Fomento Economico Mexicano de CV : Report of foreign issuer rules 13a-16 and 15d-16 of the Securities Exchange Act

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2019

FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.

(Exact name of Registrant as specified in its charter)

Mexican Economic Development, Inc.

(Translation of Registrant's name into English)

United Mexican States

(Jurisdiction of incorporation or organization)

General Anaya No. 601 Pte.

Colonia Bella Vista

Monterrey, Nuevo León 64410

México

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-Fx Form 40-F¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _______

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _______

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-_____________

FEMSA Announces Second Quarter 2019 Results

Monterrey, Mexico, July 25, 2019 - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the second quarter of 2019.

FINANCIAL HIGHLIGHTS:

• 9.4% revenue growth (6.7% on an organic1 basis) at FEMSA Consolidated
• 180 basis point gross margin expansion at FEMSA Comercio's Proximity Division
• 13.9% revenue growth (0.1% on an organic1 basis) at FEMSA Comercio's Health Division
• 7.8% revenue growth at FEMSA Comercio's Fuel Division
• 7.6% revenue growth (5.1% on an organic1 basis) at Coca-Cola FEMSA

FINANCIAL SUMMARY FOR THE SECOND QUARTER AND FIRST SIX MONTHS 2019

Change vs. Comparable Results2

					Income
	Revenues	Gross Profit	from Operations		Same-Store Sales
	2Q19	YTD19	2Q19	YTD19	2Q19	YTD19	2Q19	YTD19
FEMSA CONSOLIDATED	9.4%	7.7%	9.7%	8.9%	8.3%		4.9%
FEMSA COMERCIO
Proximity Division	11.3%	10.4%	16.6%	17.1%	15.4%		14.3%	6.2%	4.8%
Health Division	13.9%	8.4%	10.9%	5.3%	(3.0)%		(3.3)%	(2.6)%	(0.7)%
Fuel Division	7.8%	5.3%	33.1%	28.9%	32.6%		24.0%	(0.0)%	(3.6)%
COCA-COLA FEMSA	7.6%	6.5%	6.0%	4.9%	6.2%		2.8%

Eduardo Padilla, FEMSA's CEO, commented:

"FEMSA delivered solid results in the second quarter, which was an interesting one from a calendar standpoint. We had tailwinds from the Holy Week shift in April, as well as a tough comparison base from last year's World Cup that began in June. However, a key positive theme across most of our operations was one of strong revenue growth driven by healthy pricing, that in turn allowed us to deliver margin expansion at FEMSA Comercio's Proximity and Fuel Divisions. At the Health Division, our Mexican operations continued to perform well but were overshadowed by soft results and unfavorable foreign exchange dynamics in Chile, while Colombia continued to expand, and we were happy to close the acquisition of GPF in Ecuador during the quarter. For its part, Coca-Cola FEMSA also achieved strong top-line dynamics in most of its markets, which flowed all the way down the income statement."

• Excludes the effects of significant mergers and acquisitions in the last twelve months.

• Comparable Results: Starting on the first quarter of 2019, we adopted the International Financial Reporting Standard 16 - "Leases" ("IFRS 16") across all our business units. The Comparable Results is a set of numbers which estimate the retroactive effect that the adoption of IFRS 16 would have had on FEMSA's 2018 financial results. The performance comparisons expressed in this document will be made relative to the Comparable Results unless stated otherwise.

1

Results are compared to the same period of previous year

FEMSA CONSOLIDATED

FEMSA CONSOLIDATED

2Q19 Financial Summary

(Millions of Ps.)

		Comparable			Reported 1
	2Q19	2Q18	Var.*	Org.*	2Q18
Revenues	128,213	117,191	9.4%	6.7%	117,191
Income from Operations	11,936	11,020	8.3%	6.6%	10,409
Income from Operations Margin (%)	9.3	9.4	-10 bps		8.9
Operative Cash Flow (EBITDA)	18,982	17,453	8.8%	6.6%	14,959
Operative Cash Flow (EBITDA) Margin (%)	14.8	14.9	-10 bps		12.8
Net Income	7,747	10,469	(26.0)%		10,777
*vs. Comparable Results

CONSOLIDATED BALANCE SHEET

(Millions of Ps.)

As of June 30, 2019	Ps.	US$ 4
Cash	70,472	3,669
Short-term debt	20,360	1,060
Long-term debt 5	96,565	5,027
Net debt 5	46,453	2,418

Total revenues increased 9.4% in 2Q19 compared to 2Q18, reflecting growth across all business units. On an organic basis,2 total revenues grew 6.7%.

Gross profit grew 9.7%. Gross margin expanded 10 basis points, mainly driven by strong expansion at FEMSA Comercio's Proximity and Fuel Divisions, partially offset by a contraction at Coca-Cola FEMSA and FEMSA Comercio's Health Division.

Income from operations increased 8.3%. On an organic basis,2 income from operations increased 6.6%. Consolidated operating margin decreased 10 basis points to 9.3% of total revenues, reflecting margin contraction at Coca-Cola FEMSA and FEMSA Comercio's Health Division. These were largely offset by margin expansion at FEMSA Comercio's Proximity and Fuel Divisions.

Income tax was Ps. 2,174 million in 2Q19.

Net consolidated income decreased 26.0% to Ps. 7,747 million, as the increase in our Income from operations described above did not fully offset a non-cash foreign exchange loss related to FEMSA's U.S. dollar-denominated cash position as impacted by the appreciation of the Mexican peso.

Net majority income was Ps. 1.58 per FEMSA Unit3 and US$0.82 per FEMSA ADS.

Capital expenditures amounted to Ps. 6,130 million, reflecting higher investments at most of our business units.

• Amounts reported as of June 30, 2018, adjusted for the discontinued operations of Coca-Cola FEMSA Philippines.
  2 Excludes the effects of significant mergers and acquisitions in the last twelve months.

• FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of June 30, 2019 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.
  4 The exchange rate published by the Federal Reserve Bank of New York for June 28, 2019 was 19.2089 MXN per USD. 5 Includes the effect of derivative financial instruments on long-term debt.

July 25, 2019

2

FEMSA COMERCIO - PROXIMITY DIVISION

FEMSA COMERCIO - PROXIMITY DIVISION

2Q19 Financial Summary

(Millions of Ps. except same-stores sales)

		Comparable			Reported 1
	2Q19	2Q18	Var.*	Org.*	2Q18
Same-store sales (thousands of Ps.)	822	774	6.2%		774
Revenues	47,190	42,387	11.3%	11.0%	42,387
Income from Operations	4,633	4,014	15.4%	14.2%	3,603
Income from Operations Margin (%)	9.8	9.5	30 bps		8.5
Operative Cash Flow (EBITDA)	7,067	6,172	14.5%	12.9%	4,876
Operative Cash Flow (EBITDA) Margin (%)	15.0	14.6	40 bps		11.5
*vs. Comparable Results
July 25, 2019					3

Total revenues increased 11.3% in 2Q19 compared to 2Q18. On an organic basis,2 total revenues grew 11.0%, reflecting the opening of 375 net new OXXO stores in the quarter to reach 1,312 total net new store openings for the last twelve months. As of June 30, 2019, FEMSA Comercio's Proximity Division had a total of 18,608 OXXO stores. OXXO's same-store sales increased an average of 6.2%, driven by 7.5% growth in average customer ticket, which was partially offset by a decrease of 1.1% in store traffic.

Gross profit reached 39.8% of total revenues, reflecting: i) sustained growth of the services category including income from financial services; ii) healthy trends in our commercial income activity; iii) increased and more efficient promotional programs with our key supplier partners; and iv) the consolidation of Caffenio.

Income from operations amounted to 9.8% of total revenues. Operating expenses increased 17.0% to Ps. 14,149 million, above revenues, mainly reflecting:

1. our continuing initiative to strengthen our compensation structure of key in-store personnel in a tight labor market, including the gradual shift from commission-based store teams to employee-based teams; ii) higher secure cash handling costs driven by increased volume and higher operational costs; and

1. the consolidation of Caffenio.

• Amounts reported as of June 30, 2018, adjusted to reflect the change from Retail Division to Proximity Division implemented since September 2018.
  2 Excludes the effects of significant mergers and acquisitions in the last twelve months.

July 25, 2019

4