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    Ricardo Alves • Morgan Stanley

    Ricardo Alves's questions to JBS N.V. (JBS) leadership

    Ricardo Alves's questions to JBS N.V. (JBS) leadership • Q2 2025

    Question

    Ricardo Alves of Morgan Stanley sought confirmation on the magnitude of working capital release in 2H 2025, questioned the company's dividend policy in light of the new buyback, and asked if U.S. Beef could see an "immediate" sequential recovery similar to pork.

    Answer

    Global CFO & IR Guilherme Cavalcanti guided analysts to use the full-year free cash flow breakeven for estimates and affirmed the dividend policy averages ~$1B annually, with buybacks using excess cash. Wesley Batista Filho, CEO of JBS Foods USA, suggested that while the beef market is challenging, JBS's internal performance could see a quicker improvement in Q3 versus Q2.

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    Ricardo Alves's questions to Fomento Economico Mexicano SAB de CV (FMX) leadership

    Ricardo Alves's questions to Fomento Economico Mexicano SAB de CV (FMX) leadership • Q2 2025

    Question

    Ricardo Alves from Morgan Stanley questioned the significant net income miss, focusing on higher taxes and lower equity income. He also asked which specific initiatives would most impact OXXO Mexico's traffic recovery in the second half.

    Answer

    CFO Martín Yániz attributed the net income decline primarily to a 10 billion peso swing from foreign exchange losses on USD cash balances. He explained the higher effective tax rate was due to non-deductible expenses and Spin's losses. Director of IR Juan Fonseca noted that July same-store sales were already positive and highlighted initiatives around product assortment and new supplier negotiations as key drivers for a second-half rebound.

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    Ricardo Alves's questions to Fomento Economico Mexicano SAB de CV (FMX) leadership • Q2 2025

    Question

    Ricardo Alves asked about the drivers behind the net income miss, specifically higher taxes and lower equity income, and requested more concrete evidence for an expected traffic rebound at OXXO Mexico in the second half.

    Answer

    CFO Martín Yániz attributed the net income decline primarily to a significant FX loss on USD cash balances and explained the higher effective tax rate was due to non-deductible expenses. Director of IR Juan Fonseca provided evidence for optimism by noting that July same-store sales were positive in the low single digits and that initiatives to adjust product mix are underway.

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    Ricardo Alves's questions to Fomento Economico Mexicano SAB de CV (FMX) leadership • Q1 2025

    Question

    Ricardo Alves asked about the degree of sales cannibalization from OXXO's rapid store expansion in Mexico, the strategy for inorganic versus organic growth in the U.S., and the potential to accelerate store openings in Brazil.

    Answer

    Jose Antonio Fernández, CEO of the Proximity and Health Division, quantified the cannibalization effect at a tolerable 20-30 basis points of same-store sales, given the high ROIC of new stores. For the U.S., he and Juan Fonseca emphasized perfecting the value proposition organically before considering major M&A. Regarding Brazil, Fernández expressed strong satisfaction with recent momentum and confirmed FEMSA would continue to invest heavily to maintain a growth rate of 20-25% of the store base.

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    Ricardo Alves's questions to Fomento Economico Mexicano SAB de CV (FMX) leadership • Q4 2024

    Question

    Ricardo Alves inquired about the execution strategy for the 2025 share buyback program and questioned the long-term balance between OXXO's aggressive store expansion and its impact on same-store sales and marginal returns.

    Answer

    CFO Martin Arias Yaniz explained that the share repurchase plan will likely involve a mix of open-market purchases on the Mexican Bolsa and Accelerated Share Repurchases (ASRs) in the U.S., similar to the previous year. Regarding OXXO's expansion, an executive from the Proximity division, along with executive Juan Fonseca, affirmed confidence in the current pace, citing meticulous monitoring of new store productivity, the success of new formats, and tightened location approval standards that have improved the quality of recent store cohorts.

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    Ricardo Alves's questions to Fomento Economico Mexicano SAB de CV (FMX) leadership • Q2 2024

    Question

    Ricardo Alves of Morgan Stanley asked about the drivers behind OXXO's average ticket growth being only in line with inflation, a change from prior quarters. He also questioned the capital return strategy, noting its accelerated pace, and asked about future plans.

    Answer

    CFO Martin Arias Yaniz affirmed that the capital return plan is constantly re-evaluated and that accelerating the remaining portion of the extraordinary returns depends on market conditions, with flexibility between buybacks and dividends. Executive Juan Fonseca addressed same-store sales, attributing the Q2 slowdown to tough comparisons and one-offs, but noted easier comps in H2 could be balanced by potential post-election consumer softness. Martin Arias Yaniz added that the strategic focus is on driving overall traffic and revenue, not just ticket growth relative to inflation.

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    Ricardo Alves's questions to Ambev SA (ABEV) leadership

    Ricardo Alves's questions to Ambev SA (ABEV) leadership • Q4 2024

    Question

    Ricardo Alves from Morgan Stanley asked for the CEO's assessment of the competitive landscape in Brazil and its implications for pricing, given cost pressures. He also requested concrete examples of how Ambev intends to 'develop the category' in a market with already high per capita beer consumption.

    Answer

    CEO Carlos Eduardo Lisboa asserted that Brazil's market has always been highly competitive, which strengthens the company. He emphasized that disciplined revenue management, not just pricing, will be crucial for margin expansion. To develop the category, he pointed to opportunities to increase consumer participation and expand into new occasions (e.g., with meals), highlighting the significant growth potential of non-alcoholic beer.

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