COCA-COLA FEMSA, S.A.B. DE C.V. Coca-Cola FEMSA Announces Results for Third Quarter and First Nine Months of 2021
Mexico City, October 27, 2021, Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOF UBL, 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 and the first nine months of 2021.
THIRD QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS
| · | Consolidated volumes increased 5.8% as compared to the third quarter of 2020 and 1.5% as compared to the same period of 2019. This increase was driven mainly by strong volume growth in our territories in South America and Central America, as most of our markets continued to show sequential recovery. These effects were partially offset by flat volume performance in Mexico, driven mainly by unfavorable weather conditions during the quarter. |
| · | Total revenues increased 3.4%, while comparable revenues increased 8.8%, driven by volume growth, pricing initiatives, and favorable price-mix effects. These factors were partially offset by (i) unfavorable currency translation effects; (ii) a tough comparison base due to an entitlement to reclaim tax payments in Brazil; and (iii) a decline in beer revenues related to the partial transition of the beer portfolio in Brazil. Total revenues declined 0.8% versus the same period of 2019. |
| · | Operating income decreased 9.0%, while on a comparable basis decreased 7.0%. This decline was driven mainly by a non-recurring tax income recognized during the third quarter of 2020 and by the normalization of certain operating expenses. These effects were partially offset by our favorable raw material hedging initiatives and the resumption of the recognition of tax credits in Brazil related to the Manaus Free Trade Zone. By normalizing the non-recurring tax effects, our operating income would have increased 6.3%. As compared to the same period of 2019, our operating income decreased 7.7%. |
| · | Majority net income increased 38.8%, as our third quarter 2020 included one-time non-operating expenses of Ps. 1,813 million, mainly related to the sale of our dairy joint venture Estrella Azul in Panama and an impairment recognized in Leão Alimentos, our non-carbonated beverage joint-venture in Brazil. |
| · | Earnings per share1 were Ps. 0.20 (Earnings per unit were Ps. 1.63 and per ADS were Ps. 16.28.). |
| FINANCIAL SUMMARY FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2021 | ||||||||||||
| Change vs. same period of last year | ||||||||||||
| Total Revenues | Gross Profit | Operating Income | Majority Net Income | |||||||||
| 3Q 2021 | YTD 2021 | 3Q 2021 | YTD 2021 | 3Q 2021 | YTD 2021 | 3Q 2021 | YTD 2021 | |||||
| As Reported | Consolidated | 3.4% | 4.5% | 2.1% | 5.5% | (9.0%) | 9.2% | 38.8% | 39.0% | |||
| Mexico & Central America | 7.3% | 6.6% | 6.7% | 8.2% | (1.6%) | 10.4% | ||||||
| South America | (1.9%) | 1.4% | (5.6%) | 0.6% | (20.6%) | 6.4% | ||||||
| Comparable (2) | Consolidated | 8.8% | 11.1% | 6.8% | 11.3% | (7.0%) | 13.3% | |||||
| Mexico & Central America | 9.3% | 8.4% | 8.6% | 9.8% | (0.5%) | 11.5% | ||||||
| South America | 8.1% | 15.5% | 3.5% | 14.3% | (17.4%) | 17.5% |
John Santa Maria, Coca-Cola FEMSA's CEO, commented:
"For the third quarter, our focus on affordability and execution enabled us to deliver 5.8% year-on-year volume growth, 1.5% ahead of the volume we achieved during 2019. This performance reflects double-digit volume growth in South America, driven by outstanding performance in Colombia, Brazil, and Argentina. Notably, our stable volume performance in Mexico, due mainly to unfavorable weather, was offset by double-digit growth across all of our territories in Central America. On the profitability front, excluding one-time tax effects in Brazil, our revenue management initiatives together with our favorable raw material hedging strategies enabled us to protect our gross margin in the face of the challenging supply chain and input cost environment that is affecting industries worldwide. This allowed a normalized operating income to increase 6.3%.
Moreover, we continue taking important steps across all of our strategic fronts-from portfolio management to sustainable development. In Brazil, we continue to complement our beer portfolio, while in other markets, we began pilot testing additional categories as distribution opportunities. Finally, we are very proud to have successfully issued the first sustainability-linked bonds in the Mexican market, enabling us to align our financial strategy with ambitious water efficiency targets that are now public commitments. We are convinced that we have the right strategy and talent to continue positioning Coca-Cola FEMSA for continuous growth and success for many years to come."
| (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 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance. |
| Page 1 of 16 |
RECENT DEVELOPMENTS
| · | Consistent with the enhancement of our cooperation framework with The Coca-Cola Company and our consumer-centric, multi-category strategy, Coca-Cola FEMSA is running pilot programs to test the distribution of leading spirits and consumer brands in Mexico and Brazil as well as the distribution of leading spirits brands and other alcoholic products in Colombia and Panama. We expect these pilot programs will enable us to assess and learn from new shopper and consumption occasions, and gather the necessary insights to strengthen our value proposition for retailers and consumers in the future. We expect this will complement our reach, joint consumer value proposition, and provide partners with a unique edge to communicate with target consumers. As these are currently pilot tests, further details will be provided in due course. |
| · | Following a favorable decision from Brazilian tax authorities, Coca-Cola FEMSA has been entitled to reclaim tax payments made in prior years in Brazil, resulting in a non-recurring positive effect on its third quarter results, affecting mainly other operating revenues and other operating expenses, net. The total amount of non-recurrent tax effects in Brazil in the operating income for the third quarter of 2021 is Ps. 620 million as compared to Ps. 1,609 million during the same period of the previous year. This results in a net unfavorable amount of Ps. 989 million for the third quarter of 2021. |
| · | On August 11, 2021, the Company announced that its subsidiary in Brazil, reached an agreement in conjunction with Coca-Cola Andina, to acquire the Brazilian craft beer brand "Therezópolis". |
| · | On September 16, 2021, the Company announced that its subsidiary Spal Indústria Brasileira de Bebidas S.A. and the Coca-Cola System in Brazil had signed an agreement to distribute Estrella Galicia beers in the country. This agreement is consistent with the Coca-Cola System's long-term strategy to complement its beer portfolio in Brazil. |
| · | On September 21, 2021, the Company issued its first sustainability-linked bonds in the Mexican market for a total amount of Ps. 9,400 million. The Company priced bonds at a fixed rate of 7.36% (Mbono+0.34%) for an amount of Ps. 6,965 million due in 7 years, and bonds at a variable rate of TIIE + 0.05% for an amount of Ps. 2,435 million due in 5 years. As part of these bonds, the Company commits to achieve a water use ratio of 1.36 liters of water per liter of beverage produced by 2024 and 1.26 liters by 2026. In the event that such indicators are not met by the dates established in the pricing documents, the interest rate will increase by 25 basis points to remain at 7.61% and TIIE + 0.30%, respectively. |
| · | As of September 30, 2021, the Company had a cash position of more than Ps. 50 billion. |
| · | On November 3, 2021, Coca-Cola FEMSA will pay the second installment of the 2020 dividend approved for Ps. 0.63 per share (equivalent to Ps. 5.04 per unit). |
CONFERENCE CALL INFORMATION
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 2 of 16 |
CONSOLIDATED THIRD QUARTER RESULTS
| CONSOLIDATED THIRD QUARTER RESULTS | ||||||
| As Reported | Comparable (1) | |||||
| Expressed in millions of Mexican pesos | 3Q 2021 | 3Q 2020 | Δ% | Δ% | ||
| Total revenues | 48,316 | 46,734 | 3.4% | 8.8% | ||
| Gross profit | 21,817 | 21,367 | 2.1% | 6.8% | ||
| Operating income | 6,476 | 7,119 | (9.0%) | (7.0%) | ||
| Operating cash flow (2) | 9,320 | 10,075 | (7.5%) | (4.3%) |
Volume increased 5.8% to 854.5 million unit cases, driven mainly by strong volume growth in Colombia, Brazil, Argentina, Guatemala, and the rest of our territories in Central America. This growth was partially offset by flat performance in Mexico, which was driven mainly by unfavorable weather conditions. Consolidated volume increased 1.5% versus our 2019 baseline.
Total revenues increased 3.4% to Ps. 48,316 million, driven mainly by volume growth, our pricing initiatives, and favorable price-mix effects across our markets. These effects were partially offset by unfavorable currency translation effects from all of our operating currencies, and a reduction in beer sales resulting from the partial transition of our beer portfolio in Brazil. Our total revenues increased despite a tough comparison base that included non-recurring other operating revenues related to an entitlement to reclaim tax payments in Brazil. On a comparable basis, total revenues would have increased 8.8%. Total revenues declined 0.8% versus the same period of 2019.
Gross profit increased 2.1% to Ps. 21,817 million, and gross margin contracted 50 basis points to 45.2%. This increase was due to favorable raw material hedging strategies, coupled with revenue management initiatives and the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone in Brazil. However, these effects were partially offset by an increase in raw material costs and the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 6.8%. Gross profit increased 0.7% versus the third quarter of 2019.
Operating income decreased 9.0% to Ps. 6,476 million, and operating margin contracted 180 basis points to 13.4%. This decrease was driven mainly by the recognition of non-recurring tax effects in Brazil of Ps. 620 million as compared to Ps. 1,609 million recognized during the same period of the previous year, coupled with the normalization of certain operating expenses such as marketing, labor, and maintenance related to the reopening and increased mobility across most of our operations. These effects were partially offset by favorable top-line performance. On a comparable basis, operating income would have decreased 7.0%. Our operating income decreased 7.7% versus our 2019 baseline.
| (1) | Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance. |
| (2) | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges. |
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 3 of 16 |
Comprehensive financing result recorded an expense of Ps. 1,030 million, compared to an expense of Ps. 1,421 million in the same period of 2020.
The Company recorded an interest expense of Ps. 1,613 million as compared to an expense of Ps. 1,701 million in the same period of 2020. This reduction was driven mainly by the payment of short-term financing incurred during the first quarter of 2020 and the payment of a Mexican Peso-denominated bond.
Additionally, the Company recorded a foreign exchange gain of Ps. 305 million as compared to a foreign exchange loss of Ps. 135 million recorded during the same period of 2020, as our cash exposure in U.S. dollars was positively impacted by the depreciation of the Mexican Peso and the Brazilian Real during the quarter.
These effects were partially offset by a loss in financial instruments of Ps. 42 million recorded during the quarter related to the increase in interest rates in Brazil.
Income tax as a percentage of income before taxes was 33.3% as compared to 33.7% during the same period of the previous year. This was driven mainly by the effect of the sale of Estrella Azul in the same period of 2020, partially offset by the effect of higher inflation recognized during the quarter.
Net income attributable to equity holders of the company reached Ps. 3,419 million as compared to Ps. 2,463 million during the same period of the previous year. This increase was driven mainly by the one-time non-operative expenses related to the sale of Estrella Azul in Panama and an impairment recognized in Leão Alimentos, our non-carbonated beverage joint venture in Brazil recorded during the same period of 2020. This effect was partially offset by other non-operating expenses of Ps. 296 million recognized during the quarter. Earnings per share1 were Ps. 0.20 (Earnings per unit were Ps. 1.63, and earnings per ADS were Ps. 16.28.).
| (1) | Quarterly earnings / outstanding shares. Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 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 3Q2021 Results October 27, 2021 | Page 4 of 16 |
CONSOLIDATED FIRST NINE MONTHS RESULTS
| CONSOLIDATED FIRST NINE MONTHS RESULTS | ||||||
| As Reported | Comparable (1) | |||||
| Expressed in millions of Mexican pesos | YTD 2021 | YTD 2020 | Δ% | Δ% | ||
| Total revenues | 141,091 | 135,015 | 4.5% | 11.1% | ||
| Gross profit | 64,423 | 61,088 | 5.5% | 11.3% | ||
| Operating income | 19,620 | 17,973 | 9.2% | 13.3% | ||
| Operating cash flow (2) | 28,159 | 27,363 | 2.9% | 7.7% |
Volume increased 5.2% to 2,506.5 million unit cases in the first nine months of 2021 as compared to the same period of 2020, driven mainly by gradual recoveries and increases in mobility across our markets. Consolidated volume increased 1.1% as compared with the same period of 2019.
Total revenues increased 4.5% to Ps. 141,091 million in the first nine months of 2021 as compared to the same period of 2020, driven mainly by volume growth, coupled with our pricing initiatives and favorable price-mix effects. These factors were partially offset by unfavorable currency translation effects resulting from the depreciation of all of our operating currencies into Mexican Pesos. In addition, during the same period of 2020, we recorded non-recurring other operating revenues related to an entitlement to reclaim tax payments in Brazil. On a comparable basis, total revenues would have increased 11.1%. Total revenues declined 1.0% versus the same period of 2019.
Gross profit increased 5.5% to Ps. 64,423 million in the first nine months of 2021 as compared to the same period of 2020, and gross margin expanded 50 basis points to 45.7%. Our raw material hedging initiatives, cost efficiencies, favorable price-mix effects, and the recognition of Ps. 1,083 million related to the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone in Brazil were partially offset by an unfavorable currency hedging position and the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 11.3%. Gross profit remained flat versus our 2019 baseline.
| (1) | Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance. |
| (2) | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges. |
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 5 of 16 |
Operating income increased 9.2% to Ps. 19,620 million in the first nine months of 2021 as compared to the same period of 2020, and operating margin expanded 60 basis points to 13.9%. This increase was driven mainly by operating expense efficiencies and an increase in gross profit. These effects were partially offset by the normalization of certain operating expenses such as marketing, labor, and maintenance related to increases in mobility across our operations, coupled with unfavorable currency translation effects. On a comparable basis, operating income would have increased 13.3%. Our operating income increased 3.0% versus our 2019 baseline.
Comprehensive financing result recorded an expense of Ps. 3,477 million during the first nine months of 2021 compared to an expense of Ps. 4,889 million in the same period of 2020.
Interest expense, net, recorded a decrease during the first nine months of 2021, driven mainly by a one-time interest expense related to our successful debt refinancing initiatives during the first quarter of 2020, coupled with the payment of short-term financings during the first nine months of 2021 and a Mexican Peso-denominated bond. These short-term financings were a preventive measure to reinforce the Company's cash position in the face of the uncertainties driven by the COVID-19 pandemic.
In addition, we recognized a gain in monetary position in inflationary subsidiaries of Ps. 433 million as compared to a gain of Ps. 288 million recorded during the same period of 2020.
These effects were partially offset by a lower foreign exchange gain of Ps. 149 million, as compared to a gain of Ps. 357 million registered during the same period of 2020, as our cash exposure to U.S. dollars was positively impacted by the depreciation of the Mexican Peso.
Income tax as a percentage of income before taxes was 35.5% as compared to 32.3% during the first nine months of the previous year. This increase was driven mainly by the effect of higher inflation and the effects of certain changes on tax legislation where we operate offset by a reduction in impairments recognized as compared to the same period of 2020.
Net income attributable to equity holders of the company reached Ps. 9,893 million in the first nine months of 2021 as compared to Ps. 7,119 million during the same period of the previous year. This increase was driven mainly by an increase in operating income, coupled with lower financing costs and lower non-operative expenses mainly related to impairments recognized during the first nine months of 2020. Earnings per share1 were Ps. 0.59 (Earnings per unit were Ps. 4.71, and earnings per ADS were Ps. 47.09.).
| (1) | Earnings / outstanding shares. Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806.7 million shares outstanding. For the convenience of the reader, as each 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 3Q2021 Results October 27, 2021 | Page 6 of 16 |
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 2021 | 3Q 2020 | Δ% | Δ% | ||
| Total revenues | 28,760 | 26,807 | 7.3% | 9.3% | ||
| Gross profit | 14,201 | 13,303 | 6.7% | 8.6% | ||
| Operating income | 4,265 | 4,336 | (1.6%) | (0.5%) | ||
| Operating cash flow (2) | 6,062 | 6,175 | (1.8%) | (0.3%) |
Volume increased 2.1% to 509.0 million unit cases, driven by double-digit growth in Guatemala, Panama, Nicaragua, and Costa Rica, partially offset by flat performance in Mexico, driven mainly by unfavorable weather conditions. Volume decreased 5.0% versus our 2019 baseline.
Total revenues increased 7.3% to Ps. 28,760 million, driven by volume growth, our pricing initiatives, and favorable price-mix effects. These effects were partially offset by an unfavorable currency translation effect from most of our operating currencies in Central America as translated into Mexican Pesos. On a comparable basis, total revenues would have increased 9.3%. Total revenues grew 2.1% versus the same period of 2019.
Gross profit increased 6.7% to Ps. 14,201 million, and gross margin contracted 20 basis points to 49.4%. This increase was driven mainly by our pricing initiatives, our raw material hedging strategies, and favorable price-mix effects. However, these factors were partially offset by higher concentrate costs in Mexico and an unfavorable currency hedging position. On a comparable basis, gross profit would have increased 8.6%. Gross profit increased 6.1% versus our 2019 baseline.
Operating income decreased 1.6% to Ps. 4,265 million, and operating margin contracted 140 basis points to 14.8%, driven mainly by the normalization of certain operating expenses such as marketing, labor, and maintenance as compared to the same period of 2020. On a comparable basis, operating income would have decreased 0.5%. Our operating income increased 4.1% versus our 2019 baseline.
| (1) | Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance. |
| (2) | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges. |
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 7 of 16 |
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 2021 | 3Q 2020 | Δ% | Δ% | ||
| Total revenues | 19,556 | 19,927 | (1.9%) | 8.1% | ||
| Gross profit | 7,616 | 8,064 | (5.6%) | 3.5% | ||
| Operating income | 2,211 | 2,783 | (20.6%) | (17.4%) | ||
| Operating cash flow (2) | 3,258 | 3,899 | (16.5%) | (11.0%) |
Volume increased 11.7% to 345.5 million unit cases, driven by strong volume growth of 26.8% in Colombia, 15.9% in Argentina, and 7.1% in Brazil. The division's volume increased 12.7% versus our 2019 baseline.
Total revenues decreased 1.9% to Ps. 19,556 million. This decrease was driven mainly by a tough comparison base due to an entitlement to reclaim tax payments in Brazil, coupled with unfavorable currency translation effects resulting from the depreciation of all of our operating currencies as compared to the Mexican Peso. In addition, the decrease was driven by a reduction in beer revenues as a result of the partial transition of our beer portfolio in Brazil. These effects were partially offset by our volume growth, pricing initiatives, and revenue management. On a comparable basis, total revenues would have increased 8.1%. Total revenues declined 4.8% versus the same period of 2019.
Gross profit decreased 5.6% to Ps. 7,616 million, and gross margin contracted 160 basis points to 38.9%. This margin contraction was driven mainly by the depreciation of the average exchange rate of all our local currencies in the division as applied to our U.S. dollar-denominated raw material costs, higher sugar and freight costs, and the partial transition of our beer portfolio in Brazil. These effects were partially offset by favorable raw material hedging strategies and lower concentrate costs in Brazil related to the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone. On a comparable basis, gross profit would have increased 3.5%. Gross profit decreased 8.0% versus our 2019 baseline.
Operating income decreased 20.6% to Ps. 2,211 million, resulting in a margin contraction of 270 basis points to 11.3%. This reduction was driven mainly by the normalization of marketing, labor, and maintenance expenses and the partial transition of our beer portfolio in Brazil. In addition, this decrease was driven by the recognition of non-recurring tax effects in Brazil of Ps. 620 million as compared to Ps. 1,609 million recognized during the same period of the previous year. These effects were partially offset by an operative foreign exchange gain. On a comparable basis, operating income would have decreased 17.4%. Operating income decreased 24.2% versus our 2019 baseline.
| (1) | Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance. |
| (2) |
Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges. |
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 8 of 16 |
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."
Operating cash flow is a non-GAAP financial measure computed as "operating income + depreciation + amortization & other operating non-cash charges."
Earnings per share are equal to "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 each 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
In an effort to provide our readers with a more useful representation of our company's underlying financial and operating performance, as of the first quarter 2020, we adjusted our methodology to calculate our comparable figures, no longer excluding hyperinflationary operations. Due to this change, 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 in order to maintain comparability.
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 9 of 16 |
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 129 brands to a population of more than 265 million. With over 80 thousand employees, the Company markets and sells approximately 3.3 billion unit cases through close to 2 million points of sale a year. Operating 49 manufacturing plants and 268 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. dollars amounts or could be converted into U.S. dollars at the rate indicated.
(6 pages of tables to follow)
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 10 of 16 |
| COCA-COLA FEMSA | ||||||||||||||
| CONSOLIDATED INCOME STATEMENT | ||||||||||||||
| Millions of Pesos (1) | ||||||||||||||
| For the Third Quarter of: | For the First Nine Months of: | |||||||||||||
| 2021 | % of Rev. | 2020 | % of Rev. | Δ% Reported | Δ% Comparable (7) | 2021 | % of Rev. | 2020 | % of Rev. | Δ% Reported | Δ% Comparable (7) | |||
| Transactions (million transactions) | 4,891.6 | 4,185.2 | 16.9% | 16.9% | 13,926.9 | - | 12,473.1 | 11.7% | 11.7% | |||||
| Volume (million unit cases) | 854.5 | 807.9 | 5.8% | 5.8% | 2,506.5 | - | 2,382.2 | 5.2% | 5.2% | |||||
| Average price per unit case | 52.94 | 51.17 | 3.5% | 51.99 | - | 51.15 | 1.7% | |||||||
| Net revenues | 47,916 | 45,248 | 5.9% | 140,370 | - | 133,008 | 5.5% | |||||||
| Other operating revenues | 399 | 1,486 | -73.1% | - | 721 | 0% | 2,006 | -64.1% | - | |||||
| Total revenues (2) | 48,316 | 100.0% | 46,734 | 100.0% | 3.4% | 8.8% | 141,091 | 100.0% | 135,015 | 100.0% | 4.5% | 11.1% | ||
| Cost of goods sold | 26,499 | 54.8% | 25,367 | 54.3% | 4.5% | 76,668 | 54.3% | 73,927 | 54.8% | 3.7% | ||||
| Gross profit | 21,817 | 45.2% | 21,367 | 45.7% | 2.1% | 6.8% | 64,423 | 45.7% | 61,088 | 45.2% | 5.5% | 11.3% | ||
| Operating expenses | 15,530 | 32.1% | 14,216 | 30.4% | 9.2% | 44,636 | 31.6% | 42,320 | 31.3% | 5.5% | ||||
| Other operative expenses, net | (136) | -0.3% | 3 | 0.0% | NA | 232 | 0.2% | 526 | 0.4% | -55.9% | ||||
| Operative equity method (gain) loss in associates(3) | (53) | -0.1% | 28 | 0.1% | NA | (64) | 0.0% | 270 | 0.2% | NA | ||||
| Operating income (5) | 6,476 | 13.4% | 7,119 | 15.2% | -9.0% | -7.0% | 19,620 | 13.9% | 17,973 | 13.3% | 9.2% | 13.3% | ||
| Other non operative expenses, net | 296 | 0.6% | 1,813 | 3.9% | -83.7% | 217 | 0.2% | 2,804 | 2.1% | -92.3% | ||||
| Non Operative equity method (gain) loss in associates (4) | (20) | 0.0% | (15) | 0.0% | 37.6% | 51 | 0.0% | (112) | -0.1% | NA | ||||
| Interest expense | 1,613 | 1,701 | -5.2% | - | 4,570 | - | 6,388 | -28.5% | ||||||
| Interest income | 202 | 298 | -32.0% | 562 | 0.0% | 853 | -34.0% | |||||||
| Interest expense, net | 1,410 | 1,403 | 0.5% | 4,007 | 0.0% | 5,536 | -27.6% | |||||||
| Foreign exchange loss (gain) | (305) | 135 | NA | (149) | 0.0% | (357) | -58.4% | |||||||
| Loss (gain) on monetary position in inflationary subsidiries | (117) | (117) | 0.5% | - | (433) | - | (288) | 50.5% | ||||||
| Market value (gain) loss on financial instruments | 42 | (0) | NA | 51 | 0.0% | (2) | NA | |||||||
| Comprehensive financing result | 1,030 | 1,421 | -27.6% | 3,477 | 0.0% | 4,889 | -28.9% | |||||||
| Income before taxes | 5,170 | 3,899 | 32.6% | 15,876 | 0.0% | 10,392 | 52.8% | |||||||
| Income taxes | 1,697 | 1,320 | 28.5% | - | 5,626 | - | 3,413 | 64.9% | ||||||
| Consolidated net income | 3,473 | 2,579 | 34.7% | - | 10,250 | - | 6,980 | 46.9% | ||||||
| Net income attributable to equity holders of the company | 3,419 | 7.1% | 2,463 | 5.3% | 38.8% | 44.0% | 9,893 | 7.0% | 7,119 | 5.3% | 39.0% | |||
| Non-controlling interest | 54 | 0.1% | 116 | 0.2% | -53.6% | 356 | 0.3% | (140) | -0.1% | NA | ||||
| Operating Cash Flow & CAPEX | 2021 | % of Rev. | 2020 | % of Rev. | Δ% Reported | Δ% Comparable (7) | 2021 | % of Rev. | 2020 | % of Rev. | Δ% Reported | Δ% Comparable (7) | ||
| Operating income (5) | 6,476 | 13.4% | 7,119 | 15.2% | -9.0% | 19,620 | 13.9% | 17,973 | 13.3% | 9.2% | ||||
| Depreciation | 2,202 | 2,281 | -3.5% | 6,640 | 6,853 | -3.1% | ||||||||
| Amortization and other operative non-cash charges | 641 | 674 | -4.9% | 1,900 | 2,357 | -19.4% | ||||||||
| Operating cash flow (5)(6) | 9,320 | 19.3% | 10,075 | 21.6% | -7.5% | -4.3% | 28,159 | 20.0% | 27,363 | 20.3% | 2.9% | 7.7% | ||
| CAPEX | 3,907 | 2,397 | 63.0% | 8,224 | 6,262 | 31.3% |
(1)Except volume and average price per unit case figures.
(2)Please refer to page 14 and 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 operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
(6)Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
(7)Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance.
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 11 of 16 |
| MEXICO & CENTRAL AMERICA DIVISION | ||||||||||||||
| RESULTS OF OPERATIONS | ||||||||||||||
| Millions of Pesos (1) | ||||||||||||||
| For the Third Quarter of: | For the First Nine Months of: | |||||||||||||
| 2021 | % of Rev. | 2020 | % of Rev. |
Δ% Reported |
Δ% Comparable (6) | 2021 | % of Rev. | 2020 | % of Rev. |
Δ% Reported |
Δ% Comparable (6) | |||
| Transactions (million transactions) | 2,619.0 | 2,408.9 | 8.7% | 8.7% | 7,793.6 | 7,351.8 | 6.0% | 6.0% | ||||||
| Volume (million unit cases) | 509.0 | 498.7 | 2.1% | 2.1% | 1,526.1 | 1,496.7 | 2.0% | 2.0% | ||||||
| Average price per unit case | 56.47 | 53.72 | 5.1% | 55.67 | 53.22 | 4.6% | ||||||||
| Net revenues | 28,742 | 26,788 | 84,965 | 79,663 | ||||||||||
| Other operating revenues | 18 | 19 | 37 | 47 | ||||||||||
| Total Revenues (2) | 28,760 | 100.0% | 26,807 | 100.0% | 7.3% | 9.3% | 85,002 | 100.0% | 79,711 | 100.0% | 6.6% | 8.4% | ||
| Cost of goods sold | 14,560 | 50.6% | 13,504 | 50.4% | 42,554 | 50.1% | 40,474 | 50.8% | ||||||
| Gross profit | 14,201 | 49.4% | 13,303 | 49.6% | 6.7% | 8.6% | 42,448 | 49.9% | 39,236 | 49.2% | 8.2% | 9.8% | ||
| Operating expenses | 9,811 | 34.1% | 8,860 | 33.1% | 28,383 | 33.4% | 26,046 | 32.7% | ||||||
| Other operative expenses, net | 161 | 0.6% | 96 | 0.4% | 412 | 0.5% | 610 | 0.8% | ||||||
| Operative equity method (gain) loss in associates (3) | (36) | -0.1% | 11 | 0.0% | (106) | -0.1% | 114 | 0.1% | ||||||
| Operating income (4) | 4,265 | 14.8% | 4,336 | 16.2% | -1.6% | -0.5% | 13,759 | 16.2% | 12,467 | 15.6% | 10.4% | 11.5% | ||
| Depreciation, amortization & other operating non-cash charges | 1,797 | 6.2% | 1,840 | 6.9% | 5,287 | 6.2% | 5,794 | 7.3% | ||||||
| Operating cash flow (4)(5) | 6,062 | 21.1% | 6,175 | 23.0% | -1.8% | -0.3% | 19,046 | 22.4% | 18,261 | 22.9% | 4.3% | 5.7% |
(1)Except volume and average price per unit case figures.
(2)Please refer to page 14 and 15 for revenue breakdown.
(3)Includes equity method in Jugos del Valle, among others.
(4)The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
(5)Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
(6)Please refer to page 9 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: | |||||||||||||
| 2021 | % of Rev. | 2020 | % of Rev. |
Δ% Reported |
Δ% Comparable (6) | 2021 | % of Rev. | 2020 | % of Rev. |
Δ% Reported |
Δ% Comparable (6) | |||
| Transactions (million transactions) | 2,272.6 | 1,776.3 | 27.9% | 27.9% | 6,133.3 | 5,121.3 | 19.8% | 19.8% | ||||||
| Volume (million unit cases) | 345.5 | 309.3 | 11.7% | 11.7% | 980.4 | 885.5 | 10.7% | 10.7% | ||||||
| Average price per unit case | 45.23 | 47.05 | -3.9% | 49.00 | 47.64 | 2.9% | ||||||||
| Net revenues | 19,175 | 18,459 | 55,404 | 53,345 | ||||||||||
| Other operating revenues | 381 | 1,468 | 684 | 1,959 | ||||||||||
| Total Revenues (2) | 19,556 | 100.0% | 19,927 | 100.0% | -1.9% | 8.1% | 56,088 | 100.0% | 55,304 | 100.0% | 1.4% | 15.5% | ||
| Cost of goods sold | 11,939 | 61.1% | 11,863 | 59.5% | 34,113 | 60.8% | 33,452 | 60.5% | ||||||
| Gross profit | 7,616 | 38.9% | 8,064 | 40.5% | -5.6% | 3.5% | 21,975 | 39.2% | 21,852 | 39.5% | 0.6% | 14.3% | ||
| Operating expenses | 5,719 | 29.2% | 5,356 | 26.9% | 16,253 | 29.0% | 16,274 | 29.4% | ||||||
| Other operative expenses, net | (297) | -1.5% | (92) | -0.5% | (180) | -0.3% | (85) | -0.2% | ||||||
| Operative equity method (gain) loss in associates (3) | (17) | -0.1% | 17 | 0.1% | 41 | 0.1% | 156 | 0.3% | ||||||
| Operating income (4) | 2,211 | 11.3% | 2,783 | 14.0% | -20.6% | -17.4% | 5,861 | 10.4% | 5,506 | 10.0% | 6.4% | 17.5% | ||
| Depreciation, amortization & other operating non-cash charges | 1,046 | 5.3% | 1,116 | 5.6% | 3,252 | 5.8% | 3,596 | 6.5% | ||||||
| Operating cash flow (4)(5) | 3,258 | 16.7% | 3,899 | 19.6% | -16.5% | -11.0% | 9,113 | 16.2% | 9,102 | 16.5% | 0.1% | 12.2% |
| (1) | Except volume and average price per unit case figures. |
| (2) | Please refer to page 14 and 15 for revenue breakdown. |
| (3) | Includes equity method in Leão Alimentos and Verde Campo, among others. |
| (4) | The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader. |
| (5) | Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges. |
| (6) | Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance. |
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 12 of 16 |
| COCA-COLA FEMSA | ||||||||||
| CONSOLIDATED BALANCE SHEET | ||||||||||
| Millions of Pesos | ||||||||||
| Assets | Sep-21 | Dec-20 | % Var. | Liabilities & Equity | Sep-21 | Dec-20 | % Var. | |||
| Current Assets | Current Liabilities | |||||||||
| Cash, cash equivalents and marketable securities | Short-term bank loans and notes payable | 2,704 | 5,017 | -46% | ||||||
| 50,088 | 43,497 | 15% | Suppliers | 19,755 | 17,195 | 15% | ||||
| Total accounts receivable | 8,928 | 11,523 | -23% | Short-term leasing Liabilities | 558 | 560 | ||||
| Inventories | 13,634 | 9,727 | 40% | Other current liabilities | 25,409 | 20,073 | 27% | |||
| Other current assets | 6,608 | 7,693 | -14% | Total current liabilities | 48,426 | 42,845 | 13% | |||
| Total current assets | 79,259 | 72,440 | 9% | Non-Current Liabilities | ||||||
| Non-Current Assets | Long-term bank loans and notes payable | 82,690 | 82,461 | 0% | ||||||
| Property, plant and equipment | 109,888 | 109,551 | 0% | Long Term Leasing Liabilities | 838 | 746 | ||||
| Accumulated depreciation | (50,813) | (50,091) | 1% | Other long-term liabilities | 14,391 | 14,557 | -1% | |||
| Total property, plant and equipment, net | 59,076 | 59,460 | -1% | Total liabilities | 146,345 | 140,609 | 4% | |||
| Right of use assets | 1,374 | 1,278 | 7% | Equity | ||||||
| Investment in shares | 7,372 | 7,623 | -3% | Non-controlling interest | 5,917 | 5,583 | 6% | |||
| Intangible assets and other assets | 102,542 | 103,971 | -1% | Total controlling interest | 116,828 | 116,874 | 0% | |||
| Other non-current assets | 19,468 | 18,294 | 6% | Total equity | 122,745 | 122,457 | 0% | |||
| Total Assets | 269,090 | 263,066 | 2% | Total Liabilities and Equity | 269,090 | 263,066 | 2% | |||
| September 30, 2021 | ||||||||||
| Debt Mix | % Total Debt (1) | % Interest Rate Floating (1) (2) | Average Rate | Debt Maturity Profile | ||||||
| Currency | ||||||||||
| Mexican Pesos | 53.4% | 9.5% | 7.4% | |||||||
| U.S. Dollars | 27.4% | 0.0% | 2.9% | |||||||
| Colombian Pesos | 1.8% | 0.0% | 4.0% | |||||||
| Brazilian Reals | 15.0% | 55.5% | 7.5% | |||||||
| Uruguayan Pesos | 1.7% | 0.0% | 6.6% | |||||||
| Argentine Pesos | 0.7% | 0.0% | 47.5% | |||||||
| Total Debt | 100% | 6.2% | 6.4% | |||||||
| (1) After giving effect to cross- currency swaps and financial leases. | ||||||||||
| (2) Calculated by weighting each year´s outstanding debt balance mix. | ||||||||||
| Financial Ratios | LTM 2021 | FY 2020 | Δ% | |||||||
| Net debt including effect of hedges (1)(3) | 32,542 | 42,194 | -22.9% | |||||||
| Net debt including effect of hedges / Operating cash flow (1)(3) | 0.85 | 1.13 | ||||||||
| Operating cash flow/ Interest expense, net (1) | 7.03 | 5.46 | ||||||||
| Capitalization (2) | 41.5% | 42.7% | ||||||||
| (1) Net debt = total debt - cash | ||||||||||
| (2) Total debt / (long-term debt + shareholders' equity) | ||||||||||
| (3) After giving effect to cross-currency swaps. |
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 13 of 16 |
| COCA-COLA FEMSA | ||||||||||||||
| QUARTERLY- VOLUME, TRANSACTIONS & REVENUES | ||||||||||||||
| Volume | ||||||||||||||
| 3Q 2021 | 3Q 2020 | YoY | ||||||||||||
| Sparkling | Water (1) | Bulk (2) | Stills | Total | Sparkling | Water (1) | Bulk (2) | Stills | Total | Δ % | ||||
| Mexico | 321.5 | 19.7 | 72.0 | 30.4 | 443.6 | 325.7 | 16.0 | 72.2 | 28.2 | 442.1 | 0.3% | |||
| Guatemala | 29.5 | 1.0 | - | 2.1 | 32.6 | 27.2 | 0.8 | - | 1.1 | 29.1 | 12.2% | |||
| CAM South | 27.1 | 1.6 | 0.1 | 4.0 | 32.8 | 23.5 | 1.0 | 0.1 | 2.9 | 27.5 | 19.5% | |||
| Mexico and Central America | 378.2 | 22.3 | 72.1 | 36.4 | 509.0 | 376.4 | 17.8 | 72.3 | 32.2 | 498.64 | 2.1% | |||
| Colombia | 59.8 | 7.6 | 3.9 | 6.0 | 77.2 | 50.8 | 3.3 | 3.7 | 3.0 | 60.9 | 26.8% | |||
| Brazil (3) | 193.4 | 12.0 | 1.9 | 15.6 | 222.8 | 184.4 | 9.6 | 2.1 | 11.9 | 208.0 | 7.1% | |||
| Argentina | 28.7 | 2.7 | 1.2 | 3.0 | 35.6 | 25.2 | 1.7 | 1.4 | 2.3 | 30.7 | 15.9% | |||
| Uruguay | 8.6 | 1.0 | - | 0.2 | 9.8 | 8.7 | 0.8 | - | 0.1 | 9.6 | 1.8% | |||
| South America | 290.4 | 23.3 | 6.9 | 24.8 | 345.5 | 269.2 | 15.5 | 7.3 | 17.3 | 309.3 | 11.7% | |||
| TOTAL | 668.6 | 45.6 | 79.0 | 61.2 | 854.5 | 645.6 | 33.3 | 79.6 | 49.5 | 807.9 | 5.8% | |||
| (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 2021 | 3Q 2020 | YoY | ||||||||||||
| Sparkling | Water | Stills | Total | Sparkling | Water | Stills | Total | Δ % | ||||||
| Mexico | 1,748.7 | 147.6 | 213.8 | 2,110.1 | 1,704.1 | 120.6 | 189.8 | 2,014.6 | 4.7% | |||||
| Guatemala | 229.3 | 10.7 | 22.0 | 262.0 | 195.3 | 7.8 | 10.8 | 213.9 | 22.5% | |||||
| CAM South | 195.0 | 10.1 | 41.7 | 246.9 | 147.8 | 6.3 | 26.4 | 180.5 | 36.8% | |||||
| Mexico and Central America | 2,173.1 | 168.4 | 277.5 | 2,619.0 | 2,047.3 | 134.7 | 227.0 | 2,408.9 | 8.7% | |||||
| Colombia | 408.7 | 82.0 | 56.8 | 547.5 | 295.7 | 39.0 | 26.1 | 360.7 | 51.8% | |||||
| Brazil (3) | 1,218.0 | 104.5 | 172.1 | 1,494.7 | 1,051.3 | 80.0 | 114.7 | 1,246.1 | 20.0% | |||||
| Argentina | 144.1 | 16.8 | 22.4 | 183.3 | 103.6 | 9.2 | 14.4 | 127.1 | 44.1% | |||||
| Uruguay | 41.5 | 4.0 | 1.7 | 47.2 | 38.2 | 3.1 | 1.1 | 42.4 | 11.3% | |||||
| South America | 1,812.3 | 207.3 | 253.0 | 2,272.6 | 1,488.7 | 131.3 | 156.3 | 1,776.3 | 27.9% | |||||
| TOTAL | 3,985.3 | 375.7 | 530.6 | 4,891.6 | 3,536.0 | 266.0 | 383.2 | 4,185.2 | 16.9% | |||||
| Revenues | ||||||||||||||
| Expressed in million Mexican Pesos | 3Q 2021 | 3Q 2020 | Δ % | |||||||||||
| Mexico | 23,657 | 22,103 | 7.0% | |||||||||||
| Guatemala | 2,601 | 2,449 | 6.2% | |||||||||||
| CAM South | 2,502 | 2,255 | 10.9% | |||||||||||
| Mexico and Central America | 28,760 | 26,807 | 7.3% | |||||||||||
| Colombia | 3,631 | 3,068 | 18.4% | |||||||||||
| Brazil (4) | 13,322 | 14,752 | -9.7% | |||||||||||
| Argentina | 1,828 | 1,354 | 35.0% | |||||||||||
| Uruguay | 775 | 753 | 2.8% | |||||||||||
| South America | 19,556 | 19,927 | -1.9% | |||||||||||
| TOTAL | 48,316 | 46,734 | 3.4% | |||||||||||
| (3) Volume and transactions in Brazil do not include beer. | ||||||||||||||
| (4) Brazil includes beer revenues of Ps.2,683 million for the third quarter of 2021 and Ps.3,909 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 3Q2021 Results October 27, 2021 | Page 14 of 16 |
| COCA-COLA FEMSA | ||||||||||||||
| YTD - VOLUME, TRANSACTIONS & REVENUES | ||||||||||||||
| Volume | ||||||||||||||
| YTD 2021 | YTD 2020 | YoY | ||||||||||||
| Sparkling | Water (1) | Bulk (2) | Stills | Total | Sparkling | Water (1) | Bulk (2) | Stills | Total | Δ % | ||||
| Mexico | 966.4 | 61.0 | 213.8 | 90.7 | 1,331.9 | 973.6 | 53.2 | 216.8 | 83.7 | 1,327.3 | 0.4% | |||
| Guatemala | 87.7 | 3.0 | - | 5.2 | 95.9 | 77.8 | 3.0 | - | 5.2 | 86.0 | 11.6% | |||
| CAM South | 81.7 | 4.7 | 0.4 | 11.6 | 98.2 | 72.8 | 5.0 | 0.4 | 11.6 | 89.8 | 9.4% | |||
| Mexico and Central America | 1,135.8 | 68.6 | 214.1 | 107.5 | 1,526.1 | 1,124.0 | 59.3 | 217.2 | 96.1 | 1,496.7 | 2.0% | |||
| Colombia | 167.6 | 18.0 | 11.3 | 14.7 | 211.7 | 147.5 | 11.7 | 12.4 | 9.0 | 180.7 | 17.2% | |||
| Brazil (3) | 551.5 | 31.8 | 5.6 | 42.3 | 631.1 | 516.3 | 30.8 | 6.8 | 33.6 | 587.5 | 7.4% | |||
| Argentina | 86.9 | 7.9 | 4.1 | 9.3 | 108.3 | 72.3 | 6.7 | 4.0 | 6.2 | 89.2 | 21.4% | |||
| Uruguay | 25.6 | 3.3 | - | 0.5 | 29.4 | 25.1 | 2.7 | - | 0.3 | 28.2 | 4.2% | |||
| South America | 831.6 | 61.0 | 21.1 | 66.8 | 980.4 | 761.2 | 52.0 | 23.2 | 49.1 | 885.5 | 10.7% | |||
| TOTAL | 1,967.4 | 129.6 | 235.2 | 174.3 | 2,506.5 | 1,885.3 | 111.3 | 240.4 | 145.2 | 2,382.2 | 5.2% | |||
| (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 2021 | YTD 2020 | YoY | ||||||||||||
| Sparkling | Water | Stills | Total | Sparkling | Water | Stills | Total | Δ % | ||||||
| Mexico | 5,234.5 | 450.1 | 632.6 | 6,317.1 | 5,188.7 | 397.2 | 574.9 | 6,160.8 | 2.5% | |||||
| Guatemala | 672.4 | 30.7 | 53.6 | 756.6 | 542.7 | 23.9 | 26.8 | 593.4 | 27.5% | |||||
| CAM South | 572.5 | 30.3 | 117.1 | 719.9 | 479.4 | 24.5 | 93.7 | 597.6 | 20.5% | |||||
| Mexico and Central America | 6,479.3 | 511.1 | 803.2 | 7,793.6 | 6,210.8 | 445.6 | 695.4 | 7,351.8 | 6.0% | |||||
| Colombia | 1,101.5 | 195.7 | 133.1 | 1,430.3 | 880.4 | 143.7 | 80.2 | 1,104.3 | 29.5% | |||||
| Brazil (3) | 3,327.2 | 272.3 | 444.2 | 4,043.7 | 2,916.4 | 255.1 | 322.4 | 3,493.8 | 15.7% | |||||
| Argentina | 410.8 | 46.4 | 66.2 | 523.4 | 318.6 | 37.1 | 39.9 | 395.6 | 32.3% | |||||
| Uruguay | 118.6 | 12.3 | 5.0 | 135.9 | 112.2 | 11.7 | 3.6 | 127.6 | 6.5% | |||||
| South America | 4,958.1 | 526.7 | 648.5 | 6,133.3 | 4,227.6 | 447.6 | 446.1 | 5,121.3 | 19.8% | |||||
| TOTAL | 11,437.4 | 1,037.8 | 1,451.7 | 13,926.9 | 10,438.4 | 893.2 | 1,141.5 | 12,473.1 | 11.7% | |||||
| Revenues | ||||||||||||||
| Expressed in million Mexican Pesos | YTD 2021 | YTD 2020 | Δ % | |||||||||||
| Mexico | 69,905 | 65,673 | 6.4% | |||||||||||
| Guatemala | 7,607 | 6,903 | 10.2% | |||||||||||
| CAM South | 7,491 | 7,135 | 5.0% | |||||||||||
| Mexico and Central America | 85,002 | 79,711 | 6.6% | |||||||||||
| Colombia | 10,034 | 8,847 | 13.4% | |||||||||||
| Brazil (4) | 38,493 | 40,126 | -4.1% | |||||||||||
| Argentina | 5,327 | 4,184 | 27.3% | |||||||||||
| Uruguay | 2,234 | 2,147 | 4.1% | |||||||||||
| South America | 56,088 | 55,304 | 1.4% | |||||||||||
| TOTAL | 141,091 | 135,015 | 4.5% | |||||||||||
| (3) Volume and transactions in Brazil do not include beer. | ||||||||||||||
| (4) Brazil includes beer revenues of Ps. 10,045 million for the first nine months of 2021 and Ps. 11,163 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 3Q2021 Results October 27, 2021 | Page 15 of 16 |
| COCA-COLA FEMSA | ||||||||
| MACROECONOMIC INFORMATION | ||||||||
| Inflation (1) | ||||||||
| LTM | 3Q21 | YTD | ||||||
| Mexico | 5.87% | 1.46% | 4.81% | |||||
| Colombia | 4.46% | 0.87% | 4.02% | |||||
| Brazil | 9.80% | 2.27% | 6.03% | |||||
| Argentina | 48.27% | 9.12% | 35.89% | |||||
| Costa Rica | 2.15% | 2.49% | 1.26% | |||||
| Panama | 2.58% | 0.37% | 1.97% | |||||
| Guatemala | 4.07% | 4.87% | 1.63% | |||||
| Nicaragua | 5.00% | 4.83% | 3.63% | |||||
| Uruguay | 7.54% | 2.12% | 6.60% | |||||
| (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) | |||||||
| 3Q21 | 3Q20 | Δ % | YTD 21 | YTD 20 | Δ % | |||
| Mexico | 20.01 | 22.11 | -9.5% | 20.13 | 21.61 | -6.8% | ||
| Colombia | 3,846.74 | 3,733.60 | 3.0% | 7.73 | 7.69 | 0.5% | ||
| Brazil | 5.23 | 5.38 | -2.8% | 35.14 | 34.09 | 3.1% | ||
| Argentina | 97.24 | 73.33 | 32.6% | 620.59 | 574.89 | 7.9% | ||
| Costa Rica | 624.59 | 594.32 | 5.1% | 1.00 | 1.00 | 0.0% | ||
| Panama | 1.00 | 1.00 | 0.0% | 3,749.15 | 3,692.48 | 1.5% | ||
| Guatemala | 7.74 | 7.72 | 0.2% | 5.32 | 4.92 | 8.0% | ||
| Nicaragua | 35.26 | 34.47 | 2.3% | 95.00 | 64.59 | 47.1% | ||
| Uruguay | 43.25 | 42.74 | 1.2% | 43.67 | 41.36 | 5.6% | ||
| End-of-period Exchange Rates | ||||||||
|
Closing Exchange Rate (Local Currency per USD) | Closing Exchange Rate (Local Currency per USD) | |||||||
| Sep-21 | Sep-20 | Δ % | Jun-21 | Jun-20 | Δ % | |||
| Mexico | 20.31 | 22.46 | -9.6% | 19.80 | 22.97 | -13.8% | ||
| Colombia | 3,834.68 | 3,878.94 | -1.1% | 3,756.67 | 3,758.91 | -0.1% | ||
| Brazil | 5.44 | 5.64 | -3.6% | 5.00 | 5.48 | -8.7% | ||
| Argentina | 98.74 | 76.18 | 29.6% | 95.72 | 70.46 | 35.9% | ||
| Costa Rica | 629.71 | 606.68 | 3.8% | 621.92 | 583.49 | 6.6% | ||
| Panama | 1.00 | 1.00 | 0.0% | 1.00 | 1.00 | 0.0% | ||
| Guatemala | 7.73 | 7.79 | -0.7% | 7.74 | 7.70 | 0.6% | ||
| Nicaragua | 35.34 | 34.60 | 2.2% | 35.17 | 34.34 | 2.4% | ||
| Uruguay | 42.94 | 42.58 | 0.9% | 43.58 | 42.21 | 3.2% | ||
| (2) Average exchange rate for each period computed with the average exchange rate of each month. |
Coca-Cola FEMSA Reports 3Q2021 Results October 27, 2021 | Page 16 of 16 |
Attachments
- Original document
- Permalink
Disclaimer
Coca-Cola FEMSA SAB de CV published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 10:10:49 UTC.
