Femsa's 237 Billion Pesos Investment Forecast

"Femsa plans to invest a total of 237 billion pesos (MXN) in organic growth initiatives across its key businesses over the next five years, as part of a capital allocation strategy aimed at enhancing the intrinsic value of its shares in the long term.

Of this amount, approximately 170 billion will be invested in Mexico, where Femsa is one of the leading employers with over 280,000 employees, and a significant contributor in terms of taxes, expecting to pay over 100 billion in income tax from 2023 to 2028 fiscal years.

"Considering the remarkable speed and success with which we have executed divestments related to FEMSA Forward, and after taking into account our expected capital needs for organic and inorganic growth, we believe that returning capital to our investors should be an important part of the strategy," the statement said.

Profitable and Low-Risk Investments

Femsa explained that when considering the portfolio of investment opportunities available to them, they will prioritize organic opportunities to invest in their proven key business models, which can generate returns clearly superior to their cost of capital, and with a relatively low level of risk.

"We will also favor investments in initiatives and capabilities with attractive risk-return profiles that generate and drive future value creation through market expansion and innovation," the company commented.

Furthermore, it stated that inorganic investments will focus on achieving the strategic objectives of its key business verticals, with strict scrutiny to meet stringent financial criteria: value creation and cash flow generation."