UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 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 April 2023
Commission File Number 1-12260
COCA-COLA FEMSA, S.A.B.
de C.V.
(Translation
of registrant’s name into English)
United Mexican States
(Jurisdiction
of incorporation or organization)
Calle Mario Pani No. 100,
Santa Fe Cuajimalpa,
Cuajimalpa de Morelos,
05348, Ciudad de México,
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-F X 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)
Yes No
X
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)
Yes No
X
Indicate
by check mark whether the registrant by furnishing the information contained in this Form 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-__.
Mexico City, April 26, 2023, Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFUBL, NYSE:
KOF) (“Coca-Cola FEMSA”, “KOF” or the “Company”), the largest Coca-Cola franchise bottler in the world
by sales volume, announces results for the first quarter of 2023.
| · | Operating income growth 12.9% |
| · | Majority net income growth 35.3% |
| · | Earnings per share1 were Ps. 0.23 (Earnings per unit were Ps.
1.86 and per ADS were Ps. 18.65) |
| · | Achieved more than 900 thousand monthly active buyers on Juntos+, our omnichannel
B2B platform |
FINANCIAL SUMMARY FOR THE FIRST QUARTER RESULTS |
Change vs. same period of last year |
|
|
Total Revenues |
|
Gross Profit |
|
Operating Income |
|
Majority Net Income |
|
|
1Q23 |
|
1Q23 |
|
1Q23 |
|
1Q23 |
As Reported |
Consolidated |
12.0% |
|
12.6% |
|
12.9% |
|
35.3% |
Mexico & Central America |
16.2% |
|
13.6% |
|
1.2% |
|
|
South America |
6.6% |
|
11.0% |
|
43.3% |
|
|
|
|
|
|
|
|
|
|
|
Comparable (2) |
Consolidated |
21.7% |
|
21.8% |
|
20.3% |
|
|
Mexico & Central America |
17.9% |
|
15.2% |
|
2.5% |
|
|
South America |
27.5% |
|
34.8% |
|
77.7% |
|
|
Ian Craig,
Coca-Cola FEMSA’s CEO, commented:
"Our first quarter results reflected
our positive momentum and strong execution. We achieved double-digit revenue, operating income, and net income growth in the face of unfavorable
currency translation effects from most of our operating currencies. Notably, these results were supported by positive volume performance
across most of our territories, including strong growth in Mexico, Brazil, Guatemala, and Uruguay. On the profitability front, we remain
focused on implementing cost and expense efficiencies, as we invest across our operations to increase capacity and support our growth.
Looking ahead, we will continue to
focus on the strategic priorities and promoting sustainability and social responsibility across our markets. We are confident that we
can execute against these priorities and deliver long-term value for all of our stakeholders.”
| (1) | Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 million
shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares),
earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units. |
| (2) | Please refer to page 7 for our definition of “comparable” and a description of the factors
affecting the comparability of our financial and operating performance.
|
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 2 of 14 |
RECENT
DEVELOPMENTS
| · | On March 27, 2023, Coca-Cola FEMSA held its Annual Ordinary General Shareholders’
Meeting, during which its shareholders approved among other things, the Company’s consolidated financial statements for the year
ended December 31, 2022, the annual report presented by the Board of Directors, the declaration and payment of dividends corresponding
to the fiscal year 2022, and the appointment or reelection of the members of the Board of Directors, the Planning and Finance, Audit and
Corporate Practices Committees for 2023. The shareholders’ meeting approved the payment of a cash dividend of Ps. 0.725 per share
(equivalent to Ps. 5.80 per unit) to be paid in two installments: the first installment for the amount of Ps. 0.3625 as of May 3, 2023,
and the second installment for the amount of Ps. 0.3625 as of November 3, 2023, for all outstanding shares on the payment date. |
| · | Coca-Cola FEMSA released its 2022 integrated report entitled
“Future-Ready,” the annual report on Form 20-F filing to the U.S. Securities and Exchange Commission, and the annual report
filing to the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores). These three reports
are available on the Investor Relations section of Coca-Cola FEMSA´s website at www.coca-colafemsa.com |
| · | At the end of last year, Coca-Cola FEMSA acquired Cristal bulk water business
from Embotelladoras Bepensa in the southeast region of Mexico. The results from this acquisition for the first quarter of 2023 include
15.1 million unit cases. As a result, excluding these volumes, consolidated volumes would have increased 4.9%. |
| · | The company continues progressing in the rollout of its
Juntos+, its business-to-business (B2B) omnichannel commercial platform. During the quarter the company reached over 900 thousand digital
active buyers on a consolidated level, driven mainly by an increase in Mexico, who reached 460 thousand active buyers and Brazil, with
230 thousand. |
| · | On April 26, the Company announced that it experienced a cybersecurity incident
in recent days and has implemented its cybersecurity protection and response protocols. The Company is currently working with experts
on measures to prevent an adverse impact on its information technology applications. While such measures are implemented, the Company
expects to continue its business operations through backup procedures, and will prioritize its protection of the integrity, confidentiality,
and availability of its information. A forensic assessment to determine the extent of the cybersecurity incident is currently ongoing. |
CONFERENCE
CALL INFORMATION
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 3 of 14 |
CONSOLIDATED
FIRST QUARTER RESULTS
CONSOLIDATED FIRST QUARTER RESULTS |
|
|
|
|
|
|
|
|
|
As Reported |
|
Comparable (1) |
Expressed in millions of Mexican pesos |
|
1Q 2023 |
1Q 2022 |
Δ% |
|
Δ% |
Total revenues |
|
57,357 |
51,195 |
12.0% |
|
21.7% |
Gross profit |
|
25,458 |
22,602 |
12.6% |
|
21.8% |
Operating income |
|
7,724 |
6,844 |
12.9% |
|
20.3% |
EBITDA (2) |
|
10,522 |
9,827 |
7.1% |
|
15.2% |
Volume
increased 6.6% to 939.6 million unit cases, driven by volume growth in most of our territories, including strong performance in Mexico,
Brazil, and Guatemala. On a comparable basis, excluding the acquisition of CVI in Brazil, total volume would have increased 6.2%.
Total
revenues increased 12.0% to Ps. 57,357 million. This increase was driven by volume growth, revenue management initiatives and
favorable mix effects. These factors were partially offset by unfavorable currency translation into Mexican Pesos. On a comparable basis,
total revenues would have increased 21.7%.
Gross
profit increased 12.6% to Ps. 25,458 million, and gross margin increased 30 basis points to 44.4%. This gross profit increase
was driven mainly by our top-line growth and was partially offset by higher raw material costs, mainly sweeteners and PET across our territories.
On a comparable basis, gross profit would have increased 21.8%.
Operating
income increased 12.9% to Ps. 7,724 million, and operating margin increased 10 basis points to 13.5%. This expansion was driven
mainly by a solid top-line performance and an operating foreign exchange gain in Mexico as a result of the appreciation of the Mexican
Peso. These effects were partially offset by an increase in raw material costs, mainly sweeteners and PET, coupled with an increase in
operating expenses such as labor, marketing, and maintenance. On a comparable basis, operating income would have increased 20.3%.
| (1) | Please refer to page 8 for our definition of “comparable” and a description of the factors
affecting the comparability of our financial and operating performance. |
(2)
EBITDA = operating income + depreciation + amortization & other operating non-cash charges.
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 4 of 14 |
Comprehensive
financing result recorded an expense of Ps. 1,399 million, compared to an expense of Ps. 2,194 million in the previous year.
This decrease was driven mainly by a gain of Ps. 56 million in financial instruments as compared to a loss of Ps. 936 million that was
driven mainly by a one-off market value loss that was recognized during the same period of 2022.
In addition, we recognized a decrease
in our interest expense, net, mainly as a result of a gain in our interest income of Ps. 1,042 million as compared to a gain of Ps. 405
million that was driven by an increase in interest rates.
These effects were partially offset
by a foreign exchange loss of Ps. 640 million as compared to a gain of Ps. 165 million, as our net cash exposure in U.S. dollars was negatively
impacted by the appreciation of the Mexican Peso and the Brazilian Real. Moreover, we recognized a lower gain in monetary position in
inflationary subsidiaries during the first quarter of 2023 as compared to the same period of the previous year.
Income
tax as a percentage of income before taxes was 32.4% as compared to 29.5%. This increase was driven mainly by inflationary
effects across our territories, effects of non-recoverable withholdings, and deferred taxes.
Net
income attributable to equity holders of the company was Ps. 3,916 million as compared to Ps.
2,894 million during the same period of the previous year. This increase was driven mainly by operating income growth, coupled with a
one-off non-cash effect that affected our comprehensive financial result during the same period of 2022. Earnings
per share1 were Ps. 0.23 (Earnings per unit were Ps. 1.86 and per ADS were Ps. 18.85.).
| (1) | Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 million
shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares),
earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units. |
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 5 of 14 |
MEXICO
& CENTRAL AMERICA DIVISION FIRST QUARTER RESULTS
(Mexico, Guatemala, Costa Rica, Panama,
and Nicaragua)
MEXICO & CENTRAL AMERICA DIVISION RESULTS |
|
|
|
|
|
|
|
|
|
As Reported |
|
Comparable (1) |
Expressed in millions of Mexican pesos |
|
1Q 2023 |
1Q 2022 |
Δ% |
|
Δ% |
Total revenues |
|
33,617 |
28,935 |
16.2% |
|
17.9% |
Gross profit |
|
15,919 |
14,007 |
13.6% |
|
15.2% |
Operating income |
|
5,011 |
4,950 |
1.2% |
|
2.5% |
EBITDA (2) |
|
6,706 |
6,722 |
(0.2%) |
|
1.1% |
Volume
increased 8.8% driven by growth across all territories in the division. These volumes include the integration of Cristal bulk water
business. Excluding these volumes, volume would have increased 5.7% in the division and 4.8% in Mexico.
Total
revenues increased 16.2% to Ps. 33,617 million, driven by volume growth and revenue management initiatives. These effects were
partially offset by unfavorable currency translation effects from most of our operating currencies in Central America. On a comparable
basis, excluding currency translation effects, total revenues would have increased 17.9%.
Gross
profit increased 13.6% to Ps. 15,919 million, and gross margin contracted 100 basis points to 47.4%. This margin decrease was
driven mainly by an increase in raw material costs such as sweeteners and concentrate in Mexico. These effects were partially offset by
our top-line growth, favorable raw material hedging initiatives and the appreciation of the Mexican Peso as applied to our dollar-denominated
raw material costs. On a comparable basis, gross profit would have increased 15.2%.
Operating
income increased 1.2% to Ps. 5,011 million and operating margin contracted 220 basis points to 14.9%, driven mainly by an increase
in operating expenses such as labor, marketing, and maintenance that were partially offset by an operating foreign exchange gain in Mexico.
On a comparable basis, operating income would have increased 2.5%.
| (1) | Please refer to page 8 for our definition of “comparable” and a description of the factors
affecting the comparability of our financial and operating performance. |
(2)
EBITDA = operating income + depreciation + amortization & other operating non-cash charges.
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 6 of 14 |
SOUTH
AMERICA DIVISION FIRST QUARTER RESULTS
(Brazil, Argentina, Colombia, and
Uruguay)
SOUTH AMERICA DIVISION RESULTS |
|
|
|
|
|
|
|
|
|
As Reported |
|
Comparable (1) |
Expressed in millions of Mexican pesos |
|
1Q 2023 |
1Q 2022 |
Δ% |
|
Δ% |
Total revenues |
|
23,740 |
22,261 |
6.6% |
|
27.5% |
Gross profit |
|
9,539 |
8,595 |
11.0% |
|
34.8% |
Operating income |
|
2,713 |
1,894 |
43.3% |
|
77.7% |
EBITDA (2) |
|
3,816 |
3,105 |
22.9% |
|
52.7% |
Volume
increased 3.8%, driven mainly by a solid performance in Brazil, Argentina, and Uruguay, partially offset by a flat performance in Colombia.
On a comparable basis, excluding volumes from the acquisition of CVI in Brazil, volume would have increased 2.8%.
Total
revenues increased 6.6% to Ps. 23,740 million, driven by our volume growth, revenue management and favorable mix effects. This
increase was partially offset by unfavorable currency translation effects of most of our operating currencies in the division into Mexican
Pesos. On a comparable basis, total revenues would have increased 27.5%.
Gross
profit increased 11.0% to Ps. 9,539 million, and gross margin expanded 160 basis points to 40.2%. This increase was driven
mainly by our top-line growth, favorable mix effects, and raw material hedging strategies. This increase was partially offset by increases
in raw material costs such as sweeteners and PET. On a comparable basis, gross profit would have increased 34.8%.
Operating
income increased 43.3% to Ps. 2,713 million in the first quarter of 2023, resulting in an operating margin expansion of 290
basis points to 11.4%. This increase was driven mainly by higher gross profit and an increase in operating leverage resulting from volume
growth and operating expense efficiencies. On a comparable basis, operating income would have increased 77.7%.
| (1) | Please refer to page 8 for our definition of “comparable” and a description of the factors
affecting the comparability of our financial and operating performance. |
(2)
EBITDA = operating income + depreciation + amortization & other operating non-cash charges.
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 7 of 14 |
DEFINITIONS
Volume
is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to
soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.
Transactions
refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually
or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.
Operating
income is a non-GAAP financial measure computed as “gross profit – operating expenses – other operating expenses,
net + operative equity method (gain) loss in associates.”
EBITDA
is a non-GAAP financial measure computed as “operating income + depreciation + amortization & other operating non-cash charges.”
Earnings
per share are equal to “quarterly earnings / outstanding shares.” Earnings per share (EPS) for all periods are
adjusted to give effect to the stock split resulting in 16,806,658,096 shares outstanding. For the convenience of the reader, as a KOFUBL
Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS
represents 10 KOFUBL Units.
COMPARABILITY
Our “comparable” term
means, with respect to a year-over-year comparison, the change of a given measure excluding the effects of: (i) mergers, acquisitions,
and divestitures, in this case the acquisition of CVI in Brazil, integrated as of February 2022; and (ii) translation effects resulting
from exchange rate movements. In preparing this measure, management has used its best judgment, estimates, and assumptions in order to
maintain comparability.
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 8 of 14 |
ABOUT
THE COMPANY
Stock listing information: Mexican
Stock Exchange, Ticker: KOFUBL | NYSE (ADS), Ticker: KOF | Ratio of KOFUBL to KOF = 10:1
Coca-Cola
FEMSA files reports, including annual reports and other information, with the U.S. Securities and Exchange Commission, or the “SEC,”
and the Mexican Stock Exchange (Bolsa Mexicana de Valores, or the “BMV”) pursuant to the rules and regulations of the SEC
(that apply to foreign private issuers) and of the BMV. Filings we make electronically with the SEC and the BMV are available to the public
on the Internet at the SEC’s website at www.sec.gov, the BMV’s website at www.bmv.com.mx, and
our website at www.coca-colafemsa.com.
Coca-Cola
FEMSA, S.A.B. de C.V. is the largest Coca-Cola franchise bottler in the world by sales volume. The Company produces and distributes trademark
beverages of The Coca-Cola Company, offering a wide portfolio of 131 brands to a population of more than 266 million. With over 80 thousand
employees, the Company markets and sells approximately 3.5 billion unit cases through 2 million points of sale a year. Operating 49 manufacturing
plants and 260 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value for all of its
stakeholders across the value chain. The Company is a member of the Dow Jones Sustainability Emerging Markets Index, Dow Jones Sustainability
MILA Pacific Alliance Index, FTSE4Good Emerging Index, and the Mexican Stock Exchange’s IPC and Social Responsibility and Sustainability
Indices, among others. Its operations encompass franchise territories in Mexico, Brazil, Guatemala, Colombia, and Argentina, and, nationwide,
in Costa Rica, Nicaragua, Panama, Uruguay, and Venezuela through its investment in KOF Venezuela. For further information, please visit
www.coca-colafemsa.com.
ADDITIONAL
INFORMATION
All of the financial information
presented in this report was prepared under International Financial Reporting Standards (IFRS).
This news release may contain
forward-looking statements concerning Coca-Cola FEMSA’s future performance, which should be considered as good faith estimates by
Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data.
Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA’s control, which could
materially impact the Company’s actual performance. References herein to “US$” are to United States dollars. This news
release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations
should not be construed as representations that Mexican peso amounts actually represent such U.S. dollar amounts or could be converted
into U.S. dollars at the rate indicated.
(5 pages of tables to follow)
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 9 of 14 |
COCA-COLA FEMSA |
CONSOLIDATED INCOME STATEMENT |
Millions of Pesos (1) |
|
|
|
|
|
|
|
|
|
|
For the First Quarter of: |
|
|
2023 |
% of Rev. |
2022 |
% of Rev. |
Δ% Reported |
Δ% Comparable (7) |
Transactions (million transactions) |
|
5,567.3 |
|
5,205.3 |
|
7.0% |
6.6% |
Volume (million unit cases) |
|
939.6 |
|
881.6 |
|
6.6% |
6.2% |
Average price per unit case |
|
59.28 |
|
56.62 |
|
4.7% |
|
Net revenues |
|
57,145 |
|
51,078 |
|
11.9% |
|
Other operating revenues |
|
212 |
|
118 |
|
80.3% |
|
Total revenues (2) |
|
57,357 |
100.0% |
51,195 |
100.0% |
12.0% |
21.7% |
Cost of goods sold |
|
31,899 |
55.6% |
28,593 |
55.9% |
11.6% |
|
Gross profit |
|
25,458 |
44.4% |
22,602 |
44.1% |
12.6% |
21.8% |
Operating expenses |
|
17,825 |
31.1% |
15,757 |
30.8% |
13.1% |
|
Other operative expenses, net |
|
(30) |
-0.1% |
22 |
0.0% |
NA |
|
Operative equity method (gain) loss in associates(3) |
|
(61) |
-0.1% |
(21) |
0.0% |
195.6% |
|
Operating income (5) |
|
7,724 |
13.5% |
6,844 |
13.4% |
12.9% |
20.3% |
Other non operative expenses, net |
|
124 |
0.2% |
180 |
0.4% |
-31.0% |
|
Non Operative equity method (gain) loss in associates (4) |
|
134 |
0.2% |
(3) |
0.0% |
NA |
|
Interest expense |
|
1,913 |
|
1,645 |
|
16.3% |
|
Interest income |
|
1,042 |
|
405 |
|
157.3% |
|
Interest expense, net |
|
871 |
|
1,240 |
|
-29.7% |
|
Foreign exchange loss (gain) |
|
640 |
|
165 |
|
289.1% |
|
Loss (gain) on monetary position in inflationary subsidiaries |
|
(60) |
|
(147) |
|
-59.4% |
|
Market value (gain) loss on financial instruments |
|
(53) |
|
936 |
|
NA |
|
Comprehensive financing result |
|
1,399 |
|
2,194 |
|
-36.2% |
|
Income before taxes |
|
6,067 |
|
4,474 |
|
35.6% |
|
Income taxes |
|
1,989 |
|
1,321 |
|
50.6% |
|
Result of discontinued operations |
|
- |
|
- |
|
NA |
|
Consolidated net income |
|
4,078 |
|
3,153 |
|
29.4% |
|
Net income attributable to equity holders of the company |
|
3,916 |
6.8% |
2,894 |
5.7% |
35.3% |
|
Non-controlling interest |
|
162 |
0.3% |
259 |
0.5% |
-37.3% |
|
|
|
|
|
|
|
|
|
EBITDA & CAPEX |
|
2023 |
% of Rev. |
2022 |
% of Rev. |
Δ% Reported |
Δ% Comparable (7) |
Operating income (5) |
|
7,724 |
13.5% |
6,844 |
13.4% |
12.9% |
|
Depreciation |
|
2,326 |
|
2,349 |
|
-1.0% |
|
Amortization and other operative non-cash charges |
|
471 |
|
635 |
|
-25.8% |
|
EBITDA (5)(6) |
|
10,522 |
18.3% |
9,827 |
19.2% |
7.1% |
15.2% |
CAPEX |
|
2,506 |
|
3,102 |
|
-19.2% |
|
(1)
Except volume and average price per unit case figures.
(2)
Please refer to page 13 for revenue breakdown.
(3)
Includes equity method in Jugos del Valle and Leão Alimentos, among others.
(4)
Includes equity method in PIASA, IEQSA, Beta San Miguel, IMER, and KSP Participacoes, among others.
(5)
The operating income and EBITDA lines are presented as non-GAAP measures for the convenience of the reader.
(6)
EBITDA = operating income + depreciation, amortization & other operating non-cash charges.
(7)
Please refer to page 8 for our definition of “comparable” and a description of the factors affecting the comparability
of our financial and operating performance.
(8)
For the first quarter of 2023, total CAPEX effectively paid was Ps. 2,506 million.
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 10 of 14 |
MEXICO & CENTRAL AMERICA DIVISION |
RESULTS OF OPERATIONS |
Millions of Pesos (1) |
|
|
|
|
|
|
|
|
|
|
For the First Quarter of: |
|
|
2023 |
% of Rev. |
2022 |
% of Rev. |
Δ% Reported |
Δ% Comparable (6) |
Transactions (million transactions) |
|
2,826.8 |
|
2,648.3 |
|
6.7% |
6.7% |
Volume (million unit cases) |
|
537.4 |
|
494.0 |
|
8.8% |
8.8% |
Average price per unit case |
|
62.55 |
|
58.55 |
|
6.8% |
|
Net revenues |
|
33,612 |
|
28,927 |
|
|
|
Other operating revenues |
|
5 |
|
8 |
|
|
|
Total Revenues (2) |
|
33,617 |
100.0% |
28,935 |
100.0% |
16.2% |
17.9% |
Cost of goods sold |
|
17,699 |
52.6% |
14,928 |
51.6% |
|
|
Gross profit |
|
15,918.7 |
47.4% |
14,006.8 |
48.4% |
13.6% |
15.2% |
Operating expenses |
|
11,058.6 |
0.3 |
9,105.5 |
0.3 |
|
|
Other operative expenses, net |
|
(111) |
-0.3% |
(2) |
0.0% |
|
|
Operative equity method (gain) loss in associates (3) |
|
(40) |
-0.1% |
(46) |
-0.2% |
|
|
Operating income (4) |
|
5,011 |
14.9% |
4,950 |
17.1% |
1.2% |
2.5% |
Depreciation, amortization & other operating non-cash charges |
|
1,695 |
5.0% |
1,773 |
6.1% |
|
|
EBITDA (4)(5) |
|
6,706 |
19.9% |
6,722 |
23.2% |
-0.2% |
1.1% |
(1)
Except volume and average price per unit case figures.
(2)
Please refer to page 13 for revenue breakdown.
(3)
Includes equity method in Jugos del Valle, among others.
(4)
The operating income and EBITDA lines are presented as non-GAAP measures for the convenience of the reader.
(5)
EBITDA = operating income + depreciation, amortization & other operating non-cash charges.
(6)
Please refer to page 8 for our definition of “comparable” and a description of the factors affecting the comparability
of our financial and operating performance.
SOUTH AMERICA DIVISION |
RESULTS OF OPERATIONS |
Millions of Pesos (1) |
|
|
|
|
|
|
|
|
|
|
For the First Quarter of: |
|
|
2023 |
% of Rev. |
2022 |
% of Rev. |
Δ% Reported |
Δ% Comparable (6) |
Transactions (million transactions) |
|
2,740.5 |
|
2,556.9 |
|
7.2% |
6.4% |
Volume (million unit cases) |
|
402.2 |
|
387.6 |
|
3.8% |
2.8% |
Average price per unit case |
|
54.90 |
|
53.92 |
|
1.8% |
|
Net revenues |
|
23,533 |
|
22,151 |
|
|
|
Other operating revenues |
|
207 |
|
110 |
|
|
|
Total Revenues (2) |
|
23,740 |
100.0% |
22,261 |
100.0% |
6.6% |
27.5% |
Cost of goods sold |
|
14,200 |
59.8% |
13,665 |
61.4% |
|
|
Gross profit |
|
9,539 |
40.2% |
8,595 |
38.6% |
11.0% |
34.8% |
Operating expenses |
|
6,766 |
28.5% |
6,652 |
29.9% |
|
|
Other operative expenses, net |
|
81 |
0.3% |
24 |
0.1% |
|
|
Operative equity method (gain) loss in associates (3) |
|
(21) |
-0.1% |
26 |
0.1% |
|
|
Operating income (4) |
|
2,713.2 |
11.4% |
1,893.8 |
8.5% |
43.3% |
77.7% |
Depreciation, amortization & other operating non-cash charges |
|
1,102 |
4.6% |
1,211 |
5.4% |
|
|
EBITDA (4)(5) |
|
3,816 |
16.1% |
3,105 |
13.9% |
22.9% |
52.7% |
| (1) | Except volume and average price per unit case figures. |
| (2) | Please refer to page 13 for revenue breakdown. |
| (3) | Includes equity method in Leão Alimentos and Verde Campo, among
others. |
| (4) | The operating income and EBITDA lines are presented as non-GAAP measures
for the convenience of the reader. |
| (5) | EBITDA = operating income + depreciation, amortization & other operating
non-cash charges. |
| (6) | Please refer to page 8 for our definition of “comparable”
and a description of the factors affecting the comparability of our financial and operating performance.
|
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 11 of 14 |
COCA-COLA FEMSA |
CONSOLIDATED BALANCE SHEET |
Millions of Pesos |
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
Mar-23 |
Dec-22 |
% Var. |
|
Liabilities & Equity |
|
Mar-23 |
Dec-22 |
% Var. |
Current Assets |
|
|
|
|
|
Current Liabilities |
|
|
|
|
Cash, cash equivalents and marketable securities |
|
|
|
|
|
Short-term bank loans and notes payable |
|
7,901 |
8,524 |
-7% |
|
41,147 |
40,277 |
2% |
|
Suppliers |
|
24,759 |
26,834 |
-8% |
Total accounts receivable |
|
14,024 |
16,318 |
-14% |
|
Short-term leasing Liabilities |
|
520 |
472 |
10% |
Inventories |
|
13,842 |
11,888 |
16% |
|
Other current liabilities |
|
35,667 |
22,129 |
61% |
Other current assets |
|
9,811 |
10,729 |
-9% |
|
Total current liabilities |
|
68,848 |
57,959 |
19% |
Total current assets |
|
78,825 |
79,211 |
0% |
|
Non-Current Liabilities |
|
- |
- |
|
Non-Current Assets |
|
- |
- |
|
|
Long-term bank loans and notes payable |
|
67,851 |
70,146 |
-3% |
Property, plant and equipment |
|
124,014 |
125,293 |
-1% |
|
Long Term Leasing Liabilities |
|
1,699 |
1,663 |
2% |
Accumulated depreciation |
|
(54,093) |
(54,088) |
0% |
|
Other long-term liabilities |
|
15,917 |
16,351 |
-3% |
Total property, plant and equipment, net |
|
69,921 |
71,205 |
-2% |
|
Total liabilities |
|
154,314 |
146,119 |
6% |
Right of use assets |
|
2,126 |
2,069 |
3% |
|
Equity |
|
- |
- |
|
Investment in shares |
|
8,545 |
8,452 |
1% |
|
Non-controlling interest |
|
6,426 |
6,491 |
-1% |
Intangible assets and other assets |
|
101,360 |
103,122 |
-2% |
|
Total controlling interest |
|
114,473 |
125,384 |
-9% |
Other non-current assets |
|
14,436 |
13,936 |
4% |
|
Total equity |
|
120,899 |
131,876 |
-8% |
Total Assets |
|
275,213 |
277,995 |
-1% |
|
Total Liabilities and Equity |
|
275,213 |
277,995 |
-1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
|
|
|
|
Debt Mix |
|
% Total Debt (1) |
% Interest Rate Floating (1) (2) |
Average Rate |
|
Debt Maturity Profile |
Currency |
|
|
|
|
|
|
|
|
|
|
Mexican Pesos |
|
63.6% |
7.3% |
8.4% |
|
|
U.S. Dollars |
|
17.2% |
35.6% |
4.4% |
|
Colombian Pesos |
|
1.1% |
0.0% |
6.3% |
|
Brazilian Reals |
|
17.7% |
67.3% |
12.5% |
|
Uruguayan Pesos |
|
0.5% |
0.0% |
6.3% |
|
Total Debt |
|
100% |
25.0% |
8.4% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) After giving effect to cross- currency swaps. |
(2) Calculated by weighting each year´s outstanding debt balance mix. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios |
|
1Q 2023 |
FY 2022 |
Δ% |
|
|
|
|
|
|
Net debt including effect of hedges (1)(3) |
|
35,246 |
38,104 |
-7.5% |
|
|
|
|
|
|
Net debt including effect of hedges / EBITDA (1)(3) |
|
0.81 |
0.89 |
|
|
|
|
|
|
|
EBITDA/ Interest expense, net (1) |
|
12.08 |
10.34 |
|
|
|
|
|
|
|
Capitalization (2) |
|
40.1% |
38.9% |
|
|
|
|
|
|
|
(1) Net debt = total debt - cash |
(2) Total debt / (total debt + shareholders' equity) |
(3) After giving effect to cross-currency swaps. |
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 12 of 14 |
COCA-COLA FEMSA |
QUARTERLY- VOLUME, TRANSACTIONS & REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume |
|
|
1Q 2023 |
|
1Q 2022 |
|
YoY |
|
|
Sparkling |
Water (1) |
Bulk (2) |
Stills |
Total |
|
Sparkling |
Water (1) |
Bulk (2) |
Stills |
Total |
|
Δ % |
Mexico (3) |
|
309.5 |
26.4 |
87.6 |
35.2 |
458.8 |
|
301.9 |
21.3 |
67.5 |
32.7 |
423.5 |
|
8.3% |
Guatemala |
|
35.6 |
1.4 |
- |
2.3 |
39.2 |
|
30.6 |
1.1 |
- |
1.9 |
33.7 |
|
16.3% |
CAM South |
|
31.4 |
2.0 |
0.4 |
5.6 |
39.4 |
|
29.8 |
1.9 |
0.2 |
4.9 |
36.9 |
|
6.9% |
Mexico and Central America |
|
376.4 |
29.8 |
88.0 |
43.1 |
537.4 |
|
362.4 |
24.4 |
67.7 |
39.5 |
494.0 |
|
8.8% |
Colombia |
|
61.4 |
8.8 |
3.3 |
7.1 |
80.5 |
|
62.1 |
7.7 |
3.1 |
7.4 |
80.4 |
|
0.1% |
Brazil (4) |
|
218.3 |
19.4 |
2.7 |
20.5 |
260.9 |
|
212.2 |
17.1 |
2.4 |
19.1 |
250.9 |
|
4.0% |
Argentina |
|
35.9 |
5.5 |
1.4 |
4.9 |
47.7 |
|
35.8 |
4.1 |
1.2 |
3.9 |
44.9 |
|
6.2% |
Uruguay |
|
10.4 |
2.1 |
- |
0.7 |
13.1 |
|
9.4 |
1.7 |
- |
0.3 |
11.4 |
|
14.8% |
South America |
|
325.9 |
35.8 |
7.4 |
33.1 |
402.2 |
|
319.6 |
30.6 |
6.7 |
30.8 |
387.6 |
|
3.8% |
TOTAL |
|
702.4 |
65.6 |
95.4 |
76.2 |
939.6 |
|
681.9 |
55.0 |
74.4 |
70.3 |
881.6 |
|
6.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes water presentations larger than 5.0 Lt ; includes flavored water. |
(2) Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water |
(3) Includes 15.1 million unit cases corresponding to the acquisition of Cristal from Embotelladoras Bepensa |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q 2023 |
|
1Q 2022 |
|
YoY |
|
|
Sparkling |
Water |
Stills |
Total |
|
Sparkling |
Water |
Stills |
Total |
|
Δ % |
Mexico (3) |
|
1,765.2 |
191.3 |
254.7 |
2,211.2 |
|
1,698.6 |
154.3 |
237.6 |
2,090.4 |
|
5.8% |
Guatemala |
|
267.3 |
13.3 |
22.6 |
303.2 |
|
238.5 |
11.7 |
19.5 |
269.7 |
|
12.4% |
CAM South |
|
235.6 |
13.3 |
63.5 |
312.4 |
|
220.4 |
12.7 |
55.1 |
288.2 |
|
8.4% |
Mexico and Central America |
|
2,268.1 |
217.9 |
340.8 |
2,826.8 |
|
2,157.5 |
178.6 |
312.2 |
2,648.3 |
|
6.7% |
Colombia |
|
448.1 |
91.6 |
77.6 |
617.3 |
|
429.7 |
82.6 |
81.5 |
593.9 |
|
3.9% |
Brazil (4) |
|
1,403.1 |
170.2 |
226.4 |
1,799.6 |
|
1,303.8 |
146.8 |
222.8 |
1,673.4 |
|
7.5% |
Argentina |
|
183.4 |
34.8 |
41.4 |
259.6 |
|
178.7 |
25.1 |
29.8 |
233.5 |
|
11.2% |
Uruguay |
|
50.3 |
8.0 |
5.7 |
63.9 |
|
47.1 |
6.3 |
2.8 |
56.2 |
|
13.8% |
South America |
|
2,084.8 |
304.6 |
351.1 |
2,740.5 |
|
1,959.3 |
260.8 |
336.9 |
2,556.9 |
|
7.2% |
TOTAL |
|
4,352.9 |
522.5 |
691.9 |
5,567.3 |
|
4,116.8 |
439.4 |
649.1 |
5,205.3 |
|
7.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expressed in million Mexican Pesos |
|
1Q 2023 |
1Q 202 |
Δ % |
|
|
|
|
|
|
|
|
|
|
Mexico |
|
27,229 |
23,222 |
17.3% |
|
|
|
|
|
|
|
|
|
|
Guatemala |
|
3,017 |
2,775 |
8.7% |
|
|
|
|
|
|
|
|
|
|
CAM South |
|
3,371 |
2,938 |
14.7% |
|
|
|
|
|
|
|
|
|
|
Mexico and Central America |
|
33,617 |
28,935 |
16.2% |
|
|
|
|
|
|
|
|
|
|
Colombia |
|
3,744 |
4,276 |
-12.5% |
|
|
|
|
|
|
|
|
|
|
Brazil (5) |
|
15,969 |
14,388 |
11.0% |
|
|
|
|
|
|
|
|
|
|
Argentina |
|
2,900 |
2,672 |
8.5% |
|
|
|
|
|
|
|
|
|
|
Uruguay |
|
1,127 |
925 |
21.9% |
|
|
|
|
|
|
|
|
|
|
South America |
|
23,740 |
22,261 |
6.6% |
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
57,357 |
51,195 |
12.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Volume and transactions in Brazil do not include beer |
(5) Brazil includes beer revenues of Ps.1,450 million for the first quarter of 2023 and Ps.1,742 million for the same period of the previous year. |
| (1) | Volume is expressed in unit cases. Unit case refers to 192 ounces of finished
beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate
that is required to produce 192 ounces of finished beverage product. |
| (2) | Transactions refers to the number of single units (e.g., a can or a bottle)
sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent
multiple transactions based on a standard 12 oz. serving. |
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 13 of 14 |
COCA-COLA FEMSA |
MACROECONOMIC INFORMATION |
|
|
|
|
|
|
|
|
|
Inflation (1) |
|
|
|
|
|
|
|
LTM |
1Q23 |
|
|
|
|
|
Mexico |
|
7.12% |
0.96% |
|
|
|
|
|
Colombia |
|
13.64% |
4.22% |
|
|
|
|
|
Brasil |
|
5.56% |
1.63% |
|
|
|
|
|
Argentina |
|
108.32% |
21.28% |
|
|
|
|
|
Costa Rica |
|
5.70% |
-0.35% |
|
|
|
|
|
Panama |
|
1.91% |
1.11% |
|
|
|
|
|
Guatemala |
|
10.26% |
1.95% |
|
|
|
|
|
Nicaragua |
|
10.92% |
1.50% |
|
|
|
|
|
Uruguay |
|
7.58% |
3.09% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Source: inflation estimated by the company based on historic publications from the Central Bank of each country. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Exchange Rates for each period (2) |
|
|
|
|
|
|
Quarterly Exchange Rate (Local Currency per USD) |
|
|
|
|
1Q23 |
1Q22 |
Δ % |
|
|
|
|
México |
|
18.70 |
20.52 |
-8.9% |
|
|
|
|
Colombia |
|
4758.63 |
3914.87 |
21.6% |
|
|
|
|
Brasil |
|
5.19 |
5.23 |
-0.7% |
|
|
|
|
Argentina |
|
192.41 |
106.58 |
80.5% |
|
|
|
|
Costa Rica |
|
567.30 |
647.10 |
-12.3% |
|
|
|
|
Panama |
|
1.00 |
1.00 |
0.0% |
|
|
|
|
Guatemala |
|
7.83 |
7.70 |
1.7% |
|
|
|
|
Nicaragua |
|
36.30 |
35.61 |
1.9% |
|
|
|
|
Uruguay |
|
39.18 |
43.31 |
-9.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End-of-period Exchange Rates |
|
|
Closing Exchange Rate (Local Currency per USD) |
|
Closing Exchange Rate (Local Currency per USD) |
|
|
Mar-23 |
Mar-22 |
Δ % |
|
Ene-23 |
Ene-22 |
Δ % |
México |
|
18.11 |
19.99 |
-9.4% |
|
18.79 |
20.74 |
-9.4% |
Colombia |
|
4,627.27 |
3,748.15 |
23.5% |
|
4,632.20 |
3,982.60 |
16.3% |
Brasil |
|
5.08 |
4.74 |
7.2% |
|
5.10 |
5.36 |
-4.8% |
Argentina |
|
209.01 |
111.01 |
88.3% |
|
187.00 |
105.02 |
78.1% |
Costa Rica |
|
545.95 |
667.10 |
-18.2% |
|
557.40 |
646.20 |
-13.7% |
Panama |
|
1.00 |
1.00 |
0.0% |
|
1.00 |
1.00 |
0.0% |
Guatemala |
|
7.80 |
7.68 |
1.6% |
|
7.85 |
7.69 |
2.1% |
Nicaragua |
|
36.35 |
35.69 |
1.8% |
|
36.29 |
35.58 |
2.0% |
Uruguay |
|
38.65 |
41.12 |
-6.0% |
|
38.68 |
44.15 |
-12.4% |
|
|
|
|
|
|
|
|
|
(2) Average exchange rate for each period computed with the average exchange rate of each month. |
| |
Coca-Cola FEMSA Reports 1Q23 Results April 26, 2023 | Page 14 of 14 |
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
|
|
COCA-COLA FEMSA, S.A.B. DE C.V. |
|
By: /s/ Constantino Spas Montesinos |
|
Constantino Spas Montesinos
Chief Financial Officer |
|
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Date: April 26, 2023 |
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Coca Cola Femsa SAB de CV (PK) (USOTC:COCSF)
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Coca Cola Femsa SAB de CV (PK) (USOTC:COCSF)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024