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 October 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, October 25, 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 third quarter of 2023.

 

 

THIRD QUARTER HIGHLIGHTS

 

·Volume growth 11.6%
·Revenue growth 10.1%
·Operating income growth 15.3%
·Majority net income growth 23.0%
·Earnings per share1 were Ps. 0.32. (Earnings per unit were Ps. 2.56 and per ADS were Ps. 25.61.)
·Achieved more than 946 thousand monthly active buyers on Juntos+, our omnichannel B2B platform

 

FIRST NINE MONTHS HIGHLIGHTS

·Volume growth 8.4%
·Revenue growth 9.2%
·Operating income growth 13.0%
·Majority net income growth 19.1%
·Earnings per share1 were Ps. 0.85. (Earnings per unit were Ps. 6.77 and per ADS were Ps. 67.66.)
·Achieved more than US$1.7 billion in digital revenues through Juntos+

 

 

FINANCIAL SUMMARY FOR THE THIRD QUARTER RESULTS
Change vs. same period of last year
    Total Revenues   Gross Profit    Operating Income   Majority Net Income
    3Q23 YTD 2023   3Q23 YTD 2023   3Q23 YTD 2023   3Q23 YTD 2023
As Reported Consolidated 10.1% 9.2%   13.6% 10.9%   15.3% 13.0%   23.0% 19.1%
Mexico & Central America 15.5% 14.9%   17.9% 14.9%   19.2% 11.5%      
South America 2.2% 1.2%   6.5% 4.0%   6.7% 16.6%      
                         
Comparable (2) Consolidated 19.2% 19.2%   22.9% 20.5%   24.1% 21.0%      
Mexico & Central America 18.2% 17.0%   20.5% 16.8%   22.5% 13.5%      
South America 21.0% 23.0%   27.4% 28.2%   28.1% 44.7%      

 

Ian Craig, Coca-Cola FEMSA’s CEO, commented:

 

“We are pleased to report solid third quarter results. Our strategic focus on growth has enabled us to build and sustain strong momentum, delivering a quarterly volume increase of 11.6% year on year. This performance includes growth across all of our operations, with double-digit growth in Mexico, Guatemala, Colombia, Uruguay, Costa Rica, and Nicaragua. Notably, on a currency neutral basis, our top-line increased 19.2%, and our operating income increased 24.1%, underscoring the resilience of our company.

 

As we deliver on our growing the core strategic priority, we continue increasing investments in both manufacturing and distribution capacity to debottleneck our infrastructure and unlock growth. We continue accelerating the rollout of our omnichannel B2B platform, Juntos+, which now serves 946 thousand monthly active buyers and have completed the rollout of our app version 4.0 in Brazil.

 

We have confidence that Coca-Cola FEMSA’s team execution of our strategy, is setting us on a path towards long-term sustainable growth and value creation.”

 

 

 

 

(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 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 2 of 17

 

RECENT DEVELOPMENTS

 

·On September 14, 2023, Coca-Cola FEMSA commemorated the 30th anniversary of its initial public offering and trading of its shares on the Mexican Stock Exchange (“BMV”) and the New York Stock Exchange (“NYSE”). Since 1993, The Coca-Cola Company has maintained a significant interest in the capital stock of Coca-Cola FEMSA which in time has helped its growth from a Mexico-based bottler to extend its footprint to other countries and become the largest Coca-Cola bottler in the world in terms of sales volume.

 

·On November 3, 2023, Coca-Cola FEMSA will pay the second installment of the ordinary dividend approved for Ps. 0.3625 per share, for a total cash distribution of Ps. 6,092 million.

 

 

 

CONFERENCE CALL INFORMATION

 

 

 

  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 3 of 17

 

 

CONSOLIDATED third QUARTER RESULTS

CONSOLIDATED THIRD QUARTER RESULTS 
             
    As Reported   Comparable (1)
Expressed in millions of Mexican pesos   3Q 2023 3Q 2022 Δ%   Δ%
Total revenues   62,853 57,093 10.1%   19.2%
Gross profit   28,848 25,392 13.6%   22.9%
Operating income   8,460 7,335 15.3%   24.1%
Adj. EBITDA (2)   11,830 10,626 11.3%   20.5%

 

Volume increased 11.6% to 1,033.1 million unit cases, driven by volume growth in all of our territories, including double-digit volume growth in Mexico, Guatemala, Costa Rica, Nicaragua, Colombia, and Uruguay. Excluding the acquisition of the Cristal bulk water business in Mexico, total volume would have increased 9.8%.

 

Total revenues increased 10.1% to Ps. 62,853 million. This increase was driven mainly by volume growth, partially offset by unfavorable currency translation effects from most of our operating currencies into Mexican Pesos. Excluding currency translation effects, total revenues increased 19.2%.

 

Gross profit increased 13.6% to Ps. 28,848 million, and gross margin expanded 140 basis points to 45.9%. This expansion was driven mainly by our top-line growth, easing packaging costs, and the appreciation of most of our operating currencies as applied to our U.S dollar-denominated raw material costs. These effects were partially offset by higher sweetener costs across our territories. Excluding currency translation effects, gross profit increased 22.9%.

 

Operating income increased 15.3% to Ps. 8,460 million, and operating margin expanded 70 basis points to 13.5%. This expansion was driven mainly by a solid top-line performance, easing packaging costs, and the appreciation of most of our operating currencies as applied to our U.S. dollar denominated raw material costs. These effects were partially offset by an increase in sweeteners, fixed costs, and expenses such as labor, marketing, and maintenance. Excluding currency translation effects, operating income increased 24.1%.

 

 

 

 

 

 

(1)Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
(2)Adjusted EBITDA = operating income + depreciation + amortization & other operating non-cash charges.

 

  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 4 of 17

 

Comprehensive financing result recorded an expense of Ps. 552 million, compared to an expense of Ps. 682 million in the previous year. This decrease was driven mainly by a foreign exchange gain of Ps. 322 million as compared to a gain of Ps. 40 million, as our net cash exposure in U.S. dollars was positively impacted by the depreciation of the Mexican Peso and other operating currencies as compared to the previous quarter.

Additionally, we recorded a gain of Ps. 95 million in financial instruments as compared to a loss of Ps. 157 million during the previous year, driven mainly by a decrease in interest rates in Brazil.

These effects were partially offset by an increase in our interest expense, net. This quarter we recorded a higher interest expense of Ps. 1,707 million as compared to an expense of Ps. 1,339 million during the previous year, as a result of the tender offer completed during the third quarter of 2022 which lowered our comparison base. This increase in interest expense was partially offset by an increase in our interest income, driven by higher interest rates.

Finally, we recognized a lower gain in monetary position in inflationary subsidiaries of Ps. 17 million, as compared to a gain of Ps. 124 million during the same period of the previous year.

 

Income tax as a percentage of income before taxes was 29.6% as compared to 33.5% during the same period of 2022. This decrease was driven mainly by favorable inflationary adjustments in Mexico and deferred taxes.

 

Net income attributable to equity holders of the company was Ps. 5,380 million as compared to Ps. 4,374 million during the same period of the previous year. This increase was driven mainly by operating income growth, coupled with a decrease in our comprehensive financing result. Earnings per share1 were Ps. 0.32 (Earnings per unit were Ps. 2.56 and per ADS were Ps. 25.61.).

 

 

 

 

 

(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 3Q23 Results

October 25, 2023

Page 5 of 17

 

CONSOLIDATED FIRST nine months RESULTS

CONSOLIDATED FIRST NINE MONTHS RESULTS 
             
    As Reported   Comparable (1)
Expressed in millions of Mexican pesos   YTD 2023 YTD 2022 Δ%   Δ%
Total revenues   181,376 166,042 9.2%   19.2%
Gross profit   81,451 73,469 10.9%   20.5%
Operating income   24,716 21,881 13.0%   21.0%
Adj. EBITDA (2)   33,737 31,151 8.3%   17.3%

 

Volume increased 8.4% to 2,991.6 million unit cases, driven by volume growth in all of our territories, including strong performances in Mexico, Brazil, and Guatemala. Excluding the acquisition of the Cristal bulk water business in Mexico, total volume increased 6.5%.

 

Total revenues increased 9.2% to Ps. 181,376 million. Volume growth, revenue management initiatives, and favorable mix effects drove this increase. These factors were partially offset by unfavorable currency translation effects from most of our operating currencies into Mexican Pesos. Excluding currency translation effects, total revenues increased 19.2%.

 

Gross profit increased 10.9% to Ps. 81,451 million, and gross margin expanded 70 basis points to 44.9%. This gross profit increase was driven mainly by our top-line growth, easing packaging costs, and favorable raw material hedging initiatives. These effects were partially offset by higher sweetener costs across our territories. Excluding currency translation effects, gross profit increased 20.5%.

 

Operating income increased 13.0% to Ps. 24,716 million, and operating margin expanded 40 basis points to 13.6%. This growth 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, coupled with an increase in operating expenses such as labor, marketing, and maintenance. Excluding currency translation effects, operating income increased 21.0%.

 

 

 

 

 

 

(1)Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
(2)Adjusted EBITDA = operating income + depreciation + amortization & other operating non-cash charges.
  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 6 of 17

 

Comprehensive financing result recorded an expense of Ps. 3,329 million, compared to an expense of Ps. 3,438 million in the previous year. This slight decrease was driven mainly by a gain in financial instruments of Ps. 80 million as compared to a loss of Ps. 738 million during the same period of the previous year. This was driven mainly by a market value loss recorded during the first quarter of 2022, partially offset by a market value gain recognized during the second quarter of 2022. In accordance with IFRS 9, as of the second quarter of 2022, we are recognizing the hedging gain or loss on the debt instrument that is being hedged using interest rate derivatives.

In addition, we recorded a decrease in our interest expense, net of 9.2% mainly as a result of a gain in our interest income that was driven by an increase in interest rates. Additionally, we recorded a decrease in our interest expense, as a result of the tender offer completed during the third quarter of 2022, which reduced our baseline.

These effects were partially offset by a higher foreign exchange loss of Ps. 739 million as compared to a loss of Ps. 46 million during the first nine months of the previous year, mainly as our net cash exposure in U.S. dollars was negatively impacted by the appreciation of the Mexican Peso. In addition, we recorded a lower gain in monetary position in inflationary subsidiaries of Ps. 134 million as compared to a gain of Ps. 434 million during the same period of the previous year.

 

Income tax as a percentage of income before taxes was 29.6% as compared to 33.5% during the same period of 2022. This decrease was driven mainly by favorable inflationary effects in Mexico and deferred taxes.

 

Net income attributable to equity holders of the company increased 19.1% to reach Ps. 14,213 million during the first nine months of 2023, as compared to Ps. 11,931 million during the same period of the previous year. This increase was driven mainly by operating income growth. Earnings per share1 were Ps. 0.85 (Earnings per unit were Ps. 6.77 and per ADS were Ps. 67.66.).

 

 

 

 

 

(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 3Q23 Results

October 25, 2023

Page 7 of 17

 

MEXICO & CENTRAL AMERICA DIVISION third QUARTER RESULTS

(Mexico, Guatemala, Costa Rica, Panama, and Nicaragua)

 

 

MEXICO & CENTRAL AMERICA DIVISION RESULTS 
             
    As Reported   Comparable (1)
Expressed in millions of Mexican pesos   3Q 2023 3Q 2022 Δ%   Δ%
Total revenues   39,035 33,799 15.5%   18.2%
Gross profit   18,689 15,855 17.9%   20.5%
Operating income   6,032 5,059 19.2%   22.5%
Adj. EBITDA (2)    8,182  7,171 14.1%   17.0%

 

 

Volume increased 13.9%, driven by double-digit growth in Mexico, Guatemala, Costa Rica, and Nicaragua. These volumes include the integration of the Cristal bulk water business, excluding this effect, volume increased 11.0% in the division and 9.7% in Mexico.

 

Total revenues increased 15.5% to Ps. 39,035 million, driven by volume growth, partially offset by unfavorable currency translation effects from most of our operating currencies in Central America. Excluding currency translation effects, total revenues increased 18.2%.

 

Gross profit increased 17.9% to Ps. 18,689 million, and gross margin expanded 100 basis points to 47.9%. This margin expansion was driven mainly by our top-line growth, easing packaging costs, and the appreciation of the Mexican Peso as applied to our U.S. dollar-denominated raw material costs. These effects were partially offset by an increase in sweeteners costs. Excluding currency translation effects, gross profit increased 20.5%.

 

Operating income increased 19.2% to Ps. 6,032 million, and operating margin expanded 50 basis points to 15.5%, driven mainly by our top-line and gross profit growth. These effects were partially offset by an increase in operating expenses such as labor and maintenance. Excluding currency translation effects, operating income increased 22.5%.

 

 

 

 

 

 

 

 

 

 

 

(1)Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

(2)Adjusted EBITDA = operating income + depreciation + amortization & other operating non-cash charges.
  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 8 of 17

 

SOUTH AMERICA DIVISION third QUARTER RESULTS

(Brazil, Argentina, Colombia, and Uruguay)

 

 

 

 

SOUTH AMERICA DIVISION RESULTS 
             
    As Reported   Comparable (1)
Expressed in millions of Mexican pesos   3Q 2023 3Q 2022 Δ%   Δ%
Total revenues   23,818 23,294 2.2%   21.0%
Gross profit   10,159 9,537 6.5%   27.4%
Operating income   2,428 2,275 6.7%   28.1%
Adj. EBITDA (2)    3,647  3,455 5.6%   29.1%

 

 

 

Volume increased 8.1%, driven by growth across all of our territories in the division with a solid performance in Brazil, Colombia, and Uruguay, coupled with a slight volume growth in Argentina.

 

Total revenues increased 2.2% to Ps. 23,818 million. This increase was driven mainly by volume growth, offset by unfavorable currency translation effects of all of our operating currencies in the division into Mexican Pesos. Excluding currency translation effects, total revenues increased 21.0%.

 

Gross profit increased 6.5% to Ps. 10,159 million, and gross margin expanded 180 basis points to 42.7%. This increase was driven mainly by our top-line growth, easing packaging costs, and the appreciation of most of our operating currencies as compared to the U.S. dollar. These effects were partially offset by increases in sweeteners and the depreciation of the Argentine Peso as applied to our U.S. dollar-denominated raw material costs. Excluding currency translation effects, gross profit increased 27.4%.

 

Operating income increased 6.7% to Ps. 2,428 million, resulting in an operating margin expansion of 40 basis points to 10.2%. This increase was driven mainly by operating expense efficiencies and an increase in operating leverage resulting from volume growth. These effects were partially offset by higher labor and freight expenses. Excluding currency translation effects, operating income increased 28.1%.

 

 

 

 

 

(1)Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
(2)Adjusted EBITDA = operating income + depreciation + amortization & other operating non-cash charges.
  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 9 of 17

 


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.”

 

Adjusted 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 3Q23 Results

October 25, 2023

Page 10 of 17

 

 

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.

 

(6 pages of tables to follow)

 

 

 

 

 

  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 11 of 17

 

 

COCA-COLA FEMSA
CONSOLIDATED INCOME STATEMENT
Millions of Pesos (1)
                             
    For the Third Quarter of:   For the First Nine Months of:
    2023 % of Rev. 2022 % of Rev. Δ% Reported Δ% Comparable (7)   2023 % of Rev. 2022 % of Rev. Δ% Reported Δ% Comparable (7)
Transactions (million transactions)     6,048.6    5,507.3   9.8% 9.8%    17,548.7    16,327.4   7.5% 7.4%
Volume (million unit cases)     1,033.1    925.8   11.6% 11.6%    2,991.6    2,759.9   8.4% 8.3%
Average price per unit case     58.87    60.15   -2.1%      58.72    58.65   0.1%  
Net revenues    62,612    57,017   9.8%      180,780    165,723   9.1%  
Other operating revenues    241    77   213.6%      596    319   86.8%  
Total revenues (2)    62,853 100.0%  57,093 100.0% 10.1% 19.2%    181,376 100.0%  166,042 100.0% 9.2% 19.2%
Cost of goods sold          34,005 54.1%        31,702 55.5% 7.3%               99,925 55.1%           92,573 55.8% 7.9%  
Gross profit    28,848 45.9%  25,392 44.5% 13.6% 22.9%    81,451 44.9%  73,469 44.2% 10.9% 20.5%
Operating expenses    19,970 31.8%  17,933 31.4% 11.4%      56,500 31.2%  51,290 30.9% 10.2%  
Other operative expenses, net    500 0.8%  167 0.3% 200.0%      421 0.2%  451 0.3% -6.7%  
Operative equity method (gain) loss in associates(3)    (82) -0.1%  (43) -0.1% 91.3%      (187) -0.1%  (152) -0.1% 22.5%  
Operating income (5)    8,460 13.5%  7,335 12.8% 15.3% 24.1%    24,716 13.6%  21,881 13.2% 13.0% 21.0%
Other non operative expenses, net    138 0.2%  94 0.2% 46.5%      484 0.3%  343 0.2% 40.9%  
Non Operative equity method (gain) loss in associates (4)    (16) 0.0%  (113) -0.2% -85.6%      149 0.1%  (141) -0.1% -205.5%  
Interest expense    1,707    1,339   27.5%      5,382    4,694   14.6%  
Interest income    721    649   11.1%      2,578    1,606   60.5%  
Interest expense, net    986    690   42.9%      2,804    3,088   -9.2%  
Foreign exchange loss (gain)    (322)    (40)   696.8%      739    46   1518.8%  
Loss (gain) on monetary position in inflationary subsidiaries    (17)    (124)   -86.3%      (134)    (434)   -69.1%  
Market value (gain) loss on financial instruments    (95)    157   -160.4%      (80)    738   -110.8%  
Comprehensive financing result    552    682   -19.0%      3,329    3,438   -3.2%  
Income before taxes    7,786    6,671   16.7%      20,754    18,241   13.8%  
Income taxes    2,273    2,166   4.9%      6,128    5,972   2.6%  
Result of discontinued operations    -       -      NA      -       -      NA  
Consolidated net income    5,513    4,505   22.4%      14,627    12,269   19.2%  
Net income attributable to equity holders of the company    5,380 8.6%  4,374 7.7% 23.0% 33.9%    14,213 7.8%  11,931 7.2% 19.1% 30.2%
Non-controlling interest                133 0.2%              131 0.2% 1.4%                     414 0.2%                 339 0.2% 22.1%  
                             
Adj. EBITDA & CAPEX   2023 % of Rev. 2022 % of Rev. Δ% Reported Δ% Comparable (7)   2023 % of Rev. 2022 % of Rev. Δ% Reported Δ% Comparable (7)
Operating income (5)            8,460 13.5%          7,335 12.8% 15.3% 24.1%             24,716 13.6%           21,881 13.2% 13.0% 21.0%
Depreciation            2,468            2,515   -1.9%                 7,179               7,287   -1.5%  
Amortization and other operative non-cash charges                902                777   16.1%                 1,841               1,983   -7.2%  
Adj. EBITDA (5)(6)          11,830 18.8%        10,626 18.6% 11.3% 20.5%             33,737 18.6%           31,151 18.8% 8.3% 17.3%
CAPEX(8)            4,976            4,026   23.6%               11,713             11,191   4.7%  

(1)              Except volume and average price per unit case figures.

(2)              Please refer to page 15 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 Adjusted EBITDA lines are presented as non-GAAP measures for the convenience of the reader.

(6)              Adjusted EBITDA = operating income + depreciation, amortization & other operating non-cash charges.

(7)              Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

(8)              As of September 30, 2023, the investment in fixed assets effectively paid is equivalent to Ps. 11,792 million.

 

 

 

 

  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 12 of 17

 

 

MEXICO & CENTRAL AMERICA DIVISION 
RESULTS OF OPERATIONS
Millions of Pesos (1)
                             
    For the Third Quarter of:   For the First Nine Months of:
    2023 % of Rev. 2022 % of Rev. Δ% Reported Δ% Comparable (6)   2023 % of Rev. 2022 % of Rev. Δ% Reported Δ% Comparable (6)
Transactions (million transactions)     3,232.8    2,937.1   10.1% 10.1%    9,363.2    8,712.0   7.5% 7.5%
Volume (million unit cases)     633.2    555.8   13.9% 13.9%    1,813.9    1,640.5   10.6% 10.6%
Average price per unit case     61.28    60.80   0.8%      61.36    59.24   3.6%  
Net revenues    39,024    33,791          111,717    97,184      
Other operating revenues    11    8          23    25      
Total Revenues (2)    39,035 100.0%  33,799 100.0% 15.5% 18.2%    111,740 100.0%  97,209 100.0% 14.9% 17.0%
Cost of goods sold    20,346 52.1%  17,945 53.1%        58,497 52.4%  50,853 52.3%    
Gross profit    18,689 47.9%  15,855 46.9% 17.9% 20.5%    53,243 47.6%  46,356 47.7% 14.9% 16.8%
Operating expenses    12,370 31.7%  10,710 31.7%        35,680  0.3  30,378  0.3    
Other operative expenses, net    344 0.9%  121 0.4%        132 0.1%  355 0.4%    
Operative equity method (gain) loss in associates (3)    (57) -0.1%  (36) -0.1%        (121) -0.1%  (112) -0.1%    
Operating income (4)    6,032 15.5%  5,059 15.0% 19.2% 22.5%    17,552 15.7%  15,736 16.2% 11.5% 11.5%
Depreciation, amortization & other operating non-cash charges    2,151 5.5%  2,111 6.2%        5,566 5.0%  5,690 5.9%    
Adj. EBITDA (4)(5)    8,182 21.0%  7,171 21.2% 14.1% 17.0%    23,118 20.7%  21,426 22.0% 7.9% 7.9%

 

(1)              Except volume and average price per unit case figures.

(2)              Please refer to page 15 for revenue breakdown.

(3)              Includes equity method in Jugos del Valle, among others.

(4)              The operating income and Adjusted EBITDA lines are presented as non-GAAP measures for the convenience of the reader.

(5)              Adjusted EBITDA = operating income + depreciation, amortization & other operating non-cash charges.

(6)              Please refer to page 10 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 Third Quarter of:   For the First Nine Months of:
    2023 % of Rev. 2022 % of Rev. Δ% Reported Δ% Comparable (6)   2023 % of Rev. 2022 % of Rev. Δ% Reported Δ% Comparable (6)
Transactions (million transactions)     2,815.8    2,570.2   9.6% 9.6%    8,185.5    7,615.4   7.5% 7.2%
Volume (million unit cases)     399.9    370.0   8.1% 8.1%    1,177.7    1,119.4   5.2% 4.9%
Average price per unit case     55.05    59.18   -7.0%      54.65    57.78   -5.4%  
Net revenues    23,588    23,225          69,063    68,539      
Other operating revenues    230    69          573    293      
Total Revenues (2)    23,818 100.0%  23,294 100.0% 2.2% 21.0%    69,636 100.0%  68,833 100.0% 1.2% 23.0%
Cost of goods sold    13,659 57.3%  13,757 59.1%        41,428 59.5%  41,720 60.6%    
Gross profit    10,159 42.7%  9,537 40.9% 6.5% 27.4%    28,208 40.5%  27,113 39.4% 4.0% 28.2%
Operating expenses    7,600 31.9%  7,223 31.0%        20,820 29.9%  20,912 30.4%    
Other operative expenses, net    156 0.7%  46 0.2%        289 0.4%  96 0.1%    
Operative equity method (gain) loss in associates (3)    (25) -0.1%  (7) 0.0%        (66) -0.1%  (40) -0.1%    
Operating income (4)    2,428 10.2%  2,275 9.8% 6.7% 28.1%    7,165 10.3%  6,145 8.9% 16.6% 44.7%
Depreciation, amortization & other operating non-cash charges    1,220 5.1%  1,180 5.1%        3,454 5.0%  3,580 5.2%    
Adj. EBITDA (4)(5)    3,647 15.3%  3,455 14.8% 5.6% 29.1%    10,619 15.2%  9,724 14.1% 9.2% 38.0%

 

(1)Except volume and average price per unit case figures.
(2)Please refer to page 15 for revenue breakdown.
(3)Includes equity method in Leão Alimentos, among others.
(4)The operating income and Adjusted EBITDA lines are presented as non-GAAP measures for the convenience of the reader.
(5)Adjusted EBITDA = operating income + depreciation, amortization & other operating non-cash charges.
(6)Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 13 of 17

 

COCA-COLA FEMSA
CONSOLIDATED BALANCE SHEET
Millions of Pesos
                     
Assets    Sep-23  Dec-22 % Var.   Liabilities & Equity    Sep-23  Dec-22 % Var.
Current Assets           Current Liabilities        
Cash, cash equivalents and marketable securities           Short-term bank loans and notes payable    38  8,524 -100%
   38,544  40,277 -4%   Suppliers    24,452  26,834 -9%
Total accounts receivable    14,292  16,318 -12%   Short-term leasing Liabilities    609  472 29%
Inventories    11,591  11,888 -2%   Other current liabilities    33,847  22,129 53%
Other current assets    8,329  10,729 -22%   Total current liabilities    58,947  57,959 2%
Total current assets    72,756  79,211 -8%   Non-Current Liabilities        
Non-Current Assets           Long-term bank loans and notes payable    66,123  70,146 -6%
Property, plant and equipment    130,010  125,293 4%   Long Term Leasing Liabilities    1,615  1,663 -3%
Accumulated depreciation    (56,024)  (54,088) 4%   Other long-term liabilities    17,107  16,351 5%
Total property, plant and equipment, net    73,986  71,205 4%   Total liabilities    143,791  146,119 -2%
Right of use assets    2,119  2,069 2%   Equity        
Investment in shares    8,664  8,452 3%   Non-controlling interest    6,597  6,491 2%
Intangible assets and other assets    101,241  103,122 -2%   Total controlling interest    124,228  125,384 -1%
Other non-current assets    15,851  13,936 14%   Total equity        130,825      131,876 -1%
Total Assets           274,616                277,995 -1%   Total Liabilities and Equity        274,616      277,995 -1%
                     
                     
            September 30, 2023            
Debt Mix   % Total Debt (1)  % Interest Rate Floating (1) (2) Average Rate   Debt Maturity Profile
Currency             
Mexican Pesos   62.4% 7.2% 8.7%  
U.S. Dollars   16.7% 37.4% 4.8%  
Colombian Pesos   1.3% 0.0% 6.3%  
Brazilian Reals   19.5% 74.6% 10.3%  
Total Debt   100% 25.4% 8.3%  
                     
(1) After giving effect to cross- currency swaps.
(2) Calculated by weighting each year´s outstanding debt balance mix.
                     
                     
Financial Ratios   3Q 2023 FY 2022 Δ%            
Net debt including effect of hedges (1)(3)   29,580 38,104 -22.4%            
Net debt including effect of hedges / Adj.EBITDA (1)(3)   0.65 0.89              
Adj. EBITDA/ Interest expense, net (1)   12.03 10.34              
Capitalization (2)   33.6% 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 3Q23 Results

October 25, 2023

Page 14 of 17

 

 

COCA-COLA FEMSA
QUARTERLY- VOLUME, TRANSACTIONS & REVENUES
                             
Volume 
    3Q 2023   3Q 2022   YoY
    Sparkling Water (1) Bulk (2) Stills Total   Sparkling Water (1) Bulk (2) Stills Total   Δ %
Mexico (3)    377.2  31.8  98.7  37.5  545.3    344.8  26.8  76.4  34.0  481.9   13.1%
 Guatemala     41.3  2.1  -     2.3  45.7    34.1  0.6  -     2.3  36.9   23.9%
 CAM South     34.3  1.3  0.8  5.7  42.2    29.7  1.7  0.2  5.3  36.9   14.3%
 Mexico and Central America     452.8  35.3  99.6  45.5  633.2    408.6  29.1  76.6  41.5  555.8   13.9%
 Colombia     68.6  11.0  3.7  7.7  91.0    61.8  8.8  3.2  7.1  80.8   12.6%
Brazil (4)    214.1  18.2  2.4  21.2  255.9    204.1  14.6  2.0  18.2  238.9   7.1%
 Argentina     31.5  4.7  1.4  3.4  41.0    32.3  3.6  0.8  3.2  39.9   2.6%
 Uruguay     9.4  2.1  -     0.5  12.0    8.8  1.2  -     0.4  10.3   15.7%
 South America     323.6  35.9  7.5  32.8  399.9    307.0  28.2  6.0  28.8  370.0   8.1%
 TOTAL     776.5  71.2  107.1  78.4  1,033.1    715.6  57.3  82.5  70.4  925.8   11.6%
                             
(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 16.6 million unit cases corresponding to the acquisition of Cristal from Embotelladoras Bepensa
                             
Transactions                              
    3Q 2023   3Q 2022   YoY
    Sparkling Water Stills Total   Sparkling Water  Stills Total   Δ %
Mexico (3)    2,067.6  225.8  260.4  2,553.7    1,920.9  188.6  239.7  2,349.2   8.7%
 Guatemala     313.4  14.8  24.0  352.2    266.2  4.7  34.8  305.8   15.2%
 CAM South     254.1  13.1  59.7  326.9    222.4  11.8  47.9  282.1   15.9%
 Mexico and Central America     2,635.1  253.7  344.0  3,232.8    2,409.5  205.1  322.5  2,937.1   10.1%
 Colombia     508.2  115.4  77.1  700.7    458.5  93.8  75.8  628.1   11.6%
Brazil (4)    1,433.2  158.4  239.5  1,831.1    1,334.8  130.4  203.2  1,668.4   9.7%
 Argentina     165.6  30.8  31.9  228.2    171.5  24.3  27.8  223.6   2.1%
 Uruguay     44.0  7.6  4.2  55.8    42.2  4.6  3.3  50.1   11.5%
 South America     2,151.0  312.2  352.6  2,815.8    2,007.1  253.1  310.0  2,570.2   9.6%
 TOTAL     4,786.0  565.9  696.7  6,048.6    4,416.6  458.2  632.5  5,507.3   9.8%
                           
Revenues                            
 Expressed in million Mexican Pesos    3Q 2023 3Q 2022 Δ %                    
Mexico       32,378        27,797 16.5%                    
Guatemala         3,331          3,083 8.0%                    
CAM South         3,327          2,920 13.9%                    
Mexico and Central America       39,035        33,799 15.5%                    
Colombia         4,801          4,372 9.8%                    
Brazil (5)       15,760        15,281 3.1%                    
Argentina         2,245          2,691 -16.6%                    
Uruguay         1,012             950 6.6%                    
South America       23,818        23,294 2.2%                    
 TOTAL     62,853  57,093 10.1%                    
                             
(4) Volume and transactions in Brazil do not include beer
(5) Brazil includes beer revenues of Ps. 1,421.6 million for the third quarter of 2023 and Ps.1,325.2 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 3Q23 Results

October 25, 2023

Page 15 of 17

 

COCA-COLA FEMSA
YTD- VOLUME, TRANSACTIONS & REVENUES
                             
Volume 
    YTD 2023   YTD 2022   YoY
    Sparkling Water (1) Bulk (2) Stills Total   Sparkling Water (1) Bulk (2) Stills Total   Δ %
Mexico (3)    1,062.7  95.3  290.7  110.8  1,559.5    1,013.5  79.4  225.8  101.5  1,420.2   9.8%
 Guatemala     117.1  5.7  -     6.9  129.8    97.7  3.7  -     6.6  108.0   20.1%
 CAM South     100.8  4.8  1.9  17.1  124.6    91.5  4.7  0.6  15.4  112.3   10.9%
 Mexico and Central America     1,280.6  105.8  292.6  134.9  1,813.9    1,202.7  87.8  226.4  123.6  1,640.5   10.6%
 Colombia     193.9  29.1  10.5  22.3  255.7    188.5  24.9  9.1  22.1  244.7   4.5%
Brazil (4)    636.0  52.8  7.0  61.4  757.2    604.6  46.2  7.9  61.8  720.5   5.1%
 Argentina     97.3  14.5  3.9  11.9  127.6    98.3  11.1  2.7  10.3  122.3   4.3%
 Uruguay     28.6  7.1  -     1.6  37.3    26.9  4.0  -     1.0  31.9   16.8%
 South America     955.7  103.4  21.4  97.1  1,177.7    918.3  86.1  19.7  95.2  1,119.4   5.2%
 TOTAL     2,236.3  209.2  314.1  232.0  2,991.6    2,121.1  174.0  246.1  218.8  2,759.9   8.4%
                             
(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 49.2 million unit cases corresponding to the acquisition of Cristal from Embotelladoras Bepensa
                             
Transactions                              
    YTD 2023   YTD 2022   YoY
    Sparkling Water Stills Total   Sparkling Water  Stills Total   Δ %
Mexico (3)    5,935.0  675.7  783.1  7,393.8    5,681.0  559.7  727.8  6,968.5   6.1%
 Guatemala     886.3  43.7  70.3  1,000.3    765.8  27.4  64.9  858.1   16.6%
 CAM South     745.3  40.6  183.2  969.1    673.3  36.8  175.2  885.3   9.5%
 Mexico and Central America     7,566.6  760.0  1,036.5  9,363.2    7,120.1  624.0  968.0  8,712.0   7.5%
 Colombia     1,429.1  305.2  234.1  1,968.4    1,353.0  267.3  237.5  1,857.8   6.0%
Brazil (4)    4,182.7  463.8  689.0  5,335.5    3,899.2  404.0  629.8  4,933.0   8.2%
 Argentina     507.3  94.2  104.9  706.3    511.7  71.8  85.0  668.6   5.6%
 Uruguay     135.7  26.0  13.8  175.4    131.3  15.3  9.4  156.0   12.4%
 South America     6,254.6  889.2  1,041.8  8,185.6    5,895.2  758.5  961.7  7,615.4   7.5%
 TOTAL     13,821.3  1,649.2  2,078.3  17,548.8    13,015.3  1,382.4  1,929.7  16,327.4   7.5%
                           
Revenues                            
 Expressed in million Mexican Pesos    YTD 2023 YTD 2022 Δ %                    
Mexico         91,906        79,524 15.6%                    
Guatemala           9,664          8,929 8.2%                    
CAM South         10,171          8,756 16.2%                    
Mexico and Central America       111,740        97,209 14.9%                    
Colombia         12,585        13,233 -4.9%                    
Brazil (5)         46,838        44,651 4.9%                    
Argentina           7,102          8,154 -12.9%                    
Uruguay           3,110          2,795 11.3%                    
South America         69,636        68,833 1.2%                    
 TOTAL     181,376  166,042 9.2%                    
                             
(4) Volume and transactions in Brazil do not include beer
(5) Brazil includes beer revenues of Ps. 4,382.5 million for the first six months of 2023 and Ps. 3,857.5 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 3Q23 Results

October 25, 2023

Page 16 of 17

 

COCA-COLA FEMSA
MACROECONOMIC INFORMATION
                 
Inflation (1)          
    LTM 3Q23 YTD        
 Mexico    4.44% 1.57% 2.86%        
 Colombia    11.49% 1.46% 7.81%        
 Brasil    4.43% 0.26% 3.65%        
 Argentina    128.90% 28.97% 93.58%        
 Costa Rica    -3.22% -0.89% -2.02%        
 Panama    2.17% 0.10% 1.92%        
 Guatemala    4.19% 0.95% 3.07%        
 Nicaragua    7.58% 1.31% 4.56%        
 Uruguay    4.07% -0.64% 3.95%        
                 
(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)   Year to Date Exchange Rate                                             (Local Currency per USD)
    3Q23 3Q22 Δ %   YTD 23 YTD 22 Δ %
 México    17.06 20.24 -15.7%   17.83 20.27 -12.0%
 Colombia    4,047.64 4,386.03 -7.7%   4,410.88 4,072.13 8.3%
 Brasil    4.88 5.25 -7.0%   5.01 5.13 -2.4%
 Argentina    312.85 135.80 130.4%   245.82 120.11 104.7%
 Costa Rica    543.28 664.64 -18.3%   551.67 662.97 -16.8%
 Panama    1.00 1.00 0.0%   1.00 1.00 0.0%
 Guatemala    7.86 7.76 1.3%   7.83 7.71 1.5%
 Nicaragua    36.49 35.96 1.5%   36.40 35.79 1.7%
 Uruguay    37.96 40.83 -7.0%   38.58 41.57 -7.2%
                 
                 
End-of-period Exchange Rates
    Closing Exchange Rate                                         (Local Currency per USD)   Closing Exchange Rate                                                   (Local Currency per USD)
    Sep-23 Sep-22 Δ %   Jun-23 Jun-22 Δ %
 México     17.62  20.31 -13.2%    17.07  19.98 -14.6%
 Colombia     4,053.76  4,532.07 -10.6%    4,191.28  4,127.47 1.5%
 Brasil     5.01  5.41 -7.4%    4.82  5.24 -8.0%
 Argentina     349.95  147.32 137.5%    256.70  125.23 105.0%
 Costa Rica     542.35  632.72 -14.3%    549.48  692.25 -20.6%
 Panama     1.00  1.00 0.0%    1.00  1.00 0.0%
 Guatemala     7.86  7.88 -0.3%    7.85  7.76 1.2%
 Nicaragua     36.53  36.05 1.3%    36.44  35.87 1.6%
 Uruguay     38.56  41.74 -7.6%    37.41  39.86 -6.2%
                 
(2) Average exchange rate for each period computed with the average exchange rate of each month.

 

  

Coca-Cola FEMSA Reports 3Q23 Results

October 25, 2023

Page 17 of 17

 

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/ Gerardo Cruz Celaya              
 

Gerardo Cruz Celaya

Chief Financial Officer

   
 Date: October 24, 2023  

 

 


Coca Cola Femsa SAB de CV (PK) (USOTC:COCSF)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024 Click aqui para mais gráficos Coca Cola Femsa SAB de CV (PK).
Coca Cola Femsa SAB de CV (PK) (USOTC:COCSF)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024 Click aqui para mais gráficos Coca Cola Femsa SAB de CV (PK).