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 2024
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, 2024, 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 2024.

 

THIRD QUARTER HIGHLIGHTS

 

 

·Volume growth 0.8%
·Revenue growth 10.7%
·Operating income growth 13.9%
·Majority net income growth 8.9%
·Earnings per share1 were Ps. 0.35. (Earnings per unit were Ps. 2.79 and per ADS were Ps. 27.89.)
·Initiated pilot of a new salesforce automation tool, Juntos+ Advisor, with encouraging results in Brazil

FIRST NINE MONTHS HIGHLIGHTS

·Volume growth 5.1%
·Revenue growth 12.4%
·Operating income growth 13.4%
·Majority net income growth 15.7%
·Earnings per share1 were Ps. 0.98. (Earnings per unit were Ps. 7.83 and per ADS were Ps. 78.28.)x
FINANCIAL SUMMARY FOR THE THIRD QUARTER RESULTS
Change vs. same period of last year
    Total Revenues   Gross Profit    Operating Income   Majority Net Income
    3Q24 YTD 2024   3Q24 YTD 2024   3Q24 YTD 2024   3Q24 YTD 2024
As Reported Consolidated 10.7% 12.4%   11.3% 14.0%   13.9% 13.4%   8.9% 15.7%
Mexico & Central America 9.0% 12.3%   10.7% 13.7%   11.3% 12.1%      
South America 13.6% 12.6%   12.2% 14.7%   20.6% 16.6%      
                         
Comparable (2) Consolidated 11.3% 15.7%   11.5% 17.2%   13.6% 16.3%      
Mexico & Central America 6.7% 12.0%   8.4% 13.4%   9.1% 12.0%      
South America 19.5% 22.0%   17.4% 24.9%   25.7% 28.1%      

 

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

“Our third-quarter results underscore the resilience of our business and the strategic execution that drives Coca-Cola FEMSA forward. Despite unfavorable weather conditions in Mexico, our consolidated volumes remained resilient, driven mainly by the solid growth achieved in Brazil and Guatemala. At the same time, our team’s focus on growing the core business and driving cost and expense efficiencies enabled our revenues and operating income to grow by double digits.

 

On the B2B front, we continued deploying Juntos+, which now reaches 1.2 million monthly active buyers across Latin America. Additionally, we initiated the pilot of our new salesforce automation tool, Juntos+ Advisor, with encouraging results. Juntos + Advisor leverages advanced AI models, empowering our salesforce to help our clients reach their full potential and significantly improving our customer’s omnichannel experience. Finally, we are progressively adding the necessary production and distribution capacity across key markets to enable future growth and deliver long-term value for all our stakeholders.

 

Moreover, we express our sincere support to all the people impacted by Hurricane John in the state of Guerrero during the quarter. Our team has worked tirelessly in providing support to our employees, their families, and the affected communities. We are also encouraged that the reopening of our plant in Porto Alegre is progressing according to plan; we resumed operations in our distribution center, while bottling operations will gradually begin as of the fourth quarter.”

 

 

 

(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 3Q24 Results

October 25, 2024

Page 2 of 17

 

RECENT DEVELOPMENTS

 

·On September 5, the Company announced that it achieved the sustainability performance target contemplated in its sustainability-linked bonds by achieving a water use efficiency ratio of 1.36 liters per liter of beverage produced, and that such compliance has been confirmed by an external and independent verifier. As a result, Coca-Cola FEMSA confirms that the calculation of the interest rate applicable to the sustainability-linked bonds as of the interest period beginning on September 19, 2024, will not incur any modifications.

 

·Coca-Cola FEMSA mobilized efforts to support the communities affected by Hurricane John in the state of Guerrero, Mexico. As part of its commitment to aid in the recovery of the region, the Company coordinated with local authorities to provide humanitarian relief, including donations of water, food, and essential supplies to the most impacted areas. Coca-Cola FEMSA also deployed two water purification trucks, which have delivered almost 50 thousand liters of drinkable water, equivalent to 2.4 thousand water jugs, ensuring access to clean water for those in need. These efforts underscore the Company’s dedication to supporting both its employees and the broader community in this challenging time.

 

·After the announcement of the temporary closure of its facility in Porto Alegre due to the flooding that affected Rio Grande do Sul, Brazil last May, Coca-Cola FEMSA announced that plans to reopen the facility continue progressing according to expectations. The distribution center resumed operations as of October, initially at partial capacity. Production facilities are expected to gradually restart during the fourth quarter. Furthermore, the Company continues to offer support to its employees, their families, its customers, and the community.

 

·On October 15, 2024, Coca-Cola FEMSA paid the third installment of the ordinary dividend approved for Ps. 0.19 per share, for a total cash distribution of Ps. 3,193.26 million. On December 9, 2024, Coca-Cola FEMSA will pay the fourth and final installment of this dividend.

 

 

 

 

 

CONFERENCE CALL INFORMATION

 

 

  

Coca-Cola FEMSA Reports 3Q24 Results

October 25, 2024

Page 3 of 17

 

 

CONSOLIDATED THIRD QUARTER RESULTS

CONSOLIDATED THIRD QUARTER RESULTS 
             
    As Reported   Comparable (1)
Expressed in millions of Mexican pesos   3Q 2024 3Q 2023 Δ%   Δ%
Total revenues   69,601 62,853 10.7%   11.3%
Gross profit   32,094 28,848 11.3%   11.5%
Operating income   9,638 8,460 13.9%   13.6%
Adj. EBITDA (2)   14,001 11,830 18.4%   19.3%

 

Volume increased 0.8% to 1,041.1 million unit cases, driven by volume growth in our Brazil, Guatemala, and Central America South territories, coupled with stable volume performance in Argentina. This increase was partially offset by volume declines in Mexico, Colombia, and Uruguay.

 

Total revenues increased 10.7% to Ps. 69,601 million. This increase was driven mainly by our revenue management initiatives and favorable mix effects. Excluding currency translation effects, total revenues increased 11.3%.

 

Gross profit increased 11.3% to Ps. 32,094 million, and gross margin increased 20 basis points to 46.1%. This expansion was driven mainly by our top-line growth, coupled with easing raw material costs and favorable hedging initiatives. These effects were partially offset by an increase in purchases of finished product in Brazil, higher fixed costs and the depreciation of the Argentine Peso. Excluding currency translation effects, gross profit increased 11.5%.

 

Operating income increased 13.9% to Ps. 9,638 million, and operating margin increased 30 basis points to 13.8%. This margin expansion was driven mainly by operating expense efficiencies and favorable mix effects that mitigated margin pressures related to higher operating expenses such as labor, marketing, freight, and maintenance. In addition, we recognized one-time income of Ps. 339 million for the quarter related to insurance claims from Hurricane Otis’ impact on Mexico in October 2023. Excluding currency translation effects, operating income increased 13.6%.

 

 

 

 

 

 

(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 3Q24 Results

October 25, 2024

Page 4 of 17

 

 

 

Comprehensive financing result recorded an expense of Ps. 823 million, compared to an expense of Ps. 552 million in the previous year. This increase was driven mainly by a lower foreign exchange gain of Ps. 49 million in the third quarter of 2024 as compared to a gain of Ps. 322 million in the same period of the previous year. In addition, we recognized higher interest expense, net, of Ps. 1,059 million as compared to Ps. 986 million in the same period of the previous year, mainly because of new debt in Argentina and an increase in interest rates in our floating debt.

These effects were partially offset by a higher gain in monetary positions in inflationary subsidiaries as compared to the same period of the previous year.

 

Income tax as a percentage of income before taxes was 31.5% as compared to 29.6% during the same period of 2023. This increase was driven mainly by deferred taxes.

 

Net income attributable to equity holders of the company was Ps. 5,858 million as compared to Ps. 5,380 million during the same period of the previous year. This increase was driven mainly by operating income growth, partially offset by an increase in our comprehensive financing result and in income taxes. Earnings per share1 were Ps. 0.35 (Earnings per unit were Ps. 2.79 and per ADS were Ps. 27.89.).

 

 

 

 

 

 

(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 3Q24 Results

October 25, 2024

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 2024 YTD 2023 Δ%   Δ%
Total revenues   203,873 181,376 12.4%   15.7%
Gross profit   92,886 81,451 14.0%   17.2%
Operating income   28,037 24,716 13.4%   16.3%
Adj. EBITDA (2)   40,044 33,737 18.7%   22.6%

 

Volume increased 5.1% to 3,145.6 million unit cases, driven by volume growth in most of our territories, including Mexico, Brazil, Guatemala, Colombia, and our Central America South territories, partially offset by a decrease in Argentina and Uruguay.

 

Total revenues increased 12.4% to Ps. 203,873 million. This increase was driven mainly by our solid volume growth and revenue management initiatives. These effects were partially offset by unfavorable currency translation effects of most of our operating currencies into Mexican Pesos. Excluding currency translation effects, total revenues increased 15.7%.

 

Gross profit increased 14.0% to Ps. 92,886 million, and gross margin expanded 70 basis points to 45.6%. This gross profit increase was driven mainly by our top-line growth, coupled with favorable packaging costs and hedging initiatives. These effects were partially offset by higher sweetener costs across our territories and the depreciation of the Argentine Peso. Excluding currency translation effects, gross profit increased 17.2%.

 

Operating income increased 13.4% to Ps. 28,037 million, and operating margin increased 20 basis points to 13.8%. This increase was driven by top-line growth and operating expense efficiencies. These effects were partially offset by increases in operating expenses such as labor, freight, and maintenance, coupled with a tough comparison base that included a non-cash operating foreign exchange gain in Mexico, as compared to a loss this year. Excluding currency translation effects, operating income increased 16.3%.

 

 

 

 

 

 

(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 3Q24 Results

October 25, 2024

Page 6 of 17

 

 

Comprehensive financing result recorded an expense of Ps. 2,918 million, compared to an expense of Ps. 3,329 million in the previous year. This decrease is explained mainly by a foreign exchange gain of Ps. 249 million as compared to a loss of Ps. 739 million, as our net cash exposure in U.S. dollars was positively impacted by the depreciation of the Mexican Peso and the Brazilian Real during the first nine months of 2024.

These effects were partially offset by an increase in our interest expense, net, of Ps. 3,415 million as compared to an expense of Ps. 2,804 million in the same period of the previous year, mainly because of an increase in our debt in Argentina partially offset by a reduction in our interest income and the maturity of a Mexican peso denominated bond.

 

Income tax as a percentage of income before taxes was 32.5% as compared to 29.6% during the same period of 2023. This increase was driven mainly by deferred taxes.

 

 

Net income attributable to equity holders of the company increased 15.7% to reach Ps. 16,445 million during the first nine months of 2024, as compared to Ps. 14,213 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. These effects were partially offset by higher income taxes. Earnings per share1 were Ps. 0.98 (Earnings per unit were Ps. 7.83 and per ADS were Ps. 78.28.).

 

 

 

 

 

 

 

(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 3Q24 Results

October 25, 2024

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 2024 3Q 2023 Δ%   Δ%
Total revenues   42,546 39,035 9.0%   6.7%
Gross profit   20,691 18,689 10.7%   8.4%
Operating income   6,711 6,032 11.3%   9.1%
Adj. EBITDA (2)    9,411  8,182 15.0%   12.7%

 

 

Volume decreased 0.7% driven by a 1.5% decline in Mexico mainly because of unfavorable weather conditions, partially offset by a 7.5% increase in Guatemala and a 1.5% increase in our Central America South territories.

 

Total revenues increased 9.0% to Ps. 42,546 million, driven mainly by revenue management initiatives and the favorable translation effect from most of our operating currencies into Mexican Pesos. These effects were partially offset by a slight volume decline. Excluding currency translation effects, total revenues increased 6.7%.

 

Gross profit increased 10.7% to Ps. 20,691 million, and gross margin expanded 70 basis points to 48.6%. This margin expansion was driven mainly by our top-line growth, easing sweetener and packaging costs, coupled with favorable hedging initiatives. These effects were partially offset by higher fixed costs. Excluding currency translation effects, gross profit increased 8.4%.

 

Operating income increased 11.3% to Ps. 6,711 million, and operating margin increased 30 basis points to 15.8%. This increase was driven mainly by our top-line growth, favorable mix, and operating expense efficiencies that mitigated margin pressures related to higher operating expenses such as labor, marketing, freight, and maintenance, coupled with an operating foreign exchange loss. In addition, this quarter we recognized one-time income of Ps. 339 million related to insurance claims from Hurricane Otis’ impact on Mexico in October 2023. Excluding currency translation effects, operating income increased 9.1%.

 

 

 

 

 

 

 

 

 

(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 3Q24 Results

October 25, 2024

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 2024 3Q 2023 Δ%   Δ%
Total revenues   27,056 23,818 13.6%   19.5%
Gross profit   11,403 10,159 12.2%   17.4%
Operating income   2,927 2,428 20.6%   25.7%
Adj. EBITDA (2)    4,590  3,647 25.8%   35.5%

 

 

 

Volume increased 3.1% to 412.1 million unit cases, driven mainly by a 6.3% volume growth in Brazil and stable performance in Argentina. These effects were partially offset by volume declines of 4.0% in Colombia and 2.6% in Uruguay.

 

Total revenues increased 13.6% to Ps. 27,056 million. This increase was driven mainly by volume growth, coupled with revenue management initiatives. These effects were partially offset by unfavorable currency translation effects from most of our operating currencies in the division into Mexican pesos. Excluding currency translation effects, total revenues increased 19.5%.

 

Gross profit increased 12.2% to Ps. 11,403 million, and gross margin contracted 60 basis points to 42.1%. This contraction was driven mainly by increases in sweetener costs, purchases of finished products, and the depreciation of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs. These effects were partially offset by our top-line growth, declining packaging costs, and favorable hedging strategies. Excluding currency translation effects, gross profit increased 17.4%.

 

Operating income increased 20.6% to Ps. 2,927 million, resulting in an operating margin expansion of 60 basis points to 10.8%. This increase was driven mainly by operating leverage resulting from top-line growth and cost and expense control initiatives. These effects were partially offset by higher fixed costs and expenses such as freight, labor, and the top-line contraction from Argentina. Excluding currency translation effects, operating income increased 25.7%.

 

 

 

 

 

(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 3Q24 Results

October 25, 2024

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; and (ii) translation effects resulting from exchange rate movements. In preparing this measure, management has used its best judgment, estimates, and assumptions to maintain comparability.

 

 

  

Coca-Cola FEMSA Reports 3Q24 Results

October 25, 2024

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, S.A.B. de C.V. is the largest franchise bottler in the world by sales volume. The Company produces and distributes trademark beverages of The Coca-Cola Company, offering a wide portfolio to more than 272 million consumers. With over 104,000 employees, the Company markets and sells approximately 4 billion unit cases through more than 2.1 million points of sale a year. Operating 56 manufacturing plants and 252 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value for all its stakeholders across the value chain. The Company is a member of the Dow Jones Sustainability MILA Pacific Alliance Index, FTSE4Good Emerging Index, and the S&P/BMV Total Mexico ESG Index, among others. Its operations encompass certain territories in Mexico, Brazil, Guatemala, Colombia, and Argentina and, nationwide, in Costa Rica, Nicaragua, Panama, Uruguay and, in Venezuela, through an 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 3Q24 Results

October 25, 2024

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:
    2024 % of Rev. 2023 % of Rev. Δ% Reported Δ% Comparable (7)   2024 % of Rev. 2023 % of Rev. Δ% Reported Δ% Comparable (7)
Transactions (million transactions)     6,153.2    6,048.6   1.7% 1.7%    18,484.0    17,548.7   5.3% 5.3%
Volume (million unit cases)     1,041.1    1,033.1   0.8% 0.8%    3,145.6    2,991.6   5.1% 5.1%
Average price per unit case     64.93    58.87   10.3%      63.00    58.72   7.3%  
Net revenues    69,399    62,612   10.8%      203,342    180,780   12.5%  
Other operating revenues    203    241   -15.9%      532    596   -10.7%  
Total revenues (2)    69,601 100.0%  62,853 100.0% 10.7% 11.3%    203,873 100.0%  181,376 100.0% 12.4% 15.7%
Cost of goods sold          37,507 53.9%        34,005 54.1% 10.3%             110,987 54.4%           99,925 55.1% 11.1%  
Gross profit    32,094 46.1%  28,848 45.9% 11.3% 11.5%    92,886 45.6%  81,451 44.9% 14.0% 17.2%
Operating expenses    22,425 32.2%  19,970 31.8% 12.3%      64,076 31.4%  56,500 31.2% 13.4%  
Other operative expenses, net    76 0.1%  500 0.8% -84.8%      940 0.5%  421 0.2% 123.4%  
Operative equity method (gain) loss in associates(3)    (45) -0.1%  (82) -0.1% -45.3%      (166) -0.1%  (187) -0.1% -10.8%  
Operating income (5)    9,638 13.8%  8,460 13.5% 13.9% 13.6%    28,037 13.8%  24,716 13.6% 13.4% 16.3%
Other non operative expenses, net    94 0.1%  138 0.2% -32.0%      67 0.0%  484 0.3% -86.2%  
Non Operative equity method (gain) loss in associates (4)    (133) -0.2%  (16) 0.0% 718.7%      (75) 0.0%  149 0.1% NA  
Interest expense    1,909    1,707   11.8%      5,580    5,382   3.7%  
Interest income    850    721   17.9%      2,165    2,578   -16.0%  
Interest expense, net    1,059    986   7.3%      3,415    2,804   21.8%  
Foreign exchange loss (gain)    (49)    (322)   -84.8%      (249)    739   -133.7%  
Loss (gain) on monetary position in inflationary subsidiaries    (100)    (17)   486.5%      (147)    (134)   10.0%  
Market value (gain) loss on financial instruments    (86)    (95)   -9.1%      (101)    (80)   26.6%  
Comprehensive financing result    823    552   49.0%      2,918    3,329   -12.4%  
Income before taxes    8,854    7,786   13.7%      25,127    20,754   21.1%  
Income taxes    2,731    2,273   20.2%      8,074    6,128   31.8%  
Result of discontinued operations    -       -      NA      -       -      NA  
Consolidated net income    6,123    5,513   11.1%      17,052    14,627   16.6%  
Net income attributable to equity holders of the company    5,858 8.4%  5,380 8.6% 8.9% 7.9%    16,445 8.1%  14,213 7.8% 15.7% 18.7%
Non-controlling interest                265 0.4%              133 0.2% 99.4%                     607 0.3%                 414 0.2% 46.7%  
                             
Adj. EBITDA & CAPEX   2024 % of Rev. 2023 % of Rev. Δ% Reported Δ% Comparable (7)   2024 % of Rev. 2023 % of Rev. Δ% Reported Δ% Comparable (7)
Operating income (5)            9,638 13.8%          8,460 13.5% 13.9% 13.6%             28,037 13.8%           24,716 13.6% 13.4% 16.3%
Depreciation            2,858            2,468   15.8%                 8,110               7,179   13.0%  
Amortization and other operative non-cash charges            1,504                902   66.8%                 3,897               1,841   111.7%  
Adj. EBITDA (5)(6)          14,001 20.1%        11,830 18.8% 18.4% 19.3%             40,044 19.6%           33,737 18.6% 18.7% 22.6%
CAPEX(8)            6,945            4,976   39.6%               15,638             11,713   33.5%  

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

(2)              Please refer to page 15 and 16 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, 2024, the investment in fixed assets effectively paid is equivalent to Ps. 15,717 million.

 

  

Coca-Cola FEMSA Reports 3Q24 Results

October 25, 2024

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:
    2024 % of Rev. 2023 % of Rev. Δ% Reported Δ% Comparable (6)   2024 % of Rev. 2023 % of Rev. Δ% Reported Δ% Comparable (6)
Transactions (million transactions)     3,250.4    3,232.8   0.5% 0.5%    9,834.9    9,363.2   5.0% 5.0%
Volume (million unit cases)     629.0    633.2   -0.7% -0.7%    1,904.5    1,813.9   5.0% 5.0%
Average price per unit case     67.16    61.28   9.6%      65.50    61.36   6.7%  
Net revenues    42,533    39,024          125,455    111,717      
Other operating revenues    13    11          1    23      
Total Revenues (2)    42,546 100.0%  39,035 100.0% 9.0% 6.7%    125,456 100.0%  111,740 100.0% 12.3% 12.0%
Cost of goods sold    21,855 51.4%  20,346 52.1%        64,930 51.8%  58,497 52.4%    
Gross profit    20,690.8 48.6%  18,688.8 47.9% 10.7% 8.4%    60,526.4 48.2%  53,243.0 47.6% 13.7% 13.4%
Operating expenses    13,971.0 32.8%  12,369.9 31.7%        40,325.4 32.1%  35,680.3 31.9%    
Other operative expenses, net    36 0.1%  344 -0.1%        633 0.5%  132 0.1%    
Operative equity method (gain) loss in associates (3)    (27) -0.1%  (57) -0.1%        (115) -0.1%  (121) -0.1%    
Operating income (4)    6,711 15.8%  6,032 15.5% 11.3% 9.1%    19,683 15.7%  17,552 15.7% 12.1% 12.0%
Depreciation, amortization & other operating non-cash charges    2,700 6.3%  2,151 5.5%        7,354 5.9%  5,566 5.0%    
Adj. EBITDA (4)(5)    9,411 22.1%  8,182 21.0% 15.0% 12.7%    27,037 21.6%  23,118 20.7% 17.0% 16.7%

 

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

(2)              Please refer to page 15 and 16 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:
    2024 % of Rev. 2023 % of Rev. Δ% Reported Δ% Comparable (6)   2024 % of Rev. 2023 % of Rev. Δ% Reported Δ% Comparable (6)
Transactions (million transactions)     2,902.7    2,815.8   3.1% 3.1%    8,649.1    8,185.6   5.7% 5.7%
Volume (million unit cases)     412.1    399.9   3.1% 3.1%    1,241.1    1,177.7   5.4% 5.4%
Average price per unit case     61.52    55.05   11.8%      59.16    54.65   8.3%  
Net revenues    26,865    23,588          77,886    69,063      
Other operating revenues    190    230          531    573      
Total Revenues (2)    27,056 100.0%  23,818 100.0% 13.6% 19.5%    78,417 100.0%  69,636 100.0% 12.6% 22.0%
Cost of goods sold    15,652 57.9%  13,659 57.3%        46,057 58.7%  41,428 59.5%    
Gross profit    11,403 42.1%  10,159 42.7% 12.2% 17.4%    32,360 41.3%  28,208 40.5% 14.7% 24.9%
Operating expenses    8,454 31.2%  7,600 31.9%        23,751 30.3%  20,820 29.9%    
Other operative expenses, net    40 0.1%  156 0.7%        307 0.4%  289 0.4%    
Operative equity method (gain) loss in associates (3)    (18) -0.1%  (25) -0.1%        (52) -0.1%  (66) -0.1%    
Operating income (4)    2,927.4 10.8%  2,427.7 10.2% 20.6% 25.7%    8,353.6 10.7%  7,164.5 10.3% 16.6% 28.1%
Depreciation, amortization & other operating non-cash charges    1,663 6.1%  1,220 5.1%        4,653 5.9%  3,454 5.0%    
Adj. EBITDA (4)(5)    4,590 17.0%  3,647 15.3% 25.8% 35.5%    13,007 16.6%  10,619 15.2% 22.5% 36.9%
(1)Except volume and average price per unit case figures.
(2)Please refer to page 15 and 16 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 3Q24 Results

October 25, 2024

Page 13 of 17

 

 

COCA-COLA FEMSA
CONSOLIDATED BALANCE SHEET
Millions of Pesos
                     
Assets    Sep-24  Dec-23 % Var.   Liabilities & Equity    Sep-24  Dec-23 % Var.
Current Assets           Current Liabilities        
Cash, cash equivalents and marketable securities           Short-term bank loans and notes payable    2,557  140 1726%
   41,493  31,060 34%   Suppliers    30,966  27,351 13%
Total accounts receivable    16,600  17,749 -6%   Short-term leasing Liabilities    818  752 9%
Inventories    13,973  11,880 18%   Other current liabilities    36,533  26,673 37%
Other current assets    8,674  7,049 23%   Total current liabilities    70,873  54,916 29%
Total current assets    80,740  67,738 19%   Non-Current Liabilities    -     -     
Non-Current Assets    -     -        Long-term bank loans and notes payable    69,325  65,074 7%
Property, plant and equipment    153,835  133,406 15%   Long Term Leasing Liabilities    2,205  1,769 25%
Accumulated depreciation    (62,358)  (54,676) 14%   Other long-term liabilities    17,674  18,056 -2%
Total property, plant and equipment, net    91,478  78,730 16%   Total liabilities    160,076  139,815 14%
Right of use assets    2,815  2,388 18%   Equity    -     -     
Investment in shares    10,105  9,246 9%   Non-controlling interest    7,545  6,680 13%
Intangible assets and other assets    103,904  101,162 3%   Total controlling interest    140,303  127,025 10%
Other non-current assets    18,882  14,256 32%   Total equity        147,848      133,705 11%
Total Assets           307,924                273,520 13%   Total Liabilities and Equity        307,924      273,520 13%
                     
                     
            Sep 30, 2024            
Debt Mix   % Total Debt (1)  % Interest Rate Floating (1) (2) Average Rate   Debt Maturity Profile
Currency                     
Mexican Pesos   58.9% 3.7% 8.7%  
U.S. Dollars   17.7% 53.2% 4.2%  
Colombian Pesos   1.4% 0.0% 6.3%  
Brazilian Reals   21.1% 18.8% 9.3%  
Argentine Pesos   0.9% 0.0% 50.1%  
Total Debt   100% 23.4% 8.4%  
                     
(1) After giving effect to cross- currency swaps.
(2) Calculated by weighting each year´s outstanding debt balance mix.
                     
                     
Financial Ratios   3Q 2024 FY 2024 Δ%            
Net debt including effect of hedges (1)(3)   30,307 37,794 -19.8%            
Net debt including effect of hedges / Adj. EBITDA (1)(3)   0.57 0.81              
Adj. EBITDA/ Interest expense, net (1)   11.73 11.86              
Capitalization (2)   33.1% 32.8%              
(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 3Q24 Results

October 25, 2024

Page 14 of 17

 

 

COCA-COLA FEMSA
QUARTERLY- VOLUME, TRANSACTIONS & REVENUES
                             
Volume 
    3Q 2024   3Q 2023   YoY
    Sparkling Water (1) Bulk (2) Stills Total   Sparkling Water (1) Bulk (2) Stills Total   Δ %
Mexico    373.1  31.7  92.3  39.9  537.0    377.2  31.8  98.7  37.5  545.3   -1.5%
 Guatemala     44.4  2.5  -     2.3  49.2    41.3  2.1  -     2.3  45.7   7.5%
 CAM South     35.0  1.3  0.9  5.5  42.8    34.3  1.3  0.8  5.7  42.2   1.5%
 Mexico and Central America     452.6  35.4  93.3  47.8  629.0    452.8  35.3  99.6  45.5  633.2   -0.7%
 Colombia     66.0  10.5  3.9  7.1  87.4    68.6  11.0  3.7  7.7  91.0   -4.0%
Brazil (3)    227.5  19.1  2.2  23.2  272.0    214.1  18.2  2.4  21.2  255.9   6.3%
 Argentina     31.1  5.0  1.5  3.3  40.9    31.5  4.7  1.4  3.4  41.0   0.0%
 Uruguay     9.4  1.5  -     0.7  11.7    9.4  2.1  -     0.5  12.0   -2.6%
 South America     334.0  36.1  7.6  34.4  412.1    323.6  35.9  7.5  32.8  399.9   3.1%
 TOTAL     786.5  71.5  100.9  82.2  1,041.1    776.5  71.2  107.1  78.4  1,033.1   0.8%
                             
(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
                             
Transactions                              
    3Q 2024   3Q 2023   YoY
    Sparkling Water Stills Total   Sparkling Water  Stills Total   Δ %
Mexico     2,036.8  223.2  279.2  2,539.2    2,067.6  225.8  260.4  2,553.7   -0.6%
 Guatemala     339.1  16.3  24.9  380.3    313.4  14.8  24.0  352.2   8.0%
 CAM South     261.5  13.4  55.9  330.8    254.1  13.1  59.7  326.9   1.2%
 Mexico and Central America     2,637.4  253.0  360.0  3,250.4    2,635.1  253.7  344.0  3,232.8   0.5%
 Colombia     485.7  106.8  55.2  647.7    508.2  115.4  77.1  700.7   -7.6%
Brazil (3)    1,547.5  168.4  266.1  1,982.0    1,433.2  158.4  239.5  1,831.1   8.2%
 Argentina     158.8  30.1  27.8  216.8    165.6  30.8  31.9  228.2   -5.0%
 Uruguay     44.6  5.9  5.8  56.3    44.0  7.6  4.2  55.8   0.7%
 South America     2,236.6  311.2  355.0  2,902.7    2,151.0  312.2  352.6  2,815.8   3.1%
 TOTAL     4,874.0  564.1  715.0  6,153.2    4,786.0  565.9  696.7  6,048.6   1.7%
                           
Revenues                            
 Expressed in million Mexican Pesos    3Q 2024 3Q 2023 Δ %                    
Mexico       34,500        32,378 6.6%                    
Guatemala         4,157          3,331 24.8%                    
CAM South         3,889          3,327 16.9%                    
Mexico and Central America       42,546        39,035 9.0%                    
Colombia         5,181          4,801 7.9%                    
Brazil (4)       17,747        15,760 12.6%                    
Argentina         2,852          2,245 27.1%                    
Uruguay         1,275          1,012 26.0%                    
South America       27,056        23,818 13.6%                    
 TOTAL     69,601  62,853 10.7%                    
                             
(3) Volume and transactions in Brazil do not include beer
(4) Brazil includes beer revenues of Ps. 1,175.3 million for the third quarter of 2024 and Ps. 1,421.6 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 3Q24 Results

October 25, 2024

Page 15 of 17

 
COCA-COLA FEMSA
YTD- VOLUME, TRANSACTIONS & REVENUES
                             
Volume 
    YTD 2024   YTD 2023   YoY
    Sparkling Water (1) Bulk (2) Stills Total   Sparkling Water (1) Bulk (2) Stills Total   Δ %
Mexico     1,107.9  107.0  290.3  121.7  1,626.8    1,062.7  95.3  290.7  110.8  1,559.5   4.3%
 Guatemala     130.8  7.6  -     7.1  145.5    117.1  5.7  -     6.9  129.8   12.1%
 CAM South     108.0  4.4  2.9  16.7  132.1    100.8  4.8  1.9  17.1  124.6   6.0%
 Mexico and Central America     1,346.8  119.0  293.2  145.5  1,904.5    1,280.6  105.8  292.6  134.9  1,813.9   5.0%
 Colombia     196.5  30.4  12.0  21.8  260.7    193.9  29.1  10.5  22.3  255.7   2.0%
Brazil (3)    691.6  58.7  7.4  72.0  829.7    636.0  52.8  7.0  61.4  757.2   9.6%
 Argentina     87.3  14.3  5.2  8.9  115.7    97.3  14.5  3.9  11.9  127.6   -9.3%
 Uruguay     28.1  4.8  -     2.0  35.0    28.6  7.1  -     1.6  37.3   -6.1%
 South America     1,003.6  108.3  24.5  104.7  1,241.1    955.7  103.4  21.4  97.1  1,177.7   5.4%
 TOTAL     2,350.3  227.3  317.7  250.2  3,145.6    2,236.3  209.2  314.1  232.0  2,991.6   5.1%
                             
(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
                             
Transactions                              
    YTD 2024   YTD 2023   YoY
    Sparkling Water Stills Total   Sparkling Water  Stills Total   Δ %
Mexico     6,134.4  739.7  853.0  7,727.1    5,935.0  675.7  783.1  7,393.8   4.5%
 Guatemala     981.2  51.1  74.8  1,107.0    886.3  43.7  70.3  1,000.3   10.7%
 CAM South     789.0  43.6  168.1  1,000.7    745.3  40.6  183.2  969.1   3.3%
 Mexico and Central America     7,904.6  834.4  1,095.9  9,834.8    7,566.6  760.0  1,036.5  9,363.2   5.0%
 Colombia     1,440.1  311.5  179.5  1,931.1    1,429.1  305.2  234.1  1,968.4   -1.9%
Brazil (3)    4,606.6  511.9  817.9  5,936.4    4,182.7  463.8  689.0  5,335.5   11.3%
 Argentina     445.5  88.5  76.4  610.4    507.3  94.2  104.9  706.3   -13.6%
 Uruguay     135.6  18.6  17.0  171.2    135.7  26.0  13.8  175.4   -2.4%
 South America     6,627.8  930.6  1,090.7  8,649.1    6,254.6  889.2  1,041.8  8,185.6   5.7%
 TOTAL     14,532.4  1,764.9  2,186.6  18,484.0    13,821.3  1,649.2  2,078.3  17,548.8   5.3%
                           
Revenues                            
 Expressed in million Mexican Pesos    YTD 2024 YTD 2023 Δ %                    
Mexico     102,828        91,906 11.9%                    
Guatemala       11,401          9,664 18.0%                    
CAM South       11,227        10,171 10.4%                    
Mexico and Central America     125,456      111,740 12.3%                    
Colombia       14,850        12,585 18.0%                    
Brazil (4)       52,027        46,838 11.1%                    
Argentina         8,169          7,102 15.0%                    
Uruguay         3,371          3,110 8.4%                    
South America       78,417        69,636 12.6%                    
 TOTAL     203,873  181,376 12.4%                    
                             
(3) Volume and transactions in Brazil do not include beer
(4) Brazil includes beer revenues of Ps. 3,704.4 million for the first nine months of 2024 and Ps. 4,382.5 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 3Q24 Results

October 25, 2024

Page 16 of 17

 

 

COCA-COLA FEMSA
MACROECONOMIC INFORMATION
                 
Inflation (1)          
    LTM 3Q24 YTD        
 Mexico    4.66% 1.46% 2.86%        
 Colombia    6.04% 0.64% 4.62%        
 Brasil    3.93% 0.49% 2.96%        
 Argentina    224.74% 11.96% 101.87%        
 Costa Rica    0.63% 0.25% 0.37%        
 Panama    0.36% -0.72% 0.36%        
 Guatemala    3.38% 1.08% 2.28%        
 Nicaragua    3.97% -0.05% 2.94%        
 Uruguay    5.46% 0.80% 4.30%        
                 
(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)
    3Q24 3Q23 Δ %   YTD 24 YTD 23 Δ %
 México    18.92 17.06 10.9%   17.71 17.83 -0.7%
 Colombia    4,097.21 4,047.64 1.2%   3,982.02 4,410.88 -9.7%
 Brasil    5.55 4.88 13.6%   5.24 5.01 4.6%
 Argentina    942.75 312.85 201.3%   887.89 245.82 261.2%
 Costa Rica    525.66 543.28 -3.2%   519.70 551.67 -5.8%
 Panama    1.00 1.00 0.0%   1.00 1.00 0.0%
 Guatemala    7.74 7.86 -1.5%   7.77 7.83 -0.8%
 Nicaragua    36.62 36.49 0.4%   36.62 36.40 0.6%
 Uruguay    40.53 37.96 6.8%   39.39 38.58 2.1%
                 
                 
End-of-period Exchange Rates
    Closing Exchange Rate                                         (Local Currency per USD)   Closing Exchange Rate                                                   (Local Currency per USD)
    Sep-24 Sep-23 Δ %   Jun-24 Jun-23 Δ %
 México     19.63  17.62 11.4%    18.38  17.07 7.6%
 Colombia     4,164.21  4,053.76 2.7%    4,148.04  4,191.28 -1.0%
 Brasil     5.45  5.01 8.8%    5.56  4.82 15.3%
 Argentina     970.50  349.95 177.3%    912.00  256.70 255.3%
 Costa Rica     522.87  542.35 -3.6%    528.80  549.48 -3.8%
 Panama     1.00  1.00 0.0%    1.00  1.00 0.0%
 Guatemala     7.72  7.86 -1.7%    7.77  7.85 -1.0%
 Nicaragua     36.62  36.53 0.3%    36.62  36.44 0.5%
 Uruguay     41.64  38.56 8.0%    39.99  37.41 6.9%
                 
(2) Average exchange rate for each period computed with the average exchange rate of each month.

 

  

Coca-Cola FEMSA Reports 3Q24 Results

October 25, 2024

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, 2024  

 

 


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