Antonio Hernández Vélez

Antonio Hernández Vélez from Actinver asked for an estimate of OXXO's performance excluding the adverse weather impact and how current trends affect store opening plans for OXXO and Bara.

Answer

CFO Martín Yániz pointed to Coca-Cola FEMSA's challenging quarter as evidence of the significant weather impact. He confirmed that store opening plans for Bara are unchanged, and the pace for OXXO remains on track for 1,000-1,100 net new stores, with an increasing strategic focus on 'OXXO Nichos' in enclosed locations like factories and universities.

Antonio Hernández Vélez asked for an estimate of OXXO's performance excluding the adverse weather impact and how current trends affect store opening plans for OXXO and Bara.

Answer

CFO Martín Yániz did not quantify the weather impact but pointed to similar challenges at Coca-Cola FEMSA as corroborating evidence. He stated that store opening plans for Bara are unchanged, and OXXO's pace remains on track at 1,000-1,100 net new stores, with an increasing focus on 'OXXO Nichos' in enclosed locations.

Antonio Hernández Vélez of Actinver requested more detail on the expected acceleration in leasing activity towards year-end, asking which markets were showing increased interest.

Answer

CEO Lorenzo Dominique Berho Carranza explained that after a slow start to the year due to political uncertainty, there has been a recent spike in industrial park visits and requests for proposals. He specifically mentioned Tijuana, Monterrey, and the Bajio region as areas seeing more activity. He believes this indicates that companies are revisiting paused investment plans, and he is confident this will translate into more leasing activity in the second half of the year.

Antonio Hernández Vélez of Actinver requested more detail on the expected acceleration in leasing activity towards year-end, asking which markets are showing this trend and how it compares to previous expectations.

Answer

CEO Lorenzo Dominique Berho Carranza explained that following a slow start to the year, there has been a noticeable increase in industrial park visits and requests for proposals, especially in the Tijuana, Monterrey, and Bajio regions. He attributed this to companies revisiting paused investment plans as global trade tariff uncertainty diminishes, signaling a potentially more active second half of the year.

Antonio Hernández Vélez of Actinver asked about competitive trends across the company's portfolio and requested more detail on the 'learnings and adjustments' being made in response to competition and the soft consumer environment.

Answer

CEO Iain Craig García identified the primary competitive pressure in Mexico as being in the traditional channel at the MXN 20 price point, which is being addressed with adjusted returnable offerings. CFO Gerardo Cruz Celaya reinforced that the focus on an affordable, multi-serve returnable portfolio is the key strategy to close the remaining market share gap in that channel.

Antonio Hernández Vélez of Actinver asked about competitive trends across the portfolio and requested more detail on the company's planned adjustments in response to competition and the soft consumer environment.

Answer

CEO Iain Craig García identified the primary competitive challenge in Mexico as being in the traditional channel at the MXN 20 price point, which is being addressed with adjusted returnable offerings. CFO Gerardo Cruz Celaya added that the focus on multi-serve returnables is specifically aimed at closing this share gap in the underperforming traditional trade.