Fomento Economico Mexicano S. A. B. de C. V.

We think 2021 will be another challenging year given the still high number of COVID-19 cases and virus variants that could push governments to take new stringent restrictions, but we believe that the vaccine rollout and gradual economic recovery in 2021 should lead to greater mobility, which would lift consumption and the company's sales this year. Therefore, for 2021, we forecast that FEMSA's revenues will likely grow in the mid-to-high-single digit percentage area. This--coupled with our expectation of relatively constant dividend inflows from KOF, Heineken (in euros), and JRD (in dollars)--and strict operating expenses control would also translate into stronger adjusted EBITDA between MXN44 billion and MXN46 billion in 2021. A minority equity stake in Jetro Restaurants Depot (JDR); A

...Higher customer mobility and a gradual economic recovery should reactivate consumption and FEMSA's sales and EBITDA recovery in 2021. As we expected, FEMSA's 2020 revenues contracted about 4.2% versus 2019 levels. The pandemic, lockdown measures, operating restrictions, and sharp economic contraction have hampered FEMSA's customers mobility in its key markets, affecting its OXXO stores and OXXO gas businesses, although partially offset by its resilient health business division last year. We think 2021 will be another challenging year given the still high number of COVID-19 cases and virus variants that could push governments to take new stringent restrictions, but we believe that the vaccine rollout and gradual economic recovery in 2021 should lead to greater mobility, which would lift consumption and the company's sales this year. Therefore, for 2021, we forecast that FEMSA's revenues will likely grow in the mid-to-high-single digit percentage area. This--coupled with our expectation of...

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