contribution at the combined tax rate of 34% and will be subject to other contributions at the combined tax rate of 9.25%. On the other hand, the Federal Government will grant an income tax credit of 25% of the municipal or state subsidy, limited to the amount of depreciation of such assets applied to approved development or expansion projects that caused such subsidy, provided that certain conditions are met.

In addition, also in December 2023, a Constitutional Amendment was published to implement a comprehensive tax reform in Brazil that will replace the current indirect tax system with a new one, which will be progressively implemented from January 1, 2026 until its full adoption in 2033.Municipal (ISSQN), state (ICMS) and federal (PIS and COFINS) taxes will be replaced by a double VAT (CBS and IBS). Double VAT will apply to all tangible or intangible goods, duties and services; it must be taxed according to the amount charged in the place where it is consumed; It will not be considered in itself in its own taxable base (the tax will not be taxed), and gives the right to record the input tax credit of the previous transaction (without a cumulative system).

There will be a standard rate for all goods and services, with exceptions for certain sectors such as education, health, medicine, public transport, food for human consumption, agricultural products and some others, which will be entitled to tax reductions of 100%, 70% or 40% of the rate yet to be defined. In addition, there will be specific rules for sectors such as fuels and lubricants, automotive, financial services, real estate transactions, health plans, tourism and leisure businesses, among others. During the following months, the executive and legislative branches must enact a series of laws and acts to regulate and detail all procedures, obligations and the double VAT rate.

In addition, from 2027 a special tax (IS) will also be applied on the production, extraction, marketing or import of services or goods harmful to health and the environment. This tax will be applied only once, does not generate a subsequent credit (it is subject to the so-called single-phase system) and will be part of the taxable base of the other tax applied to sales of services and goods. The current excise duty (IPI) will be reduced to zero, except for those products produced in the Manaus Free Trade Zone, in order to maintain the competitiveness and development of the incentivized zone. As in the previous case, a series of laws and acts are expected to regulate and detail all the procedures, obligations and the list of IS rates.

Finally, as of January 1, 2024, new rules will apply to exclusive financial investment funds, investments and foreign currency assets located abroad, held by Brazilian taxpayers. Due to these changes, the government offered the option to Brazilian tax residents to increase the cost of the tax on foreign assets and investments to the current market value by paying a reduced rate on such difference, for those who choose to anticipate potential profits in this gap, by collecting the corresponding income tax with such reduced income tax rate instead of the regular rate on capital gains. For those who opt for this option, the current market value will be your new tax cost basis and a future capital gain, if and when it occurs, will be calculated from this point, rather than the original tax cost basis.

Argentina

On December 13, 2023, the Argentine government issued an executive decree (Decree 29/2023) setting the tax rate of the PAIS (Program for an Inclusive and Solidary Argentina) at 17.5%, applicable to the import of goods (excluding goods from the basic food basket, fuels, lubricants, and other goods related to power generation). This tax is applicable to foreign currency transactions carried out on or after December 13, 2023, and represents an additional cost for Argentine operations. This tariff is also applicable to cargo services and other transportation services for the import or export of goods, or when such services are acquired in Argentina and provided by non-residents.

25.4 Taxation

The following summary contains a description of certain U.S. federal income and Mexican federal tax consequences of the purchase, ownership, and disposition of our units or American Depositary Shares ("ADS") by an owner who is a citizen or resident of the United States, a U.S. domestic corporation, or a person or entity that will otherwise be subject to federal income tax based on net revenue with respect to units or ADSs. which we refer to as a U.S. holder, but is not intended to be a description of all possible tax considerations that may be relevant to a decision to purchase, hold, or dispose of the units or ADSs. In particular, this discussion does not address all Mexican or U.S. federal income tax considerations that may be relevant to a particular investor, nor does it address the special tax rules applicable to certain categories of investors, such as banks, intermediaries, merchants who choose market value, tax-exempt entities,

insurance companies, certain short-term holders of units or ADSs, or investors who own the units or ADSs as part of a hedging, conversion, or integrated transaction, partnerships or partners therein, nonresident foreign individuals present in the United States for 183 days or more, or investors who have a "functional currency" other than the U.S. dollar. U.S. holders should be aware that the tax consequences of owning units or ADSs may be substantially different for the investors described in the previous sentence. This summary deals only with U.S. holders who will hold the units or ADSs as equity assets and does not address the tax treatment of a U.S. holder who owns or is treated as owning 10.0% or more of the shares by vote or security (including units) of our company.

This summary is based on the federal tax laws of the United States and Mexico in effect as of the date of this annual report, including the provisions of the U.S.-Mexico income tax treaty and its protocols, or the Tax Treaty, which are subject to change. The summary does not address any tax consequences under the laws of any state or municipality in Mexico or the United States, or the laws of any tax jurisdiction other than the federal laws of Mexico and the United States. Holders of the units or ADSs should consult their tax advisors regarding the U.S., Mexican or other tax consequences of the purchase, ownership and disposition of units or ADSs, including, in particular, the effect of any foreign, state or local tax laws.

Mexican Taxation

For purposes of this summary, the term "nonresident holder" means a holder who is not a resident of Mexico and who does not own the units or ADSs in connection with conducting a trade or business through a permanent establishment in Mexico. For the purposes of Mexican taxation, an individual is a resident of Mexico if he or she has established his or her home in Mexico, or if he or she has another household outside of Mexico, but his or her "center of vital interests" (as defined in the Federal Tax Code in Mexico) is located in Mexico. A person's "center of vital interests" is located in Mexico when, among other circumstances, more than 50.0% of that person's total income during a calendar year originates within Mexico. A legal entity is a resident of Mexico if it has its principal place of business or its place of effective administration in Mexico. A Mexican citizen is presumed to be a resident of Mexico unless they can prove otherwise. If a legal entity or an individual is deemed to have a permanent establishment in Mexico for tax purposes, all income attributable to such permanent establishment will be subject to Mexican taxation, in accordance with applicable tax laws.

25.5 Tax Considerations Relating to Units and ADSs

Taxation of dividends. Effective January 1, 2014, in accordance with Mexican income tax laws, dividends, whether in cash or in kind, paid to individuals or non-residents in Mexico, on the Series B shares and Series L shares underlying our units or ADSs, are subject to 10.0% withholding tax, or a lower rate if they are covered by a tax treaty. Profits that have been obtained and are subject to income tax before January 1, 2014 are exempt from this withholding.

Taxation of Disposals of ADSs or Units. As of January 1, 2014, gains from the sale or disposition of shares made on the Mexican Stock Exchange or other securities market approved in Mexico by individuals resident in Mexico will be subject to an income tax rate of 10.0%, and gains from the sale or disposal of interests made on the Mexican Stock Exchange or other approved securities market in Mexico individuals and legal entities that are not residents in Mexico will be subject to a withholding tax of 10.0% in Mexico. The cost at which the shares were acquired prior to January 1, 2014 is calculated using the average closing price per share over the last twenty-two days. If the closing price per share in the last twenty-two days is considered unusual compared to the closing prices in the last six months, then the calculation is made using the average closing price per share over the last six months. However, a holder who is eligible to claim the benefits of any tax treaty will be exempt from Mexican withholding tax on gains made on a sale or other disposition of units, provided certain additional requirements are met.

Gains on the sale or other disposition of shares or ADSs made in a transaction that is not carried out through the Mexican Stock Exchange or other approved securities market in Mexico would generally be subject to Mexican taxation, regardless of the nationality or residence of the transferor. However, under the Tax Treaty, a holder who is eligible to claim the benefits of the Tax Treaty will be exempt from Mexican tax on gains made on such sale or other disposition of units or ADSs, provided that the holder does not own, directly or indirectly, 25.0% or more of our total share capital (including units represented by ADSs) within the 12-month period preceding such sale or other sale and provided that the owner does not own, directly or indirectly, that the profits are not attributable to a permanent establishment or a fixed base in Mexico. Deposits of units in exchange for ADSs and withdrawals of units in exchange for ADSs will not give rise to Mexican taxes.

Other Mexican Taxes

There are no Mexican inheritance, gift, inheritance, or value-added taxes applicable to the ownership, transfer, exchange, or disposition of the ADSs or units, although free transfers of units may, in certain circumstances, cause a Mexican federal tax to be imposed on the recipient. There are no Mexican taxes or stamp, issuance, registration or similar duties that must be paid by the owners of the units.

25.6 BEPS Pillar II

The OECD has published the Model Pillar Two rules to facilitate the domestic application of the global minimum tax of 15% in certain jurisdictions in which FEMSA operates. The legislation will become effective in most jurisdictions where the Company operates beginning on January 1, 2024. FEMSA is within the scope of the legislation enacted or substantially enacted and has conducted an assessment of the Company's potential exposure to Second Pillar income taxes.

The Company has applied the mandatory exception to recognizing and disclosing information about deferred tax assets and liabilities arising from Pillar Two income taxes. Furthermore, the Company has reviewed its corporate structure in light of the introduction of Pillar Two Model Rules in various jurisdictions. Since the Company's effective tax rate is well above 15% in all jurisdictions in which it operates, it has determined that it is not subject to Pillar Two "top-up" taxes. Therefore, the consolidated financial statements do not include information required by paragraphs 88A-88D of IAS 12.

The assessment of potential exposure to income taxes in the Second Pillar is based on the most recent tax returns, country-by-country reports and financial statements of the entities that are part of FEMSA. According to the assessment, effective Second Pillar tax rates in most jurisdictions where FEMSA operates are above 15%. However, there are a limited number of jurisdictions where the enabling rules of the Second Pillar are in the process of being issued and implemented and the effective tax rate of the Second Pillar is close to 15%. FEMSA does not expect significant exposure to Second Pillar income taxes in those jurisdictions; however, the development and publication of such rules will be monitored.

The Mexican tax authority, as of December 31, 2023, has not issued rules related to the tax treatment of the Second Pillar.

25.7 Income tax rates

The income tax rates in the countries where the Company operates as of December 31, 2023, 2022 and 2021 were as follows:



	2023		2022		2021
Mexico	30.0	%	30.0	%	30.0	%
Guatemala	25.0	%	25.0	%	25.0	%
Costa Rica	30.0	%	30.0	%	30.0	%
Panama	25.0	%	25.0	%	25.0	%
Nicaragua	30.0	%	30.0	%	30.0	%
Colombia	35.0	%	35.0	%	31.0	%
Argentina	35.0	%	35.0	%	30.0	%
Brazil	34.0	%	34.0	%	34.0	%
Chile	27.0	%	27.0	%	27.0	%
Peru	29.5	%	29.5	%	29.5	%
Ecuador	25.0	%	25.0	%	25.0	%
Uruguay	25.0	%	25.0	%	25.0	%
United States	21.0	%	21.0	%	21.0	%
Switzerland	18.6	%	18.6	%	18.6	%

The management currently has no reason to believe that the tax rates will change in the foreseeable future.

25.8 Income Tax

The major components of income tax expense for the years ended December 31, 2023, 2022 and 2021 are:



	2023		2022 (Revised)		2021 (Revised)
Current tax expense	Ps.	30,413	Ps.	17,007	Ps.	14,244
Deferred tax expense (benefit):
Origination and reversal of temporary differences		247		(1,164)		2,390
Utilization (benefit) of tax losses, net		(3,198)		(389)		(1,498)
Change in the statutory rate		(172)		(102)		4
Total deferred tax expense (benefit)		(3,123)		(1,655)		896
Total income taxes	Ps.	27,290	Ps.	15,352	Ps.	15,140
Total income taxes attributable to continued operation	Ps.	12,971	Ps.	13,275	Ps.	13,566
Total income taxes attributable to discontinued operation		14,319		2,077		1,574
	Ps.	27,290	Ps.	15,352	Ps.	15,140

Recognized in Consolidated Statement of Other Comprehensive Income (“OCI”)



Income tax related to items charged or
recognized directly in OCI during the period:	2023		2022		2021
Unrealized gain (loss) on cash flow hedges	Ps.	(355)	Ps.	(1,158)	Ps.	992
Exchange differences on translation of foreign operations		(1,951)		(3,742)		(1,730)
Remeasurements of the net defined benefit liability		11		383		127
Share of the other comprehensive income of equity method accounted investees (1)		3,108		1,129		1,506
Total income tax expense (benefit) recognized in OCI	Ps.	813	Ps.	(3,388)	Ps.	895

(1)Deferred income taxes related to currency translation adjustment, mark to market of derivative financial instruments and employee benefits for equity method accounted investees which as of December 31, 2023 amounted to Ps. 2,953, Ps. (239), and Ps. 394, respectively.

A reconciliation between tax expense and income before income taxes and share of the profit or loss of associates and joint ventures accounted for using the equity method multiplied by the Mexican domestic tax rate for the years ended December 31, 2023, 2022 and 2021 is as follows:



	2023		2022 (Revised)		2021 (Revised)
Mexican statutory income tax rate	30.0	%	30.0	%	30.0	%
Difference between book and tax inflationary values and translation effects	(1.7)	%	(5.4)	%	(4.8)	%
Annual inflation tax adjustment	0.2	%	7.0	%	7.7	%
Income tax at a rate other than Mexican statutory rates	0.9	%	2.8	%	0.2	%
Non-deductible expenses	2.1	%	3.8	%	2.1	%
Taxable (non-taxable) income	(3.2)	%	1.4	%	2.3	%
Others	0.1	%	0.1	%	0.1	%
Adjustments for previous tax years	—	%	0.4	%	—	%
Income Tax credits (1)	—	%	—	%	(1.5)	%
Tax loss (recognition) write off (2) (3)	(3.3)	%	(5.5)	%	(1.4)	%
Sale of investment of Heineken	1.2	%	—	%	—	%
Consolidated Effective income tax rate	26.3	%	34.6	%	34.7	%
Effective income tax rate from continued operations	22.7	%	33.0	%	34.3	%
Effective income tax rate from discontinued operations	3.6	%	1.6	%	0.4	%

(1)Favorable position of Brazilian Courts related to a no taxation on financial effects of recovered tax credits from previously won judicial disputes, which allowed a recognition of a deferred tax credit in Brazil in 2021.

(2)During 2022, Coca-Cola FEMSA recognized an amount of Ps.(2,194) as favorable effects on the deferred tax assets of its territories taking into account our expectation that those deferred tax assets will be recovered in the future.

(3)The majority related to tax loss generated in 2023 from a reorganization of the business at Health Division in Chile.

Deferred Income Tax Related to:



	Consolidated Statement				Consolidated
	of Financial Position as of				Income Statements
	December 31, 2023		December 31, 2022		2023		2022 (Revised)		2021 (Revised)
Expected credit losses	Ps.	(356)	Ps.	(389)	Ps.	(6)	Ps.	21	Ps.	(3)
Inventories		(61)		(107)		(1)		99		(17)
Other current assets		317		99		92		(78)		47
Property, plant and equipment, net		(7,075)		(7,288)		275		(1,345)		(1,081)
Right of use Assets		(1,166)		(1,433)		194		(151)		(482)
Investments in equity method accounted investees		(51)		(7,330)		74		(58)		(22)
Other assets		315		(283)		(884)		36		(2)
Finite useful lived intangible assets		131		3		145		(139)		498
Indefinite lived intangible assets		1,499		3,693		(2,161)		402		36
Post-employment and other long-term employee benefits		(821)		(736)		(79)		(71)		(258)
Derivative financial instruments		(240)		420		(577)		(111)		738
Temporary non-deductible provisions		(4,602)		(3,971)		(1,006)		43		1,280
Employee profit sharing payable		(1,003)		(871)		(56)		(304)		(393)
Tax loss carryforwards		(13,137)		(10,177)		(3,198)		(389)		(1,498)
Tax credits to recover (1)		(797)		(1,065)		(73)		255		1,200
Cumulative other comprehensive income		(394)		(218)		—		(417)		—
Exchange differences on translation of foreign operations in OCI		2,000		4,603		—		—		—
Other liabilities		(1,785)		(752)		(45)		322		1
Lease liabilities		(446)		(382)		(255)		(272)		53
Liabilities of amortization of goodwill of business acquisition		7,445		6,117		—		—		86
Deferred income tax					Ps.	(7,561)	Ps.	(2,157)	Ps.	183
Deferred tax income net recorded in share of the profit of equity method accounted investees						1,601		567		443
Deferred income tax, net					Ps.	(5,960)	Ps.	(1,590)	Ps.	626
Deferred tax discontinued operations					Ps.	2,838	Ps.	(65)	Ps.	270
Deferred income taxes, net	Ps.	(20,227)	Ps.	(20,067)
Deferred tax asset before reclassification to assets held for sale		(29,639)
Deferred tax asset from assets held for sale		2,041
Deferred tax assets	Ps.	(27,598)	Ps.	(26,890)
Deferred tax liability before reclassification to assets held for sale		7,373
Deferred tax liability from assets held from sale		(2)
Deferred tax liabilities	Ps.	7,371	Ps.	6,823

(1)Corresponds to income tax credits arising from dividends received from foreign subsidiaries to be recovered within the next ten years according to the Mexican Income Tax law.

Income tax related to Accumulated Other Comprehensive Income (“AOCI”)



Income tax related to items charged or
recognized directly in AOCI as of the year:	2023		2022
Unrealized gain on derivative financial instruments	Ps.	324	Ps.	688
Remeasurements of the net defined benefit liability		(221)		(251)
Exchange differences on translation of foreign operations		1,828		3,778
Gain on hedge of net investments in foreign operations		1,401		2,216
Share of other comprehensive income of associated companies and joint ventures		—		(3,108)
Total deferred tax loss related to AOCI	Ps.	3,332	Ps.	3,323

The changes in the balance of the net deferred income tax asset are as follows:



	2023		2022		2021
Balance at the beginning of the period	Ps.	(20,067)	Ps.	(14,691)	Ps.	(16,010)
Deferred tax provision for the period (Note 25.8)		(5,960)		(1,115)		622
Deferred tax income net recorded in share of the profit of equity method accounted investees		2		(694)		277
Acquisition of subsidiaries		1,871		—		—
Effects in equity:
Unrealized (gain) on cash flow hedges		(594)		(1,281)		1,006
Exchange differences on translation of foreign operations		1,002		(2,604)		(491)
Remeasurements of the net defined benefit liability		405		497		380
Retained earnings of equity method accounted investees		954		(334)		32
Restatement effect of the period and beginning balances associated with hyperinflationary economies		121		155		(507)
Related discontinued operations		2,039		—		—
Balance at the end of the period	Ps.	(20,227)	Ps.	(20,067)	Ps.	(14,691)

Tax Loss Carryforwards

The subsidiaries in Mexico, Colombia, Chile, Uruguay, Argentina and Brazil have tax loss carryforwards. Unused tax loss carryforwards, for which a deferred income tax asset has been recognized, may be recovered provided certain requirements are fulfilled. The tax losses carryforwards for which a deferred tax asset has been recorded and their corresponding years of expiration are as follows:



	Tax Loss
Year	Carryforwards
2024	Ps.	963
2025		790
2026		635
2027		659
2028		484
2029		2,743
2030		3,323
2031		403
2032		3,283
2033 and thereafter		16,567
No expiration (Brazil and Colombia)		12,963
	Ps.	42,813

Considering all available evidence, including forecasts, business plans and strategic measures, as of December 31, 2023 and 2022 the Company has decided not to recognize a deferred income tax asset related to temporary differences not recognized in previous tax years. The amount of deferred income tax assets not recognized in previous tax years and adjusted as of December 31, 2023 and 2022 were Ps. 1,547 and Ps 1,816, respectively.

The Company recorded certain goodwill balances due to business acquisitions that are deductible for Brazilian income tax reporting purposes. The deduction of such goodwill amortization has resulted in the creation of net operating losses (NOLs) in Brazil which have no expiration, but their usage is limited to 30% of Brazilian taxable income in any given year. As of December 31, 2023, the Company believes that it is more likely than not that it will ultimately recover such NOLs through the reversal of temporary differences and future taxable income. Accordingly, the related deferred tax assets have been fully recognized.

The changes in the balance of tax loss carryforwards are as follows:



	2023		2022
Balance at beginning of the period	Ps.	31,323	Ps.	30,041
Derecognized		(932)		(13,348)
Increase (1)		21,018		14,639
Usage of tax losses		(7,281)		(460)
Translation effect of beginning balances		(1,315)		451
Balance at end of the period	Ps.	42,813	Ps.	31,323

(1)The recognition of tax loss carryforwards from previous years is shown under the item of increases, together with the tax loss carryforwards generated in the same years

Taxes associated with the payment of dividends

There were no withholding taxes associated with the payment of dividends in 2023, 2022 or 2021 by the Company to its shareholders.

Undistributed profits

The Company has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future. As of December 31, 2023, 2022 and 2021, the unrecognized deferred tax liabilities associated with investments in subsidiaries, associates and joint ventures aggregate to Ps. 5,792, Ps. 14,528 and Ps. 19,141, respectively.

Equity Method Accounted Investees - Activity (Details)
€ in Millions, $ in Millions, $ in Millions

1 Months Ended

3 Months Ended

12 Months Ended

May 31, 2023

Feb. 17, 2023

Sep. 30, 2020

Apr. 30, 2010

Oct. 31, 2023

Sep. 30, 2020

Mar. 31, 2023

MXN ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2022

EUR (€)

Dec. 31, 2021

MXN ($)

Dec. 31, 2023

USD ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

USD ($)

^[2]

Dec. 31, 2022

MXN ($)

Dec. 31, 2020

MXN ($)

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Capital contribution

$ 198

^[1]

$ 3,348

$ 3,347

Cash and cash equivalents

$ 97,407

9,770

^[2]

165,112

$ 4,937

83,439

$ 107,624

Estrella Azul

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Portion of investment sold

100.00%

Total Joint Ventures

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Equity income recognized from ownership interest, net of tax

$ 190

$ 192

Leao Alimentos y Bebidas LTDA

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Capital reduction

Industria Envasadora de Quertaro, S.A. de C.V. (IEQSA)

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Dividends received

$ 79

$ 16

Promotora Industrial Azucarera, S.A. de C.V. (“PIASA”)

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

36.40%

Heineken Group

Dividends received

$ 3,428

$ 2,635

2,005

Share of net income exclusive of amortisation adjustments

13.90%

20.00%

0.90%

14.76%

$ 8,316

Equity income recognized from ownership interest, net of tax

$ 619

7,359

10,775

Number of shares sold, amount

$ 143,638

€ 6,912

Heineken Company

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Number of shares sold (in shares) | shares

8.63%

28,828,083

20,879,120

49,697,203

Number of shares repurchased (in shares) | shares

2,531,462

7,782,100

Heineken Holding N.V.

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Number of shares sold (in shares) | shares

10.45%

12,756,044

17,333,518

30,089,562

Number of shares repurchased (in shares) | shares

1,265,731

3,891,050

Jugos del Valle, S.A.P.I. de C.V.

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Capital contribution

466

Financial asset recognized on sale

TROP Frutas do Brasil LTDA.

28.20%

29.30%

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Impairment loss on investments

250

Planta Nueva Ecología De Tabasco, S.A. de C.V.

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Capital contribution

506

$ 560

Alimentos de Soja S.A.U.

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Impairment loss on investments

$ 143

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

10.70%

IFS TopCo LLC

Cash and cash equivalents

37.10%

37.08%

$ 1,500

$ 24,468

Total associates

Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items]

Equity income recognized from ownership interest, net of tax

$ 25

$ 194

$ 85

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3
[2]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Balances and Transactions with Related Parties and Affiliated Companies - Commitments (Details) - MXN ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Related party transactions [abstract]
Short-term employee benefits paid	$ 3,742	$ 2,381	$ 1,934
Postemployment benefits	54	53	52
Termination benefits	935	63	36
Share-based payments (Note 18.2)	$ 943	$ 866	$ 853

Employee Benefits - Actuarial Assumptions (Details)	12 Months Ended
Employee Benefits - Actuarial Assumptions (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial:
Discount rate used to calculate the defined benefit obligation	10.20%	9.90%	8.00%
Salary increase	4.75%	4.75%	4.50%
Future pension increases	3.75%	3.75%	3.50%
Healthcare cost increase rate	6.00%	6.00%	5.10%
Biometric:
Normal retirement age	60 years	60 years	60 years

Other Liabilities, Provisions, Contingencies and Commitments - Changes in Balance of Provisions Recorded (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Disclosure of financial liabilities [line items]

$ 4,685

Disclosure of financial liabilities [line items]

$ 256

4,323

$ 4,685

Indirect taxes

Penalties and other charges (see Note 20)

1,976

2,845

$ 3,153

109

New contingencies (see Note 20)

475

249

314

Cancellation and expiration (see Note 20)

(9)

(738)

(77)

Payments

(587)

(473)

(237)

Effects of changes in foreign exchange rates

(110)

(16)

(385)

Indirect taxes | Discontinued operations

1,649

1,976

2,845

Disclosure of financial liabilities [line items]

Discontinuing operations

(152)

Labor

Disclosure of financial liabilities [line items]

Penalties and other charges (see Note 20)

1,703

1,807

1,857

309

New contingencies (see Note 20)

868

571

526

Contingencies added in the business combination

Cancellation and expiration (see Note 20)

(525)

(443)

(445)

Payments

(308)

(320)

(360)

Effects of changes in foreign exchange rates

(155)

(60)

(80)

Labor | Discontinued operations

1,570

1,703

1,807

Disclosure of financial liabilities [line items]

Discontinuing operations

(77)

Legal

Disclosure of financial liabilities [line items]

Penalties and other charges (see Note 20)

1,006

937

1,293

New contingencies (see Note 20)

423

141

Contingencies added in the business combination

158

Cancellation and expiration (see Note 20)

(122)

(146)

(364)

Payments

(68)

(110)

(97)

Effects of changes in foreign exchange rates

(84)

(37)

Legal | Discontinued operations

1,104

1,006

937

Disclosure of financial liabilities [line items]

Discontinuing operations

$ (101)

$ 0

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Equity - Narrative (Details) $ in Millions	12 Months Ended
Equity - Narrative (Details) $ in Millions	Dec. 31, 2023 MXN ($) item series shares	Dec. 31, 2022 shares
Disclosure of classes of share capital [line items]
Capital stock issued (in shares)	3,578,226,270	3,578,226,270
Total shares (in shares)	17,891,131,350	17,891,131,350
Fixed capital stock amounts \| $	$ 300
Variable capital, maximum multiple of fixed capital \| item	10
“BD” Units
Disclosure of classes of share capital [line items]
Capital stock issued (in shares)	2,161,177,770	2,161,177,770
Total shares (in shares)	10,805,888,850	10,805,888,850
Number of series (in shares) \| series	1
“B” Units
Disclosure of classes of share capital [line items]
Capital stock issued (in shares)	1,417,048,500	1,417,048,500
Total shares (in shares)	7,085,242,500	7,085,242,500
Minimum percentage for voting	51.00%
Series L shares
Disclosure of classes of share capital [line items]
Maximum percentage for voting right	25.00%
“D”
Disclosure of classes of share capital [line items]
Maximum percentage for voting right	49.00%
Sub series D-L shares
Disclosure of classes of share capital [line items]
Maximum percentage for voting right	25.00%
Number of series (in shares) \| series	2
Non cumulative premium
Disclosure of classes of share capital [line items]
Dividend payable, premium, as percentage of non-premium dividend	125.00%
“B”
Disclosure of classes of share capital [line items]
Number of series (in shares) \| series	5
Sub series D B shares
Disclosure of classes of share capital [line items]
Number of series (in shares) \| series	2

Equity

12 Months Ended

Dec. 31, 2023

Equity [abstract]

Equity

23.1 Equity accounts

The capital stock of FEMSA is comprised of 2,161,177,770 BD units and 1,417,048,500 B units. As of December 31, 2023 and 2022, the common stock of FEMSA was comprised of 17,891,131,350 common shares, without par value and with no foreign ownership restrictions. Fixed capital stock amounts to Ps. 300 (nominal value) and the variable capital may not exceed 10 times the minimum fixed capital stock amount.

The characteristics of the common shares are as follows:

•Series “B” shares, with unlimited voting rights, which at all times must represent a minimum of 51% of total capital stock;

•Series “L” shares, with limited voting rights, which may represent up to 25% of total capital stock; and

•Series “D” shares, with limited voting rights, which individually or jointly with series “L” shares may represent up to 49% of total capital stock.

The Series “D” shares are comprised as follows:

•Subseries “D-L” shares may represent up to 25% of the series “D” shares;

•Subseries “D-B” shares may comprise the remainder of outstanding series “D” shares; and

•The non-cumulative premium dividend to be paid to series “D” shareholders will be 125% of any dividend paid to series “B” shareholders.

The Series “B” and “D” shares are linked together in related units as follows:

•“B units” each of which represents five series “B” shares, and which are traded on the BMV; and

•“BD units” each of which represents one series “B” share, two subseries “D-B” shares and two subseries “D-L” shares, and which are traded both on the BMV and the NYSE.

As of December 31, 2023, FEMSA’s capital stock is comprised as follows:



	“B” Units	“BD” Units	Total
Units	1,417,048,500	2,161,177,770	3,578,226,270
Shares:
Series “B”	7,085,242,500	2,161,177,770	9,246,420,270
Series “D”	—	8,644,711,080	8,644,711,080
Subseries “D-B”	—	4,322,355,540	4,322,355,540
Subseries “D-L”	—	4,322,355,540	4,322,355,540
Total shares	7,085,242,500	10,805,888,850	17,891,131,350

As of December 31, 2022, FEMSA’s capital stock is comprised as follows:



	“B” Units	“BD” Units	Total
Units	1,417,048,500	2,161,177,770	3,578,226,270
Shares:
Series “B”	7,085,242,500	2,161,177,770	9,246,420,270
Series “D”	—	8,644,711,080	8,644,711,080
Subseries “D-B”	—	4,322,355,540	4,322,355,540
Subseries “D-L”	—	4,322,355,540	4,322,355,540
Total shares	7,085,242,500	10,805,888,850	17,891,131,350

The net income of the Company is subject to the legal requirement that 5% thereof be transferred to a legal reserve until such reserve equals 20% of common stock at nominal value. This reserve may not be distributed to shareholders during the existence of the Company, except as a stock dividend. As of December 31, 2023 and 2022, this reserve amounted to Ps. 596 and accordingly, has not reached 20% of the capital stock.

Retained earnings and other reserves distributed as dividends, as well as the effects derived from capital reductions, are subject to income tax at the rate in effect at the date of distribution, except when capital reductions come from restated shareholder contributions (Cuenta de Capital de Aportación “CUCA”) and when the distributions of dividends come from net taxable income, denominated Cuenta de Utilidad Fiscal Neta (“CUFIN”).

Dividends paid in excess of CUFIN are subject to income tax at a grossed-up rate based on the current statutory rate. Since 2003, this tax may be credited against the income tax of the year in which the dividends are paid, and in the following two years against the income tax and estimated tax payments. The sum of the individual CUFIN balances of FEMSA and its subsidiaries as of December 31, 2023 amounted to Ps. 351,271. Under Mexican income tax law, dividends distributed to its stockholders who are individuals and foreign residents are subject to a 10% withholding tax, which will be paid in Mexico. The foregoing will not be applicable when distributed dividends arise from the accumulated CUFIN balances as of December 31, 2013.

At an ordinary shareholders’ meeting of FEMSA held on March 24, 2021, the shareholders approved a dividend of Ps. 7,687 that was paid 50% on May 6, 2021, and the other 50% on November 5, 2021; and a reserve for share repurchase of a maximum of Ps. 17,000. As of December 31, 2021, the Company has not repurchased shares. Treasury shares from share-based payment bonus plan are disclosed in Note 18.

At an ordinary shareholders’ meeting of Coca-Cola FEMSA held on March 19, 2021, the shareholders approved a dividend of Ps. 10,588 that was paid 50% on May 4, 2021 and other 50% on November 3, 2021. The corresponding payment to the non-controlling interest was Ps. 5,588.

At an ordinary shareholders’ meeting of FEMSA held on April 8, 2022, the shareholders approved a dividend of Ps.11,358 that was paid 50% on May 5, 2022, and the other 50% on November 7, 2022; and a reserve for share repurchase of a maximum of Ps. 17,000. As of December 31, 2022, the Company has not repurchased shares. Treasury shares from the share-based payment bonus plan are disclosed in Note 18.

At an ordinary shareholders’ meeting of Coca-Cola FEMSA held on March 28, 2022, the shareholders approved a dividend of Ps. 11,407 that was paid 50% on May 3, 2022, and the other 50% on November 3, 2022. The corresponding payment to the non-controlling interest was Ps. 6,021.

At an ordinary shareholders’ meeting of FEMSA held on March 31, 2023, the shareholders approved a dividend of Ps.12,247 that was paid 50% on May 8, 2023, and the other 50% on November 7, 2023; and a reserve for share repurchase of a maximum of Ps. 17,000. During 2023, the Company started its Share Repurchase Program, reacquiring 381,300 BD Units which are held as Treasury shares. The Company expects to maintain these shares in the Treasury for one year and subsequently cancel them. Treasury shares from the share-based payment bonus plan are disclosed in Note 18.

At an ordinary shareholders’ meeting of Coca-Cola FEMSA held on March 27, 2023, the shareholders approved a dividend of Ps. 12,185 that was paid 50% on May 3, 2023, and the other 50% on November 3, 2023. The corresponding payment to the non-controlling interest was Ps. 6,431.

For the years ended December 31, 2023, 2022 and 2021 the dividends declared and paid by the Company and Coca-Cola FEMSA were as follows:



	2023		2022		2021
FEMSA	Ps.	12,247	Ps.	11,358	Ps.	7,687
Coca-Cola FEMSA (100% of dividend)		12,185		11,407		10,588

For the years ended December 31, 2023, 2022 and 2021 the dividends declared and paid per share by the Company are as follows:



Series of Shares	2023		2022		2021
“B”	Ps.	0.61070	Ps.	0.56600	Ps.	0.38333
“D”		0.76340		0.70850		0.47917

23.2 Capital management

The Company manages its capital to ensure that its subsidiaries will be able to continue as going concerns while maximizing the return to shareholders through the optimization of its debt and equity balance to obtain the lowest cost of capital available. The Company manages its capital structure and adjusts it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes for managing capital during the years ended December 31, 2023, 2022 and 2021.

The Company is not subject to any externally imposed capital requirements, other than the legal reserve (see Note 23.1) and debt covenants (see Note 19).

The Company's Finance, Planning and the Corporate Practices Committees review the capital structure of the Company on a quarterly basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. In conjunction with this objective, the Company seeks to maintain the highest credit rating both national and international, currently rated as of December 31, 2023 AAA and BBB+ respectively, which requires it to have a debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio lower than 2. As a result, before entering new business ventures, acquisitions or divestitures, management evaluates the optimal ratio of debt to EBITDA to maintain its credit rating.

Balances and Transactions in Foreign Currencies - Exchange Rates (Details)	Apr. 22, 2024 $ / $	Mar. 20, 2024 $ / $ $ / €	Dec. 31, 2023 $ / $ $ / €	Dec. 31, 2022 $ / $ $ / €
Disclosure of exchange rates [Line Items]
Exchange rate			16.8998
Abnormally large changes in asset prices or foreign exchange rates
Disclosure of exchange rates [Line Items]
Exchange rate	17.2062
U.S. dollars
Disclosure of exchange rates [Line Items]
Exchange rate			16.8935	19.3615
U.S. dollars \| Abnormally large changes in asset prices or foreign exchange rates
Disclosure of exchange rates [Line Items]
Exchange rate		16.4583
Euros
Disclosure of exchange rates [Line Items]
Exchange rate \| $ / €			18.6896	20.7810
Euros \| Abnormally large changes in asset prices or foreign exchange rates
Disclosure of exchange rates [Line Items]
Exchange rate \| $ / €		17.7503

Basis of Preparation (Policies)

12 Months Ended

Dec. 31, 2023

Notes and other explanatory information [abstract]

Statement of compliance

2.1 Statement of compliance

The consolidated financial statements of the Company as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These consolidated financial statements and its accompanying notes were approved by the Company’s shareholders at the shareholder meeting on March 22, 2024, and were authorized for issuance to the Mexican Stock Exchange by the Company’s Board of Directors on the same date. The accompanying consolidated financial statements were approved for issuance in the Company’s annual report on Form 20-F by the Company’s Chief Executive Officer and Chief Corporate Financial Officer on April 23, 2024 and subsequent events have been considered through that date (see Note 30).

Critical accounting judgments and estimates

2.3 Critical accounting judgments and estimates

For the application of the Company’s accounting policies, which are described in Note 3, management is required to make judgments, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if it affects only such period or in the current and subsequent periods if the revision affects both.

2.3.1 Judgments and estimations

In the process of applying the Company’s accounting policies, management has made the following judgments, which have the most significant effects on the consolidated financial statements.

2.3.1.1 Useful lives of property, plant and equipment and intangible assets with definite useful lives

Property, plant and equipment, including returnable bottles which are expected to provide benefits over more than one year, as well as intangible assets with definite useful lives are depreciated/amortized over their estimated useful lives. The Company bases its estimates on the experience of its technical personnel as well as its experience in the industry for similar assets, see Notes 3.15, 3.18, 11 and 13.

2.3.1.2 Equity method accounted investees

Associates

If the Company holds, directly or indirectly, 20 percent or more of the voting power of the investee, it is presumed that it has significant influence, unless it can be clearly demonstrated that this is not the case. If the Company holds, directly or indirectly, less than 20 percent of the voting power of the investee, it is presumed that the Company does not have significant influence, unless such influence can be demonstrated. Decisions regarding the propriety of utilizing the equity method of accounting for a less than 20 percent-owned corporate investee requires a careful evaluation of voting rights and their impact on the Company’s ability to exercise significant influence. Management considers the existence of the following circumstances which may indicate that the Company is able to exercise significant influence over a less than 20 percent-owned corporate investee:

•Representation on the board of directors or equivalent governing body of the investee;

•Participation in policy-making processes, including participation in decisions about dividends or other distributions;

•Material transactions between the Company and the investee;

•Interchange of managerial personnel; or

•Provision of essential technical information.

Management also considers the existence and effect of potential voting rights that are currently exercisable or convertible when assessing whether the Company has significant influence.

In addition, the Company evaluates certain indicators that provide evidence of significant influence, such as:

•Whether the extent of the Company’s ownership is significant relative to other shareholders (i.e. a lack of concentration of other shareholders);

•Whether the Company’s significant shareholders or officers hold an additional investment in the investee; and

•Whether the Company is a part of an investee’s board of director committees, such as the executive committee or the finance committee.

2.3.1.3 Leases

The Company periodically evaluates the reasonability of the assumptions used in the calculation of the right-of-use asset and lease liability. The results of these evaluations are recognized in the consolidated statement of financial position.

Information on assumptions and estimates that have a significant risk of resulting in an adjustment to the carrying value of right-of-use assets and lease liabilities, and the related statement of income accounts, include the following:

•If the Company is reasonably certain to exercise an option to extend a lease agreement or not exercise an option to terminate a lease agreement before its termination date, considering all the facts and circumstances that create an economic incentive for the Company to exercise, or not, such options, taking into account whether the lease option is enforceable and when the Company has the unilateral right to apply the option in question.

•Determination of the non-cancellable period for evergreen contracts and lifelong leases, considering whether the Company is reasonably certain to terminate the lease and/or estimating a reasonable period for the use of the asset, based on significant leasehold improvements made on the leased properties that provide reasonable certainty to the Company about the remaining period to obtain the benefits of such improvements on leased properties.

The Company estimates the Incremental Borrowing Rate (“IBR”) using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).

2.3.2 Key sources of estimation uncertainty

The following are the assumptions and other sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the subsequent financial period. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes would be included in the assumptions when they occur.

2.3.2.1 Impairment of indefinite-lived intangible assets, goodwill and depreciable long-lived assets

Intangible assets with indefinite lives including goodwill are subject to impairment tests annually or whenever indicators of impairment are present. An impairment exists when the carrying value of an asset or cash-generating unit (“CGU”) exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculations are based on available data from binding sales agreements in arm’s length transactions of similar assets or observable market prices less incremental costs for disposing of the asset. To determine whether such assets are impaired, the Company calculates an estimation of the value-in-use of the CGU to which such assets have been allocated. Impairment losses are recognized in current earnings for the excess of the carrying amount of the asset or CGU over its recoverable amount.

The Company assesses at each reporting date whether there is an indication that a long-lived asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset or CGU is considered impaired and is written down to its recoverable amount. In assessing value-in-use, the estimated future cash flows expected to be generated from the use of the asset or CGU are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available.

If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries, or other available fair value indicators.

The key assumptions used to determine the recoverable amount for the Company’s CGUs, including a sensitivity analysis, are further explained in Notes 3.20 and 13.

2.3.2.2 Tax, labor and legal contingencies and provisions

The Company is subject to various claims and contingencies related to tax, labor and legal proceedings as described in Note 26. Due to their nature, such legal proceedings involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management periodically assesses the probability of loss for such contingencies and accrues a provision and/or discloses the relevant circumstances, as appropriate. If the potential loss of any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a provision for the estimated loss. Management’s judgment must be exercised to determine the likelihood of such a loss and an estimate of the amount, due to the subjective nature of the loss.

Management periodically evaluates positions taken in tax returns concerning situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a tax authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

The Company operates in numerous tax jurisdictions and is subject to periodic tax audits, in the normal course of business, by local tax authorities on a range of tax matters in relation to corporate tax, transfer pricing and indirect taxes. The impact of changes in local tax regulations and ongoing inspections by local tax authorities could materially impact the amounts recorded in the financial statements. Where the amount of tax payable is uncertain, the Company establishes provisions based on management’s estimates with respect to the likelihood of material tax exposures and the probable amount of the liability.

2.3.2.3 Fair value measurements

The Company measures all financial instruments at fair value.

The fair values of derivative financial instruments are determined considering quoted prices in recognized markets. If such instruments are not traded, fair value is determined by applying techniques based upon technical models supported by sufficient reliable and verifiable data, recognized in the financial sector. The Company bases its forward price curves upon market price quotations. Management believes that the chosen valuation techniques and assumptions used are appropriate in determining the fair value of financial instruments, see Note 21.

In the initial recognition of an equity instrument that is not held for trading, under the “other” business model, the Company may irrevocably choose to present changes in the fair value of the investment in Other Comprehensive Income (“OCI”). This choice is made for each investment. Equity instruments are subsequently measured at fair value. Dividends are recognized as other income in the consolidated income statement unless the dividend represents a recovery of part of the cost of the investment. Other net gains and losses, related to changes in fair value, are recognized in OCI and are considered items that will not be reclassified to consolidated net income in subsequent periods.

For 2023 the Company determined the fair value less cost to sell of the assets and liabilities held for sale related to its Strategic Businesses (see Note 3.17 and Note 4).

In the initial recognition of the Company's investment in IFS Top Co, the fair value of the initial investment was determined through a valuation using the estimated discounted cash flows of the share of the retained investment.

2.3.2.4 Business combinations

Businesses combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Company, the liabilities assumed by the Company from the former owners of the acquiree, the amount of any non-controlling interest in the acquiree, and the equity interests issued by the Company in exchange for control of the acquiree.

At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognized and measured at their fair value, except that:

•Deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12, Income Taxes, and IAS 19, Employee Benefits, respectively;

•Liabilities or equity instruments related to share-based compensation arrangements of the acquiree or share-based compensation arrangements of the Company entered into to replace share-based compensation arrangements of the acquiree are measured in accordance with IFRS 2, Share-based Payment, at the acquisition date, see Note 3.27;

•Assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, are measured in accordance with that standard; and

•Indemnifiable assets are recognized at the acquisition date on the same basis as the indemnified liability subject to any contractual limitations.

For each acquisition, management’s judgment is exercised to determine the fair value of the assets acquired, the liabilities assumed and any non-controlling interest in the acquiree, applying estimates or judgments in techniques used, especially in forecasting CGU's cash flows, in the computation of weighted average cost of capital (“WACC”) and estimation of inflation during the identification of intangible assets with indefinite lives including goodwill and distribution and trademark rights, and estimation of useful lives of acquired intangible assets with definite lives, mainly, customer relationships.

Application of recently issued accounting standards


	Balance as at December 31, 2022 (as initially reported)	Effects of reclassification	Balance as at December 31, 2022 (adjusted)
CURRENT LIABILITIES
Taxes payable	16,694	(16,694)	—
Income tax payable	—	5,419	5,419
Other current financial liabilities	17,475	11,275	28,750
NON-CURRENT LIABILITIES
Provisions and other non-current liabilities	8,981	(8,981)	—
Provisions	—	4,685	4,685
Other non-current liabilities	—	4,296	4,296

Non-Controlling Interest in Consolidated Subsidiaries - Rollforward (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items]

Beginning Balance

$ 337,801

$ 335,117

$ 307,187

Consolidated net income from continued operations

$ 4,536

^[1]

76,677

34,743

37,678

Other comprehensive loss

(921)

^[1]

(15,557)

(14,932)

3,560

Remeasurements of the Net Defined Benefit Liability

^[1]

160

661

296

Dividends declared and paid

(18,798)

(17,534)

(13,416)

Share based payment

(92)

Contribution from non-controlling interest

352

Ending Balance

$ 22,392

^[2]

378,369

337,801

335,117

Non-controlling interest

Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items]

Beginning Balance

75,197

72,516

69,444

Consolidated net income from continued operations

10,988

10,834

9,183

Other comprehensive loss

(3,465)

(2,198)

(368)

Exchange differences on translation of foreign operation

(3,325)

(1,558)

(1,342)

Remeasurements of the Net Defined Benefit Liability

173

(36)

Valuation of the effective portion of derivative financial instruments

(227)

(813)

1,010

Dividends declared and paid

(6,551)

(6,176)

(5,729)

Share based payment

(57)

(14)

Other acquisitions and remeasurements

Repurchase of non-controlling interests

(79)

Contribution from non-controlling interest

352

Disposals of businesses (Envoy and others)

(1,682)

Ending Balance

$ 74,509

$ 75,197

$ 72,516

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3
[2]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Other Current Assets and Other Current Financial Assets

12 Months Ended

Dec. 31, 2023

Current assets [abstract]

Other Current Assets and Other Current Financial Assets

9.1 Other current assets



	December 31, 2023		December 31, 2022
Prepaid expenses	Ps.	3,331	Ps.	3,953
Agreements with customers, net of accumulated amortization		126		208
Licenses		233		247
Other		127		70
	Ps.	3,817	Ps.	4,478

As of December 31, 2023 and 2022, the Company’s prepaid expenses are as follows:



	December 31, 2023		December 31, 2022
Advances for inventories	Ps.	1,826	Ps.	1,964
Advertising and promotional expenses paid in advance		96		119
Advances to service suppliers		4		44
Prepaid leases		63		64
Prepaid insurance		674		332
Others		668		1,430
	Ps.	3,331	Ps.	3,953

For the years ended December 31, 2023, 2022 and 2021, the Company’s advertising and promotional expenses amounted to Ps. 6,778, Ps. 5,768 and Ps. 7,586, respectively.

9.2 Other current financial assets



	2023		2022
Restricted cash	Ps.	304	Ps.	1,103
Derivative financial instruments (see Note 21)		431		10,061
Notes receivable (1)		16,125		205
	Ps.	16,860	Ps.	11,369

(1) In 2023, the Company sold its investment in Jetro Restaurant Depot. As part of the purchase sale agreement, a note receivable was agreed for U.S.$933 (Ps. 15,954), see Note 14.2.

The Company has pledged part of its cash to fulfill the collateral requirements for the accounts payable in different currencies. As of December 31, 2023 and 2022, the restricted cash pledged was held in:



	2023		2022
U.S. Dollars	Ps.	304	Ps.	1,095
Chilean pesos		—		8
	Ps.	304	Ps.	1,103

The restricted cash in U.S. Dollars corresponds to operations in Brazil and relates to short term deposits in order to fulfill the collateral requirements for accounts payable.

Taxes - Income Tax Rate (Details)	12 Months Ended
Taxes - Income Tax Rate (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of income taxes [Line Items]
Income tax rate	30.00%	30.00%	30.00%
Mexico
Disclosure of income taxes [Line Items]
Income tax rate	30.00%	30.00%	30.00%
Guatemala
Disclosure of income taxes [Line Items]
Income tax rate	25.00%	25.00%	25.00%
Costa Rica
Disclosure of income taxes [Line Items]
Income tax rate	30.00%	30.00%	30.00%
Panama
Disclosure of income taxes [Line Items]
Income tax rate	25.00%	25.00%	25.00%
Nicaragua
Disclosure of income taxes [Line Items]
Income tax rate	30.00%	30.00%	30.00%
Colombia
Disclosure of income taxes [Line Items]
Income tax rate	35.00%	35.00%	31.00%
Argentina
Disclosure of income taxes [Line Items]
Income tax rate	35.00%	35.00%	30.00%
Brazil
Disclosure of income taxes [Line Items]
Income tax rate	34.00%	34.00%	34.00%
Chile
Disclosure of income taxes [Line Items]
Income tax rate	27.00%	27.00%	27.00%
Peru
Disclosure of income taxes [Line Items]
Income tax rate	29.50%	29.50%	29.50%
Ecuador
Disclosure of income taxes [Line Items]
Income tax rate	25.00%	25.00%	25.00%
Uruguay
Disclosure of income taxes [Line Items]
Income tax rate	25.00%	25.00%	25.00%
United States
Disclosure of income taxes [Line Items]
Income tax rate	21.00%	21.00%	21.00%
Switzerland
Disclosure of income taxes [Line Items]
Income tax rate	18.60%	18.60%	18.60%

Financial Instruments - Interest Rate Swaps (Details) - MXN ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Face amount	$ 52,369	$ 79,088
2024
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Face amount	10,052
2025
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Fair value Liability	72	0
2027
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Face amount	4,223
2028
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Face amount	8,685
2029 and Thereafter
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Face amount	29,409
Interest rate swaps \| 2024
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Face amount	2	11,675
Fair value Liability	0	0
Fair Value Asset	65	236
Interest rate swaps \| 2025
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Face amount		2,227
Fair value Liability		0
Fair Value Asset		129
Interest rate swaps \| 2026
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Face amount	8,447
Fair value Liability	(1,381)
Fair Value Asset	$ 0
Interest rate swaps \| 2029 and Thereafter
Disclosure of Financial Assets and Financial Liabilities [Line Items]
Face amount		9,681
Fair value Liability		1,728
Fair Value Asset		$ 0

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings per share [abstract]

Calculation of Basic and Diluted Earnings Per Share Amounts



	2023						2022							2021
	Per Series			Per Series			Per Series			Per Series			Per Series			Per Series
	“B” Shares			“D” Shares			“B” Shares			“D” Shares			“B” Shares			“D” Shares
(in millions of shares)
Weighted average number of shares for basic earnings per share		9,239.73			8,617.94			9,241.72			8,625.92			9,242.88			8,630.54
Effect of dilution associated with non-vested shares for share based payment plans		6.69			26.78			4.70			18.79			3.54			14.17
Weighted average number of shares adjusted for the effect of dilution (Shares outstanding)		9,246.42			8,644.71			9,246.42			8,644.71			9,246.42			8,644.71
Dividend rights per series (see Note 23.1)		100	%		125	%		100	%		125	%		100	%		125	%
Weighted average number of shares further adjusted to reflect dividend rights		9,246.42			10,805.89			9,246.42			10,805.89			9,246.42			10,805.89
Basic earnings per share from continuing operations		1.67			2.09			1.12			1.40			1.01			1.26
Diluted earnings per share from continuing operations		1.67			2.09			1.12			1.40			1.01			1.26
Basic earnings per share from discontinued operations		1.61			2.02			0.07			0.09			0.41			0.52
Diluted earnings per share from discontinued operations		1.61			2.01			0.07			0.09			0.41			0.52
Allocation of earnings, weighted		46.11	%		53.89	%		46.11	%		53.89	%		46.11	%		53.89	%
Net controlling interest income allocated from continuing operations	Ps.	15,425		Ps.	18,026		Ps.	10,369		Ps.	12,117		Ps.	9,329		Ps.	10,902
Net controlling interest income allocated from discontinued operations	Ps.	14,865		Ps.	17,373		Ps.	656		Ps.	767		Ps.	3,811		Ps.	4,453

Taxes - Net Deferred Income Tax Asset Rollforward (Details) - MXN ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of income taxes [Line Items]
Balance at the beginning of the period	$ 20,067	$ 14,691	$ 16,010
Deferred tax provision for the period (Note 25.8)	(5,960)	(1,115)	622
Deferred tax income net recorded in share of the profit of equity method accounted investees	2	(694)	277
Acquisition of subsidiaries	1,871	0	0
Unrealized (gain) on cash flow hedges	(594)	(1,281)	1,006
Exchange differences on translation of foreign operations	1,002	(2,604)	(491)
Remeasurements of the net defined benefit liability	405	497	380
Retained earnings of equity method accounted investees	954	(334)	32
Restatement effect of the period and beginning balances associated with hyperinflationary economies	121	155	(507)
Balance at the end of the period	20,227	20,067	14,691
Discontinued operations
Disclosure of income taxes [Line Items]
Related discontinued operations	$ 2,039	$ 0	$ 0

Business Combinations and Disposals - Acquisition Information (Details) - MXN ($) $ in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2023	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Nov. 30, 2022	Oct. 31, 2022	May 31, 2022	Feb. 28, 2022	Jan. 31, 2022	Dec. 31, 2021
Disclosure of detailed information about business combination [line items]
Deductibe goodwill, tax purposes, period		15 years
Valora
Disclosure of detailed information about business combination [line items]
Business acquisition, percentage of voting equity interests acquired	3.13%					96.87%
Business acquisition, consideration transferred	$ 673					$ 23,148
Acquisition-related costs	$ 252
Sigma Supply
Disclosure of detailed information about business combination [line items]
Business acquisition, percentage of voting equity interests acquired							100.00%
Business acquisition, consideration transferred							$ 7,385
CVI Refrigerants Ltda.
Disclosure of detailed information about business combination [line items]
Business acquisition, percentage of voting equity interests acquired									100.00%
Business acquisition, consideration transferred									$ 1,947
CVI Refrigerants Ltda. \| Distribution rights
Disclosure of detailed information about business combination [line items]
Identifiable intangible assets recognised as of acquisition date									$ 894
CVI Refrigerants Ltda. \| Goodwill
Disclosure of detailed information about business combination [line items]
Identifiable intangible assets recognised as of acquisition date				$ 1,923
Agua Cristal
Disclosure of detailed information about business combination [line items]
Business acquisition, percentage of voting equity interests acquired					100.00%
Business acquisition, consideration transferred					$ 699
Agua Cristal \| Distribution rights
Disclosure of detailed information about business combination [line items]
Identifiable intangible assets recognised as of acquisition date				228
Agua Cristal \| Goodwill
Disclosure of detailed information about business combination [line items]
Identifiable intangible assets recognised as of acquisition date				8
Agua Cristal \| Property, plant and equipment, net
Disclosure of detailed information about business combination [line items]
Identifiable intangible assets recognised as of acquisition date				$ 448
Net Pay S.A.P.I de C.V.
Disclosure of detailed information about business combination [line items]
Business acquisition, percentage of voting equity interests acquired			100.00%
Business acquisition, consideration transferred			$ 4,422
OK Market
Disclosure of detailed information about business combination [line items]
Business acquisition, percentage of voting equity interests acquired								100.00%
Business acquisition, consideration transferred								$ 1,269
Atra, Hughes, Sunbelt, H.T. Berry, and Other Smaller Acquistions
Disclosure of detailed information about business combination [line items]
Business acquisition, percentage of voting equity interests acquired				100.00%
Business acquisition, consideration transferred				$ 8,203
Daycon, PJP, Next-Gen, Johnston Paper, And Other Smaller Acquisitons
Disclosure of detailed information about business combination [line items]
Business acquisition, percentage of voting equity interests acquired										100.00%
Business acquisition, consideration transferred										$ 9,949

Material Accounting Policies - Cash and cash equivalents and restricted cash (Details) - MXN ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Material Accounting Policies [Abstract]
Short-term deposits, classified as cash equivalents	$ 2,315	$ 1,466

Other Liabilities, Provisions, Contingencies and Commitments - Other Current Liabilities (Details)
$ in Millions, $ in Millions

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Other Liabilities, Provisions, Contingencies and Commitments [Abstract]

Short-term employee benefits

$ 11,808

$ 12,335

Accrued expenses

14,151

19,115

Total current liabilities

813

392

Accounts payable

$ 1,584

$ 26,772

$ 31,842

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Bonus Programs - Quantitative and Qualitative Objectives (Details) - MXN ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of terms and conditions of share-based payment arrangement [line items]
Percentage of bonus	50.00%
Percentage of annual bonus	50.00%
Vesting period	3 years
Compensation expense	$ 943	$ 866	$ 853
Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Percentage of economic value added	70.00%
Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Percentage of economic value added	30.00%

Intangible Assets - Average Remaining Amortization Period (Details)	12 Months Ended
	Dec. 31, 2023
Alcohol Licenses
Disclosure of intangible assets material to entity [line items]
Average Remaining Period Intangible Assets Subject to Amortization	12 years
Bottom of range \| Technology Costs and Management Systems
Disclosure of intangible assets material to entity [line items]
Average Remaining Period Intangible Assets Subject to Amortization	3 years
Bottom of range \| Customer Relationships
Disclosure of intangible assets material to entity [line items]
Average Remaining Period Intangible Assets Subject to Amortization	6 years
Top of range \| Technology Costs and Management Systems
Disclosure of intangible assets material to entity [line items]
Average Remaining Period Intangible Assets Subject to Amortization	10 years
Top of range \| Customer Relationships
Disclosure of intangible assets material to entity [line items]
Average Remaining Period Intangible Assets Subject to Amortization	25 years

Other Liabilities, Provisions, Contingencies and Commitments - Litigation, etc. (Details) - MXN ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of financial liabilities [line items]
Aggregate amount claimed against company	$ 140,462
Commitments for the purchase of property, plant and equipment	3,394	$ 2,588	$ 726
Brazil
Disclosure of financial liabilities [line items]
Tax contingencies amount	66,710
Litigation amount	13,692	$ 13,728	10,721
Coca-Cola FEMSA
Disclosure of financial liabilities [line items]
Amount extraordinary benefit from revision of suspended tax credit			$ 1,083
Coca-Cola FEMSA \| ICMS
Disclosure of financial liabilities [line items]
Tax contingencies amount	10,166
Coca-Cola FEMSA \| Tax credits
Disclosure of financial liabilities [line items]
Tax contingencies amount	38,150
Coca-Cola FEMSA \| Federal taxes
Disclosure of financial liabilities [line items]
Tax contingencies amount	5,188
Coca-Cola FEMSA \| Amortization of goodwill
Disclosure of financial liabilities [line items]
Tax contingencies amount	9,949
Coca-Cola FEMSA \| Liability over the operations of third party
Disclosure of financial liabilities [line items]
Tax contingencies amount	2,668
Coca-Cola FEMSA \| Exclusion of ICMS from PIS/COFINS taxable basis
Disclosure of financial liabilities [line items]
Tax contingencies amount	$ 589

Equity Method Accounted Investees - Summarized Financial Information (Details)
€ in Millions, $ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2022

EUR (€)

Dec. 31, 2021

MXN ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

EUR (€)

Dec. 31, 2020

MXN ($)

Equity Method Accounted Investees

Total current assets

$ 21,076

^[1]

$ 226,449

$ 356,159

Total non-current assets

26,611

^[1]

572,366

449,697

10,792

^[1]

176,922

182,381

Total non-current liabilities

14,503

^[1]

284,092

245,106

Total equity

22,392

^[1]

337,801

$ 335,117

378,369

$ 307,187

Equity attributable to equity holders

17,983

^[1]

262,604

$ 303,860

Net income

2,628

^[2]

$ 44,439

33,320

29,414

Other comprehensive income

(921)

^[3]

(15,557)

(14,932)

3,560

Total comprehensive income

3,615

^[3]

61,120

19,811

41,238

Total comprehensive income attributable to equity holders

$ 3,170

^[3]

$ 53,598

11,175

$ 32,423

Heineken Group

Equity Method Accounted Investees

Total current assets

227,480

€ 11,015

Total non-current assets

854,803

41,391

Total current liabilities

293,050

14,190

Total non-current liabilities

336,543

16,296

Total equity

452,690

21,920

Equity attributable to equity holders

403,765

€ 19,551

Total revenue and other income

598,072

€ 28,866

Total cost and expenses

509,333

24,583

Net income

62,965

3,039

Net income attributable to equity holders

55,568

2,682

Other comprehensive income

6,257

302

Total comprehensive income

69,222

3,341

Total comprehensive income attributable to equity holders

$ 62,965

€ 3,039

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3
[2]	Convenience translation to U.S. dollars ($) – See Note 2.2.3
[3]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Material Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Material Accounting Policies [Abstract]

Basis of consolidation

3.1 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and can affect those returns through its power over the investee.

Specifically, the Company controls an investee if and only if the Company has:

•Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);

•Exposure, or rights, to variable returns from its involvement with the investee; and

•The ability to use its power over the investee to affect its returns.

When the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

•The contractual arrangements with the other vote holders of the investee;

•Rights arising from other contractual arrangements; and

•The Company’s voting rights and potential voting rights.

The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary.

Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Company and the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Company’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Company are eliminated in full-on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it:

•Derecognizes the assets (including goodwill) and liabilities of the subsidiary.

•Derecognizes the carrying amount of any non-controlling interests.

•Derecognizes the cumulative translation differences recorded in equity.

•Recognizes the fair value of the consideration received.

•Recognizes the fair value of any investment retained.

•Recognizes any surplus or deficit in profit or loss.

•Reclassifies the parent’s share of components previously recognized in OCI to profit or loss or retained earnings, as appropriate, as would be required if the Company had directly disposed of the related assets or liabilities.

3.1.1 Acquisitions of non-controlling interests

Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognized as a result. Adjustments to non-controlling interests arising from transactions that do

not involve the loss of control are measured at carrying amount and reflected in equity as part of additional paid-in capital.

Business combinations

3.2 Business combinations

Business combinations are accounted for using the acquisition method at the acquisition date, which is the date on which control is transferred to the Company. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Company elects whether to measure the non-controlling interests in the acquiree at fair value or the proportionate share of the acquiree’s identifiable net assets.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the Company’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets of the acquiree and the liabilities assumed. If the net of the acquisition-date amounts of the identifiable assets of the acquiree and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the Company’s previously held an interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain.

Costs, other than those associated with the issuance of debt or equity securities, that the Company incurs in connection with a business combination are expensed as incurred.

Any contingent consideration payable is recognized at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured, and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent considerations are recognized in consolidated net income.

Indemnification assets are recognized at the acquisition date on the same basis as the indemnified liability subject to any contractual limitations.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items in which the accounting is incomplete and discloses that its allocation is preliminary. Those provisional amounts are adjusted retrospectively during the measurement period (not greater than 12 months from the acquisition date), or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date.

Sometimes obtaining control of an acquiree in which equity interest is held immediately before the acquisition date is considered as a business combination achieved in stages also referred to as a step acquisition. The Company remeasures its previously held equity interest in the acquiree at its acquisition-date fair value and recognizes the resulting gain or loss, if any, in profit or loss. Also, the changes in the value of equity interest in the acquiree recognized in OCI is recognized on the same basis as required if the Company had disposed directly of the previously held equity interest, see Note 3.14.

The acquisition method of accounting for a business combination applies to those combinations that may take the following forms:

(a)The acquiree repurchases a sufficient number of its shares for the Company to obtain control.

(b)Minority veto rights lapse that previously kept the Company from controlling an acquiree in which it held the majority voting rights.

(c)The Company and the acquiree agree to combine their businesses by contract alone in which it transfers no consideration in exchange for control and no equity interest is held in the acquiree, either on the acquisition date or previously.

Foreign currencies, consolidation of foreign subsidiaries and accounting of equity method accounted investees

3.3 Foreign currencies, consolidation of foreign subsidiaries and accounting of equity method accounted investees

In preparing the financial statements of each subsidiary and accounting for equity method accounted investees, transactions in currencies other than the individual entity’s functional currency (foreign currencies) are recognized at the exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-measured.

Exchange differences on monetary items are recognized in the consolidated net income in the period in which they arise except for:

•The variations in the net investment in foreign subsidiaries generated by exchange rate fluctuation which are included in OCI, which is recorded in equity as part of cumulative translation adjustment within the accumulated other comprehensive income; and

•Exchange differences on transactions entered into to hedge certain foreign currency risks.

Foreign exchange differences on monetary items are recognized in profit or loss. Their classification in the consolidated income statements depends on their nature. Differences arising from fluctuations related to operating activities are presented in the “other expenses” line (see Note 20) while fluctuations related to non-operating activities such as financing activities are presented as part of the “foreign exchange gain (loss)” line in the consolidated income statements.

For incorporation into the Company’s consolidated financial statements, each foreign subsidiary, associate or joint venture’s individual financial statements are translated into Mexican pesos, as follows:

•For entities operating in hyperinflationary economic environments, the inflation effects of the origin country are recognized under IAS 29, Financial Reporting in Hyperinflationary Economies, and subsequently translated into Mexican pesos using the year-end exchange rate for the consolidated statements of financial position and consolidated income statements and comprehensive income; and

•For entities operating in non-hyperinflationary economic environments, assets and liabilities are translated into Mexican pesos using the year-end exchange rate, equity is translated into Mexican pesos using the historical exchange rate, and the consolidated income statements and comprehensive income are translated using the exchange rate at the date of each transaction. The Company uses the average exchange rate of each month if the exchange rate does not fluctuate significantly.

In addition, in relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of exchange differences on translation of foreign subsidiaries and associates are re-attributed to non-controlling interests and are not recognized in profit or loss. For all other partial disposals (i.e., partial disposals of associates or joint ventures that do not result in the Company losing significant influence or joint control), the proportionate share of the exchange differences on translation of foreign subsidiaries and associates is reclassified to profit or loss.

Goodwill and fair value adjustments on identifiable assets and liabilities acquired arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Foreign exchange differences arising are recognized in equity as part of the cumulative translation adjustment.

The translation of assets and liabilities denominated in foreign currencies into Mexican pesos is for consolidation purposes and does not indicate that the Company could realize or settle the reported value of those assets and liabilities in Mexican pesos. Additionally, this does not indicate that the Company could return or distribute the reported Mexican peso value in equity to its shareholders.



		Exchange Rates of Local Currencies Translated to Mexican Pesos (1)
	Functional /	Average Exchange Rate for			Exchange Rate as of
	Recording				December 31,	December 31,
Country or Zone	Currency	2023	2022	2021	2023	2022
Guatemala	Quetzal	2.27	2.60	2.62	2.16	2.47
Costa Rica	Colon	0.03	0.03	0.03	0.03	0.03
Panama	U.S. dollar	17.77	20.13	20.28	16.89	19.36
Colombia	Colombian peso	0.004	0.01	0.01	0.01	0.01
Nicaragua	Cordoba	0.49	0.56	0.58	0.46	0.53
Argentina	Argentine peso	0.07	0.16	0.21	0.02	0.11
Brazil	Reais	3.56	3.90	3.76	3.49	3.71
Chile	Chilean peso	0.02	0.02	0.03	0.02	0.02
Euro Zone	Euro (€)	19.19	21.17	24.00	18.76	20.65
Peru	Nuevo Sol	4.74	5.24	5.22	4.55	5.07
Ecuador	U.S. dollar	17.77	20.13	20.28	16.89	19.36
United States	U.S. dollar	17.77	20.13	20.28	16.89	19.36
Uruguay	Uruguayan peso	0.46	0.49	0.47	0.43	0.48
Switzerland	Swiss franc	19.77	—	—	20.11	—

(1)Exchange rates published by the Central Bank of each country where the Company operates, except for Panama and Ecuador.

Recognition of the effects of inflation in countries with hyperinflationary economic environments

3.4 Recognition of the effects of inflation in countries with hyperinflationary economic environments

The Company recognizes the effects of inflation on the financial information of its subsidiaries that operate in hyperinflationary economic environments (when cumulative inflation of the three preceding years is approaching, or exceeds, 100% or more in addition to other qualitative factors), which consists of:

•Using inflation factors to restate non-monetary assets, such as inventories, property, plant and equipment, net, intangible assets, net including related costs and expenses when such assets are consumed or depreciated;

•Applying the appropriate inflation factors to restate capital stock, additional paid-in capital, net income, retained earnings and items of other comprehensive income by the necessary amount to maintain the purchasing power equivalent in the currency of the subsidiary on the dates such capital was contributed, or income was generated up to the date the consolidated financial statements are presented; and

•Including the monetary position gain or loss in the consolidated income statements in the caption "Gain on monetary position for subsidiaries in hyperinflationary economies".

The Company restates the financial information of the Argentine subsidiary that operates in a hyperinflationary economic environment using the consumer price index (“CPI”) of the country.

As of December 31, 2023, 2022, and 2021, the operations of the Company are classified as follows:


				Cumulative Inflation 2020 - 2022
Country	Cumulative Inflation 2021 - 2023		Type of Economy			Type of Economy	Cumulative Inflation 2019 - 2021		Type of Economy
Mexico	21.1	%	Non-hyperinflationary	19.4	%	Non-hyperinflationary	13.9	%	Non-hyperinflationary
Guatemala	17.3	%	Non-hyperinflationary	18.0	%	Non-hyperinflationary	11.7	%	Non-hyperinflationary
Costa Rica	9.5	%	Non-hyperinflationary	12.4	%	Non-hyperinflationary	5.8	%	Non-hyperinflationary
Panama	6.7	%	Non-hyperinflationary	3.1	%	Non-hyperinflationary	0.9	%	Non-hyperinflationary
Colombia	30.6	%	Non-hyperinflationary	21.4	%	Non-hyperinflationary	11.4	%	Non-hyperinflationary
Nicaragua	26.3	%	Non-hyperinflationary	23.1	%	Non-hyperinflationary	17.1	%	Non-hyperinflationary
Argentina (a)	815.6	%	Hyperinflationary	300.3	%	Hyperinflationary	216.1	%	Hyperinflationary
Brazil	21.8	%	Non-hyperinflationary	21.7	%	Non-hyperinflationary	20.0	%	Non-hyperinflationary
Euro Zone	18.0	%	Non-hyperinflationary	14.6	%	Non-hyperinflationary	5.8	%	Non-hyperinflationary
Chile	25.6	%	Non-hyperinflationary	20.9	%	Non-hyperinflationary	13.7	%	Non-hyperinflationary
Peru	19.2	%	Non-hyperinflationary	15.4	%	Non-hyperinflationary	10.6	%	Non-hyperinflationary
Ecuador	7.2	%	Non-hyperinflationary	5.8	%	Non-hyperinflationary	22.8	%	Non-hyperinflationary
United States	17.8	%	Non-hyperinflationary	13.8	%	Non-hyperinflationary	11.0	%	Non-hyperinflationary
Uruguay	22.9	%	Non-hyperinflationary	27.9	%	Non-hyperinflationary	28.5	%	Non-hyperinflationary
Germany	24.1	%	Non-hyperinflationary	—	%	Non-hyperinflationary	—	%	Non-hyperinflationary
Netherlands	19.1	%	Non-hyperinflationary	—	%	Non-hyperinflationary	—	%	Non-hyperinflationary
Austria	21.3	%	Non-hyperinflationary	—	%	Non-hyperinflationary	—	%	Non-hyperinflationary
Luxembourg	17.3	%	Non-hyperinflationary	—	%	Non-hyperinflationary	—	%	Non-hyperinflationary
Switzerland	6.2	%	Non-hyperinflationary	—	%	Non-hyperinflationary	—	%	Non-hyperinflationary

a) Argentina

Beginning on July 1, 2018, Argentina became a hyperinflationary economy because, among some other economic factors, the last three years’ cumulative inflation in Argentina exceeded 100% according to the several economic indices that exist in the country. The financial information for the Company’s Argentine subsidiary has been adjusted to recognize the inflationary effects since January 1, 2018 through:

•Using inflation factors to restate non-monetary assets, such as inventories, property, plant and equipment, net, intangible assets, net, including related costs and expenses when such assets are consumed or depreciated.

•Recognizing the monetary position gain or loss in the consolidated net income.

The FACPCE (Federación Argentina de Consejos Profesionales de Ciencias Económicas) approved on September 29, 2018 and published on October 5, 2018, a resolution which defines, among other things, that the index price to determine the restatement coefficient (Based on a series that applies the Consumer Price Index (“CPI”) from January 2017 with the Wholesale Domestic Price Index ("WDPI") until this date, and computing November and December 2015 using the CPI- of Ciudad del Gran Buenos Aires (“CGBA”) variation).

Cash and cash equivalents and restricted cash

3.5 Cash and cash equivalents and restricted cash

Cash is comprised of deposits in bank accounts that generate interest on the available balance. Cash equivalents are mainly represented by short-term bank deposits and fixed-income investments (overnight), both with maturities of three months or less, and their carrying values approximate fair value. All credit card, debit card and electronic transfer transactions that process in less than 1.5 days are classified as cash and cash equivalents. The amount due from banks for these transactions classified as cash and cash equivalents amounts to Ps. 2,315 and Ps. 1,466 as of December 31, 2023 and 2022, respectively.

The Company also maintains restricted cash which is pledged as collateral to meet certain contractual obligations. Restricted cash is presented within other current financial assets given that, by their nature, the restrictions are short-term (Note 9.2).

Investments

3.6 Investments

The investments include debt securities and bank deposits with a maturity of more than three months but less than twelve as of the acquisition date.

Management determines the appropriate classification of investments at the time of purchase and evaluates that classification at the date of each statement of financial position, see Note 6.

Financial assets

3.7 Financial assets

Financial assets are classified within the following business models depending on management’s objective: (i) “held to maturity to recover cash flows,” (ii) “held to maturity and to sell financial assets” and (iii) “others or held for trading,” including derivatives designated as hedging instruments in an effective hedge, as appropriate. The classification depends on the nature and purpose of holding the financial assets and is determined at the time of initial recognition.

The Company performs a portfolio–level assessment of the business model in which a financial asset is managed to accomplish the Company’s risk management purposes. The information that is considered within the evaluation includes:

•The policies and objectives of the Company about the portfolio and the practical implementation of policies;

•Performance and evaluation of the Company’s portfolio including accounts receivable;

•Risks that affect the performance of the business model and how those risks are managed;

•Any compensation related to the performance of the portfolio; and

•Frequency, volume and timing of sales of financial assets in previous periods together with the reasons for said sales and expectations regarding future sales activities.

The Company’s financial assets include cash, cash equivalents and restricted cash, investments with maturities of more than three months and accounts receivable, derivative financial instruments and other financial assets.

For the initial recognition of a financial asset, the Company measures it at fair value plus the transaction costs that are directly attributable to the purchase thereof, if said asset is not measured at fair value through profit or loss. Accounts receivable that do not have a significant financing component are measured and recognized at the transaction price. The rest of the financial assets are recognized only when the Company is part of the contractual provisions of the instrument.

The fair value of an asset is measured using assumptions that would be used by market participants when valuing the asset, assuming that the transaction is orderly and takes place in the principal or the most advantageous market for the asset.

Financial assets are classified, at initial recognition, as measured at: amortized cost, fair value with changes in other comprehensive income – debt or equity investments – and fair value through profit or loss. The classification depends on the objective by which the financial asset is acquired.

Financial assets are not reclassified after their initial recognition unless the Company changes the business model to manage the financial assets; in which case, all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

3.7.1 Financial assets at amortized cost

A financial asset is measured at amortized cost if it meets the following two conditions and is not designated as fair value through profit and loss (“FVTPL”):

•It’s managed within a business model whose objective is to maintain financial assets to recover the contractual cash flows; and

•The contractual terms are only payments at specified dates of the principal and interest on the amount of the outstanding principal, or solely payments of principal and interest (“SPPI”).

The amortized cost of a financial asset is the amount of the initial recognition less the principal payments, plus or minus the accumulated amortization using the effective interest rate method of any difference between the initial amount and the amount as of the maturity and, for financial assets, adjusted for any impairment losses. The exchange fluctuation and impairment are recognized in the consolidated income statement.

3.7.2 Effective interest rate method (“ERR”)

The effective interest rate method consists of calculating the amortized cost of loans and accounts receivables and other financial assets (measured at amortized cost) and allocating interest income/expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

3.7.3 Financial assets at fair value with changes in other comprehensive income (“FVOCI”)

A financial asset is measured at FVOCI if it meets the following two conditions and is not designated as FVTPL:

•It’s managed within a business model whose objective is achieved through the collection of contractual cash flows and the sale of financial assets; and

•The contractual terms are solely principal and interest payments.

These assets are subsequently measured at fair value. The interest income calculated using the internal rate of return (“IRR”), the exchange fluctuation and any impairment are recognized in profit and loss. Other gains and losses, related to changes in fair value, are recognized in OCI. In the case of derecognition or reclassification, the accumulated gains and losses in OCI are reclassified to profit and loss.

In the initial recognition of an equity instrument that is not held for trading, under the “other” business model, the Company may irrevocably choose to present changes in the fair value of the investment in OCI. This choice has to be made for each investment. Equity instruments are subsequently measured at fair value. Dividends are recognized as other income in results unless the dividend represents a recovery of part of the cost of the investment. Other net gains and losses, related to changes in fair value, are recognized in OCI and are not reclassified to consolidated net income in subsequent periods.

3.7.4 Financial assets at fair value through profit or loss (“FVTPL”)

Financial assets designated as FVTPL include financial assets held for trading and financial assets designated at initial recognition as FVTPL. Financial assets are classified as held for trading if they are acquired to sell in the short-term. Derivatives, including embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments as defined in IFRS 9. Financial assets designated as FVTPL are recorded in the consolidated statements of financial position with changes in fair value presented as interest expense (net negative changes in fair value) or interest income (net positive changes in fair value) in the consolidated income statements, including any dividend income.

3.7.5 Evaluation that contractual cash flows are solely principal and interest payments (“SPPI”)

To classify a financial asset within one of the three different categories, the Company determines whether the contractual cash flows of the asset are only principal and interest payments. The Company considers the contractual terms of the financial instrument and whether the financial asset contains any contractual term that could change the timing or amount of the contractual cash flows in such a way that it would not meet the SPPI criteria. In making this evaluation, the Company considers the following:

•Contingent events that would change the amount or timing of cash flows;

•Terms that can adjust the contractual coupon rate, including variable interest rate characteristics;

•Prepayment and extension features; and

•Characteristics that limit the Company's right to obtain cash flows.

A prepaid feature is consistent with the characteristics of SPPI if the prepayment amount substantially represents the amounts of the principal and interest pending payment, which could include reasonable compensation for early

termination of the contract. Additionally, a financial asset acquired or originated with a premium or discount to its contractual amount and at initial recognition the fair value of the prepaid characteristic is insignificant, the asset will pass the test of the contractual characteristics of cash flow if the amount of the prepayment represents substantially the contractual amount and accrued interest (but not paid); which may include additional compensation for the early termination of the contract.

3.7.6 Impairment of financial assets

The Company recognizes impairment due to expected credit loss (“ECL”) in:

•Financial assets measured at amortized cost;

•Debt investments measured at FVOCI; and

•Other contractual assets.

Impairment losses on accounts receivable and contractual assets are measured at the amount that equals the lifetime ECL, whether or not it has a significant financing component. The Company applies the criteria to all accounts receivable and contractual assets, together or separately.

The Company measures impairment losses at an amount equal to ECL for the lifetime, except for the following:

•Debt instruments classified as low credit risk; and

•Other debt instruments in which the credit risk (non-recoverability risk over the financial instrument’s expected life) has not increased significantly since the initial recognition.

In determining whether the credit risk of a financial asset has increased significantly since initial recognition and estimating the ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. It includes qualitative and quantitative analysis based on Company’s experience and credit assessment.

The impairment loss is a weighted estimate of the probability of expected loss. The amount of impairment loss is measured as the present value of any lack of liquidity (the difference between the contractual cash flows that correspond to the Company and the cash flows that management expects to receive). The expected credit loss is discounted at the original effective interest rate of the financial asset.

The Company evaluates if there was evidence of impairment on a regular basis or when an impairment indicator exists. Some observable data that financial assets were impaired includes:

•Significant financial difficulty of the issuer or the borrower;

•A breach of contract, such as default or past due event;

•Granting concessions due to the borrower’s financial difficulties which the Company would not consider in other circumstances;

•Indicators that the borrower will enter bankruptcy or other financial reorganization;

•The disappearance of an active market for a financial instrument because of financial difficulties; or

•Information indicating that there was a measurable decrease in the expected cash flows of a group of financial assets.

For an equity instrument, evidence of impairment includes a significant decrease in its fair value lower than its carrying value.

The impairment loss on financial assets measured at amortized cost reduces the book value and for financial assets measured at FVOCI, the impairment loss is recognized as a loss within OCI.

3.7.7 Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when:

•The rights to receive cash flows from the financial asset have expired; or

•The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement, and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

3.7.8 Offsetting of financial instruments

Financial assets are required to be offset against financial liabilities and the net amount reported in the consolidated statement of financial position if, and only if, the Company:

•Currently has an enforceable legal right to offset the recognized amounts; and

•Intends to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

Other financial assets

3.8 Other financial assets

Other financial assets include long-term accounts receivable, derivative financial instruments and recoverable contingencies acquired from business combinations. Long-term accounts receivable with a stated term are measured at amortized cost using the effective interest method, less any impairment.

Inventories and cost of goods sold

3.9 Derivative financial instruments

The Company is exposed to different risks related to cash flows, liquidity, market and third-party credit. As a result, the Company contracts different derivative financial instruments to reduce its exposure to the risk of exchange rate fluctuations between the Mexican peso and other currencies, and interest rate fluctuations associated with its borrowings denominated in foreign currencies and the exposure to the risk of fluctuation in the costs of certain raw materials.

The Company recognizes all derivative financial instruments and hedging activities in the consolidated statement of financial position as either an asset or liability measured at FVTPL or FVOCI, considering quoted prices in recognized markets. If such instruments are not traded in a formal market, fair value is determined by applying techniques based upon technical models supported by sufficient, reliable and verifiable market data. Changes in the fair value of derivative financial instruments are recorded each period in current earnings or otherwise as a component of cumulative other comprehensive income based on the item being hedged and the effectiveness of the hedge.

3.9.1 Hedge accounting

The Company designates certain hedging instruments, which include derivatives to cover foreign currency risk, as either fair value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk.

When forward contracts are used to hedge forecasted transactions, the Company generally designates only the change in fair value of the forward contract related to the spot component as the hedging instrument. Gains or losses related to the effective portion of the change in the spot component of forward contracts are recognized in the cash flow hedge reserve under OCI. The change in the forward element of the contract that refers to the hedged item “aligned forward element” is recognized in other comprehensive income in the costs of the hedge reserve in capital stock. In some cases, the Company can designate the total change in the fair value of the forward contract including forward points as a hedging instrument. In those cases, gains or losses related to the effective portion of the change in the fair value of the overall forward contract are recognized in the cash flow hedge reserve under OCI.

3.9.2 Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income under the heading valuation of the effective portion of derivative financial instruments. The gain or loss relating to the ineffective portion is recognized immediately in the "market value (gain) loss on financial instruments" line item within the consolidated income statements.

Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to consolidated net income in the periods when the hedged item is recognized in consolidated net income, in the same line of the consolidated income statements as the recognized hedged item.

Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in cumulative other comprehensive income in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in consolidated net income. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in consolidated net income.

3.9.2.1 Fair value hedges

For hedged items carried at fair value, the change in the fair value of a hedging derivative is recognized in the consolidated income statement as foreign exchange gain or loss. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognized in the consolidated income statement as "foreign exchange gain or loss".

For fair value hedges relating to items carried at amortized cost, the change in the fair value of the effective portion of the hedge is recognized first as an adjustment to the carrying value of the hedged item and then is amortized through profit or loss over the remaining term of the hedge using the EIR method. EIR amortization may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged. If the hedged item is derecognized, the unamortized fair value is recognized immediately in profit or loss.

When an unrecognized firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognized as an asset or liability with a corresponding gain or loss recognized in profit and loss.

3.9.2.2 Hedge of net investment in a foreign business

The Company designates debt securities as a hedge of certain net investment in foreign subsidiaries and applies hedge accounting to foreign currency differences arising between the currency of its investments abroad and the functional currency of the holding company (Mexican peso), regardless of whether the net investment is held directly or through a sub-holding company.

Differences in foreign currency that arise in the conversion of a financial liability designated as a hedge of a net investment in a foreign operation are recognized in other comprehensive income in the exchange differences in the "translation of foreign operations and associates" caption, to the extent that the hedge is effective. To the extent that the hedge is ineffective, such differences are recognized as market value gain or loss on financial instruments within the consolidated income statements. When part of the hedge of net investment is disposed, the corresponding accumulated foreign currency translation effect is recognized as part of the gain or loss on the disposal in discontinued operations within the consolidated income statement. In the case of an equity instrument measured at FVOCI, the corresponding accumulated foreign currency translation effects remains as part of OCI.

Fair value measurement

3.10 Fair value measurement

The Company measures financial instruments, such as derivatives, and certain non-financial assets, at fair value at each balance sheet date. Also, fair values of financial instruments measured at amortized cost are disclosed in Notes 14 and 19.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place in either:

•the principal market for the asset or liability; or

•in the absence of a principal market, in the most advantageous market for the asset or liability.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

•Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

•Level 2 — Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

•Level 3 — Unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

For assets and liabilities that are recognized in the consolidated financial statements regularly, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company determines the policies and procedures for both recurring fair value measurements, such as those described in Note 21 and unquoted liabilities such as debt described in Note 19.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities based on the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.11 Inventories and cost of goods sold

Inventories are measured at a the lower of cost and net realizable value. The net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Inventories represent the acquisition or production cost that is incurred when purchasing or producing a product and are based on the weighted average cost formula. The operating segments of the Company use different inventory costing methodologies to value their inventories, such as the weighted average cost method in Coca-Cola FEMSA, Proximity Europe, the distribution centers of Proximity Americas, as well as the Health Division; retail method (a method to estimate the average cost) for most stores within Proximity Americas; and the acquisition method in the Fuel Division.

Cost of goods sold includes expenses related to the purchase of raw materials used in the production process, as well as labor costs (wages and other benefits), depreciation of production facilities, equipment and other costs, including fuel, electricity, equipment maintenance and inspection; expenses related to the purchase of goods and services used in the sale process of the Company’s products and expenses related to the purchase of gasoline, diesel and all engine lubricants used in the sale process of the Company.

Management makes judgments regarding write-downs to determine the net realizable value of the inventory. These write-downs consider factors such as age and condition of goods as well as recent market data to assess the estimated future demand for goods.

Other current assets

3.12 Other current and non-current assets

Other current assets, which will be realized within less than one year from the reporting date, are comprised of prepaid assets and product promotion agreements with customers.

Prepaid assets principally consist of advances to suppliers of raw materials, advertising, promotional, leasing and insurance costs, and are recognized as other current assets at the time of the cash disbursement. Prepaid assets are

initially recorded as an asset and are subsequently amortized in the appropriate caption in the consolidated income statement when goods or services have been received.

The Company has prepaid advertising costs which consist of television and radio advertising airtime in advance. These prepaids are generally amortized over the period based on the transmission of the television and radio spots. The related production costs are recognized in the consolidated income statement as incurred.

Equity method accounted investees

3.13 Equity method accounted investees

Associates are those entities over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but not control over those policies. Upon loss of significant influence over the associate, the Company measures and recognizes any retained investment at its fair value.

Investments in associates are accounted for using the equity method and initially recognized at cost, which comprises the investment’s purchase price and any directly attributable expenditure necessary to acquire it. The carrying value of the investment is adjusted to recognize changes in the Company’s shareholding of the associate since the acquisition date. The financial statements of the associates are prepared for the same reporting period as the Company.

The consolidated financial statements include the Company’s share of the associates consolidated net income and other comprehensive income, after adjustments to align the accounting policies with those of the Company, from the date that significant influence commences until the date that significant influence ceases.

Profits and losses resulting from 'upstream' and 'downstream' transactions between the Company (including its consolidated subsidiaries) and an associate are recognized in the consolidated financial statements only to the extent of unrelated investors' interests in the associate. 'Upstream' transactions are, for example, sales of assets from an associate to the Company. 'Downstream' transactions are, for example, sales of assets from the Company to an associate. The Company’s share in the associate’s profits and losses resulting from these transactions is eliminated.

When the Company’s share of losses exceeds the carrying amount of the investment in the associate, including any advances, the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Company has a legal or constructive obligation to pay the associate or has to make payments on behalf of the associate.

Goodwill identified at the acquisition date is presented as part of the investment in shares of the associate in the consolidated statement of financial position. Any goodwill arising on the acquisition of the Company’s interest in an associate is measured in accordance with the Company’s accounting policy for goodwill arising in a business combination, see Note 3.2 and Note 10.

After the application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its associate. Goodwill that forms part of the carrying amount of the net investment in an associate or a joint venture is not separately recognized and therefore is not tested for impairment separately. Instead, the entire carrying amount of the investment is tested for impairment in accordance with IAS 36 as a single asset, by comparing its recoverable amount. The Company determines at each reporting date whether there is any objective evidence that the investment in the associates is impaired. If this is the case, the Company determines the amount of impairment as the difference between the recoverable amount of the investment and its carrying value and recognizes the amount in the share in profit or loss of equity method accounted investees, net of tax in the consolidated income statements.

If an investment interest is reduced but continues to be classified as an associate, the Company reclassifies to profits or losses the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to the reduction in ownership interest if the gain or loss would be required to be reclassified to consolidated net income on the disposal of the related investment.

The Company reclassifies in each case proportionate to the interest disposed of the following amounts recognized in other comprehensive income: i) foreign exchange differences, ii) accumulated hedging gains and losses, iii) any other

amount previously recognized that would have been recognized in net income if the associate had directly disposed of the asset to which it relates.

Upon loss of significant influence over the associate, the Company measures and recognizes any retained investment at its fair value.

A joint arrangement is an arrangement in which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Company classifies its interests in joint arrangements as either joint operations or joint ventures depending on the Company’s rights to the assets and obligations for the liabilities of the arrangements.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The Company recognizes its interest in the joint ventures as an investment and accounts for that investment using the equity method. For the years ended December 31, 2023, 2022 and 2021 the Company does not have an interest in joint operations.

If an investment interest is reduced but continues to be classified as joint arrangement, the Company reclassifies to profits or losses the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to the reduction in ownership interest if the gain or loss would be required to be reclassified to consolidated net income on the partial disposal of the related investment.

The Company reclassifies the proportion of the interest disposed of a joint venture investment based on the overall reduction in the investment. During the years ended December 31, 2023, 2022, and 2021 the Company did not have any significant disposals or partial disposals of joint arrangements.

Upon loss of joint control over a joint venture, the Company measures and recognizes any retained investment at its fair value.

Property, plant and equipment

3.14 Property, plant and equipment

Property, plant, and equipment are initially recorded at their cost of acquisition and/or construction and are presented net of accumulated depreciation and accumulated impairment losses, if any. The borrowing costs related to the acquisition or construction of qualifying assets are capitalized as part of the cost of that asset, if material.

Major maintenance costs are capitalized as part of the total acquisition cost. Routine maintenance and repair costs are expensed as incurred.

Investments in progress consist of long-lived assets not yet in service or, in other words, that are not yet ready for the purpose that they were bought, built or developed. The Company expects to complete those investments during the following 12 months.

Depreciation is computed using the straight-line method over the asset’s estimated useful life. Where an item of property, plant and equipment comprises major components having different useful lives, the components are accounted and depreciated for as separate items of property, plant and equipment.

During 2022, Coca-Cola FEMSA reviewed the useful lives of its property, plant and equipment, and determined changes in its estimated useful lives of these assets. The financial impact of this change for 2022 was immaterial. Changes in these estimates were applied prospectively.

The estimated useful lives of the Company’s assets are as follows:



						Years
Buildings						20-50
Machinery and equipment						5-25
Distribution equipment						4-14
Refrigeration equipment						6-10
Returnable bottles						1.5-4
Leasehold improvements						The shorter of the lease term or 21 years
Information technology equipment						3-5
Other equipment						2-15

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds (if any) and the carrying amount of the asset and is recognized in the consolidated income statement.

Returnable and non-returnable bottles:

Coca-Cola FEMSA has two types of bottles: returnable and non-returnable.

•Non-returnable bottles are expensed in the consolidated income statement at the time of the sale of the product.

•Returnable bottles are classified as long-lived assets as a component of property, plant and equipment. Returnable bottles are recorded at acquisition cost. Depreciation of returnable bottles is computed using the straight-line method over their estimated useful lives of the bottles.

There are two types of returnable bottles:

•Those that are in Coca-Cola FEMSA’s control within its facilities, plants and distribution centers; and

•Those that have been placed in the hands of customers, and still belong to Coca-Cola FEMSA.

Returnable bottles that have been placed in the hands of customers are subject to an agreement with a retailer under which Coca-Cola FEMSA retains ownership. These bottles are monitored by sales personnel during periodic visits to retailers and Coca-Cola FEMSA has the right to charge any breakage identified to the retailer. Bottles that are not subject to such agreements are expensed when placed in the hands of retailers.

Coca-Cola FEMSA’s returnable bottles are depreciated according to their estimated useful lives (four years for glass bottles and 1.5 years for PET bottles). Deposits received from customers are amortized over the same estimated useful lives of the bottles.

Leases

3.15 Leases

The Company assesses at its inception whether a contract is, or contains, a lease when the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. The Company assesses whether a contract is a lease arrangement, when:

•The contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all the capacity of a physically distinct asset. If the lessor has substantive substitution rights, then the asset is not identified;

•The Company has the right to obtain substantially all the economic benefits from the use of the asset throughout the period of use; and

•The Company has the right to direct the use of the asset when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. When the use of the asset is predetermined, the Company has the right to direct the use of the asset if either: i) it has the right to operate the asset; or ii) it designed the asset in a way that predetermines how and for what purpose it will be used.

The Company enters into leases mainly for land and buildings for its retail stores and other buildings for its offices. In general, lease agreements for retail stores last 15 years, and office space agreements generally have terms between three and five years.

As a lessee

Initial recognition

At the lease commencement date, the Company recognizes a right-of-use asset and a lease liability. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date. The right-of-use asset considers any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The lease liability is initially measured at the present value of the lease payments to be made over the lease term. The future lease payments are discounted using the Company’s incremental borrowing rate, which is considered as the rate that the Company would negotiate when obtaining financing for a similar period, and with a similar guarantee, to obtain an asset of a similar value to the leased asset. For the Company, the discount rate used to measure the right of use asset and its lease liability is the rate related to the cost of financing for the Company from the consolidated perspective (“Ultimate Parent Company”).

Lease payments included in the measurement of the lease liability, comprise the following:

•Fixed payments, including in-substance fixed payments, less any incentives receivable;

•Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

•The exercise price under a purchase option that the Company is reasonably certain to exercise, an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early; and

•Amounts expected to be payable to the lessor under residual value guarantees.

The Company does not recognize a right-of-use asset and a lease liability for short-term leases that have a lease term of 12 months or less and leases of low-value assets, mainly technological equipment used by the employees, such as computers, handheld devices, and printers. The Company recognizes the lease payments associated with these leases as an expense in the consolidated statement of income as they are incurred.

Subsequent measurement

The right-of-use asset is depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. In addition, the right-of-use asset is periodically adjusted for impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is measured at amortized cost using the effective interest rate method. The Company remeasures the lease liability when there is a modification in the lease term or amounts of expected payments under a residual value guarantee and when it arises from a change in an index or rate, without modifying the incremental borrowing rate (unless it results from a change in a floating rate). The lease liability is remeasured using a new incremental borrowing rate at the date of the modification when:

•An extension or termination option is exercised modifying the non-cancellable period of the contract; or

•The Company changes its assessment of whether it will exercise a purchase option of the underlying asset.

When the lease liability is remeasured, a corresponding adjustment is made to the carrying value amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

A modification to the lease agreement is accounted for as a separate lease if both of the following conditions are met: i) the modification increases the scope of the lease by adding the right-to-use one or more underlying assets, and ii) the consideration for the lease increases by an amount proportional to the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the contract.

In the consolidated statement of income, the interest expense from the lease liability is recognized as a component of interest expense, unless it is directly attributable to qualifying assets, in which case it is capitalized in accordance with the Company’s accounting policy on borrowing costs. Depreciation of the right-of-use asset is recognized in the consolidated statement of income.

Leasehold improvements on lease agreements are recognized as a part of property, plant and equipment in the consolidated financial statements and are amortized using the straight-line method over the shorter of either the useful life of the assets or the related lease term.

All intra-group right-of-use assets and lease liabilities, interest expenses, depreciation and cash flows relating to transactions between subsidiaries of the Company are eliminated on consolidation.

Intangible assets

3.16 Intangible assets

Intangible assets are identifiable non-monetary assets without physical substance and represent payments whose benefits will be received in future years. Intangible assets acquired separately are measured at initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value as of the date of acquisition (see Note 3.2). Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite, in accordance with the period over which the Company expects to receive the benefits.

Intangible assets with finite useful lives are amortized and mainly consist of:

•Customer relationships intangible assets acquired in a business combination, are recognized on acquisition and recorded at fair value. After initial recognition, customer relationships intangible assets are stated at cost less accumulated amortization and any impairment losses. Amortization is charged to the consolidated income statement on a straight-line basis over the estimated useful economic lives which range from 6 to 25 years.

•Technology costs and management system costs incurred during the development stage which are currently in use. Such amounts are capitalized and then amortized using the straight-line method over their expected useful lives, with a range in useful lives from 3 to 10 years. Expenditures that do not fulfill the requirements for capitalization are expensed as incurred.

•Alcohol licenses are amortized using the straight-line method over their estimated useful lives, which are estimated at 12 years.

Amortized intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable through its expected future cash flows.

Intangible assets with indefinite useful lives consist of:

•Rights to produce and distribute Coca-Cola trademark products in the Company’s territories.

As of December 31, 2023, Coca-Cola FEMSA had four bottler agreements in Mexico, (i) Valley of Mexico territory, which is up for renewal in June 2033, (ii) Southeast territory, which is up for renewal in June 2033, (iii) Bajio territory, which is up for renewal in May 2025 and (iv) Golfo territory, which is up for renewal in May 2025. As of December 31, 2023, Coca-Cola FEMSA had one bottler agreement in Brazil, which is up for renewal in October 2027. As of December 31, 2023, Coca-Cola FEMSA had three bottler agreements in Guatemala, which are up for renewal in March 2025 (one contract) and April 2028 (two contracts).

In addition, Coca-Cola FEMSA had one bottler agreement in each country which are up for renewal as follows: Argentina, which is up for renewal in September 2024; Colombia which is up for renewal in June 2024; Panama which is up for renewal in November 2024; Costa Rica which is up for renewal in September 2027; Nicaragua which is up for renewal in May 2026; and Uruguay which is up for renewal in June 2028.

As of December 31, 2023, Coca-Cola FEMSA’s Venezuela investee (see Note 2.3.1.9) had one bottler agreement, which is up for renewal in August 2026.

The bottler agreements are automatically renewable for ten-year terms, subject to the right of either party to give prior notice that it does not wish to renew a specific agreement. In addition, these agreements generally may be terminated in the case of material breach. Termination would prevent Coca-Cola FEMSA from selling Coca-Cola trademark beverages in the affected territory and would have an adverse effect on the Company´s business, financial conditions and results from operations.

•Trademark rights include Health Division’s trademark rights which consist of standalone beauty store retail banners, pharmaceutical distribution to third-party clients and the production of generic and bio equivalent pharmaceuticals.

Intangible assets with an indefinite life are not amortized and are subject to impairment tests on an annual basis as well as whenever certain circumstances indicate that the carrying amount of those intangible assets may exceed their recoverable value.

Non-current assets held for sale and discontinued operations

3.17 Non-current assets held for sale and discontinued operations

The Company classifies non-current assets and disposal groups as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuous operational use. This condition is regarded as met only when the sale is highly probable and the non-current asset (or disposal group) is available for immediate sale in its present condition. The sale is considered highly probable if the following conditions are met:

•The appropriate level of management must be committed to a plan to sell the asset (or disposal group);

•An active program to locate a buyer and complete the plan must have been initiated;

•The asset (disposal group) must be actively marketed for sale at a price that is reasonable in relation to its current fair value; and

•The sale should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets (or disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. For the year ended on December 31, 2023 the Company has assets and liabilities held for sale. See Note 4.

Discontinued operations are excluded from the continuing operations and are also presented as a single line item as earnings (loss) after income taxes of discontinued operations in the consolidated income statement.

For the year ended on December 31, 2023, 2022 and 2021 the Company has discontinued operations related to its investment in Heineken and other significant businesses that have been disposed or are in the process of being sold. See Note 4.

Financial liabilities and equity instruments

3.18 Impairment of long-lived assets

At the end of each reporting period, the Company reviews the carrying amounts of its long-lived tangible and intangible assets with finite lives to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual CGUs, or otherwise they are allocated to the smallest CGUs for which a reasonable and consistent allocation basis can be identified.

For impairment testing, goodwill acquired in a business combination is allocated at the acquisition date to each of the group’s CGUs that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

For goodwill and other indefinite-lived intangible assets, the Company tests for impairment on an annual basis and whenever certain circumstances indicate that the carrying amount of the related CGU might exceed its recoverable amount.

The recoverable amount is the higher of fair value less costs to sell and value-in-use. In assessing value-in-use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted, as discussed in Note 2.3.1.1.

If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in consolidated net income.

Where the conditions leading to an impairment loss no longer exist, it is subsequently reversed. That is, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in consolidated net income. Impairment losses related to goodwill are not reversible.

For the years ended December 31, 2023, 2022 and 2021, the Company recognized impairment losses of Ps. 1,248, Ps. 833 and Ps. 1,427, respectively (see Note 20).

3.19 Financial liabilities and equity instruments

3.19.1 Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

3.19.2 Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognized as a deduction from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s equity instruments.

3.19.3 Financial liabilities

Initial recognition and measurement

Financial liabilities within the scope of IFRS 9 are classified as financial liabilities at amortized cost, except for derivative instruments designated as hedging instruments in an effective hedge, which are recognized at FVTPL. The Company determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognized initially at fair value less, in the case of loans and borrowings, directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings, and derivative financial instruments, see Note 3.9.

Subsequent measurement

The subsequent measurement of the Company’s financial liabilities depends on their classification as described below.

3.19.4 Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in the consolidated income statements when the liabilities are derecognized.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest method. The effective interest method amortization is included in interest expense in the consolidated income statements, see Note 19.

3.19.5 Derecognition

A financial liability is derecognized when the obligation under the liability is discharged, canceled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated income statements.

Provisions

3.20 Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received, and the amount of the receivable can be measured reliably.

The Company recognizes a provision for a loss contingency when it is probable (i.e. the probability that the event will occur is greater than the probability that it will not) that certain effects related to past events, would materialize and can be reasonably quantified. These events and their financial impact are also disclosed as loss contingencies in the consolidated financial statements when the risk of loss is deemed to be other than remote. The Company does not recognize an asset for a gain contingency until the gain is virtually certain, see Note 26.

Restructuring provisions are recognized only when the recognition criteria for provisions are satisfied. The Company has a constructive obligation when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, there is a detailed estimate of the associated costs, and an appropriate timeline. Furthermore, the employees affected must have been notified of the plan’s main features.

Post-employment and other short and long-term employee benefits

3.21 Post-employment and other short and long-term employee benefits

Post-employment and other long-term employee benefits include obligations for pension and retirement plans, seniority premiums and postretirement medical services.

In Mexico, the economic benefits from employee benefits and retirement pensions are granted to employees with 10 years of service and minimum age of 60. In addition, in accordance with Mexican Labor Law, the Company provides seniority premium benefits to its employees under certain circumstances. The seniority premium benefits consist of a one-time payment equivalent to 12 days wages for each year of service (at the employee’s most recent salary, but not to exceed twice the legal minimum wage), payable to all employees with 15 or more years of service, as well as to certain employees terminated involuntarily before the vesting of their seniority premium benefit. For qualifying employees, the Company also provides certain post-employment healthcare benefits such as the medical-surgical services, pharmaceuticals, and hospitals.

For defined benefit retirement plans and other long-term employee benefits, such as the Company’s sponsored pension and retirement plans, seniority premiums and postretirement medical service plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each reporting period. All remeasurement effects of the Company’s defined benefit obligation such as actuarial gains and losses are recognized directly in OCI. The Company presents service costs within cost of goods sold, administrative and selling expenses in the consolidated income statements. The Company presents net interest cost within interest expense in the consolidated income statements. The projected benefit obligation recognized in the consolidated statement of financial position represents the present value of the defined benefit obligation as of the end of each reporting period. Certain subsidiaries of the Company have established plan assets for the payment of pension benefits, seniority premiums and postretirement medical services through irrevocable trusts of which the employees are named as beneficiaries, which serve to decrease the unfunded status of such plans’ related obligations.

Costs related to compensated absences, such as vacations and vacation premiums, are recognized on an accrual basis.

Employee profit sharing ("PTU") in Mexico is paid by the Company’s Mexican subsidiaries to its eligible employees. In Mexico, PTU is computed at the rate of 10% of the individual company taxable income. PTU in Mexico is calculated

from the same taxable income for income tax, except for the following: a) neither tax losses from prior years nor the PTU paid during the year are deductible; and b) payments to employees that are exempt from taxes are fully deductible in the PTU computation.

The amendment to the Federal Labor Law established a limit on the amount to be paid for profit sharing to employees, which indicates that the amount of PTU assigned to each employee may not exceed the equivalent of three months of the employee’s current salary, or the average PTU received by the employee in the previous three years, whichever is greater. If the PTU determined is less than or equal to this limit, the PTU will be determined by applying 10% of the individual company taxable income. If the PTU determined exceeds this limit, the limit would apply and this should be considered the PTU for the period.

A settlement occurs when an employer enters into a transaction that eliminates all further legal or constructive obligations for part or all of the benefits provided under a defined benefit plan. A curtailment arises from an isolated event such as the closing of a plant, discontinuance of an operation or termination or suspension of a plan. Gains or losses on the settlement or curtailment of a defined benefit plan are recognized when the settlement or curtailment occurs.

Revenue recognition

3.22 Revenue recognition

The Company recognizes revenue when the control of performance obligations included in the contract is transferred to the customer. Control refers to the ability that the customer has to direct the use and also to obtain substantially all the benefits of the goods or services exchanged. These benefits are generally paid on a short-term basis.

Management defined the following as indicators to analyze the timing and circumstances as well as the amount by which the revenues would be recognized:

•Identify the contract(s) with a customer (written, oral or any other according to business practices);

•Evaluate the goods and services promised in the customer contract and identifying how each performance obligation in the contract will be transferred to the customer;

•Consider the contractual terms jointly with business practices to determine the transaction price. The transaction price is the amount of the consideration the Company expects to receive in exchange for transferring the promised goods and services to the customer, excluding tax on sales. The expected consideration in a contract may include fixed amounts, variable amounts or both;

•Allocate the transaction price to each performance obligations in the contract (to each good and service that is different) for an amount that represents the consideration to which the entity expects to receive in exchange for the goods and services arranged with the customer; and

•Recognize revenue when (or as) the entity satisfies a performance obligation in exchange for promised goods and services.

All of the above conditions are typically met at the point in time that goods are delivered to the customer at the customers’ facilities. The net sales reflect the effect of agreements with customers, the units delivered at list price, net of variable considerations such as promotions and discounts, which are measure based on the amounts agreed with customers using the expected value method.

The benefits granted from suppliers to the Company as discounts and incentives are recognized as benefits in the cost of goods sold because the Company does not have a separate performance obligation.

When the Company is not the primary responsible party for selling goods or providing services to its customers, it recognizes revenues on a net basis as an agent, in the net sales line item which are generated mainly by Proximity Americas.

All the conditions mentioned above are accomplished normally when the goods are delivered to the customer, usually payment terms varies from 0 to 90 days.

The Company generates revenues for the following activities:

Sale of goods

Includes the sales of goods by all the subsidiaries of the Company, mainly the sale of beverages of the leading brand of
Coca-Cola and the sale or consumption of goods in the small-format stores of the Proximity Americas, Proximity Europe, Health Division and Fuel Division; in which the revenue is recognized at the point of time those products were sold to the customers. See Note 28.

Rendering of services

Includes the revenues of distribution services, maintenance services and packing of raw materials that the Company recognizes as revenues as the related performance obligation is satisfied. The Company recognizes revenues for the rendering of services during the period in which the performance obligation is satisfied when the following conditions are met:

•The customer receives and consumes simultaneously the benefits, as the Company satisfies the obligation;

•The customer controls the related assets, even if the Company improves them;

•The revenues can be measured reliably; and

•It is probable that economic benefits will flow to the Company.

Rewards programs

The Company recognizes a contract liability for the obligation to award additional benefits to its customers mainly from reward points granted by Proximity Americas and Fuel Division. Management considers in determining that liability, the amount of points granted to its customers and revenue is recognized when the reward points are redeemed or expired and the related inventory is transferred to the customer.

Variable consideration

The Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. Some contracts include promotions, discounts or any other variable allowances that may be granted to the customers. These estimates are based on the commercial agreements celebrated with the customers and on the historical performance for the customer.

Sales discounts are considered variable consideration and are reflected in the client’s invoice. Therefore discounts are recognized at the moment of sale (sales are recorded net of discounts).

In the Modern Channel, retail products are sold at a discount based on volume, considering total sales during certain period. Revenues on these sales are recognized based on the price established in the agreement, net of variable consideration for discounts for estimated volume. The Company uses its accumulated experience to estimate discounts, using the expected value method.

Significant financing component

There is no significant financing component, due to the fact that the majority of sales are made either in cash or on credit with payment terms of less than one year.

Contracts costs

The incremental costs for obtaining a customer contract are recognized as an asset if the Company expects to recover those costs. The incremental costs are those incurred to obtain a contract and that would not be incurred if the contract hadn’t been obtained. The Company recognizes these costs as incurred in the consolidated income statement when the associated revenue is realized in a period equal to or less than one year. The contract costs, are amortized on a straight-line basis over the terms of the related revenue contracts, reflecting how the goods and services are transferred to the client (See Note 3.12). Any other costs that are related to the fulfillment of a contract with a customer and not within the scope of another IFRS standard (e.g. IAS 2, Inventories), are recorded as an asset if they meet the following criteria:

•The costs relate directly to a contract that the Company expects to identify specifically;

•The costs generate or improve the resources of the Company that will be applied to satisfy, or continue satisfying performance obligations in the future; and

•The costs are expected to be recovered.

The contract asset is amortized in the same manner as the goods and services are transferred to the customer. Accordingly, the asset is recognized in the consolidated income statement through its amortization in the same period in which the related revenue is recognized. For the years ended December 31, 2023, 2022 and 2021, contract costs were not significant.

Administrative and selling expenses

3.23 Administrative and selling expenses

Administrative expenses include labor costs (salaries and other benefits, including PTU of employees not directly involved in the sale or production of the Company’s products, as well as professional service fees, the depreciation of office facilities, amortization of capitalized information technology system implementation costs and any other similar costs.

Selling expenses include:

•Distribution: labor costs, outbound freight costs, warehousing costs of finished products, write-off of returnable bottles in the distribution process, depreciation and maintenance of trucks and other distribution facilities and equipment. For the years ended December 31, 2023, 2022 and 2021, these distribution costs amounted to Ps. 34,615, Ps. 30,721 and Ps. 26,023, respectively;

•Sales: labor costs (salaries and other benefits including PTU) and sales commissions paid to sales personnel; and

•Marketing: promotional expenses and advertising costs.

Income taxes

3.24 Income taxes

The income tax expense represents the sum of the tax currently payable and deferred tax. Income taxes are charged to the consolidated income statements as they are incurred, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.

Uncertain tax positions

The Company operates in numerous tax jurisdictions and is subject to periodic tax inspections, in the normal course of business, by local tax authorities on a range of tax matters in relation to corporate income tax.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

3.24.1 Current income taxes

Income taxes are recognized in the results of the period of the year in which they are incurred, however, in the case of inflationary effects, penalties and surcharges derived from income taxes from previous years, they are recognized within the line of other expenses and other income before the income taxes line item in the consolidated income statement of the Company since Management considers that the aforementioned inflationary effects, penalties and surcharges are not an integral part of the income taxes of the year (see Note 25.2).

3.24.2 Deferred income taxes

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, including tax loss carryforwards and certain tax credits, to the extent that it is probable that future taxable profits, reversal of existing taxable temporary differences and future tax planning strategies will create taxable profits that will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from initial recognition of goodwill (no recognition of deferred tax liabilities) or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In the case of Brazil, where certain goodwill amounts are at times deductible for tax purposes, the Company recognizes as part of the acquisition method a deferred tax asset for the tax effect of the excess of the tax basis over the related carrying value.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

Deferred income taxes are classified as a long-term asset or liability, regardless of when the temporary differences are expected to reverse.

Deferred tax relating to items recognized in the other comprehensive income is recognized in correlation to the underlying transaction in OCI.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the how the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Company offsets tax assets and liabilities only if it has a legally enforceable right to offset current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities related to income taxes are levied by the same tax authority.

In Mexico, the income tax rate was 30% for 2023, 2022 and 2021, and currently Management has no reason to believe that the tax rate will change in the foreseeable future. The tax rates for other countries is disclosed in Note 25.

Share-based payments arrangements

3.25 Share-based payments arrangements

Senior executives of the Company receive remuneration in the form of FEMSA and Coca-Cola FEMSA share-based payment transactions, whereby the employees render services as consideration for equity instruments. Under this stock incentive plan, eligible executive officers and senior management are entitled to receive a special annual bonus in cash, after withholding applicable taxes, to purchase FEMSA and Coca-Cola FEMSA shares traded in the Mexican Stock Exchange. This plan uses the EVA result achieved, and their individual performance as its main evaluation metric. The Company makes a cash contribution to the administrative trust (which is controlled and consolidated by FEMSA) in the amount of the individual executive’s special bonus. The administrative trust then uses the funds to purchase FEMSA and Coca-Cola FEMSA shares or options (as instructed by the Corporate Practices Committee). The equity instruments are granted and then held by an administrative trust controlled and consolidated by the Company until vesting. They are accounted for as equity-settled transactions. The award of equity instruments is based on a fixed monetary value on the grant date.

Equity-settled share-based payments to these employees are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date of the equity-settled share-based payments is expensed and recognized based on the graded vesting method over the vesting period at 33% per year over three-year period, based on

the Company’s estimate of equity instruments that will eventually vest. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in the consolidated income statements such that the cumulative expense reflects the revised estimate.

Earnings per share

3.26 Earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its shares. Basic EPS is calculated by dividing the consolidated net income attributable to equity holders of the parent by the weighted average number of shares outstanding during the period adjusted for the weighted average of own shares purchased in the year. Diluted EPS is determined by adjusting the weighted average number of shares outstanding including the weighted average of the Company’s own shares purchased in the year for the effects of all potentially dilutive securities, which comprise share rights granted to employees described above. See Note 24.

Other Current Assets and Other Current Financial Assets - Prepaid Expenses (Details) - MXN ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Current assets [abstract]
Advances for inventories	$ 1,826	$ 1,964
Advertising and promotional expenses paid in advance	96	119
Advances to service suppliers	4	44
Prepaid leases	63	64
Prepaid insurance	674	332
Others	668	1,430
Current prepaid expenses	$ 3,331	$ 3,953

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, plant and equipment [abstract]

Schedule of Property, Plant and Equipment, Net



Cost	Land		Buildings		Machinery and Equipment		Refrigeration Equipment		Returnable Bottles		Investments in Fixed Assets in Progress		Leasehold Improvements		Other		Total
Cost as of January 1,2021	Ps.	9,922	Ps.	27,255	Ps.	86,726	Ps.	16,949	Ps.	17,923	Ps.	10,534	Ps.	26,527	Ps.	905	Ps.	196,741
Additions (1)		303		484		5,263		115		3,655		8,527		2,869		237		21,453
Additions from business acquisitions		—		—		86		—		—		—		—		—		86
Changes in the fair value of past acquisitions		—		—		55		—		—		—		3		—		58
Transfer of completed projects in progress		3		768		4,997		1,351		31		(7,384)		215		19		—
Transfer (to)/from assets classified as held for sale		—		—		60		—		—		—		(8)		4		56
Disposals		(93)		(205)		(7,196)		(1,614)		(2,300)		(190)		(1,771)		(32)		(13,401)
Effects of changes in foreign exchange rates		(162)		(657)		(1,487)		(556)		(364)		(752)		(76)		(82)		(4,136)
Effects on the recognition of inflation effects		140		464		1,580		318		487		1		—		—		2,990
Cost as of December 31, 2021	Ps.	10,113	Ps.	28,109	Ps.	90,084	Ps.	16,563	Ps.	19,432	Ps.	10,736	Ps.	27,759	Ps.	1,051	Ps.	203,847
Cost as of January 1, 2022	Ps.	10,113	Ps.	28,109	Ps.	90,084	Ps.	16,563	Ps.	19,432	Ps.	10,736	Ps.	27,759	Ps.	1,051	Ps.	203,847
Additions (1)		447		774		8,237		939		4,124		15,597		2,669		397		33,184
Additions from business acquisitions		201		1,268		4,478		126		8		699		175		—		6,955
Changes in the fair value of past acquisitions		—		—		(68)		—		—		—		36		(19)		(51)
Transfer of completed projects in progress		159		1,571		4,794		2,485		645		(9,954)		290		10		—
Transfer (to)/from assets classified as held for sale		—		—		(107)		—		—		—		—		—		(107)
Disposals		(33)		(259)		(3,362)		(1,072)		(381)		(290)		(214)		(15)		(5,626)
Effects of changes in foreign exchange rates		(458)		(1,167)		(1,955)		(1,276)		(1,707)		(589)		641		(166)		(6,677)
Effects on the recognition of inflation effects		222		735		2,903		536		849		7		—		(2)		5,250
Cost as of December 31, 2022	Ps.	10,651	Ps.	31,031	Ps.	105,004	Ps.	18,301	Ps.	22,970	Ps.	16,206	Ps.	31,356	Ps.	1,256	Ps.	236,775



Cost as of January 1, 2023	Ps.	10,651	Ps.	31,031	Ps.	105,004	Ps.	18,301	Ps.	22,970	Ps.	16,206	Ps.	31,356	Ps.	1,256	Ps.	236,775
Additions (1)		135		319		9,193		855		2,782		18,376		4,572		566		36,798
Additions from business acquisitions		—		—		64		—		—		2		—		—		66
Business combinations from disposals		—		—		70		—		—		—		—		—		70
Changes in the fair value of past acquisitions		73		(15)		189		—		—		—		—		10		257
Transfer of completed projects in progress		558		1,582		6,008		2,346		2,110		(12,621)		3		14		—
Transfer (to)/from assets classified as held for sale		—		—		57		—		—		—		—		—		57
Disposals		(327)		(799)		(9,656)		(1,245)		(270)		(322)		(1,012)		(100)		(13,731)
Disposal of Envoy Solutions		—		—		(1,001)		—		—		(91)		(200)		(17)		(1,309)
Effects of changes in foreign exchange rates		(523)		(2,174)		(5,845)		(1,299)		(2,155)		(1,109)		(266)		(371)		(13,742)
Effects on the recognition of inflation effects		177		587		1,897		400		655		123		4		—		3,843
Cost as of December 31, 2023	Ps.	10,744	Ps.	30,531	Ps.	105,980	Ps.	19,358	Ps.	26,092	Ps.	20,564	Ps.	34,457	Ps.	1,358	Ps.	249,084

(1)Total includes Ps. 890, Ps. 2,278 and Ps. 3,784 outstanding payment to suppliers, as of December 31, 2023, 2022 and 2021 respectively.

(2)Investments in fixed assets in progress are expected to be completed and transferred to other fixed assets categories within next twelve months.



Accumulated Depreciation	Land		Buildings		Machinery and Equipment		Refrigeration Equipment		Returnable Bottles		Investments in Fixed Assets in Progress		Leasehold Improvements		Other		Total
Accumulated Depreciation as of January 1, 2021	Ps.	—	Ps.	(7,643)	Ps.	(43,110)	Ps.	(9,162)	Ps.	(12,152)	Ps.	—	Ps.	(11,130)	Ps.	(438)	Ps.	(83,635)
Depreciation for the year		—		(870)		(8,344)		(1,795)		(2,708)		—		(2,462)		(154)		(16,333)
Transfer to/(from) assets classified as held for sale		—		—		(38)		—		—		—		—		—		(38)
Disposals		—		80		5,312		1,493		2,391		4		1,649		27		10,956
Effects of changes in foreign exchange rates		—		151		864		372		222		—		417		88		2,114
Changes in value on the recognition of inflation effects		—		(139)		(946)		(208)		(427)		—		(6)		(38)		(1,764)
Accumulated Depreciation as of December 31, 2021	Ps.	—	Ps.	(8,421)	Ps.	(46,262)	Ps.	(9,300)	Ps.	(12,674)	Ps.	4	Ps.	(11,532)	Ps.	(515)	Ps.	(88,700)



Accumulated Depreciation as of January 1, 2022	Ps.	—	Ps.	(8,421)	Ps.	(46,262)	Ps.	(9,300)	Ps.	(12,674)	Ps.	4	Ps.	(11,532)	Ps.	(515)	Ps.	(88,700)
Depreciation for the year		—		(1,393)		(9,107)		(2,015)		(3,234)		—		(2,456)		(134)		(18,339)
Transfer to/(from) assets classified as held for sale		—		—		89		—		—		—		—		—		89
Disposals		—		217		3,319		936		305		—		248		12		5,037
Effects of changes in foreign exchange rates		—		298		745		860		1,274		—		(766)		144		2,555
Changes in value on the recognition of inflation effects		—		(244)		(2,034)		(354)		(745)		—		(5)		(34)		(3,416)
Accumulated Depreciation as of December 31, 2022	Ps.	—	Ps.	(9,543)	Ps.	(53,250)	Ps.	(9,873)	Ps.	(15,074)	Ps.	4	Ps.	(14,511)	Ps.	(527)	Ps.	(102,774)



Accumulated Depreciation as of January 1, 2023	Ps.	—	Ps.	(9,543)	Ps.	(53,250)	Ps.	(9,873)	Ps.	(15,074)	Ps.	4	Ps.	(14,511)	Ps.	(527)	Ps.	(102,774)
Depreciation for the year		—		(1,021)		(10,309)		(1,844)		(3,257)		—		(2,784)		(196)		(19,411)
Transfer to/(from) assets classified as held for sale		—		—		(43)		—		—		—		—		—		(43)
Disposals		—		260		6,494		1,249		261		(4)		592		63		8,915
Disposal of Envoy Solutions		—		—		344		—		—		—		70		(38)		376
Effects of changes in foreign exchange rates		—		708		3,898		793		1,783		—		398		241		7,821
Changes in value on the recognition of inflation effects		—		(218)		(1,265)		(291)		(649)		—		(2)		(13)		(2,438)
Accumulated Depreciation as of December 31, 2023	Ps.	—	Ps.	(9,814)	Ps.	(54,131)	Ps.	(9,966)	Ps.	(16,936)	Ps.	—	Ps.	(16,237)	Ps.	(470)	Ps.	(107,554)



Carrying Amount	Land		Buildings		Machinery and Equipment		Refrigeration Equipment		Returnable Bottles		Investments in Fixed Assets in Progress		Leasehold Improvements		Other		Total
As of December 31, 2021	Ps.	10,113	Ps.	19,688	Ps.	43,822	Ps.	7,263	Ps.	6,758	Ps.	10,740	Ps.	16,227	Ps.	536	Ps.	115,147
As of December 31, 2022	Ps.	10,651	Ps.	21,488	Ps.	51,754	Ps.	8,428	Ps.	7,896	Ps.	16,210	Ps.	16,845	Ps.	729	Ps.	134,001
As of December 31, 2023	Ps.	10,744	Ps.	20,717	Ps.	51,849	Ps.	9,392	Ps.	9,156	Ps.	20,564	Ps.	18,220	Ps.	888	Ps.	141,530

Investments

12 Months Ended

Dec. 31, 2023

Investment property [abstract]

Investments

As of December 31, 2023 and 2022, current investments with a maturity greater than three months but less than twelve months are carried at amortized cost, and their carrying value is similar to their fair value. The following is a detail of such investments:



Fixed-rate
Corporate debt securities	2023		2022
Acquisition cost	Ps.	—	Ps.	21
Accrued interest		—		30
Bank deposits
Acquisition cost	Ps.	26,354	Ps.	—
Accrued interest		374		—
Total investments	Ps.	26,728	Ps.	51

Earnings per Share (Details)
$ / shares in Units, shares in Thousands, $ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

Dec. 31, 2023

MXN ($)

$ / shares

Dec. 31, 2022

MXN ($)

$ / shares

Dec. 31, 2021

MXN ($)

$ / shares

Earnings per share [line items]

Net controlling interest income allocated from continuing operations

$ 3,886

^[1]

$ 65,689

$ 23,909

$ 28,495

Per Series B Shares

Earnings per share [line items]

Weighted average number of shares for basic earnings per share (in shares) | shares

9,239,730

9,241,720

9,242,880

Effect of dilution associated with non-vested shares for share based payment plans (in shares) | shares

6,690

4,700

3,540

Weighted average number of shares adjusted for the effect of dilution (Shares outstanding) | shares

9,246,420

Dividend rights per series

100.00%

Weighted average number of shares further adjusted to reflect dividend rights (in shares) | shares

9,246,420

Basic earnings per share from continuous operations (in dollars per share) | $ / shares

$ 1.67

$ 1.12

$ 1.01

Diluted earnings per share from continuous operations (in dollars per share) | $ / shares

1.67

1.12

1.01

Basic earnings per share from discontinued operations (in dollars per share) | $ / shares

1.61

0.07

0.41

Diluted earnings per share from discontinued operations (in dollars per share) | $ / shares

$ 1.61

$ 0.07

$ 0.41

Allocation of earnings, weighted

46.11%

Net controlling interest income allocated from continuing operations | $

$ 15,425

$ 10,369

$ 9,329

Net controlling interest income allocated from discontinued operations | $

$ 14,865

$ 656

$ 3,811

Per Series D Shares

Earnings per share [line items]

Weighted average number of shares for basic earnings per share (in shares) | shares

8,617,940

8,625,920

8,630,540

Effect of dilution associated with non-vested shares for share based payment plans (in shares) | shares

26,780

18,790

14,170

Weighted average number of shares adjusted for the effect of dilution (Shares outstanding) | shares

8,644,710

Dividend rights per series

125.00%

Weighted average number of shares further adjusted to reflect dividend rights (in shares) | shares

10,805,890

Basic earnings per share from continuous operations (in dollars per share) | $ / shares

$ 2.09

$ 1.40

$ 1.26

Diluted earnings per share from continuous operations (in dollars per share) | $ / shares

2.09

1.40

1.26

Basic earnings per share from discontinued operations (in dollars per share) | $ / shares

2.02

0.09

0.52

Diluted earnings per share from discontinued operations (in dollars per share) | $ / shares

$ 2.01

$ 0.09

$ 0.52

Allocation of earnings, weighted

53.89%

Net controlling interest income allocated from continuing operations | $

$ 18,026

$ 12,117

$ 10,902

Net controlling interest income allocated from discontinued operations | $

$ 17,373

$ 767

$ 4,453

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Other Income and Expenses - Summary of Other Income and Expenses (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Disclosure of Other Operating Income Expense [Line Items]

Gain on sale of other assets

$ 473

$ 0

$ 968

Gain on sale of long-lived assets

400

301

176

Sale of waste material

Insurance rebates

279

Foreign exchange gain

815

124

Other investment in shares

$ 196

^[1]

3,311

Recoveries of prior years

483

354

809

Investments In Equity Instruments

6,785

113

3,245

Other investments

415

Recoveries of prior years

141

323

Other income

775

^[2]

13,102

1,051

5,566

958

Disposal of long-lived assets

$ 74

^[1]

1,248

833

1,427

466

389

534

Contingencies, net

1,110

456

244

Severance payments

998

224

357

Donations

711

512

425

Legal fees and other expenses from past acquisitions

210

112

Foreign exchange loss

Items without tax requirements

139

167

Interest and penalties of previous years taxes

385

Disclosure of Other Operating Income Expense [Line Items]

237

167

334

Other expenses

6,252

2,896

3,725

Ecuador

Disclosure of Other Operating Income Expense [Line Items]

596

$ 770

Mexico

Disclosure of Other Operating Income Expense [Line Items]

480

Alimentos de Soja S.A.U.

TROP Frutas do Brasil S.A. ("TROP") [Member]

$ 143

Disclosure of Other Operating Income Expense [Line Items]

Disclosure of Balances and Transactions in Foreign Currencies [line items]

$ 256

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3
[2]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Balances and Transactions in Foreign Currencies - Transactions (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

$ 115,542

$ 84,984

$ 42,014

All Currencies Other Than Peso

$ 883

14,916

15,853

16,630

Disclosure of Balances and Transactions in Foreign Currencies [line items]

16,395

7,024

4,282

5,984

2,081

2,121

21,991

25,500

20,090

1,554

2,637

4,837

Consulting Fees

1,597

1,038

843

Asset Acquisitions

188

Share Disposition

3,120

Disclosure of Balances and Transactions in Foreign Currencies [line items]

5,033

5,024

2,973

U.S. dollars

13,322

6,373

4,261

5,981

2,080

2,107

21,806

25,247

20,009

1,266

2,411

3,466

Consulting Fees

815

1,011

826

Asset Acquisitions

180

Share Disposition

Disclosure of Balances and Transactions in Foreign Currencies [line items]

5,022

4,245

2,908

Euros

3,064

651

185

253

Disclosure of Balances and Transactions in Foreign Currencies [line items]

288

226

1,371

782

3,120

779

$ 0

$ 0

$ 64

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Revenues

12 Months Ended

Dec. 31, 2023

Revenue [abstract]

Statement of comprehensive income [abstract]

28.1 Nature of goods sold and services

The information sets below described the core activities of the business units from which the Company generates its revenues. According to the revenue standard, the performance obligation for the Company’s business units is satisfied at

a point when the control of goods and services is transferred to the customers. For detailed information about business segments, see Note 27.


Segment	Product or Service	Nature, timing to fulfill the performance obligation and significant payment terms
Coca-Cola FEMSA	Beverages sales	Includes the delivery of beverages to customers and wholesalers. The transaction prices are assigned to each product on sale based on its own sale price separately, net of promotions and discounts. The performance obligation is satisfied at the point in time the product on sale is delivered to the customer.
	Services revenues	Includes the rendering of manufacturing services, logistic and administrative services. The transaction prices are assigned to each product on sale based on its own sale price if sold separately. The performance obligation is satisfied at the point in time the service is delivered to the customer.
Proximity Americas Division	Products sales	Operates the largest chain of small-format stores in Mexico and Latin America including as some of its principal products as beers, cigarettes, sodas, other beverages and snacks. The performance obligation is satisfied at the time of the sale or at the moment the control of the product is transferred and the payment is made by the customer.
	Commercial revenues	Includes mainly the commercialization of spaces into within stores, and revenues related to promotions and financial services. The performance obligation is satisfied at the point in time the service is rendered to the customer.
Proximity Europe Division	Products sales	Operates a chain of small-box retail and foodvenience in Switzerland, Germany, Austria, Luxembourg and the Netherlands including as some of its principal products as tobacco, lottery products, snacks, press, food, fresh products, pretzels and drinks. The performance obligation is satisfied at the time of the sale or at the moment the control of the product is transferred and the payment is made by the customer.
	Services revenues	Includes mainly the revenues related to financial services. The performance obligation is satisfied at the point in time the service is rendered to the customer.
Health Division	Product sales	The core products include patent and generic formulas of medicines, beauty products, medical supplements, housing and personnel care products. The performance obligation is satisfied at the point in time of the sale or at the moment the control of the product is transferred to the customer.
	Services revenues	Rendering of services adding value as financial institutions, medical consultation and some financial services. The performance obligation is satisfied at the point in time of the rendering or the control is transferred to the customer.
Fuel Division	Product sales	The core products are sold in the retail service stations as fuels, diesel, motor oils and other car care products. The performance obligation is satisfied at the point in time on sale and/or the control is transferred to the customer.
Others	Production and sale of commercial refrigeration, plastic solutions, sale of equipment for food processing. Integral logistic services.	Involves the production, commercialization of refrigerators including its delivery and installation and offering of integral maintenance services at the point of sale. Also includes the design, manufacturing, and recycling of plastic products. In addition, it includes the sale of equipment for food processing, storage and weighing. The revenue recognition is performed at the time in which the corresponding installation is concluded. Rendering a wide range of logistic services and maintenance of vehicles to subsidiaries and customers. The operations are on a daily, monthly or based upon the customer’s request. The revenue is recognized progressively during the time the service is rendered in a period no greater than a month. The recognition of revenue in other business lines is performed at the point of sale or in time the control of the product is transferred to the customer.

28.3 Contract balances

As of December 31, 2023 and 2022, no significant cost was incurred to obtain or perform on a contract that might be capitalized as contract assets. No significant contacts have been entered into for which the Company has not performed all the obligations as well as additional costs associate with them.

28.4 Transaction price assigned to remaining performance obligations

There were not other performance obligations identified in customer contracts from the ones included in the transaction price. The Company considers highly probable the variable considerations identified per each business unit; therefore it is not expected that a significant reversion of the revenue amount could occurs.

Consolidated Statements of Comprehensive Income (Loss)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

CONSOLIDATED NET INCOME

$ 4,536

$ 76,677

$ 34,743

$ 37,678

Items that will be reclassified to consolidated net income in subsequent periods, net of income tax:

Valuation of the effective portion of derivative financial instruments

(55)

(928)

(2,240)

2,541

(Loss) income on hedge of net investments in foreign operations

(305)

(5,153)

3,677

350

Exchange differences loss on the translation of foreign operations and equity method accounted investees

(1,064)

(17,986)

(17,430)

(8,307)

Share of other comprehensive income of equity method accounted investees

361

6,097

2,369

2,925

Total items that will be reclassified to consolidated net income in subsequent periods, net of income tax

(1,063)

(17,970)

(13,624)

(2,491)

Items that will not to be reclassified to consolidated net income in subsequent periods, net of income tax:

Gain (loss) due to changes in the fair value in equity financial instruments

1,356

(2,236)

5,165

Share of other comprehensive income of equity method accounted investees

897

267

590

Remeasurements of the Net Defined Benefit Liability

160

661

296

Total items that will not be reclassified to consolidated net income in subsequent periods, net of income tax

142

2,413

(1,308)

6,051

Other comprehensive (loss) income, net of income tax

(921)

(15,557)

(14,932)

3,560

Total other comprehensive income (loss)

3,615

61,120

19,811

41,238

Schedule of Investments Classified as Amortized Cost

3,170

53,598

11,175

32,423

Non-controlling interest

$ 445

$ 7,522

$ 8,636

$ 8,815

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Investments (Tables)

12 Months Ended

Dec. 31, 2023

Investment property [abstract]

The following is a detail of such investments:



Fixed-rate
Corporate debt securities	2023		2022
Acquisition cost	Ps.	—	Ps.	21
Accrued interest		—		30
Bank deposits
Acquisition cost	Ps.	26,354	Ps.	—
Accrued interest		374		—
Total investments	Ps.	26,728	Ps.	51

Intangible Assets

12 Months Ended

Dec. 31, 2023

Intangible assets other than goodwill [abstract]

Intangible Assets



	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships (1)		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
Cost as of January 1, 2021	Ps.	76,649	Ps.	52,820	Ps.	8,647	Ps.	1,376	Ps.	139,492	Ps.	10,873	Ps.	9,850	Ps.	1,897	Ps.	2,350	Ps.	24,970	Ps.	164,462
Additions		2		—		—		127		129		1,140		—		145		1,103		2,388		2,517
Acquisitions from business combinations (see Note 4)		—		7,940		65		—		8,005		—		873		—		1		874		8,879
Transfer of completed development systems		—		—		—		—		—		262		—		—		(262)		—		—
Disposals		—		(12)		—		(10)		(22)		(973)		—		(36)		(102)		(1,111)		(1,133)
Effect of movements in exchange rates		(1,255)		(2,303)		(584)		(80)		(4,222)		(641)		77		—		(682)		(1,246)		(5,468)
Changes in value on the recognition of inflation effects		—		—		—		—		—		—		—		—		62		62		62
Impairment		—		(1,094)		(55)		—		(1,149)		—		—		—		—		—		(1,149)
Cost as of December 31, 2021	Ps.	75,396	Ps.	57,351	Ps.	8,073	Ps.	1,413	Ps.	142,233	Ps.	10,661	Ps.	10,800	Ps.	2,006	Ps.	2,470	Ps.	25,937	Ps.	168,170

(1)Includes customer relationships related to the acquisitions through Envoy Solutions disclosed in Note 4.



	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships (1)		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
Cost as of January 1, 2022	Ps.	75,396	Ps.	57,351	Ps.	8,073	Ps.	1,413	Ps.	142,233	Ps.	10,661	Ps.	10,800	Ps.	2,006	Ps.	2,470	Ps.	25,937	Ps.	168,170
Additions		—		22		—		12		34		672		—		50		1,476		2,198		2,232
Acquisitions from business combinations (see Note 4)		1,116		33,715		1,077		—		35,908		373		—		—		1,054		1,427		37,335
Changes in fair value of past acquisitions		—		(2,557)		—		—		(2,557)		—		2,955		—		—		2,955		398
Internal developments		—		—		—		—		—		10		—		—		—		10		10
Transfer of completed development systems		—		—		—		—		—		65		—		(50)		(15)		—		—
Disposals		—		—		—		(2)		(2)		(891)		(3)		(29)		—		(923)		(925)
Effect of movements in exchange rates		(756)		(2,057)		(106)		(158)		(3,077)		15		(264)		—		466		217		(2,860)
Changes in value on the recognition of inflation effects		—		—		—		—		—		—		—		—		80		80		80
Impairment		—		(770)		—		—		(770)		—		—		—		—		—		(770)
Cost as of December 31, 2022	Ps.	75,756	Ps.	85,704	Ps.	9,044	Ps.	1,265	Ps.	171,769	Ps.	10,905	Ps.	13,488	Ps.	1,977	Ps.	5,531	Ps.	31,901	Ps.	203,670

(1)Includes customer relationships related to the acquisitions through Envoy Solutions disclosed in Note 4.



	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
Cost as of January 1, 2023	Ps.	75,756	Ps.	85,704	Ps.	9,044	Ps.	1,265	Ps.	171,769	Ps.	10,905	Ps.	13,488	Ps.	1,977	Ps.	5,531	Ps.	31,901	Ps.	203,670
Additions		—		—		—		4		4		1,966		—		261		1,174		3,401		3,405
Acquisitions from business combinations (see Note 4)		—		3,918		26		—		3,944		145		188		—		25		358		4,302
Changes in fair value of past acquisitions		—		(12,273)		7,683		—		(4,590)		—		5,162		—		(117)		5,045		455
Business disposals		(12)		(25,036)		(3,009)		(56)		(28,113)		(482)		(17,788)		—		(29)		(18,299)		(46,412)
Transfer of completed development systems		(224)		—		—		227		3		292		—		—		(295)		(3)		—
Disposals		—		(2)		—		(2)		(4)		(197)		—		(161)		(235)		(593)		(597)
Effect of movements in exchange rates		(1,568)		(3,744)		(810)		45		(6,077)		(424)		(814)		—		(683)		(1,921)		(7,998)
Changes in value on the recognition of inflation effects		—		—		—		—		—		—		—		—		70		70		70
Impairment		—		(4,995)		—		—		(4,995)		—		—		—		—		—		(4,995)
Business combinations from disposals		—		1,950		—		—		1,950		—		—		—		—		—		1,950
Cost as of December 31, 2023	Ps.	73,952	Ps.	45,522	Ps.	12,934	Ps.	1,483	Ps.	133,891	Ps.	12,205	Ps.	236	Ps.	2,077	Ps.	5,441	Ps.	19,959	Ps.	153,850



Amortization and Impairment Losses	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
Amortization as of January 1 2021	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(6,469)	Ps.	(827)	Ps.	(736)	Ps.	(929)	Ps.	(8,961)	Ps.	(8,961)
Amortization expense		—		—		—		—		—		(1,473)		(791)		(102)		(328)		(2,694)		(2,694)
Disposals		—		—		—		—		—		789		—		—		101		890		890
Effect of movements in exchange rates		—		—		—		—		—		792		10		—		(15)		787		787
Changes in value on the recognition of inflation effects		—		—		—		—		—		(53)		—		—		(1)		(54)		(54)
Amortization as of December 31 2021	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(6,414)	Ps.	(1,608)	Ps.	(838)	Ps.	(1,172)	Ps.	(10,032)	Ps.	(10,032)
Amortization as of January 1 2022	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(6,414)	Ps.	(1,608)	Ps.	(838)	Ps.	(1,172)	Ps.	(10,032)	Ps.	(10,032)
Amortization expense		—		—		—		—		—		(1,312)		(915)		(104)		(365)		(2,696)		(2,696)
Disposals		—		—		—		—		—		992		157		3		—		1,152		1,152
Effect of movements in exchange rates		—		—		—		—		—		(193)		(786)		—		(248)		(1,227)		(1,227)
Changes in value on the recognition of inflation effects		—		—		—		—		—		(94)		—		—		(1)		(95)		(95)
Amortization as of December 31 2022	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(7,021)	Ps.	(3,152)	Ps.	(939)	Ps.	(1,786)	Ps.	(12,898)	Ps.	(12,898)
Amortization as of January 1 2023	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(7,021)	Ps.	(3,152)	Ps.	(939)	Ps.	(1,786)	Ps.	(12,898)	Ps.	(12,898)
Amortization expense		—		—		—		—		—		(1,519)		(1,113)		(116)		(547)		(3,295)		(3,295)
Disposals		—		—		—		—		—		161		—		—		209		370		370
Business disposals		—		—		—		—		—		276		4,010		—		51		4,337		4,337
Impairment		—		—		(36)		—		(36)		—		—		—		—		—		(36)
Effect of movements in exchange rates		—		—		—		—		—		578		188		15		187		968		968
Changes in value on the recognition of inflation effects		—		—		—		—		—		(78)		—		—		—		(78)		(78)
Amortization as of December 31 2023	Ps.	—	Ps.	—	Ps.	(36)	Ps.	—	Ps.	(36)	Ps.	(7,603)	Ps.	(67)	Ps.	(1,040)	Ps.	(1,886)	Ps.	(10,596)	Ps.	(10,632)



Carrying Amount	Rights to Produce and Distribute Coca-Cola Trademark Products		Goodwill		Trademark Rights		Other Indefinite Lived Intangible Assets		Total Unamortized Intangible Assets		Technology Costs and Management Systems		Customer Relationships		Alcohol Licenses		Other		Total Amortized Intangible Assets		Total Intangible Assets
As of December 31 2021	Ps.	75,396	Ps.	57,351	Ps.	8,073	Ps.	1,413	Ps.	142,233	Ps.	4,247	Ps.	9,192	Ps.	1,168	Ps.	1,298	Ps.	15,905	Ps.	158,138
As of December 31 2022	Ps.	75,756	Ps.	85,704	Ps.	9,044	Ps.	1,265	Ps.	171,769	Ps.	3,884	Ps.	10,336	Ps.	1,038	Ps.	3,745	Ps.	19,003	Ps.	190,772
As of December 31 2023	Ps.	73,952	Ps.	45,522	Ps.	12,898	Ps.	1,483	Ps.	133,855	Ps.	4,602	Ps.	169	Ps.	1,037	Ps.	3,555	Ps.	9,363	Ps.	143,218

For the years ended December 31, 2023, 2022 and 2021, allocation for amortization expense is as follows:



	2023		2022		2021

Cost of goods sold	Ps.	1,229	Ps.	207	Ps.	254
Administrative expenses		1,257		1,771		1,630
Selling expenses		809		718		810
	Ps.	3,295	Ps.	2,696	Ps.	2,694

The average remaining period for the Company’s intangible assets that are subject to amortization is as follows:



						Years
Technology Costs and Management Systems						3 - 10
Customer Relationships						6 - 25
Alcohol Licenses						12

Coca-Cola FEMSA Impairment Tests for cash-generating Units Containing Goodwill, Distribution Rights and Other indefinite lived intangible assets

For the purpose of impairment testing, goodwill and distribution rights are allocated and monitored on an individual country basis, which is considered to be the CGU.

The aggregate carrying amounts of goodwill, distribution rights and other indefinite lived intangible assets allocated to each CGU are as follows:



	December 31, 2023		December 31, 2022
Mexico	Ps.	56,662	Ps.	56,967
Guatemala		1,684		1,691
Nicaragua		404		404
Costa Rica		1,418		1,418
Panama		1,169		1,170
Colombia		3,635		3,583
Brazil		30,018		31,883
Argentina		245		426
Uruguay		2,381		2,512
Total	Ps.	97,616	Ps.	100,054

The foregoing forecasts reflect the outcomes that Coca-Cola FEMSA considers most likely to occur based on the current situation of each of the CGUs including the macroeconomic situation in each CGU, the foregoing forecasts could differ from the results obtained over time.

The value in use of CGUs is determined based on the method of discounted cash flows. The key assumptions used to calculate value in use are: volume, expected annual long-term inflation, and the WACC used to discount the projected flows.

To determine the discount rate, Coca-Cola FEMSA uses the WACC as determined for each of the cash generating units in real terms and as described in following paragraphs.

The estimated discount rates to perform the impairment test for each CGU considers market participants’ assumptions. Market participants were selected considering the size, operations and characteristics of the businesses that are similar to those of Coca-Cola FEMSA.

The discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated into the projected cash flows. The discount rate calculation is based on the opportunity cost to a market participant, considering the specific circumstances of Coca-Cola FEMSA and its operating segments and is derived from its WACC. The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by Coca-Cola FEMSA’s investors. The cost of debt is based on the interest-bearing borrowings Coca-Cola FEMSA is obliged to service, which is equivalent to the cost of debt based on the conditions that a creditor would assess in the market. Segment-specific risk is incorporated by applying beta factors which are evaluated annually based on publicly available market data.

Market participant assumptions are important because, not only do they include industry data for growth rates, management also assesses how the CGU’s position, relative to its competitors, might change over the forecasted period.

The key assumptions used for the value-in-use calculations are as follows:

•Cash flows were projected based on actual operating results and the five-year business plan.

•For discounting cash flows to get the recoverable amount of the units, Coca-Cola FEMSA applies the WACC for each CGU, and the calculation assumes a size premium adjustments.

The key assumptions by CGU for impairment testing as of December 31, 2023 were as follows:



CGU	Pre-tax WACC		Post-tax WACC		Expected Annual Long-Term Inflation		Expected Volume Growth Rates
					2024‑2028		2024‑2028
Mexico	9.0	%	6.3	%	4.3	%	4.4	%
Brazil	10.1	%	6.8	%	3.8	%	3.8	%
Colombia	12.2	%	7.7	%	4.2	%	6.8	%
Argentina	20.8	%	16.1	%	70.8	%	4.8	%
Guatemala	9.3	%	7.3	%	4.0	%	14.9	%
Costa Rica	11.4	%	8.8	%	2.9	%	6.6	%
Nicaragua	23.3	%	16.4	%	2.6	%	6.5	%
Panama	11.6	%	8.6	%	2.0	%	7.8	%
Uruguay	9.7	%	7.4	%	5.7	%	3.7	%

The key assumptions by CGU for impairment testing as of December 31, 2022 were as follows:



	Pre-tax WACC		Post-tax WACC		Expected Annual Long-Term Inflation		Expected Volume Growth Rates
CGU					2023‑2027		2023‑2027
Mexico	9.5	%	6.5	%	4.3	%	2.4	%
Brazil	11.6	%	7.2	%	3.9	%	4.3	%
Colombia	13.9	%	8.0	%	3.9	%	9.5	%
Argentina	27.8	%	19.8	%	68.0	%	4.5	%
Guatemala	10.2	%	7.6	%	4.4	%	14.8	%
Costa Rica	15.4	%	10.2	%	3.3	%	6.4	%
Nicaragua	24.6	%	11.8	%	4.1	%	6.0	%
Panama	11.0	%	8.3	%	2.2	%	4.0	%
Uruguay	10.2	%	7.4	%	5.7	%	4.0	%

Sensitivity to Changes in Assumptions

On December 31, 2023, Coca-Cola FEMSA performed an additional impairment sensitivity calculation, taking into account an adverse change in post-tax WACC, according to the country risk premium, using for each country the relative standard deviation between equity and sovereign bonds and an additional sensitivity to the volume of 100 basis points and concluded that no impairment would be recorded.

CGU

Change in WACC

Change in Volume Growth CAGR (1)

Effect on Valuation

Mexico

+0.6

p.p.

-1.0

Passes by 3.2x

Brazil

+0.8

p.p.

-1.0

Passes by 0.9x

Colombia

+0.9

p.p.

-1.0

Passes by 1.1x

Argentina

+3.3

p.p.

-1.0

Passes by 0.9x

Guatemala

+0.7

p.p.

-1.0

Passes by 5.4x

Costa Rica

+0.8

p.p.

-1.0

Passes by 4x

Nicaragua

+3.3

p.p.

-1.0

Passes by 0.8x

Panama

+0.7

p.p.

-1.0

Passes by 2.2x

Uruguay

+0.3

p.p.

-1.0

Passes by 2x

(1)Compound Annual Growth Rate (“CAGR”).

The values assigned to the key assumptions represent management’s assessment of future trends in the industry and are based on both external sources and internal sources (historical data). Coca-Cola FEMSA consistently applied its methodology to determine CGU specific WACC’s to perform its annual impairment testing.

Health Division Impairment Test for cash-generating Units Containing Goodwill and Trademark Rights

For the purpose of impairment testing, goodwill and trademark rights are allocated and monitored on an individual country basis by operating segment. The Company has identified its cash-generating units as follows: Mexico, Chile, Colombia and Ecuador.

As of December 31, 2023 in Health Division there is a significant carrying amount of goodwill and trademark rights allocated in all countries in which the Company operates as a cash generating unit with a total carrying amount of Ps. 8,695. The aggregate carrying amounts of goodwill and trademark rights allocated to each CGU as of December 31, 2023 are as follows: Mexico Ps. 1,975, Chile Ps. 5,890, Colombia Ps. 634 and Ecuador Ps. 196. The aggregate carrying amounts of goodwill and trademark rights allocated to each CGU as of December 31, 2022 are as follows: Mexico Ps. 2,455, Chile Ps. 7,786, Colombia Ps. 577 and Ecuador Ps. 50.

The recoverable amounts are based on the value in use. The value in use of CGUs is determined based on the method of discounted cash flows. The key assumptions used in projecting cash flows are: sales, expected annual long-term inflation, and the WACC used to discount the projected cash flows. The cash flow forecasts could differ from the results obtained over time; however, the Company prepares its estimates based on the current situation of each of the CGUs or group of CGUs.

To determine the discount rate, the Company uses the WACC as determined for each of the cash generating units or group of the cash-generating units in real terms and as described in the following paragraphs.

The discount rates represent the current market assessment of the risks specific to each CGU or group of CGUs, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the opportunity cost to a market participant, considering the specific circumstances of the Company and its operating segments and is derived from its WACC.

The key assumptions used for the value-in-use calculations are as follows:

•Cash flows were projected based on actual operating results and the five-year business plan.

•For discounting cash flows to get the recoverable amount of the units, the Company applies the WACC for each CGU, and the calculation assumes a size premium adjustments.

The key assumptions by the significant CGU (Chile) in the Health Division (Mexico, Colombia and Ecuador are insignificant) for impairment test as of December 31, 2023 was as follows:



CGU	Pre-tax WACC		Post-tax WACC		Expected Annual Long-Term Inflation 2024‑2028		Expected Sales Growth Rates 2024‑2028
Chile	7.3	%	6.4	%	2.6	%	0.2	%

The key assumptions by the significant CGU in the Health Division for impairment test as of December 31, 2022 was as follows:



CGU	Pre-tax WACC		Post-tax WACC		Expected Annual Long-Term Inflation 2023‑2027		Expected Sales Growth Rates 2023‑2027
Chile	9.3	%	6.5	%	4.9	%	0.6	%

The values assigned to the key assumptions represent management’s assessment of future trends in the industry and are based on both external sources and internal sources (historical data). The Company consistently applied its methodology to determine CGU specific WACCs to perform its annual impairment testing.

Sensitivity to Changes in Assumptions

On December 31, 2023, the Company performed an additional impairment sensitivity calculation, taking into account an adverse change in post-tax WACC, according to the country risk premium, using for each country the relative standard deviation between equity and sovereign bonds and a sensitivity analysis of sales that would be affected considering a contraction in economic conditions as a result of lower purchasing power of customers, which based on management estimation considered to be reasonably possible an effect of 50 basis points in the sale’s CAGR, concluding that no impairment would be recognized.

The sensitivity test by the significant CGU in the Health Division as of December 31, 2023 was as follows:

CGU

Change in WACC

Change in Sales Growth CAGR

Effect on Valuation

Chile

0.7

p.p.

(0.5)

Passes by 1.85x

Valora impairment testing for cash-generating units containing goodwill.

The Company has identified its cash-generating units as a retail food distribution platform located in Europe for impairment testing purposes for goodwill and trademark rights.

As of December 31, 2023 in Valora there is a significant carrying amount of goodwill and trademarks allocated in the cash generating unit with a total carrying amount of Ps. 22,519.

The recoverable amounts are based on the value in use. The value in use of the CGU is determined based on the method of discounted cash flows. The key assumptions used in projecting cash flows are: sales, expected annual long-term inflation, and the WACC used to discount the projected cash flows. The cash flow forecasts could differ from the results obtained over time; however, the Company prepares its estimates based on the current situation of the CGU.

To determine the discount rate, the Company uses the WACC as determined for each of the cash generating units or group of the cash generating units in real terms and as described in following paragraphs.

The discount rates represent the current market assessment of the risks specific to the CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the opportunity cost to a market participant, considering the specific circumstances of the Company and its operating segments and is derived from its WACC.

The key assumptions used for the value-in-use calculations are as follows:

•Cash flows were projected based on actual operating results and the five-year business plan.

•For discounting cash flows to get the recoverable amount of the units, the Company applies the WACC for the CGU, and the calculation assumes a size premium adjustment.

The key assumptions by CGU for impairment test as of December 31, 2023 were as follows:



CGU	Pre-tax WACC		Post-tax WACC		Expected Annual Long-Term Inflation 2024‑2028		Expected Sales Growth Rates 2024‑2028
Valora	5.8	%	5.5	%	1.4	%	0.2	%

The values assigned to the key assumptions represent management’s assessment of future trends in the industry and are based on both external sources and internal sources (historical data). The Company consistently applied its methodology to determine CGU specific WACC’s to perform its annual impairment testing.

Sensitivity to Changes in Assumptions

On December 31, 2023, the Company performed an additional impairment sensitivity calculation, taking into account an effect of 50 basis points in the sale’s compound annual growth rate ("CAGR"), concluding that no impairment would be recognized.

CGU

Change in Sales Growth CAGR

Effect on Valuation

Valora

(0.5)

Passes by 1.42x

Other Non-Current Assets and Other Non-Current Financial Assets - Other financial assets (Details)
$ in Millions, $ in Millions

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Non-current accounts receivables

$ 1,686

3,880

3,520

Other investments measured at FVTPL

1,587

923

7,514

Other investments in equity instruments

17,681

Other non-current financial assets

$ 868

$ 14,667

$ 23,810

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Financial Instruments

12 Months Ended

Dec. 31, 2023

Financial Instruments [Abstract]

Financial Instruments

Fair Value of Financial Instruments

The Company’s financial assets and liabilities that are measured at fair value are based on level 1 and 2 applying the income approach method, which estimates the fair value based on expected cash flows discounted to net present value. The following table summarizes the Company’s financial assets and liabilities measured at fair value, as of December 31, 2023, and 2022:



	December 31, 2023		December 31, 2022
	Level 1	Level 2	Level 1	Level 2
Financial instruments (current asset)	228	203	351	9,710
Financial instruments (non-current asset)	14,279	11,394	14,540	21,201
Financial instruments (current liability)	202	536	64	404
Financial instruments (non-current liability)	—	8,653	—	5,651

21.1 Total debt

The fair value of bank loans and notes payable is calculated based on the discounted value of contractual cash flows whereby the discount rate is estimated using rates currently offered for the debt of similar amounts and maturities, which is considered to be level 2 in the fair value hierarchy. The fair value of the Company’s publicly traded debt is based on quoted market prices as of December 31, 2023 and 2022, which is considered to be level 1 in the fair value hierarchy.



	December 31, 2023		December 31, 2022
Carrying value	Ps.	136,824	Ps.	191,741
Fair value		125,043		163,312

21.2 Interest rate swaps

The Company uses interest rate swaps to offset the interest rate risk associated with its borrowings, under which it pays amounts based on a fixed rate and receives amounts based on a floating rate. These instruments have been designated as cash flow hedges and are recognized in the consolidated statement of financial position at their estimated fair value. The fair value is estimated using formal technical models. The valuation method involves discounting to present value the expected cash flows of interest, calculated from the rate curve of the cash flow currency, and expresses the net result in the reporting currency. Changes in fair value are recorded in cumulative other comprehensive income, net of taxes until the hedged amount is recorded in the consolidated income statements.

As of December 31, 2023, the Company has the following outstanding interest rate swap agreements:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2023		December 31, 2023
2024	Ps.	2	Ps.	—	Ps.	65
2032		8,447		(1,381)		—

As of December 31, 2022, the Company has the following outstanding interest rate swap agreements:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2022		December 31, 2022
2023	Ps.	11,675	Ps.	—	Ps.	236
2024		2,227		—		129
2032		9,681		(1,728)		—

The net effect of expired contracts treated as hedges is recognized as interest expense within the consolidated income statements.

21.3 Forward agreements to purchase foreign currency

The Company has entered into forward agreements to reduce its exposure to the risk of exchange rate fluctuations between the Mexican peso and other currencies. Foreign exchange forward contracts measured at fair value are designated hedging instruments in cash flow hedges of forecast inflows in euros and forecast purchases of raw materials in U.S. dollars. These forecast transactions are considered to be highly probable.

These instruments are recognized in the consolidated statement of financial position at their estimated fair value which is determined based on prevailing market exchange rates to terminate the contracts at the end of the period. The price agreed in the instrument is compared to the current price of the market forward currency and is discounted to the present value of the rate curve of the relevant currency. Changes in the fair value of these forwards are recorded as part of cumulative other comprehensive income, net of taxes. Net gain/loss on expired contracts is recognized as part of the cost of goods sold when the raw material is included in sale transactions, and as a part of foreign exchange when the inflow in the foreign currency is received.

As of December 31, 2023, the Company had the following outstanding forward agreements to purchase foreign currency:

Notional

Fair Value Liability

Fair Value Asset

Maturity Date

Amount

December 31, 2023

2024

Ps.

11,449

Ps.

(573)

Ps.

As of December 31, 2022, the Company had the following outstanding forward agreements to purchase foreign currency:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2022		December 31, 2022
2023	Ps.	10,828	Ps.	(399)	Ps.	61
2024		2		—		—

21.4 Cross-currency swaps

The Company has contracted for several cross-currency swaps to reduce the risks of exchange rate and interest rate fluctuations associated with its borrowings denominated in U.S. dollars and other foreign currencies. Cross-currency swaps contracts are designated as hedging instruments through which the Company changes the debt profile to its functional currency to reduce exchange exposure and interest rate.

These instruments are recognized in the consolidated statement of financial position at their estimated fair value which is estimated using formal technical models. The valuation method involves discounting to present value the expected cash flows of interest, calculated from the rate curve of the cash foreign currency, and expresses the net result in the reporting currency. These contracts are designated as financial instruments at fair value through profit or loss. The fair values changes related to those cross-currency swaps are recorded under the caption “market value gain (loss) on financial instruments,” net of changes related to the long-term liability, within the consolidated income statements.

The Company has cross-currency contracts designated as cash flow hedges and are recognized in the consolidated statement of financial position at their estimated fair value. Changes in fair value are recorded in cumulative other

comprehensive income, net of taxes until such time as the hedge amount is recorded in the consolidated income statement.

As of December 31, 2023, the Company had the following outstanding cross–currency swap agreements:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2023		December 31, 2023
2024	Ps.	954	Ps.	(35)	Ps.	103
2025		49,834		(2)		119
2026		6,045		(1,017)		98
2027		8,949		(1,391)		9
2028		6,009		—		89
2029		20		—		337
2030		13,633		(803)		—
2032		845		(51)		—
2033		4,931		—		117
2035		10,000		(3,809)		—
2043		5,398		—		1,877
2050		3,471		—		1,235

As of December 31, 2022, the Company had the following outstanding cross–currency swap agreements:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2022		December 31, 2022
2023	Ps.	27,804	Ps.	(7)	Ps.	9,435
2024		497		(3)		247
2025		1,010		—		385
2026		5,971		(924)		364
2027		17,809		(689)		95
2029		14,620		—		1,664
2030		3,679		(104)		110
2035		10,000		(2,203)		—
2043		8,869		—		505

21.5 Commodity price contracts

The Company has entered into various commodity price contracts to reduce its exposure to the risk of fluctuation in the costs of certain raw materials. The fair value is estimated based on the market valuations to terminate the contracts at the end of the period. These instruments are designated as cash flow hedges and the changes in the fair value are recorded as part of “cumulative other comprehensive income.”

The fair value of expired commodity price contracts was recorded in the cost of goods sold where the hedged item was recorded also in the cost of goods sold.

As of December 31, 2023, Coca-Cola FEMSA had the following sugar price contracts:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2023		December 31, 2023
2024	Ps.	2,593	Ps.	(130)	Ps.	206
2025		745		(72)		—

As of December 31, 2022, Coca-Cola FEMSA had the following sugar price contracts:



	Notional		Fair Value Liability		Fair Value Asset
Maturity Date	Amount		December 31, 2022		December 31, 2022
2023	Ps.	1,688	Ps.	(46)	Ps.	328
2024		468		—		21

As of December 31, 2023, Coca-Cola FEMSA had the following aluminum price contracts:

Notional

Fair Value Liability

Fair Value Asset

Maturity Date

Amount

December 31, 2023

2024

Ps.

647

Ps.

—

Ps.

As of December 31, 2022, Coca-Cola FEMSA had the following aluminum price contracts:

Notional

Fair Value Liability

Fair Value Asset

Maturity Date

Amount

December 31, 2022

2023

Ps.

662

Ps.

(18)

Ps.

21.6 Convertible Bond (Embedded derivative)

As described in Note 19, in February 2023, the Company issued a convertible bond for EUR 500 million linked with the remaining Heineken economic interest (see Note 10), which is recognized as a liability component and embedded derivative (option). The bond (liability) is booked on an amortized cost basis, while the written option is measured at fair value with Mark to Market changes recognized in the consolidated income statements. At the settlement date, depending on the decision of the bondholders, the convertible bond and the embedded derivative will be canceled against cash or Heineken Holding N.V. shares. As of December 31, 2023, the fair value of the option amounted to Ps. 128.

21.7 Net effects of expired contracts that met hedging criteria



	Impact in Consolidated
	Income Statement	2023		2022		2021
Cross-currency swaps (1)	Interest expense	Ps.	(392)	Ps.	1	Ps.	—
Cross-currency swaps (1)	Foreign exchange		(747)		(5)		—
Interest rate swaps	Interest expense		—		—		—
Forward agreements to purchase foreign currency	Foreign exchange		180		565		41
Commodity price contracts	Cost of goods sold		430		599		1,245
Options to purchase foreign currency	Cost of goods sold		—		—		—
Forward agreements to purchase foreign currency	Cost of goods sold		(1,834)		(681)		(788)

(1)This amount corresponds to the settlement of cross-currency swaps portfolio in Brazil presented as part of the other financial activities.

21.8 Net effect of changes in fair value of derivative financial instruments that did not meet the hedging criteria for accounting purposes.



	Impact in Consolidated
Type of Derivatives	Income Statement	2023		2022		2021
Cross currency swaps and interest rate swaps	Market value gain (loss) on financial instruments	Ps.	141	Ps.	(2,270)	Ps.	80

21.9 Risk management

The Company has exposure to the following financial risks:

•Market risk;

•Interest rate risk;

•Liquidity risk; and

•Credit risk.

The Company determines the existence of an economic relationship between the hedging instruments and the hedged item based on the currency, amount and timing of their respective cash flows. The Company evaluates whether the derivative designated in each hedging relationship is expected to be effective and that it has been effective to offset changes in the cash flows of the hedged item using the hypothetical derivative method.

In these hedging relationships, the main sources of inefficiency are:

•The effect of the credit risk of the counterparty and the Company on the fair value of foreign currency forward contracts; and

•Changes in the periods covered.

21.9.1 Market risk

Market risk is the risk that the fair value or the future cash flow of a financial instrument will fluctuate because of changes in market prices. Market prices include currency risk and commodity price risk.

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and commodity prices. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk, and commodity prices risk including:

•Forward agreements to purchase foreign currency to reduce its exposure to the risk of exchange rate fluctuations.

•Cross-currency swaps to reduce its exposure to the risk of exchange rate fluctuations.

•Commodity price contracts to reduce its exposure to the risk of fluctuation in the costs of certain raw materials.

The Company tracks the fair value (mark to market) of its derivative financial instruments and its possible changes using scenario analyses.



	Change in
Foreign Currency Risk	Exchange Rate	Effect on Equity
2023
FEMSA (1)	+11% MXN/USD	Ps.	9
	‑11% MXN/USD		(9)
	+7% CHF/EUR		78
	‑7% CHF/EUR		(78)
	+7% EUR/USD		(6)
	‑7% EUR/USD		6
Coca-Cola FEMSA	+11% MXN/USD		465
	‑11% MXN/USD		(465)
	+12% BRL/USD		521
	‑12% BRL/USD		(521)
	+16% COP/USD		225
	‑16% COP/USD		(225)



	Change in
Foreign Currency Risk	Exchange Rate	Effect on Equity
	+120% ARS/USD		685
	‑120% ARS/USD		(685)
	+5% UYU/USD		20
	‑5% UYU/USD		(20)
	+7% CRC/USD		15
	-7% CRC/USD		(15)

2022
FEMSA (1)	+10% MXN/USD	Ps.	6
	‑10% MXN/USD		(6)
	+10% MXN/EUR		1
	‑10% MXN/EUR		(1)
	+7% CHF/EUR		44
	‑7% CHF/EUR		(44)
Coca-Cola FEMSA	+10% MXN/USD		512
	‑10% MXN/USD		(512)
	+18% BRL/USD		550
	‑18% BRL/USD		(550)
	+7% UYU/USD		25
	‑7% UYU/USD		(25)
	+17% COP/USD		112
	‑17% COP/USD		(112)
	+3% ARS/USD		10
	‑3% ARS/USD		(10)
	+7% CRC/USD		24
	-7% CRC/USD		(24)

2021
FEMSA (1)	+11% MXN/USD	Ps.	4
	‑11% MXN/USD		(4)
	+16% BRL/USD		37
	‑16% BRL/USD		(37)
Coca-Cola FEMSA	+11% MXN/USD		298
	‑11% MXN/USD		(298)
	+16% BRL/USD		284
	‑16% BRL/USD		(284)
	+4% UYU/USD		7
	‑4% UYU/USD		(7)
	+11% COP/USD		81
	‑11% COP/USD		(81)
	+1% ARS/USD		3
	‑1% ARS/USD		(3)
	+3% CRC/USD		10
	‑3% CRC/USD		(10)

(1)Does not include Coca-Cola FEMSA.



	Change in
Cross Currency Swaps (1)	Exchange Rate	Effect on Equity		Effect on Profit or Loss
2023
FEMSA (2)	+14% CLP/USD	Ps.	—	Ps.	678
	‑14% CLP/USD		—		(678)
	+11% MXN/USD		—		1,796
	‑11% MXN/USD		—		(1,796)
	+16% COP/USD		—		425
	‑16% COP/USD		—		(425)
	+12% BRL/USD		—		34
	‑12% BRL/USD		—		(34)
	+8% EUR/USD		—		742
	‑8% EUR/USD		—		(742)
Coca-Cola FEMSA	+11% MXN/USD		1,314		—
	‑11% MXN/USD		(1,314)		—
	+12% BRL/USD		1,683		—
	‑12% BRL/USD		(1,683)		—

2022
FEMSA (2)	+21% CLP/USD	Ps.	—	Ps.	966
	‑21% CLP/USD		—		(996)
	+10% MXN/USD		—		2,647
	‑10% MXN/USD		—		(2,647)
	+21% COP/USD		—		354
	‑21% COP/USD		—		(354)
	+18% USD/BRL		—		18
	‑18% USD/BRL		—		(18)
	+10% EUR/USD		—		1,315
	‑10% EUR/USD		—		(1,315)
	+10% EUR/MXN		—		902
	‑10% EUR/MXN		—		(902)
Coca-Cola FEMSA	+10% MXN/USD		1,220		—
	‑10% MXN/USD		(1,220)		—
	+18% BRL/USD		2,893		—
	‑18% BRL/USD		(2,893)		—

2021
FEMSA (2)	+13% CLP/USD	Ps.	—	Ps.	552
	‑13% CLP/USD		—		(552)
	+11% MXN/USD		—		3,404
	‑11% MXN/USD		—		(3,404)
	+11% COP/USD		—		235
	‑11% COP/USD		—		(235)
	+15% MXN/BRL		—		123
	‑15% MXN/BRL		—		(123)
	+6% EUR/USD		—		1,049
	‑6% EUR/USD		—		(1,049)
Coca-Cola FEMSA	+11% MXN/USD		1,645		—
	‑11% MXN/USD		(1,645)		—


+16% BRL/USD	2,300	—
‑16% BRL/USD	(2,300)	—

(1)Includes the sensitivity analysis effects of all derivative financial instruments related to foreign exchange risk.

(2)Does not include Coca-Cola FEMSA.

Change in

Net Cash in Foreign Currency

Exchange Rate

Effect on Profit or Loss

2023

FEMSA (1)

+11% EUR/ +11 % USD

Ps.

14,617

‑11% EUR/ -11 % USD

(14,617)

Coca-Cola FEMSA

+11% USD

1,797

‑11% USD

(1,797)

2022

FEMSA (1)

+10% EUR/ +10 % USD

Ps.

1,779

‑10% EUR/ -10 % USD

(1,779)

Coca-Cola FEMSA

+10% USD

2,282

‑10% USD

(2,282)

2021

FEMSA (1)

+10% EUR/ +11 % USD

Ps.

4,931

‑10% EUR/ -11 % USD

(4,931)

Coca-Cola FEMSA

+11% USD

3,200

‑11% USD

(3,200)

(1)Does not include Coca-Cola FEMSA.



	Change in
Commodity Price Contracts	U.S.$ Rate		Effect on Equity
2023
Coca-Cola FEMSA	Sugar -29	%	Ps.	(765)
	Alumimum -22	%	Ps.	(2,812)

2022
Coca-Cola FEMSA	Sugar -22	%	Ps.	(333)
	Alumimum -35	%	Ps.	(4,520)

2021
Coca-Cola FEMSA	Sugar -28	%	Ps.	(714)
	Aluminum -24	%	Ps.	(39)

21.9.2 Interest rate risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates.

The Company is exposed to interest rate risk because it and its subsidiaries borrow funds at both fixed and variable interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and variable rate borrowings, and by the use of the different derivative financial instruments. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

Change in

Interest Rate Swap (1)

Bps.

Effect on Equity

2023

FEMSA (2)

(100 Bps.)

Ps.

(9)

2022

FEMSA (2)

(100 Bps.)

Ps.

(90)

2021

FEMSA (2)

(100 Bps.)

Ps.

(212)

(1)The sensitivity analysis effects include all subsidiaries of the Company.

(2)Does not include Coca-Cola FEMSA.



Interest Effect of Unhedged Portion Bank Loans	2023		2022		2021
Change in interest rate		+100 Bps.		+100 Bps.		+100 Bps.
Effect on profit loss	Ps.	(250)	Ps.	(249)	Ps.	(627)

21.9.3 Liquidity risk

Each of the Company’s sub-holding companies generally finances its operational and capital requirements on an independent basis. As of December 31, 2023 and 2022, 55.0% and 46.5%, respectively of the Company’s outstanding consolidated total indebtedness was at the level of its sub-holding companies. This structure is attributable, in part, to the inclusion of third parties in the capital structure of Coca-Cola FEMSA. Currently, the Company’s management expects to continue financing its operations and capital requirements (e.g., acquisitions, investments or capital expenditures) when it is considering domestic funding at the level of its sub-holding companies, otherwise; it is generally more convenient that its foreign operations would be financed directly through the Company because of more favorable terms of its financing market conditions. Nonetheless, sub-holdings companies may decide to incur indebtedness in the future to finance their operations and capital requirements of the Company’s subsidiaries or significant acquisitions, investments or capital expenditures. As a holding company, the Company depends on dividends and other distributions from its subsidiaries to service the Company’s indebtedness.

The Company’s principal source of liquidity has generally been cash generated from its operations. The Company has traditionally been able to rely on cash generated from operations because a significant majority of the sales of Coca-Cola FEMSA and Proximity Division - Americas, Health Division and Fuel Division are on a cash or short-term credit basis, and OXXO stores can finance a significant portion of their initial and ongoing inventories with supplier credit. The Company’s principal use of cash has generally been for capital expenditure programs, acquisitions, debt repayment and dividend payments.

Ultimate responsibility for liquidity risk management rests with the Company’s board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-, medium- and long-term funding and liquidity requirements. The management of the Company is accountable manages liquidity risk by maintaining adequate cash reserves and continuously monitoring the forecast and actual cash flows, and with a low concentration of maturities per year.

The Company has access to credit from national and international banking institutions to meet treasury needs. The Company has the highest rating for Mexican companies (AAA) given by independent rating agencies, allowing the Company to evaluate capital markets in case it needs resources.

As part of the Company’s financing policy, management expects to continue financing its liquidity needs with cash from operations. Nonetheless, as a result of regulations in certain countries in which the Company operates, it may not be beneficially practicable to remit cash generated in local operations to fund cash requirements in other countries. If cash from operations in these countries is not sufficient to fund future working capital requirements and capital expenditures, management may decide, or be required, to fund cash requirements in these countries through local borrowings rather than remitting funds from another country. In the future the Company’s management may finance its working capital and capital expenditure needs with short-term or other borrowings.

The Company’s management continuously evaluates opportunities to pursue acquisitions or engage in joint ventures or other transactions. The Company would expect to finance any significant future transactions with a combination of cash from operations, long-term indebtedness and capital stock.

The Company’s sub-holding companies generally incur short-term indebtedness if they are temporarily unable to finance operations or meet any capital requirements with cash from operations. A significant decline in the business of any of the Company’s sub-holding companies may affect the sub-holding company’s ability to fund its capital requirements. A significant and prolonged deterioration in the economies in which the Company operates or in the Company’s businesses may affect the Company’s ability to obtain short-term and long-term credit or to refinance existing indebtedness on terms satisfactory to the Company’s management.

The Company presents the maturity dates associated with its long-term financial liabilities as of December 31, 2023, see Note 19. The Company generally makes payments associated with its long-term financial liabilities with cash generated from its operations.



	2024		2025		2026		2027		2028		2029 and thereafter		Total
Non-derivative financial liabilities:
Notes and bonds	Ps.	—	Ps.	1,728	Ps.	11,989	Ps.	9,321	Ps.	15,433	Ps.	88,010	Ps.	126,481
Loans from Banks		8,452		155		93		796		567		280		10,343
Derivative financial liabilities		(307)		45		(919)		(1,382)		89		(2,478)		(4,952)

The Company generally makes payments associated with its non-current financial liabilities with cash generated from its operations.

21.9.4 Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company only transacts with entities that are rated the equivalent of investment-grade and above. This information is supplied by independent rating agencies where available and, if not available, the Company uses other publicly available financial information and its own trading records to rate its major customers. The Company’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee.

The Company has a high receivable turnover; hence management believes credit risk is minimal due to the nature of its businesses, which have a large portion of their sales settled in cash. The Company’s maximum exposure to credit risk for the components of the consolidated statement of financial position at December 31, 2023 and 2022 is the carrying amounts, see Note 7.

The Company manages the credit risk related to its derivative portfolio by only entering into transactions with reputable and credit-worthy counterparties as well as by maintaining in some cases a Credit Support Annex (“CSA”) that establishes margin requirements, which could change upon changes to the credit ratings given to the Company by independent rating agencies. As of December 31, 2023, the Company concluded that the maximum exposure to credit risk related to derivative financial instruments is not significant given the high credit rating of its counterparties.

21.10 Cash flows hedges

The Company determines the existence of an economic relationship between the hedging instruments and the hedged item based on the currency, amount, and timing of their respective cash flows. The Company evaluates whether the derivative designated in each hedging relationship is expected to be effective and that it has been effective to offset changes in the cash flows of the hedged item using the hypothetical derivative method.

In these hedging relationships, the main sources of inefficiency are:

• The effect of the credit risk of the counterparty and the Company on the fair value of foreign currency forward contracts, which is not reflected in the change in the fair value of the hedged cash flows; and

• Changes in the period hedges.

As of December 31, 2023, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates are as follows:



	Maturity
	1‑6 months	6‑12 months		More than 12
Foreign exchange currency risk
Foreign exchange currency forward contracts
Net exposure	3,049	1,781		—
Average exchange rate MXN/USD	18.39	18.40		—
Net exposure	2,486	1,370		—
Average exchange rate BRL/USD	5.10	5.07		—
Net exposure	757	334		—
Average exchange rate COP/USD	4,436	4,316		—
Net exposure	150	—		—
Average exchange rate ARS/USD	668.06	—		—
Net exposure	344	163		—
Average exchange rate URY/USD	40.18	40.66		—
Net exposure	154	117		—
Average exchange rate CRC/USD	558.89	556.00		—
Net exposure	—	—		—
Average exchange rate ARS/MXN	—	—		—
Foreign exchange currency swap contracts
Net exposure	—	—		43,095
Average exchange rate MXN/USD	—	—		17.77
Net exposure	174	—		14,022
Average exchange rate BRL/USD	4.81	—		5.05
Net exposure	—	1,109		1,822
Average exchange rate COP/USD	—	3,601.94		3,743.16
Net exposure	—	286,246		2,082
Average exchange rate CLP/USD	—	870.50		764.40
Net exposure	—	—		10,939
Average exchange rate EUR/USD	—	—		1.09
Interest rate risk
Interest rate swaps
Net exposure	—	—		8,447
Interest rate average BRL	—	—		0.16	%
Net exposure	—	—		—
Interest rate average MXN	—	—		—
Net exposure	—	2		—
Interest rate average CLP	—	3.57	%	—
Net exposure	—	—		—
Interest rate average USD	—	—		—
Commodities risk
Aluminum	298	349		—
Average price (USD/Ton)	2,304	2,364		—
Sugar	1,703	890		745
Average price (USD cent/Lb)	22.43	22.18		22.62

As of December 31, 2022, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates are as follows:



	Maturity
	1‑6 months			6‑12 months		More than 12
Foreign exchange currency risk
Foreign exchange currency forward contracts
Net exposure	Ps.	3,405		Ps.	2,485	Ps.	2
Average exchange rate MXN/USD		20.71			20.88		24.33
Net exposure		1,857			746		—
Average exchange rate BRL/USD		5.34			5.55		—
Net exposure		407			207		—
Average exchange rate COP/USD		4,502			4,977		—
Net exposure		437			—		—
Average exchange rate ARS/USD		231.40			—		—
Net exposure		299			139		—
Average exchange rate URY/USD		42.51			42.74		—
Net exposure		332			182		—
Average exchange rate CRC/USD		686.50			664.50		—
Net exposure		293			—		—
Average exchange rate ARS/MXN		10.57			—		—
Foreign exchange currency swap contracts
Net exposure		12,670			1,743		29,324
Average exchange rate MXN/USD		12.67			19.00		18.11
Net exposure		—			9,294		6,874
Average exchange rate BRL/USD		—			4.00		5.28
Net exposure		345			250		2,313
Average exchange rate COP/USD		3,926			2,333.06		3,510.06
Net exposure		3,306			—		1,225
Average exchange rate CLP/USD		774.49			—		677
Net exposure		—			—		22,130
Average exchange rate EUR/USD		—			—		0.91
Interest rate risk
Interest rate swaps
Net exposure		—			—		9,681
Interest rate average BRL		—			—		0.16	%
Net exposure		—			—		11,403
Interest rate average MXN		—			—		7.17	%
Net exposure		271			—		—
Interest rate average CLP		5.79	%		—		—
Net exposure		—			—		3
Interest rate average USD		—			—		3.57	%
Commodities risk
Aluminum		294			368		—
Average price (USD/Ton)		2,483			2,480		—



	Maturity
	1‑6 months		6‑12 months		More than 12
Sugar		1,058		631		468
Average price (USD cent/Lb)		17.62		17.08		17.14

As of December 31, 2023, a reconciliation per category of equity components and an analysis of OCI components, net of tax; generated by the cash flow hedges were as follows:



	Hedging
	reserve
Balances at beginning of the period	Ps.	1,881
Cash flows hedges
Fair value changes:
Foreign exchange currency risk – Purchase of stock		(1,950)
Foreign exchange currency risk – Other stock		(360)
Interest rate risk		64
Commodity price contracts – Purchase of stock		145
The amounts reclassified to profit and loss:
Foreign exchange currency risk – Other stock		2,671
Interest rate risk		201
The amounts included in non-financial costs:
Foreign exchange currency risk – Purchase of stock		1,806
Commodity price contracts – Purchase of stock		(363)
Taxes due to changes in reserves during the period		(3,140)
Balances at the end of the period	Ps.	956

21.11 Disposal of Estrella Azul

On September 30, 2020, Coca-Cola FEMSA announced that its joint venture with The Coca-Cola Company (Compañía Panameña de Bebidas, S.A.P.I. de C.V.) successfully sold 100% of its stock interest in Estrella Azul, a dairy products company in Panama. As part of the transaction, the company agreed with the buyer that the Company could receive payments in the future if the business of Estrella Azul achieves certain volume and EBITDA targets during the 2022-2027 period. The Company estimated the amount of the payments to be received based on the forecasts of the business (level 3 inputs) and calculated their net present value. As of December 31, 2023 and 2022, the financial assets recognized in the consolidated statement of financial position have a total value of Ps. 0 and Ps. 5, respectively.

Impact of hedging on equity

Set out below is the reconciliation of each component of equity and the analysis of other comprehensive income:



	Foreign currency option		Cross-currency swaps		Interest rate swaps		Commodity price contracts		Equity holders of the parent		Non-controlling interest		Total
As at January 1, 2022	Ps.	(124)	Ps.	3,403	Ps.	(34)	Ps.	141	Ps.	3,385	Ps.	736	Ps.	4,121
Financial instruments – purchases		(223)		(2,080)		—		(23)		(2,326)		(269)		(2,595)
Change in fair value of financial instruments recognized in OCI		(211)		(3,231)		199		133		(3,110)		(1,500)		(4,610)
Amount reclassified from OCI to profit or loss		303		2,674		—		(289)		2,688		(79)		2,609
Foreign currency revaluation of the net foreign operations		—		513		—		—		513		670		1,183
Effects of changes in foreign exchange rates		2		1		—		1		4		6		10
Tax effect		30		769		(54)		59		804		359		1,163
As at December 31, 2022	Ps.	(223)	Ps.	2,049	Ps.	111	Ps.	22	Ps.	1,958	Ps.	(77)	Ps.	1,881
Financial instruments – purchases		(350)		50		—		(59)		(359)		(608)		(967)
Change in fair value of financial instruments recognized in OCI		(595)		(1,514)		64		128		(1,917)		(2,078)		(3,995)
Amount reclassified from OCI to profit or loss		848		2,698		201		(171)		3,576		746		4,322
Foreign currency revaluation of the net foreign operations		—		1,277		—		—		1,277		1,577		2,854
Effects of changes in foreign exchange rates		2		—		—		(1)		1		—		1
Tax effect		45		(3,335)		(19)		33		(3,276)		136		(3,140)
As at December 31, 2023	Ps.	(273)	Ps.	1,224	Ps.	357	Ps.	(48)	Ps.	1,260	Ps.	(304)	Ps.	956

Equity Method Accounted Investees - Share of OCI (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Items that may be reclassified to consolidated net income:

Total

$ 361

$ 6,097

$ 2,369

$ 2,925

Items that may not be reclassified to consolidated net income in subsequent periods:

Remeasurements of the Net Defined Benefit Liability

$ 9

160

661

296

Equity investments

Items that may be reclassified to consolidated net income:

Fair value changes

(526)

(286)

Exchange differences on translation of foreign operation

6,623

2,655

2,893

Total

6,097

2,369

2,925

Items that may not be reclassified to consolidated net income in subsequent periods:

Remeasurements of the Net Defined Benefit Liability

$ 897

$ 267

$ 590

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Company Business - Significant Investments in Subsidiaries (Details)
$ in Millions, $ in Millions

1 Months Ended

3 Months Ended

12 Months Ended

Feb. 17, 2023

Oct. 07, 2022

Apr. 30, 2010

Oct. 31, 2023

Dec. 31, 2022

Dec. 31, 2023

USD ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Disclosure Of Parent Entity Information [line items]

Disclosure Of Parent Entity Information [line items]

$ 3,886

^[1]

$ 65,689

$ 23,909

$ 28,495

IFS TopCo LLC

Disclosure Of Parent Entity Information [line items]

37.10%

0.00%

Series D shares

Net controlling interest income allocated from discontinued operations

$ 18,026

$ 12,117

10,902

17,373

767

4,453

Series B shares

Disclosure Of Parent Entity Information [line items]

Net controlling interest income allocated from discontinued operations

15,425

10,369

9,329

$ 14,865

$ 656

$ 3,811

Heineken Group

Disclosure Of Parent Entity Information [line items]

Disclosure Of Parent Entity Information [line items]

13.90%

20.00%

0.90%

14.76%

Coca-Cola FEMSA

Percentage of voting share in subsidiary

47.20%

56.00%

Percentage of shares traded as american depositary shares

25.00%

Coca-Cola FEMSA | The Coca-Cola company

Disclosure Of Parent Entity Information [line items]

Proximity Americas Division

27.80%

Disclosure Of Parent Entity Information [line items]

Proximity Europe Division

100.00%

Disclosure Of Parent Entity Information [line items]

Disclosure Of Parent Entity Information [line items]

100.00%

98.15%

Fuel Division

Disclosure Of Parent Entity Information [line items]

100.00%

Health Division

Disclosure Of Parent Entity Information [line items]

100.00%

Other businesses

Disclosure Of Parent Entity Information [line items]

100.00%

IFS TopCo

Disclosure Of Parent Entity Information [line items]

37.00%

Valora

Disclosure of analysis of single amount of discontinued operations [line items]

96.87%

98.15%

100.00%

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Non-Controlling Interest in Consolidated Subsidiaries - Options (Details) - Open Market	12 Months Ended
	Dec. 31, 2023
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items]
Ownership under option, as a percent	20.00%
Percentage of ownership interest of subsidiary	20.00%

Bonus Programs - Summary of Number of Shares Held by the Trust (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
FEMSA UBD
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period (in shares)	5,723,019	3,672,586
Shares acquired by the administrative trust to employees (in shares)	4,844,120	4,256,433
Number of other equity instruments exercised or vested in share-based payment arrangement	(3,283,941)	(2,206,000)
Number of other equity instruments outstanding in share-based payment arrangement at end of period (in shares)	7,283,198	5,723,019
KOFL UBL
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period (in shares)	1,860,379	1,701,074
Shares acquired by the administrative trust to employees (in shares)	1,139,180	1,266,283
Number of other equity instruments exercised or vested in share-based payment arrangement	(1,095,319)	(1,106,978)
Number of other equity instruments outstanding in share-based payment arrangement at end of period (in shares)	1,904,240	1,860,379

Business Combinations and Disposals - Discontinued Operation Sales (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Proceeds from the sale of shares

$ 7,883

^[1]

$ 133,222

$ 0

Results for the period, net of tax

(24)

^[2]

(406)

(10)

$ (1,908)

^[2]

(32,238)

(1,423)

(8,264)

Disclosure of analysis of single amount of discontinued operations [line items]

Discontinued operations | Individually immaterial investments

(32,238)

(1,423)

(8,264)

Disclosure of analysis of single amount of discontinued operations [line items]

3,997

1,972

(1,777)

511

(1,120)

(712)

Discontinued operations | Heineken

(765)

(5,936)

(2,511)

Disclosure of analysis of single amount of discontinued operations [line items]

Proceeds from the sale of shares

133,222

Cost of sale of shares

106,273

Gross profit

26,949

Expenses related to the sale

(430)

Foreign exchange loss of the equity method

(9,235)

Gain on the remeasurement of the value of derivative instruments

738

Employee benefits

(1,247)

Cancellation effects of hedge of foreign net investment (Note 19)

5,763

Results for the period, net of tax

(3,981)

619

Foreign exchange of the period

(2,141)

Share of profit (loss) from equity method investments

(1,523)

Cancellation of deferred tax asset related to the investment

(26,820)

4,134

10,697

Property, plant and equipment [abstract]

$ (33,003)

$ (7,359)

$ (10,775)

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3
[2]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment



Cost	Land		Buildings		Machinery and Equipment		Refrigeration Equipment		Returnable Bottles		Investments in Fixed Assets in Progress		Leasehold Improvements		Other		Total
Cost as of January 1,2021	Ps.	9,922	Ps.	27,255	Ps.	86,726	Ps.	16,949	Ps.	17,923	Ps.	10,534	Ps.	26,527	Ps.	905	Ps.	196,741
Additions (1)		303		484		5,263		115		3,655		8,527		2,869		237		21,453
Additions from business acquisitions		—		—		86		—		—		—		—		—		86
Changes in the fair value of past acquisitions		—		—		55		—		—		—		3		—		58
Transfer of completed projects in progress		3		768		4,997		1,351		31		(7,384)		215		19		—
Transfer (to)/from assets classified as held for sale		—		—		60		—		—		—		(8)		4		56
Disposals		(93)		(205)		(7,196)		(1,614)		(2,300)		(190)		(1,771)		(32)		(13,401)
Effects of changes in foreign exchange rates		(162)		(657)		(1,487)		(556)		(364)		(752)		(76)		(82)		(4,136)
Effects on the recognition of inflation effects		140		464		1,580		318		487		1		—		—		2,990
Cost as of December 31, 2021	Ps.	10,113	Ps.	28,109	Ps.	90,084	Ps.	16,563	Ps.	19,432	Ps.	10,736	Ps.	27,759	Ps.	1,051	Ps.	203,847
Cost as of January 1, 2022	Ps.	10,113	Ps.	28,109	Ps.	90,084	Ps.	16,563	Ps.	19,432	Ps.	10,736	Ps.	27,759	Ps.	1,051	Ps.	203,847
Additions (1)		447		774		8,237		939		4,124		15,597		2,669		397		33,184
Additions from business acquisitions		201		1,268		4,478		126		8		699		175		—		6,955
Changes in the fair value of past acquisitions		—		—		(68)		—		—		—		36		(19)		(51)
Transfer of completed projects in progress		159		1,571		4,794		2,485		645		(9,954)		290		10		—
Transfer (to)/from assets classified as held for sale		—		—		(107)		—		—		—		—		—		(107)
Disposals		(33)		(259)		(3,362)		(1,072)		(381)		(290)		(214)		(15)		(5,626)
Effects of changes in foreign exchange rates		(458)		(1,167)		(1,955)		(1,276)		(1,707)		(589)		641		(166)		(6,677)
Effects on the recognition of inflation effects		222		735		2,903		536		849		7		—		(2)		5,250
Cost as of December 31, 2022	Ps.	10,651	Ps.	31,031	Ps.	105,004	Ps.	18,301	Ps.	22,970	Ps.	16,206	Ps.	31,356	Ps.	1,256	Ps.	236,775



Cost as of January 1, 2023	Ps.	10,651	Ps.	31,031	Ps.	105,004	Ps.	18,301	Ps.	22,970	Ps.	16,206	Ps.	31,356	Ps.	1,256	Ps.	236,775
Additions (1)		135		319		9,193		855		2,782		18,376		4,572		566		36,798
Additions from business acquisitions		—		—		64		—		—		2		—		—		66
Business combinations from disposals		—		—		70		—		—		—		—		—		70
Changes in the fair value of past acquisitions		73		(15)		189		—		—		—		—		10		257
Transfer of completed projects in progress		558		1,582		6,008		2,346		2,110		(12,621)		3		14		—
Transfer (to)/from assets classified as held for sale		—		—		57		—		—		—		—		—		57
Disposals		(327)		(799)		(9,656)		(1,245)		(270)		(322)		(1,012)		(100)		(13,731)
Disposal of Envoy Solutions		—		—		(1,001)		—		—		(91)		(200)		(17)		(1,309)
Effects of changes in foreign exchange rates		(523)		(2,174)		(5,845)		(1,299)		(2,155)		(1,109)		(266)		(371)		(13,742)
Effects on the recognition of inflation effects		177		587		1,897		400		655		123		4		—		3,843
Cost as of December 31, 2023	Ps.	10,744	Ps.	30,531	Ps.	105,980	Ps.	19,358	Ps.	26,092	Ps.	20,564	Ps.	34,457	Ps.	1,358	Ps.	249,084

(1)Total includes Ps. 890, Ps. 2,278 and Ps. 3,784 outstanding payment to suppliers, as of December 31, 2023, 2022 and 2021 respectively.

(2)Investments in fixed assets in progress are expected to be completed and transferred to other fixed assets categories within next twelve months.



Accumulated Depreciation	Land		Buildings		Machinery and Equipment		Refrigeration Equipment		Returnable Bottles		Investments in Fixed Assets in Progress		Leasehold Improvements		Other		Total
Accumulated Depreciation as of January 1, 2021	Ps.	—	Ps.	(7,643)	Ps.	(43,110)	Ps.	(9,162)	Ps.	(12,152)	Ps.	—	Ps.	(11,130)	Ps.	(438)	Ps.	(83,635)
Depreciation for the year		—		(870)		(8,344)		(1,795)		(2,708)		—		(2,462)		(154)		(16,333)
Transfer to/(from) assets classified as held for sale		—		—		(38)		—		—		—		—		—		(38)
Disposals		—		80		5,312		1,493		2,391		4		1,649		27		10,956
Effects of changes in foreign exchange rates		—		151		864		372		222		—		417		88		2,114
Changes in value on the recognition of inflation effects		—		(139)		(946)		(208)		(427)		—		(6)		(38)		(1,764)
Accumulated Depreciation as of December 31, 2021	Ps.	—	Ps.	(8,421)	Ps.	(46,262)	Ps.	(9,300)	Ps.	(12,674)	Ps.	4	Ps.	(11,532)	Ps.	(515)	Ps.	(88,700)



Accumulated Depreciation as of January 1, 2022	Ps.	—	Ps.	(8,421)	Ps.	(46,262)	Ps.	(9,300)	Ps.	(12,674)	Ps.	4	Ps.	(11,532)	Ps.	(515)	Ps.	(88,700)
Depreciation for the year		—		(1,393)		(9,107)		(2,015)		(3,234)		—		(2,456)		(134)		(18,339)
Transfer to/(from) assets classified as held for sale		—		—		89		—		—		—		—		—		89
Disposals		—		217		3,319		936		305		—		248		12		5,037
Effects of changes in foreign exchange rates		—		298		745		860		1,274		—		(766)		144		2,555
Changes in value on the recognition of inflation effects		—		(244)		(2,034)		(354)		(745)		—		(5)		(34)		(3,416)
Accumulated Depreciation as of December 31, 2022	Ps.	—	Ps.	(9,543)	Ps.	(53,250)	Ps.	(9,873)	Ps.	(15,074)	Ps.	4	Ps.	(14,511)	Ps.	(527)	Ps.	(102,774)



Accumulated Depreciation as of January 1, 2023	Ps.	—	Ps.	(9,543)	Ps.	(53,250)	Ps.	(9,873)	Ps.	(15,074)	Ps.	4	Ps.	(14,511)	Ps.	(527)	Ps.	(102,774)
Depreciation for the year		—		(1,021)		(10,309)		(1,844)		(3,257)		—		(2,784)		(196)		(19,411)
Transfer to/(from) assets classified as held for sale		—		—		(43)		—		—		—		—		—		(43)
Disposals		—		260		6,494		1,249		261		(4)		592		63		8,915
Disposal of Envoy Solutions		—		—		344		—		—		—		70		(38)		376
Effects of changes in foreign exchange rates		—		708		3,898		793		1,783		—		398		241		7,821
Changes in value on the recognition of inflation effects		—		(218)		(1,265)		(291)		(649)		—		(2)		(13)		(2,438)
Accumulated Depreciation as of December 31, 2023	Ps.	—	Ps.	(9,814)	Ps.	(54,131)	Ps.	(9,966)	Ps.	(16,936)	Ps.	—	Ps.	(16,237)	Ps.	(470)	Ps.	(107,554)



Carrying Amount	Land		Buildings		Machinery and Equipment		Refrigeration Equipment		Returnable Bottles		Investments in Fixed Assets in Progress		Leasehold Improvements		Other		Total
As of December 31, 2021	Ps.	10,113	Ps.	19,688	Ps.	43,822	Ps.	7,263	Ps.	6,758	Ps.	10,740	Ps.	16,227	Ps.	536	Ps.	115,147
As of December 31, 2022	Ps.	10,651	Ps.	21,488	Ps.	51,754	Ps.	8,428	Ps.	7,896	Ps.	16,210	Ps.	16,845	Ps.	729	Ps.	134,001
As of December 31, 2023	Ps.	10,744	Ps.	20,717	Ps.	51,849	Ps.	9,392	Ps.	9,156	Ps.	20,564	Ps.	18,220	Ps.	888	Ps.	141,530

Other Non-Current Assets and Other Non-Current Financial Assets - Other Non-Current Assets (Details)
$ in Millions, $ in Millions

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Agreements with customers, net of accumulated amortization and other rights

$ 766

$ 771

Non-current prepaid advertising expenses

238

184

Guarantee deposits

1,410

1,612

Prepaid bonuses

445

327

Advances to acquire property, plant and equipment

1,432

981

Recoverable taxes

2,120

1,844

Indemnifiable assets from business combinations

1,030

1,555

Disclosure of net defined benefit liability (asset) [line items]

1,055

1,984

Total other assets

$ 503

$ 8,496

$ 9,258

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Employee Benefits - Amounts Recognized in the Income Statement and the Statement of Comprehensive Income (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Remeasurements of the Net Defined Benefit Liability

$ 910

$ 854

$ 684

$ 9

160

661

296

Net benefit cost recognized in the consolidated statements of income

Disclosure of net defined benefit liability (asset) [line items]

866

894

724

322

236

(278)

(276)

(82)

Net benefit cost recognized in the consolidated statements of income | Pension and Retirement Plans

590

508

485

Disclosure of net defined benefit liability (asset) [line items]

489

534

390

288

189

(243)

(220)

(55)

Net benefit cost recognized in the consolidated statements of income | Seniority Premiums

367

313

319

Disclosure of net defined benefit liability (asset) [line items]

345

328

290

(21)

(27)

(3)

Net benefit cost recognized in the consolidated statements of income | Post-Retirement Medical Services

178

150

114

Disclosure of net defined benefit liability (asset) [line items]

(14)

(29)

(24)

Net benefit cost recognized in consolidated statements of accumulated other comprehensive income

Disclosure of net defined benefit liability (asset) [line items]

Remeasurements of the Net Defined Benefit Liability

1,399

1,689

2,812

Net benefit cost recognized in consolidated statements of accumulated other comprehensive income | Pension and Retirement Plans

Disclosure of net defined benefit liability (asset) [line items]

Remeasurements of the Net Defined Benefit Liability

1,311

1,686

1,757

Net benefit cost recognized in consolidated statements of accumulated other comprehensive income | Seniority Premiums

Disclosure of net defined benefit liability (asset) [line items]

Remeasurements of the Net Defined Benefit Liability

117

853

Net benefit cost recognized in consolidated statements of accumulated other comprehensive income | Post-Retirement Medical Services

Disclosure of net defined benefit liability (asset) [line items]

Remeasurements of the Net Defined Benefit Liability

$ (29)

$ (35)

$ 202

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Consolidated Statements of Cash Flows
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

OPERATING ACTIVITIES

Income before income taxes from continuing operations

$ 1,908

$ 32,238

$ 1,423

$ 8,264

3,397

57,410

47,715

43,692

Loss before income taxes of discontinued operations

5,305

89,648

49,138

51,956

Non-cash items adjustments:

Operating non-cash expenses (income)

(63)

(1,063)

3,075

(1,884)

Non-cash movements in post-employment and other non-current employee benefits obligations

910

Allowance of expected credit losses

1,367

Amortization of intangible assets

1,887

31,896

27,831

25,293

126

2,121

2,696

2,694

Gain on sale of long-lived assets and investment in equity instruments

(425)

(7,185)

(308)

(1,176)

Gain on sale of shares in Heineken

(1,957)

(33,070)

Dividends received

(196)

(3,311)

Disposal of long-lived assets

466

416

579

Share of the loss (profit) of equity method accounted investees, net of income taxes

1,248

833

1,427

406

(7,458)

(10,765)

Interest income

(1,042)

(17,609)

(3,842)

(1,464)

Foreign exchange loss (gain), net

883

14,916

16,314

16,938

583

9,849

3,729

(1,314)

(Gain) on monetary position for subsidiaries in hyperinflationary economies

(6)

(94)

(527)

(738)

Market value loss (gain) on financial instruments

440

706

(38)

Net cash flows from operating activities before changes in operating accounts

5,382

90,935

92,603

81,508

Trade accounts receivable and other current assets

(717)

(12,125)

(5,685)

(4,278)

Other current financial assets

799

(457)

(743)

Inventories

(381)

(6,442)

(6,860)

(6,623)

Trade accounts payable and other accounts

(69)

661

11,177

12,006

17,075

Other non-current liabilities

659

471

(290)

Other current financial liabilities

234

3,959

2,291

348

Employee benefits paid

(63)

(1,070)

(691)

(807)

Cash flows from (used in) operations

5,202

87,892

93,683

86,121

Income taxes paid

(1,746)

(29,507)

(18,304)

(12,976)

Net cash used in operating activities from discontinuing operations

(515)

(8,706)

(2,803)

(55)

Net cash generated by operating activities

2,941

49,679

72,576

73,090

Investment in equity method accounted investees

(71)

(1,202)

(542)

(662)

Other equity investments

1,593

Proceeds from the sale of shares

7,883

133,222

Purchases of cash investments

(1,581)

(26,725)

(23,504)

Proceeds from maturities of cash investments

21,830

Interest received

525

8,871

3,639

1,739

Dividends received from equity method accounted investees and other investees

(12)

(199)

(560)

213

204

3,449

2,602

5,039

Property, plant and equipment acquisitions

(2,060)

(34,814)

(29,354)

(17,572)

Proceeds from disposal of property, plant and equipment

857

462

1,436

Acquisition of intangible assets

(196)

(3,306)

(2,118)

(1,912)

Proceeds from the sale of long-lived assets

976

Investment in other assets

(44)

(737)

(1,499)

(998)

Collections of other assets

775

181

213

Other non-current assets

(92)

(1,550)

(1,500)

(420)

Net cash generated (used in) investing activities by discontinuing operations

1,505

25,426

(16,984)

(10,723)

Net cash generated (used in) investing activities

7,828

132,292

(46,432)

(46,175)

FINANCING ACTIVITIES

Proceeds from bank loans and notes payable

665

11,238

15,855

39,888

Payments of bank loans and notes payable

(2,569)

(43,421)

(9,882)

(38,742)

Interest paid

(626)

(10,587)

(8,259)

(9,399)

Contributions from non-controlling interest

348

5,882

103

(3,245)

Dividends paid

(1,112)

(18,798)

(17,506)

(13,399)

Acquisition of non-controlling interest

(266)

Interest paid on leases liabilities

(398)

(6,718)

(5,376)

(4,846)

Payments of leases

(559)

(9,453)

(7,915)

(6,131)

Other financing activities

(1,430)

296

Cash flows from (used in) financing activities, discontinued operations

(1,226)

(20,727)

(1,227)

(1,411)

Net cash used in financing activities

(5,475)

(92,552)

(35,898)

(36,989)

Increase in cash and cash equivalents

5,293

89,419

(9,754)

(10,074)

Cash and cash equivalents at the beginning of the period

4,937

83,439

97,407

107,624

Effects of exchange rate changes and inflation effects on cash and cash equivalents held in foreign currencies

(460)

(7,746)

(4,214)

(143)

Cash and cash equivalents at the end of the period

9,770

165,112

83,439

97,407

Jetro Restaurant Depot

Proceeds from sales of interests in associates

471

7,967

Envoy Solutions

Proceeds from sales of interests in associates

1,448

24,468

Coca-Cola FEMSA

Other acquisitions, net of cash acquired (see Note 4)

(2,356)

Proximity Americas Division

Other acquisitions, net of cash acquired (see Note 4)

(224)

(3,786)

(1,263)

Valora

OPERATING ACTIVITIES

Loss before income taxes of discontinued operations

229

Other acquisitions, net of cash acquired (see Note 4)

(25)

(424)

(20,504)

Other acquisitions

Other acquisitions, net of cash acquired (see Note 4)

$ 0

$ (59)

$ 0

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Intangible Assets - Amortization (Details) - MXN ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Allocation Of Amortisation Expenses [abstract]
Cost of goods sold	$ 1,229	$ 207	$ 254
Administrative expenses	1,257	1,771	1,630
Selling expenses	809	718	810
Amortization expense	$ 3,295	$ 2,696	$ 2,694

Business Combinations and Disposals - Discontinued Operations Dispositions (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Disclosure of analysis of single amount of discontinued operations [line items]

Net sales

$ 41,399

^[1]

$ 699,640

$ 595,543

$ 504,122

Cost of goods sold

25,041

^[1]

423,185

355,490

299,276

Gross profit

16,539

^[1]

279,507

241,518

206,184

Loss before income taxes of discontinued operations

(5,305)

^[2]

(89,648)

(49,138)

(51,956)

$ (1,908)

^[1]

(32,238)

(1,423)

(8,264)

Disclosure of analysis of single amount of discontinued operations [line items]

Discontinued operations | Individually immaterial investments

(32,238)

(1,423)

(8,264)

Disclosure of analysis of single amount of discontinued operations [line items]

Net sales

80,634

76,194

50,801

Cost of goods sold

62,275

66,044

43,272

Gross profit

18,359

10,150

7,529

Loss before income taxes of discontinued operations

3,997

1,972

(1,777)

(1,334)

(4,816)

(1,799)

511

(1,120)

(712)

Discontinued operations | Logistics And Distribution

(765)

(5,936)

(2,511)

Disclosure of analysis of single amount of discontinued operations [line items]

Discontinued operations | Heineken

3,955

Disclosure of analysis of single amount of discontinued operations [line items]

(3,981)

10,697

(26,820)

$ (33,003)

$ (7,359)

$ (10,775)

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3
[2]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Balances and Transactions with Related Parties and Affiliated Companies - Balances (Details) - MXN ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Balances
Account receivable with related party transaction	$ 378	$ 776
Other receivables	93	114
Other payables	1,845	2,711
BBVA Bancomer, S.A de C.V. \| Bank loans and notes payables
Balances
Account payables with related party transactions	1,651	2,317
BBVA Bancomer, S.A de C.V. \| Cash and cash equivalent
Balances
Assets balance with related party transaction	5,233	3,891
Grupo Financiero Scotiabank Inverlat SA
Balances
Assets balance with related party transaction	3,897	2,350
Account payables with related party transactions	124	65
Heineken Group \| Accounts payable
Balances
Account payables with related party transactions	0	3,214
Heineken Group \| Accounts receivable and other financial assets
Balances
Assets balance with related party transaction	0	2,455
The Coca-Cola company \| Bank loans and notes payables and accounts payable
Balances
Account payables with related party transactions	$ 1,196	$ 1,248

Investment (Details)
$ in Millions, $ in Millions

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Total investments

$ 1,582

$ 26,728

$ 51

Fixed interest rate

Corporate Debt Securities | Fixed interest rate

Total investments

26,728

Deposits | Fixed interest rate

Acquisition cost

Accrued interest

Trade and other receivables [abstract]

Acquisition cost

26,354

Accrued interest

$ 374

$ 0

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Financial Instruments - Sensitivity Analysis of Interest Rate Risks (Details) - Interest rate risk - MXN ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest rate swaps \| FEMSA Entity Excluding Coca-Cola FEMSA
Disclosure of Interest Rate Risk Exposure [line items]
Effect on Equity	$ (9)	$ (90)	$ (212)
Unhedged Portion Bank Loans
Disclosure of Interest Rate Risk Exposure [line items]
Effect on profit loss	$ (250)	$ (249)	$ (627)

Other Current Assets and Other Current Financial Assets - Other Current Assets (Details) - MXN ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Current assets [abstract]
Prepaid expenses	$ 3,331	$ 3,953
Agreements with customers, net of accumulated amortization	126	208
Licenses	233	247
Other	127	70
Other current assets	$ 3,817	$ 4,478

Trade Accounts Receivable, Net

12 Months Ended

Dec. 31, 2023

Trade Accounts Receivable, Net



	December 31, 2023		December 31, 2022
Trade accounts receivable	Ps.	34,047	Ps.	39,331
The Coca-Cola Company (see Note 15)		378		776
Loans to employees		114		131
Heineken Group (see Note 15)		352		1,172
Others		6,507		6,355
		41,398		47,765
Allowance for expected credit losses		(2,535)		(2,238)
	Ps.	38,863	Ps.	45,527

7.1 Trade receivables

Trade receivables representing rights arising from sales and loans to employees or any other similar concept, are presented net of discounts and the allowance for expected credit losses.

Coca-Cola FEMSA has accounts receivable from The Coca-Cola Company arising from the latter’s participation in advertising and promotional programs.

Because 6% of the trade accounts receivables are unrecoverable, the Company does not have customers classified as "high risk,” which would be eligible to have special management conditions for the credit risk.

The allowance is calculated under an expected loss model that recognizes the impairment losses throughout the life of the contract. For this particular case, because the accounts receivable are generally outstanding for less than one year, the Company defined an impairment estimation model under a simplified approach of expected loss through a parametric model.

The parameters used within the model are:

•Breach probability;

•Loss severity;

•Financing rate;

•Special recovery rate; and

•Breach exposure.

Aging of accounts receivable (days current or outstanding)



	December 31, 2023		December 31, 2022
Current	Ps.	25,424	Ps.	36,978
0‑30 days		9,892		7,517
31‑60 days		1,398		1,037
61‑90 days		835		463
91‑120 days		1,017		291
120+ days		2,832		1,479
Total	Ps.	41,398	Ps.	47,765

7.2 Changes in the allowance for expected credit losses



	2023		2022		2021
Balance at the beginning of the period	Ps.	2,238	Ps.	1,951	Ps.	2,462
Allowance for the period		1,367		1,060		496
Additions (write-offs) of uncollectible accounts		(557)		(945)		(821)
Addition from business combinations		3		166		—
Effects of changes in foreign exchange rates		(26)		6		(186)
Disposal of businesses		(490)		—		—
Balance at the end of the period	Ps.	2,535	Ps.	2,238	Ps.	1,951

In determining the recoverability of trade receivables, the Company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is limited due to the customer base being large and dispersed.

In 2023 the Company recognized a write-off in Health Division for an amount of Ps. 527 related with trades receivables in Colombia due to uncertainty in collection with one of the main institutional customers.

7.3 Payments from The Coca-Cola Company

The Coca-Cola Company participates in certain marketing and promotional programs. Contributions received by the Company are recognized as a reduction in selling expenses. For the years ended December 31, 2023, 2022, and 2021 contributions received were Ps. 2,450, Ps. 1,170 and Ps. 2,437, respectively.

Bank Loans and Notes Payable - Narrative (Details)
€ / shares in Units, € in Millions, $ in Millions, $ in Millions

1 Months Ended

3 Months Ended

12 Months Ended

Mar. 31, 2023

USD ($)

Mar. 31, 2023

MXN ($)

Feb. 12, 2020

USD ($)

Jan. 16, 2020

USD ($)

Mar. 14, 2016

MXN ($)

May 07, 2013

USD ($)

Dec. 31, 2023

MXN ($)

May 31, 2023

USD ($)

Mar. 31, 2023

MXN ($)

Nov. 30, 2022

MXN ($)

May 31, 2021

EUR (€)

Jun. 30, 2020

USD ($)

Jun. 30, 2023

MXN ($)

Sep. 30, 2022

MXN ($)

Dec. 31, 2023

USD ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Dec. 31, 2023

MXN ($)

Dec. 31, 2023

EUR (€)

Nov. 30, 2023

USD ($)

Mar. 31, 2023

EUR (€)

Feb. 28, 2023

EUR (€)

€ / shares

Dec. 31, 2022

USD ($)

Dec. 31, 2022

MXN ($)

Sep. 30, 2021

MXN ($)

Apr. 30, 2021

EUR (€)

Mar. 14, 2016

EUR (€)

May 07, 2013

EUR (€)

Disclosure of detailed information about borrowings [line items]

Repayments of non-current borrowings

$ 52,369

$ 79,088

$ 2,569

^[1]

$ 43,421

$ 9,882

$ 38,742

Foreign currency revaluation of the net foreign operations

$ (305)

^[2]

(5,153)

3,677

350

Borrowings

134,371

189,879

Savings amount

$ 7,500

408

Interest pay rate

5.46%

Disclosure of detailed information about borrowings [line items]

6,961

$ 0

Argentine pesos

Credit contracts

2.875% Senior Notes due 2023

Disclosure of detailed information about borrowings [line items]

Repayments of non-current borrowings

$ 147

$ 1,000

$ 127

$ 300

Disclosure of detailed information about borrowings [line items]

$ 346

Senior Notes 2.875%

€ 300

Borrowings term

10 years

Disclosure of detailed information about borrowings [line items]

2.875%

Senior Notes 4.375%

$ 700

Disclosure of detailed information about borrowings [line items]

130

Fixed Rate 4.375%

Borrowings term

30 years

Disclosure of detailed information about borrowings [line items]

4.375%

1.75% Senior Notes

€ 1,000

Borrowings term

7 years

Repayment of borrowings | €

1.75%

€ 1,042

Basis points over the relevant benchmark

1.55%

Total yield percentage

1.824%

Foreign currency revaluation of the net foreign operations

$ 232

3.500% Senior Unsecured Notes

Disclosure of detailed information about borrowings [line items]

943

$ 300

$ 1,500

$ 700

3.50%

Basis points over the relevant benchmark

$ 715

1.375%

1.30%

Total yield percentage

3.577%

Borrowings

$ 1,800

Percentage of implicit weighted performance

3.358%

Gain (loss) on hedge ineffectiveness recognised in profit or loss

$ 5,763

3,910

Debt Certificates Maturing on 2033

$ 4,199

1,188

Disclosure of detailed information about borrowings [line items]

€ 259

1.00%

Debt Certificates Maturing on 2028

€ 500

Disclosure of detailed information about borrowings [line items]

€ 404

0.50%

€ 700

Senior Notes Maturing 2028

$ 2,416

Disclosure of detailed information about borrowings [line items]

$ 347

Senior Notes Maturing on 2033

€ 700

Disclosure of detailed information about borrowings [line items]

$ 197

Debt Certificates Maturing on 2032

€ 500

Disclosure of detailed information about borrowings [line items]

$ 8,446

TIEE28 Plus Zero Point One Zero Percentage Debt Bonds Maturing on 2027

9.65%

Disclosure of detailed information about borrowings [line items]

Basis points over the relevant benchmark

$ 827

0.25%

Borrowings, adjustment to interest rate basis

0.10%

Senior Unsecured Exchangeable Bonds

Disclosure of detailed information about borrowings [line items]

€ 500

Exchange price (in euros per share) | € / shares

2.625%

€ 95.625

Premium (as a percent)

27.50%

Clearing price (in euros per share) | € / shares

€ 75.00

Initial exchange option (in shares) | shares

5,228,758

7.87% debt bonds maturing on 2027

Disclosure of detailed information about borrowings [line items]

$ 8,500

T I I E Plus Zero Point Zero Eight Percentage Debt Bonds Maturing On Two Thousand Twenty Five

7.87%

Disclosure of detailed information about borrowings [line items]

$ 1,727

7.35% debt bonds maturying on 2028

0.08%

Disclosure of detailed information about borrowings [line items]

$ 3,000

7.36% Debt maturing on 2028

7.35%

Disclosure of detailed information about borrowings [line items]

$ 6,965

TIIE Plus Zero Point Zero Five Percentage Debt Bonds Maturing On 2026

7.36%

Disclosure of detailed information about borrowings [line items]

$ 2,435

TIEE Plus Nine Point Pine Five Percentage Debt Bonds Maturing On 2029

0.05%

Disclosure of detailed information about borrowings [line items]

$ 5,500

TIIE Plus Zero Point Zero Five Percentage Debt Bonds Maturing On 2026, 2

9.95%

Disclosure of detailed information about borrowings [line items]

$ 500

2.75% Senior Notes Maturing 2030

0.05%

Disclosure of detailed information about borrowings [line items]

$ 1,041

1.85% Senior Notes Maturing 2032

2.75%

Disclosure of detailed information about borrowings [line items]

$ 705

5.25% Senior Notes Maturing On November 26, 2045

1.85%

Disclosure of detailed information about borrowings [line items]

$ 489

Disclosure of detailed information about borrowings [line items]

5.25%

First Bonds Linked Debt

Borrowings, adjustment to interest rate basis

$ 9,400

0.25%

Prepaid bilateral loans with maturity of February 2025

Disclosure of detailed information about borrowings [line items]

Prepaid bilateral loans with maturity of August 2026

$ 3,760

Disclosure of detailed information about borrowings [line items]

Senior Notes Maturing 2030

$ 5,640

Disclosure of detailed information about borrowings [line items]

Senior Notes Maturing 2043

$ 209

Disclosure of detailed information about borrowings [line items]

Social and Sustainable Bond

$ 111

Disclosure of detailed information about borrowings [line items]

Bank Loans and Notes Payable [Abstract]

$ 6,000

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3
[2]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Other Current Assets and Other Current Financial Assets - Restricted Cash Pledged (Details) - MXN ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Other Current Assets and Other Current Financial Assets
Restricted cash	$ 304	$ 1,103
U.S. dollars
Other Current Assets and Other Current Financial Assets
Restricted cash	304	1,095
Chilean pesos
Other Current Assets and Other Current Financial Assets
Restricted cash	$ 0	$ 8

Financial Instruments - Commodity Price Contracts (Details) - MXN ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of detailed information about hedges [line items]
Face amount	$ 52,369	$ 79,088
2024
Disclosure of detailed information about hedges [line items]
Face amount	10,052
2025
Disclosure of detailed information about hedges [line items]
Fair value Liability	72	0
Coca-Cola FEMSA \| Commodity price contracts \| Sugar Price Contracts \| 2024
Disclosure of detailed information about hedges [line items]
Face amount	2,593	1,688
Fair value Liability	(130)	(46)
Fair Value Asset	206	328
Coca-Cola FEMSA \| Commodity price contracts \| Sugar Price Contracts \| 2025
Disclosure of detailed information about hedges [line items]
Face amount	745	468
Fair Value Asset	0	21
Coca-Cola FEMSA \| Commodity price contracts \| Aluminum price contracts \| 2024
Disclosure of detailed information about hedges [line items]
Face amount	647	662
Fair Value Asset	0	(18)
Coca-Cola FEMSA \| Commodity price contracts \| Aluminum price contracts \| 2025
Disclosure of detailed information about hedges [line items]
Fair Value Asset	$ 21	$ 1

Financial Instruments - Disposal (Details) - Estrella Azul - MXN ($) $ in Millions		1 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2023	Dec. 31, 2022
Disclosure of detailed information about financial instruments [line items]
Portion of investment sold	100.00%	100.00%
Financial assets			$ 0	$ 5

Bank Loans and Notes Payable - Interest Income (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Finance operating products

$ 6,961

$ 0

Interest on investments

9,566

3,782

1,465

514

568

(13)

Interest income

$ 1,042

$ 17,609

$ 3,769

$ 1,488

[1]	Convenience translation to U.S. dollars ($) – See Note 2.2.3

Other Non-Current Assets and Other Non-Current Financial Assets

12 Months Ended

Dec. 31, 2023

Other Non-Current Assets and Other Non-Current Financial Assets

14.1 Other non-current assets



	December 31, 2023		December 31, 2022
Agreements with customers, net of accumulated amortization and other rights	Ps.	766	Ps.	771
Non-current prepaid advertising expenses		238		184
Guarantee deposits (1)		1,410		1,612
Prepaid bonuses		445		327
Advances to acquire property, plant and equipment		1,432		981
Recoverable taxes		2,120		1,844
Indemnifiable assets from business combinations (2)		1,030		1,555
Others		1,055		1,984
	Ps.	8,496	Ps.	9,258

(1)As it is customary in Brazil, the Company is required to guarantee tax, legal and labor contingencies by guarantee deposits including those related to business acquisitions. See Note 26.7.

(2)Corresponds to indemnification assets that are warranted by former Vonpar owners in accordance with the share purchase agreement.

14.2 Other non-current financial assets



	December 31, 2023		December 31, 2022
Non-current accounts receivable (3)	Ps.	1,686	Ps.	1,686
Derivative financial instruments (see Note 21)		3,880		3,520
Others		1,587		923
Other investments measured at FVTPL (2)		7,514		—
Other investments in equity instruments at FVOCI (1)		—		17,681
	Ps.	14,667	Ps.	23,810

(1)In 2023, the Company sold its investment in Jetro Restaurant Depot. As part of the purchase sale agreement, a note receivable was agreed for U.S.$933 (Ps. 15,954), see Note 9.2.

(2)The Company maintains an investment in Heineken shares that are linked to the Convertible Bond issued in February 2023.

(3)Includes long-term notes receivable held to maturity for Ps. 696, as well as long-term receivable for Ps. 543 related to Health Division.

Other Assets and Other Financial Assets (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Other Non-Current Assets

14.1 Other non-current assets



	December 31, 2023		December 31, 2022
Agreements with customers, net of accumulated amortization and other rights	Ps.	766	Ps.	771
Non-current prepaid advertising expenses		238		184
Guarantee deposits (1)		1,410		1,612
Prepaid bonuses		445		327
Advances to acquire property, plant and equipment		1,432		981
Recoverable taxes		2,120		1,844
Indemnifiable assets from business combinations (2)		1,030		1,555
Others		1,055		1,984
	Ps.	8,496	Ps.	9,258

(1)As it is customary in Brazil, the Company is required to guarantee tax, legal and labor contingencies by guarantee deposits including those related to business acquisitions. See Note 26.7.

(2)Corresponds to indemnification assets that are warranted by former Vonpar owners in accordance with the share purchase agreement.

Summary of Other Non-Current Financial Assets

14.2 Other non-current financial assets



	December 31, 2023		December 31, 2022
Non-current accounts receivable (3)	Ps.	1,686	Ps.	1,686
Derivative financial instruments (see Note 21)		3,880		3,520
Others		1,587		923
Other investments measured at FVTPL (2)		7,514		—
Other investments in equity instruments at FVOCI (1)		—		17,681
	Ps.	14,667	Ps.	23,810

(1)In 2023, the Company sold its investment in Jetro Restaurant Depot. As part of the purchase sale agreement, a note receivable was agreed for U.S.$933 (Ps. 15,954), see Note 9.2.

(2)The Company maintains an investment in Heineken shares that are linked to the Convertible Bond issued in February 2023.

(3)Includes long-term notes receivable held to maturity for Ps. 696, as well as long-term receivable for Ps. 543 related to Health Division.

Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Taxes [Abstract]

Schedule of income tax rates

The income tax rates in the countries where the Company operates as of December 31, 2023, 2022 and 2021 were as follows:



	2023		2022		2021
Mexico	30.0	%	30.0	%	30.0	%
Guatemala	25.0	%	25.0	%	25.0	%
Costa Rica	30.0	%	30.0	%	30.0	%
Panama	25.0	%	25.0	%	25.0	%
Nicaragua	30.0	%	30.0	%	30.0	%
Colombia	35.0	%	35.0	%	31.0	%
Argentina	35.0	%	35.0	%	30.0	%
Brazil	34.0	%	34.0	%	34.0	%
Chile	27.0	%	27.0	%	27.0	%
Peru	29.5	%	29.5	%	29.5	%
Ecuador	25.0	%	25.0	%	25.0	%
Uruguay	25.0	%	25.0	%	25.0	%
United States	21.0	%	21.0	%	21.0	%
Switzerland	18.6	%	18.6	%	18.6	%

Summary of Major Components of Income Tax Expense

The major components of income tax expense for the years ended December 31, 2023, 2022 and 2021 are:



	2023		2022 (Revised)		2021 (Revised)
Current tax expense	Ps.	30,413	Ps.	17,007	Ps.	14,244
Deferred tax expense (benefit):
Origination and reversal of temporary differences		247		(1,164)		2,390
Utilization (benefit) of tax losses, net		(3,198)		(389)		(1,498)
Change in the statutory rate		(172)		(102)		4
Total deferred tax expense (benefit)		(3,123)		(1,655)		896
Total income taxes	Ps.	27,290	Ps.	15,352	Ps.	15,140
Total income taxes attributable to continued operation	Ps.	12,971	Ps.	13,275	Ps.	13,566
Total income taxes attributable to discontinued operation		14,319		2,077		1,574
	Ps.	27,290	Ps.	15,352	Ps.	15,140

Income Tax Expense/Benefit Recognized in Consolidated Statement of Other Comprehensive Income



Income tax related to items charged or
recognized directly in OCI during the period:	2023		2022		2021
Unrealized gain (loss) on cash flow hedges	Ps.	(355)	Ps.	(1,158)	Ps.	992
Exchange differences on translation of foreign operations		(1,951)		(3,742)		(1,730)
Remeasurements of the net defined benefit liability		11		383		127
Share of the other comprehensive income of equity method accounted investees (1)		3,108		1,129		1,506
Total income tax expense (benefit) recognized in OCI	Ps.	813	Ps.	(3,388)	Ps.	895

Reconciliation Between Statutory and Actual Tax Rate



	2023		2022 (Revised)		2021 (Revised)
Mexican statutory income tax rate	30.0	%	30.0	%	30.0	%
Difference between book and tax inflationary values and translation effects	(1.7)	%	(5.4)	%	(4.8)	%
Annual inflation tax adjustment	0.2	%	7.0	%	7.7	%
Income tax at a rate other than Mexican statutory rates	0.9	%	2.8	%	0.2	%
Non-deductible expenses	2.1	%	3.8	%	2.1	%
Taxable (non-taxable) income	(3.2)	%	1.4	%	2.3	%
Others	0.1	%	0.1	%	0.1	%
Adjustments for previous tax years	—	%	0.4	%	—	%
Income Tax credits (1)	—	%	—	%	(1.5)	%
Tax loss (recognition) write off (2) (3)	(3.3)	%	(5.5)	%	(1.4)	%
Sale of investment of Heineken	1.2	%	—	%	—	%
Consolidated Effective income tax rate	26.3	%	34.6	%	34.7	%
Effective income tax rate from continued operations	22.7	%	33.0	%	34.3	%
Effective income tax rate from discontinued operations	3.6	%	1.6	%	0.4	%

(3)The majority related to tax loss generated in 2023 from a reorganization of the business at Health Division in Chile.

Deferred Tax Assets and Liabilities

Deferred Income Tax Related to:



	Consolidated Statement				Consolidated
	of Financial Position as of				Income Statements
	December 31, 2023		December 31, 2022		2023		2022 (Revised)		2021 (Revised)
Expected credit losses	Ps.	(356)	Ps.	(389)	Ps.	(6)	Ps.	21	Ps.	(3)
Inventories		(61)		(107)		(1)		99		(17)
Other current assets		317		99		92		(78)		47
Property, plant and equipment, net		(7,075)		(7,288)		275		(1,345)		(1,081)
Right of use Assets		(1,166)		(1,433)		194		(151)		(482)
Investments in equity method accounted investees		(51)		(7,330)		74		(58)		(22)
Other assets		315		(283)		(884)		36		(2)
Finite useful lived intangible assets		131		3		145		(139)		498
Indefinite lived intangible assets		1,499		3,693		(2,161)		402		36
Post-employment and other long-term employee benefits		(821)		(736)		(79)		(71)		(258)
Derivative financial instruments		(240)		420		(577)		(111)		738
Temporary non-deductible provisions		(4,602)		(3,971)		(1,006)		43		1,280
Employee profit sharing payable		(1,003)		(871)		(56)		(304)		(393)
Tax loss carryforwards		(13,137)		(10,177)		(3,198)		(389)		(1,498)
Tax credits to recover (1)		(797)		(1,065)		(73)		255		1,200
Cumulative other comprehensive income		(394)		(218)		—		(417)		—
Exchange differences on translation of foreign operations in OCI		2,000		4,603		—		—		—
Other liabilities		(1,785)		(752)		(45)		322		1
Lease liabilities		(446)		(382)		(255)		(272)		53
Liabilities of amortization of goodwill of business acquisition		7,445		6,117		—		—		86
Deferred income tax					Ps.	(7,561)	Ps.	(2,157)	Ps.	183
Deferred tax income net recorded in share of the profit of equity method accounted investees						1,601		567		443
Deferred income tax, net					Ps.	(5,960)	Ps.	(1,590)	Ps.	626
Deferred tax discontinued operations					Ps.	2,838	Ps.	(65)	Ps.	270
Deferred income taxes, net	Ps.	(20,227)	Ps.	(20,067)
Deferred tax asset before reclassification to assets held for sale		(29,639)
Deferred tax asset from assets held for sale		2,041
Deferred tax assets	Ps.	(27,598)	Ps.	(26,890)
Deferred tax liability before reclassification to assets held for sale		7,373
Deferred tax liability from assets held from sale		(2)
Deferred tax liabilities	Ps.	7,371	Ps.	6,823

(1)Corresponds to income tax credits arising from dividends received from foreign subsidiaries to be recovered within the next ten years according to the Mexican Income Tax law.



Income tax related to items charged or
recognized directly in AOCI as of the year:	2023		2022
Unrealized gain on derivative financial instruments	Ps.	324	Ps.	688
Remeasurements of the net defined benefit liability		(221)		(251)
Exchange differences on translation of foreign operations		1,828		3,778
Gain on hedge of net investments in foreign operations		1,401		2,216
Share of other comprehensive income of associated companies and joint ventures		—		(3,108)
Total deferred tax loss related to AOCI	Ps.	3,332	Ps.	3,323

Schedule of Changes in Net Deferred Income Tax Asset

The changes in the balance of the net deferred income tax asset are as follows:



	2023		2022		2021
Balance at the beginning of the period	Ps.	(20,067)	Ps.	(14,691)	Ps.	(16,010)
Deferred tax provision for the period (Note 25.8)		(5,960)		(1,115)		622
Deferred tax income net recorded in share of the profit of equity method accounted investees		2		(694)		277
Acquisition of subsidiaries		1,871		—		—
Effects in equity:
Unrealized (gain) on cash flow hedges		(594)		(1,281)		1,006
Exchange differences on translation of foreign operations		1,002		(2,604)		(491)
Remeasurements of the net defined benefit liability		405		497		380
Retained earnings of equity method accounted investees		954		(334)		32
Restatement effect of the period and beginning balances associated with hyperinflationary economies		121		155		(507)
Related discontinued operations		2,039		—		—
Balance at the end of the period	Ps.	(20,227)	Ps.	(20,067)	Ps.	(14,691)

Schedule of Tax Loss Carryforwards

The tax losses carryforwards for which a deferred tax asset has been recorded and their corresponding years of expiration are as follows:



	Tax Loss
Year	Carryforwards
2024	Ps.	963
2025		790
2026		635
2027		659
2028		484
2029		2,743
2030		3,323
2031		403
2032		3,283
2033 and thereafter		16,567
No expiration (Brazil and Colombia)		12,963
	Ps.	42,813

Summary of Changes in the Balance of Tax Loss Carryforwards

The changes in the balance of tax loss carryforwards are as follows:



	2023		2022
Balance at beginning of the period	Ps.	31,323	Ps.	30,041
Derecognized		(932)		(13,348)
Increase (1)		21,018		14,639
Usage of tax losses		(7,281)		(460)
Translation effect of beginning balances		(1,315)		451
Balance at end of the period	Ps.	42,813	Ps.	31,323

(1)The recognition of tax loss carryforwards from previous years is shown under the item of increases, together with the tax loss carryforwards generated in the same years

Intangible Assets - Sensitivity to Changes in Assumptions (Details)	12 Months Ended
	Dec. 31, 2023 MXN ($) item
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Risk premium basis points \| item	0.0050
Impairment charge on goodwill \| $	$ 0
Change in WACC	0.70%
Change in Sales Growth CAGR	0.50%
Effect on Valuation	Passes by 1.85x
United States \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in Sales Growth CAGR	0.50%
Effect on Valuation	Passes by 1.42x
Mexico \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member] \| Coca-Cola FEMSA
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in WACC	60.00%
Change in Sales Growth CAGR	(1.00%)
Effect on Valuation	Passes by 3.2x
Brazil \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member] \| Coca-Cola FEMSA
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in WACC	80.00%
Change in Sales Growth CAGR	(1.00%)
Effect on Valuation	Passes by 0.9x
Colombia \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member] \| Coca-Cola FEMSA
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in WACC	90.00%
Change in Sales Growth CAGR	(1.00%)
Effect on Valuation	Passes by 1.1x
Argentina \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member] \| Coca-Cola FEMSA
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in WACC	330.00%
Change in Sales Growth CAGR	(1.00%)
Effect on Valuation	Passes by 0.9x
Guatemala \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member] \| Coca-Cola FEMSA
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in WACC	70.00%
Change in Sales Growth CAGR	(1.00%)
Effect on Valuation	Passes by 5.4x
Costa Rica \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member] \| Coca-Cola FEMSA
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in WACC	80.00%
Change in Sales Growth CAGR	(1.00%)
Effect on Valuation	Passes by 4x
Nicaragua \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member] \| Coca-Cola FEMSA
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in WACC	330.00%
Change in Sales Growth CAGR	(1.00%)
Effect on Valuation	Passes by 0.8x
Panama \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member] \| Coca-Cola FEMSA
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in WACC	70.00%
Change in Sales Growth CAGR	(1.00%)
Effect on Valuation	Passes by 2.2x
Uruguay \| Aggregate cash-generating units for which amount of goodwill or intangible assets with indefinite useful lives is not significant [member] \| Coca-Cola FEMSA
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Change in WACC	30.00%
Change in Sales Growth CAGR	(1.00%)
Effect on Valuation	Passes by 2x

Business Combinations and Disposals - Income Statement Information (Details)
$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

^[1]

Dec. 31, 2023

MXN ($)

Dec. 31, 2022

MXN ($)

Dec. 31, 2021

MXN ($)

Disclosure of detailed information about business combination [line items]

Loss before income taxes of discontinued operations

$ 5,305

$ 89,648

$ 49,138

$ 51,956

Valora

Disclosure of detailed information about business combination [line items]

Loss before income taxes of discontinued operations

10,064

229

Disclosure of detailed information about business combination [line items]

(72)

Sigma Supply

Loss before income taxes of discontinued operations

5,718

463

Disclosure of detailed information about business combination [line items]

463

Net Pay S.A.P.I de C.V.

Loss before income taxes of discontinued operations

1,527

Disclosure of detailed information about business combination [line items]

$ (11)

OK Market

Loss before income taxes of discontinued operations

2,635

314

Atra, Hughes, Sunbelt, H.T. Berry, and Other Smaller Acquistions

204

Disclosure of detailed information about business combination [line items]

Loss before income taxes of discontinued operations

2,148

115

Daycon, PJP, Next-Gen, Johnston Paper, And Other Smaller Acquisitons

$ 115

Disclosure of detailed information about business combination [line items]

Loss before income taxes of discontinued operations

2,187