Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) Q4 2022 Earnings Call Transcript

Eugenio Garza: Sure. Bob, I can give you a little bit more color. We do expect this year to be at that for the remaining businesses at about, I mean, EUR 1.7 billion of CapEx. The majority of it would be at the Proximity Division as we continue on the store expansion. And there will be a step-up pickup in CapEx in the COF, and I’m sure Jorge and the will talk to you about that a little bit more. But in the cost businesses, we’re seeing also a lot of growth given the long-term relationship model that we have with the Coca-Cola Company and how that is incentivizing us to — I mean, to grow in all the categories, both of CapEx and including — I mean, production lines but more importantly, more coolers, more bottles and cases and that. So primarily, it would be proximity and cost driving most of the CapEx for this year. I don’t know, Juan, Jorge or if you have any more color on that.

Juan Fonseca: Yes. Thanks, Eugenio. Just following up on that, I mean, there will be a higher CapEx year than we’ve had in a long time. It has to do, I think, partially with the fact that the businesses — and I think, again, Coca-Cola expand I’m sure, but there was perhaps some underinvestment during COVID. But also the fact that demand is so healthy and the businesses are growing at such a pace that it requires more lines, it requires more capacity. Focusing on kind of ex cost for a second. I think we can talk about proximity, probably about $750 million held about $100 million, and then maybe about $120 million for the other smaller businesses. And then call us again with a bigger number than what they’ve done in the past. So it will take us to higher levels, but it’s all driven by growth and demand from the business. So I think it’s very positive.

Robert Ford: That’s helpful. And when we think about the investments you’re making in Fintech. How much of that is being capitalized versus expense?

Daniel Rodríguez: It’s mostly being expensed, Bob, at this point. We’re not capitalizing, I mean, any significant amounts in Fintech at this point.

Operator: We currently have no questions coming through. So I will hand over to your host to conclude today’s conference.

Daniel Rodríguez: Thank you for joining us today. Obviously, we’ve spoken a lot with you recently, and we look forward to seeing many of you in person next week. So that’s it. You have a great weekend.

Operator: Thank you for joining today’s call. You may now disconnect.