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FEMSA Shareholders’ Meeting Resolutions

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FEMSA holds Annual Shareholders' Meeting, elects new directors, and approves dividends for 2024. The company declared ordinary and extraordinary cash dividends to be paid in installments throughout 2024 and 2025.
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The approval of consolidated financial statements and the declaration of both ordinary and extraordinary cash dividends by Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) are clear indicators of the company's financial health and its commitment to shareholder returns. The distribution of dividends is often a signal of confidence by a company's leadership in its current liquidity and profitability. The issuance of an extraordinary dividend, in particular, can suggest that FEMSA has accrued surplus cash that it has decided to return to shareholders, rather than reinvesting it back into the company.

From a market perspective, dividends can make a stock more attractive to investors seeking regular income, potentially influencing the stock's demand and its price. The market will likely react to the dividend announcement, adjusting the stock price on the ex-dividend date to reflect the payout. It is essential to note that while the dividend payments could provide a short-term boost to the stock price, they also reduce the company's cash reserves, which might limit future investments or debt repayment capacity.

The election of new independent directors, with an emphasis on increased representation of women and independent members on the board, aligns with global trends towards more diverse and autonomous corporate governance structures. This move can be viewed positively by investors who are increasingly valuing diversity and independence in board composition as indicators of a company's resilience and adaptability to change.

Investors and analysts often scrutinize the composition of a company's board as it can impact strategic decisions and oversight. A board with a high percentage of independent directors can provide more objective guidance and oversight, potentially leading to better governance and performance. The 40% participation of women on FEMSA's board is particularly notable, as it may bring varied perspectives and enhance the company's approach to problem-solving and innovation.

MONTERREY, Mexico, March 25, 2024 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or the “Company”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) held its Annual Shareholders’ Meeting today (“the Shareholders’ Meeting”), during which the shareholders approved the consolidated financial statements for the year ended December 31, 2023, the 2023 CEO’s annual report and the opinion of the Board of Directors for the year 2023.

The Annual Shareholders’ Meeting elected the members of the board of directors and the members of each of the Audit Committee, the Corporate Practices and Nominations Committee and the Operations and Strategy Committee of the Board for 2024. In line with our goal of setting the standard for corporate governance best practices, the shareholders’ meeting elected Elane Stock and Olga Gonzalez Aponte as new independent directors. With these additions, our board of directors has 46% representation of independent directors, and 40% participation of women on the board.

The list of the elected directors can be found in the following link: https://femsa.gcs-web.com/corporate-governance/board-of-directors

The Annual Shareholders’ Meeting declared and approved the payment of an ordinary cash dividend of Ps. 0.9161 per each Series "D" share and Ps. 0.7329 per each Series "B" share, which amounts to Ps. 4.3973 per "BD" Unit (BMV: FEMSAUBD) or Ps. 43.973 per ADS (NYSE: FMX), and Ps. 3.6645 per "B" Unit (BMV: FEMSAUB), to be paid in four equal installments, payable on April 18, July 18, October 17 of 2024 and January 16 of 2025.

Additionally, the Annual Shareholders’ Meeting declared and approved the payment of an extraordinary cash dividend of Ps. 0.6417 per each Series "D" share and Ps. 0.5134 per each Series "B" share, which amounts to Ps. 3.0802 per "BD" Unit (BMV: FEMSAUBD) or Ps. 30.8020 per ADS (NYSE: FMX), and Ps. 2.5670 per "B" Unit (BMV: FEMSAUB), to be paid in four equal installments, payable on April 18, July 18, October 17 of 2024 and January 16 of 2025.

For additional information, please refer to the Summary of Resolutions in the Shareholders Meeting section of our corporate website at: https://femsa.gcs-web.com/shareholder-meeting-information

About FEMSA
FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. Across its business units, FEMSA has more than 350,000 employees in 18 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index: S&P/BMV Total México ESG, among other indexes that evaluate its sustainability performance.

Investor Contact
(52) 818-328-6000
investor@femsa.com.mx
femsa.gcs-web.com
Media Contact
(52) 555-249-6843
comunicacion@femsa.com.mx
femsa.com


FAQ

What happened at FEMSA's Annual Shareholders' Meeting?

FEMSA held its Annual Shareholders' Meeting where shareholders approved financial statements, the CEO's annual report, and the Board of Directors' opinion for 2023. New independent directors were elected, and dividends were approved for 2024.

What dividends were approved at the meeting?

The meeting approved an ordinary cash dividend of Ps. 0.9161 per Series 'D' share and Ps. 0.7329 per Series 'B' share, and an extraordinary cash dividend of Ps. 0.6417 per Series 'D' share and Ps. 0.5134 per Series 'B' share.

When will the dividends be paid?

The dividends will be paid in four equal installments on April 18, July 18, October 17 of 2024, and January 16 of 2025.

Who were elected as new independent directors?

Elane Stock and Olga Gonzalez Aponte were elected as new independent directors at the Annual Shareholders' Meeting.

What is the percentage of independent directors on FEMSA's board?

With the addition of Elane Stock and Olga Gonzalez Aponte, FEMSA's board now has 46% representation of independent directors.

Fomento Económico Mexicano, S.A.B. de C.V.

NYSE:FMX

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208.88B
3.30B
34.95%
0.09%
Soft Drink Manufacturing
Manufacturing
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United States of America
Monterrey

About FMX

Fomento Económico Mexicano, S.A.B. de C.V., doing business as FEMSA, is a Mexican multinational beverage and retail company headquartered in Monterrey, Mexico. It operates the largest independent Coca-Cola bottling group in the world and the largest convenience store chain in Mexico.