FEMSA Announces Third Quarter 2021 Results

Monterrey, Mexico, October 28, 2021 - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the third quarter of 2021.

HIGHLIGHTS

· Our results in 3Q20 were significantly impacted by the COVID-19 pandemic and the related changes in consumer mobility and behavior across markets. As we look at our 3Q21 results, the comparison base of 3Q20 is only a partial benchmark. Therefore, to facilitate the reader's assessment of our business units' performance in 3Q21, we provide the following table that includes variations versus 3Q19 as well.

FINANCIAL SUMMARY FOR THE THIRD QUARTER 2021

Information includes figures in millions of Ps. and variations as change vs. respective period

Revenues Gross Profit Income
from Operations
Same-Store Sales
3Q21 % var vs.
3Q20
% var vs.
3Q19
3Q21 % var vs.
3Q20
% var vs.
3Q19
3Q21 % var vs.
3Q20
% var vs.
3Q19
% var vs.
3Q20
% var vs.
3Q19
FEMSA CONSOLIDATED 142,443 12.6 % 9.2 % 53,094 9.4 % 8.6 % 12,976 14.3 % 2.7 %
FEMSA COMERCIO
Proximity Division 50,808 11.7 % 4.9 % 21,009 17.0 % 8.4 % 4,642 87.6 % 5.2 % 9.7 % (3.5 )%
Health Division 18,319 8.2 % 15.1 % 5,495 6.7 % 17.5 % 967 4.8 % 49.5 % 4.2 % 6.4 %
Fuel Division (1) 10,349 20.5 % (16.2 )% 1,330 12.4 % (10.5 )% 417 35.4 % (26.1 )% 16.7 % (19.2 )%
LOGISTICS & DISTRIBUTION 11,734 N/A N/A 2,561 N/A N/A 602 N/A N/A
COCA-COLA FEMSA 48,316 3.4 % (0.8 )% 21,817 2.1 % 0.7 % 6,476 (9.0 %) (7.7 )%
(1) variations vs. comparable results

Eduardo Padilla, FEMSA's CEO, commented:

"During the third quarter, data and sentiment towards the health emergency were still uneven across our markets and some operating restrictions remained in place but began to ease in September. At OXXO, same-store sales were stable sequentially, but profitability showed compelling gains reflecting higher efficiency. Our Health Division continued to benefit from dynamic trading conditions in Chile, as well as solid execution across the platform, while our Fuel Division saw better vehicle mobility trends in Mexico, even if we remained below pre-pandemic levels. For its part, our Logistics and Distribution business reflected improving conditions in Latin America, coupled with an environment in the United States that is steadily improving but a bit more slowly than expected, particularly for certain end-user segments. Finally, Coca-Cola FEMSA delivered solid volume performance in most markets, particularly in South America, and was able to mitigate pressures from supply chain disruption and higher raw material costs. All in all, it seems we are finally turning the corner and can look forward to a more normal 2022.

Beyond the short-term, however, our company today is in a much better position than it was last year, and I would dare say, than ever before. Every one of our business units is in solid shape, with considerable avenues for growth, and we have the balance sheet flexibility to pursue our opportunities and execute on our optionality. I am excited and very optimistic about the future of FEMSA, and as I approach my retirement, I am especially thankful to our more than 320,000 colleagues that put in their best effort day after day, and year after year. It has been the honor of my lifetime to work with, and for, you all."

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1

QUARTERLY RESULTS

Results are compared to the same period of previous year

femsa consolidateD

FEMSA CONSOLIDATED

3Q21 Financial Summary

(Millions of Ps.)

3Q21 3Q20 Var. Org.
Revenues 142,443 126,501 12.6 % 11.1 %
Income from Operations 12,976 11,355 14.3 % 13.4 %
Income from Operations Margin (%) 9.1 9.0 10 bps
Operative Cash Flow (EBITDA) 20,572 18,812 9.4 % 8.8 %
Operative Cash Flow (EBITDA) Margin (%) 14.4 14.9 -50 bps
Net Income 16,046 4,691 N.S.

CONSOLIDATED NET DEBT

(Millions of Ps.)

As of September 30, 2021 Ps. US$ 3
Cash 114,668 5,577
Short-term debt 5,075 247
Long-term debt 4 179,327 8,721
Net debt 4 69,734 3,391

Total revenues increased 12.6% in 3Q21 compared to 3Q20, reflecting growth across our business units coupled with an undemanding comparison base for the quarter, partially offset by increased operating restrictions in Mexico, in connection with the third wave of the COVID-19 pandemic. On an organic1 basis, total revenues increased 11.1%.

Gross profit increased 9.4%. Gross margin decreased 110 basis points, mainly driven by a contraction at Coca-Cola FEMSA, and at FEMSA Comercio's Health and Fuel Divisions, partially offset by an expansion at FEMSA Comercio's Proximity Division.

Income from operations increased 14.3%. On an organic1 basis, income from operations increased 13.4%. Consolidated operating margin increased 10 basis points to 9.1% of total revenues, reflecting margin expansion at FEMSA Comercio's Proximity and Fuel Divisions, partially offset by margin contractions at Coca-Cola FEMSA and FEMSA Comercio's Health Division.

Our effective income tax rate was 32.6% in 3Q21 compared to 33.2% in 3Q20, and our income tax was Ps. 4,205 million in 3Q21.

Net consolidated income increased to Ps. 16,046 million, driven by: i) higher income from operations; ii) higher non-operating income, reflecting dividends received from our investment in JRD; iii) a non-cash foreign exchange gain related to FEMSA's U.S. dollar-denominated cash position as impacted by the depreciation of the Mexican peso; and iv) an increase in our participation in associates' results, which mainly reflects the improved results of our investment in Heineken relative to 3Q20, including an exceptional gain recorded by Heineken reflecting a fair value adjustment from one of their investments. This was partially offset by higher interest expense.

Net majority income was Ps. 3.94 per FEMSA Unit2 and US$1.92 per FEMSA ADS.

Capital expenditures amounted to Ps. 6,713 million, reflecting the reactivation of ongoing investment activities at most of our business units.

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

2 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of September 30, 2021 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

3 The exchange rate published by the Federal Reserve Bank of New York for September 30, 2021 was 20.5620 MXN per USD.

4 Includes the effect of derivative financial instruments on long-term debt. Excludes long-term leases.

October 28, 2021 2

FEMSA COMERCIO - Proximity DIVISION

FEMSA COMERCIO - PROXIMITY DIVISION

3Q21 Financial Summary

(Millions of Ps. except same-stores sales)

3Q21 3Q20 Var.
Same-store sales (thousands of Ps.) 795 724 9.7 %
Revenues 50,808 45,478 11.7 %
Income from Operations 4,642 2,474 87.6 %
Income from Operations Margin (%) 9.1 5.4 370 bps
Operative Cash Flow (EBITDA) 7,502 5,269 42.4 %
Operative Cash Flow (EBITDA) Margin (%) 14.8 11.6 320 bps

Total revenues increased 11.7% in 3Q21 compared to 3Q20, reflecting a 9.7% average same-store sales increase, driven by a 6.8% growth in average customer ticket and an increase of 2.8% in store traffic. These figures reflect an undemanding comparison base coupled with a shift in our sales mix towards home consumption categories and SKUs in connection with the COVID-19 pandemic, partially offset by increased operating restrictions during the quarter. During the quarter, OXXO's store base expanded by 163 units to reach 364 total net new store openings for the last twelve months. As of September 30, 2021, FEMSA Comercio's Proximity Division had a total of 19,997 OXXO stores.

Gross profit reached 41.3% of total revenues, reflecting more dynamic commercial income activity and promotional programs with our key supplier partners, coupled with sustained growth of the services category including income from financial services.

Income from operations amounted to 9.1% of total revenues, driven by higher operating leverage. Operating expenses increased 5.8% to Ps. 16,367 million, below revenues, reflecting cost efficiencies and tight expense control, partially offset by our continuing initiative to gradually shift from commission-based store teams to employee-based teams and an undemanding comparison base in 3Q20 that included extraordinary expenses in connection with the COVID-19 pandemic.

October 28, 2021 3

FEMSA COMERCIO - HEALTH DIVISION

FEMSA COMERCIO - HEALTH DIVISION

3Q21 Financial Summary

(Millions of Ps. except same-stores sales)

3Q21 3Q20 Var.
Same-store sales (thousands of Ps.) 1,374 1,319 4.2 %
Revenues 18,319 16,932 8.2 %
Income from Operations 967 923 4.8 %
Income from Operations Margin (%) 5.3 5.5 -20 bps
Operative Cash Flow (EBITDA) 1,868 1,846 1.2 %
Operative Cash Flow (EBITDA) Margin (%) 10.2 10.9 -70 bps

Total revenues increased 8.2% in 3Q21 compared to 3Q20, mainly reflecting higher consumption in Chile coupled with positive trends in our Mexican and Colombian operations, partially offset by a negative currency translation effect related to the depreciation of the Chilean and Colombian pesos relative to the Mexican peso. During the quarter, the Health Division's store base expanded by 81 units reaching a total of 3,540 points of sale across its territories as of September 30, 2021. This figure reflects the addition of 291 net new store openings for the last twelve months. Same-store sales for drugstores increased an average of 4.2%, reflecting the revenue drivers described above. On a currency-neutral1 basis, total revenues increased 16.4% while same-store sales increased by 16.2%.

Gross profit represented 30.0% of total revenues, reflecting: i) higher institutional sales in our operations in Chile and Colombia; and ii) increased promotional activities in our operations in South America. These were partially offset by improved efficiency and more effective collaboration and execution with key supplier partners in Mexico.

Income from operations amounted to 5.3% of total revenues. Operating expenses increased 7.1% to Ps. 4,528 million, below revenue growth, reflecting tight expense control and efficiency gains across our operations.

1 Calculated by translating comparable period figures at the foreign currency exchange rates used in the current period.

October 28, 2021 4

FEMSA COMERCIO - FUEL DIVISION

FEMSA COMERCIO - FUEL DIVISION

3Q21 Financial Summary

(Millions of Ps. except same-stations sales)

3Q21 Comparable
3Q20(1)
Var.* Reported
3Q20
Same-station sales (thousands of Ps.) 6,077 5,206 16.7 % 5,206
Revenues 10,349 8,585 20.5 % 8,568
Income from Operations 417 308 35.4 % 316
Income from Operations Margin (%) 4.0 3.6 40 bps 3.7
Operative Cash Flow (EBITDA) 656 532 23.3 % 540
Operative Cash Flow (EBITDA) Margin (%) 6.3 6.2 10 bps 6.3
(1) Includes wholesale and distribution operations
*vs. Comparable Results

Total revenues increased 20.5% in 3Q21 compared to 3Q20, reflecting a 16.7% average same-station sales increase, driven by a 4.8% growth in the average volume and a 11.4% increase in the average price per liter. This reflects an undemanding comparison base which was affected by reduced vehicle mobility in connection with the COVID-19 pandemic. During the quarter, the Fuel Division added 3 stations, reaching a total of 566 points of sale as of September 30, 2021. This figure reflects the addition of 15 total net new stations for the last twelve months.

Gross profit reached 12.9% of total revenues.

Income from operations amounted to 4.0% of total revenues. Operating expenses increased 4.3% to Ps. 913 million, below revenues, reflecting tight expense control and positive operating leverage.

October 28, 2021 5

Logistics and Distribution

LOGISTICS AND DISTRIBUTION

3Q21 Financial Summary

(Millions of Ps.)

3Q21
Revenues 11,734
Income from Operations 602
Income from Operations Margin (%) 5.1
Operative Cash Flow (EBITDA) 1,257
Operative Cash Flow (EBITDA) Margin (%) 10.7

Total revenues amounted to Ps. 11,734 million, reflecting stable demand dynamics in our operations in Latin America, coupled with a gradual recovery of some end-user segments in the United States.

Gross profit reached 21.8% of total revenues, reflecting favorable sales mix and efficiencies in our Latin American operations.

Income from operations represented 5.1% of total revenues. Operating expenses totaled Ps. 1,959 million, reflecting high operating leverage driven by tight expense control and efficiencies across markets.

October 28, 2021 6

results FOR FIRST Nine MOnths OF 2021

Results are compared to the same period of previous year

femsa consolidated

FEMSA CONSOLIDATED

Financial Summary for the First Nine Months

(Millions of Ps.)

2021 2020 Var. Org.
Revenues 404,275 363,155 11.3 % 7.9 %
Income from Operations 36,475 28,323 28.8 % 26.9 %
Income from Operations Margin (%) 9.0 7.8 120 bps
Operative Cash Flow (EBITDA) 58,925 51,062 15.4 % 13.6 %
Operative Cash Flow (EBITDA) Margin (%) 14.6 14.1 50 bps
Net Income 27,568 3,018 N.S.

Total revenues increased 11.3%. On an organic basis,1 total revenues increased 7.9% reflecting growth across all operations.

Gross profit increased 11.4%. Gross margin remained flat at 38.0% of total revenues, reflecting gross margin expansion at Coca-Cola FEMSA and FEMSA Comercio's Proximity Division, offset by a contraction at FEMSA Comercio's Health and Fuel Divisions.

Income from operations increased 28.8%. On an organic basis,1 income from operations increased 26.9%. Our consolidated operating margin increased 120 basis points to 9.0% of total revenues, reflecting margin expansion at Coca-Cola FEMSA and FEMSA Comercio's Proximity and Health Division, partially offset by a contraction at FEMSA Comercio's Fuel Division.

Net consolidated income increased to Ps. 27,568 million, reflecting: i) higher income from operations at all our business units; ii) higher non-operating income; and iii) an increase in our participation in associates' results, which mainly reflects the results of our investment in Heineken, including an exceptional gain recorded by Heineken during the 3Q21, reflecting a fair value adjustment from one of their investments. These were partially offset by higher interest expense.

Net majority income per FEMSA Unit2 was Ps. 6.08 (US$2.96 per ADS).

Capital expenditures amounted to Ps. 15,254 million, reflecting lower investments at most of our business units.

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

2 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of September 30, 2021 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

October 28, 2021 7

femsa comercio - PROXIMITY division

FEMSA COMERCIO - PROXIMITY DIVISION

Financial Summary for the First Nine Months

(Millions of Ps. except same-stores sales)

2021 2020 Var.
Same-store sales (thousands of Ps.) 761 717 6.1 %
Revenues 145,076 134,508 7.9 %
Income from Operations 11,622 7,113 63.4 %
Income from Operations Margin (%) 8.0 5.3 270 bps
Operative Cash Flow (EBITDA) 20,058 15,645 28.2 %
Operative Cash Flow (EBITDA) Margin (%) 13.8 11.6 220 bps

Total revenues increased 7.9%. OXXO's same-store sales increased an average of 6.1%, driven by a 10.0% increase in average customer ticket, partially offset by a 3.6% decrease in store traffic.

Gross profit reached 41.0% of total revenues.

Income from operations amounted to 8.0% of total revenues, reflecting an undemanding comparison base in 2020, driven by the COVID-19 pandemic. Operating expenses increased 3.4% to Ps. 47,899 million.

femsa comercio - health division

FEMSA COMERCIO - HEALTH DIVISION

Financial Summary for the First Nine Months

(Millions of Ps. except same-stores sales)

2021 2020 Var.
Same-store sales (thousands of Ps.) 1,380 1,243 11.0 %
Revenues 54,446 47,852 13.8 %
Income from Operations 2,833 1,813 56.3 %
Income from Operations Margin (%) 5.2 3.8 140 bps
Operative Cash Flow (EBITDA) 5,418 4,454 21.6 %
Operative Cash Flow (EBITDA) Margin (%) 10.0 9.3 70 bps

Total revenues increased by 13.8%. Same-store sales for drugstores increased by an average of 11.0%, reflecting positive trends in our Mexican, Chilean and Colombian operations, partially offset by strict mobility restrictions across our South American operations.

Gross profit reached 29.4% of total revenues.

Income from operations amounted to 5.2% of total revenues. Operating expenses increased 6.1% to Ps. 13,165 million.

October 28, 2021 8

FEMSA COMERCIO - FUEL DIVISION

FEMSA COMERCIO - FUEL DIVISION

Financial Summary for the First Nine Months

(Millions of Ps. except same-stations sales)

2021 Comparable
2020(1)
Var.* Reported
2020
Same-station sales (thousands of Ps.) 5,703 5,211 9.4 % 5,211
Revenues 28,858 25,824 11.7 % 25,808
Income from Operations 981 923 6.3 % 602
Income from Operations Margin (%) 3.4 3.6 -20 bps 2.3
Operative Cash Flow (EBITDA) 1,700 1,593 6.7 % 1,272
Operative Cash Flow (EBITDA) Margin (%) 5.9 6.2 -30 bps 4.9
(1) Includes wholesale and distribution operations
*vs. Comparable Results

Total revenues increased 11.7%. Same-station sales increased an average of 9.4%, reflecting a 11.4% increase in the average price per liter, partially offset by a 1.8% decrease in average volume.

Gross profit reached 12.8% of total revenues.

Income from operations amounted to 3.4% of total revenues. Operating expenses increased 4.3% to Ps. 2,726 million.

Logistics and Distribution

LOGISTICS AND DISTRIBUTION

Financial Summary for the First Nine Months

(Millions of Ps.)

2021
Revenues 33,809
Income from Operations 1,553
Income from Operations Margin (%) 4.6
Operative Cash Flow (EBITDA) 3,418
Operative Cash Flow (EBITDA) Margin (%) 10.1

Total revenues amounted to Ps. 33,809 million, reflecting positive demand dynamics in our operations in Latin America, coupled with gradual recovery trends in the United States. These were partially offset by the negative currency translation effect from the depreciation of the Brazilian Real relative to the Mexican peso.

Gross profit reached 21.8% of total revenues, reflecting favorable sales mix and efficiencies in our Latin American operations.

Income from operations represented 4.6% of total revenues. Operating expenses totaled Ps. 5,829 million, reflecting high operating leverage driven by tight expense control and efficiencies across markets.

October 28, 2021 9

coca-cola femsa

Coca-Cola FEMSA's financial results and discussion thereof are incorporated by reference from Coca-Cola FEMSA's press release, which is attached to this press release or may be accessed by visiting http://www.coca-colafemsa.com

RECENT DEVELOPMENTS

· On August 31, 2021, FEMSA announced that Envoy Solutions, FEMSA's specialized distribution subsidiary in the United States, reached an agreement to acquire Daycon Products Co. ("Daycon"), an independent specialized distribution company based in Upper Marlboro, Maryland. Daycon will further expand and strengthen FEMSA's distribution footprint along the East Coast of the United States, including Washington D.C. and the states of Virginia, West Virginia, Maryland, Delaware, New Jersey and Pennsylvania. This transaction represents another important step in FEMSA's strategic path to build a leading national distribution platform in the United States. Revenues of the acquired business for the last twelve months as of June 2021, were approximately US$ 75 million. The transaction was successfully closed during September 2021.
· On September 8, 2021, FEMSA announced that Envoy Solutions, FEMSA's specialized distribution subsidiary in the United States, reached an agreement to acquire Penn Jersey Paper Co. ("PJP"), an independent specialized distribution company based in Philadelphia, Pennsylvania. PJP fits well with FEMSA's distribution footprint along the East Coast, expanding its coverage to include the Philadelphia metro area and New York City. This transaction represents another important step in FEMSA's strategic path to build a leading national distribution platform in the United States. Revenues of the acquired business for the last twelve months as of June 2021, were over US$ 200 million. The transaction is subject to customary closing conditions and approvals and is expected to close during the fourth quarter of 2021.
· On October 18, 2021, FEMSA announced that in accordance with its senior leadership succession planning process, and consistent with previously established timeframes, Eduardo Padilla will retire from his position as FEMSA's Chief Executive Officer on January 1, 2022. Accordingly, FEMSA's Board of Directors has appointed Daniel Rodríguez Cofré, currently CEO of FEMSA Comercio, to become FEMSA's Chief Executive Officer as of January 1, 2022.

CONFERENCE CALL INFORMATION:

Our Third Quarter 2021 Conference Call will be held on: Friday, October 29, 2021, 10:00 AM Eastern Time (9:00 AM Mexico City Time). To participate in the conference call, please dial: Domestic US: (800) 263 0877; International: +1 (646) 828 8143; Conference Id: 1173151. The conference call will be webcast live through streaming audio. For details please visit www.femsa.com/investor.

If you are unable to participate live, the conference call audio will be available on http://ir.FEMSA.com/results.cfm

October 28, 2021 10

FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through FEMSA Comercio, comprising a Proximity Division operating OXXO, a small-format store chain, a Health Division, which includes drugstores and related activities, and a Fuel Division, which operates the OXXO Gas chain of retail service stations. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume; and in the beer industry, as the second largest shareholder of Heineken, one of the world's leading brewers with operations in over 70 countries. FEMSA also participates in the logistics and distribution industry through its Strategic Business Unit, which additionally provides point-of-sale refrigeration and plastic solutions to its business units and third-party clients. Across its business units, FEMSA has more than 320,000 employees in 13 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index, among other indexes that evaluate its sustainability performance.

The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the noon buying rate for Mexican pesos as published by the Federal Reserve Bank of New York on September 30, 2021, which was 20.5620 Mexican pesos per US dollar.

FORWARD-LOOKING STATEMENTS

This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

eight pages of tables and Coca-Cola FEMSA's press release to follow

October 28, 2021 11

FEMSA

Consolidated Income Statement

Millions of Pesos

For the third quarter of: For the nine months of:
2021 % of rev. 2020 % of rev. % Var. % Org.(A) 2021 % of rev. 2020 % of rev. % Var. % Org.(A)
Total revenues 142,443 100.0 126,501 100.0 12.6 11.1 404,275 100.0 363,155 100.0 11.3 7.9
Cost of sales 89,349 62.7 77,965 61.6 14.6 250,665 62.0 225,301 62.0 11.3
Gross profit 53,094 37.3 48,536 38.4 9.4 153,610 38.0 137,854 38.0 11.4
Administrative expenses 6,903 4.8 5,914 4.7 16.7 19,321 4.8 16,189 4.5 19.3
Selling expenses 33,259 23.4 31,062 24.5 7.1 97,425 24.1 92,199 25.4 5.7
Other operating expenses (income), net (1) (44 ) - 205 0.2 (121.5 ) 389 0.1 1,143 0.3 (66.0 )
Income from operations(2) 12,976 9.1 11,355 9.0 14.3 13.4 36,475 9.0 28,323 7.8 28.8 26.9
Other non-operating expenses (income) (2,005 ) 2,554 (178.5 ) (3,008 ) 9,653 (131.2 )
Interest expense 3,983 3,035 31.2 12,718 12,549 1.3
Interest income 329 528 (37.7 ) 876 1,846 (52.5 )
Interest expense, net 3,654 2,507 45.8 11,842 10,703 10.6
Foreign exchange loss (gain) (1,496 ) 2,790 (153.6 ) (535 ) (5,326 ) (90.0 )
Other financial expenses (income), net. (64 ) (91 ) (29.7 ) (351 ) (270 ) 30.0
Financing expenses, net 2,094 5,206 (59.8 ) 10,956 5,107 114.5
Income before income tax and participation in associates results 12,887 3,595 N.S. 28,527 13,563 110.3
Income tax 4,205 32.6 % 1,195 33.2 % N.S. 10,178 36 % 11,651 86 % (12.6 )
Participation in associates results(3) 7,364 2,291 N.S. 9,219 1,106 N.S.
(Loss) Consolidated net income 16,046 4,691 N.S. 27,568 3,018 N.S.
Net majority income 14,114 3,223 N.S. 21,768 (692 ) N.S.
Net minority income 1,932 1,468 31.6 5,800 3,710 56.3
Operative Cash Flow & CAPEX 2021 % Integral 2020 % Integral % Inc. % Org.(A) 2021 % Integral 2020 % Integral % Inc. % Org.(A)
Income from operations 12,976 9.1 11,355 9.0 14.3 13.4 36,475 9.0 28,323 7.8 28.8 26.9
Depreciation 6,272 4.4 6,304 5.0 (0.5 ) 18,721 4.6 18,774 5.2 (0.3 )
Amortization & other non-cash charges 1,324 0.9 1,153 0.9 14.8 3,729 1.0 3,965 1.1 (6.0 )
Operative Cash Flow (EBITDA) 20,572 14.4 18,812 14.9 9.4 8.8 58,925 14.6 51,062 14.1 15.4 13.6
CAPEX 6,713 4,851 38.4 15,254 14,542 4.9

(A) Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.

(1) Other operating expenses (income), net = other operating expenses (income) +(-) equity method from operated associates.

(2) Income from operations = gross profit - administrative and selling expenses - other operating expenses (income), net.

(3) Mainly represents the equity method participation in Heineken´s and Raizen convenience stores results, net.
October 28, 2021 12

FEMSA

Consolidated Balance Sheet

Millions of Pesos

Sep-21 Dec-20 % Inc.
ASSETS
Cash and cash equivalents 114,668 107,624 6.5
Investments 10,386 662 N.S.
Accounts receivable 30,161 28,249 6.8
Inventories 47,620 44,034 8.1
Other current assets 21,325 20,700 3.0
Total current assets 224,160 201,269 11.4
Investments in shares 107,646 98,270 9.5
Property, plant and equipment, net 112,422 113,106 (0.6 )
Right of use 55,411 54,747 1.2
Intangible assets (1) 153,477 155,501 (1.3 )
Other assets 68,966 61,955 11.3
TOTAL ASSETS 722,082 684,848 5.4
LIABILITIES & STOCKHOLDERS´ EQUITY
Bank loans 2,372 4,469 (46.9 )
Current maturities of long-term debt 2,703 4,332 (37.6 )
Interest payable 1,638 2,069 (20.8 )
Current maturities of long-term leases 6,896 6,772 1.8
Operating liabilities 119,091 100,771 18.2
Total current liabilities 132,700 118,413 12.1
Long-term debt (2) 179,327 174,706 2.6
Long-term leases 52,903 51,536 2.7
Laboral obligations 7,393 7,253 1.9
Other liabilities 24,594 25,753 (4.5 )
Total liabilities 396,917 377,661 5.1
Total stockholders' equity 325,165 307,187 5.9
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 722,082 684,848 5.4
September 30, 2021
DEBT MIX (2)% of TotalAverage Rate
Denominated in:
Mexican pesos 37.2 % 7.4 %
U.S. Dollars 37.1 % 3.3 %
Euros 15.7 % 0.7 %
Colombian pesos 1.0 % 3.8 %
Argentine pesos 0.3 % 47.5 %
Brazilian reais 6.8 % 7.5 %
Chilean pesos 1.1 % 3.4 %
Uruguayan Pesos 0.8 % 6.6 %
Guatemalan Quetzal 0.0 % 6.3 %
Total debt 100.0 % 4.9 %
Fixed rate (2) 93.7 %
Variable rate (2) 6.3 %
DEBT MATURITY PROFILE 2021 2022 2023 2024 2025 2026+
% of Total Debt 1.0 % 1.7 % 3.6 % 3.4 % 1.0 % 89.2 %

(1) Includes mainly the intangible assets generated by acquisitions.

(2) Includes the effect of derivative financial instruments on long-term debt.

October 28, 2021 13

FEMSA Comercio - Proximity Division

Results of Operations

Millions of Pesos

For the third quarter of: For the nine months of:
2021 % of rev. 2020 % of rev. % Var. 2021 % of rev. 2020 % of rev. % Var.
Total revenues 50,808 100.0 45,478 100.0 11.7 145,076 100.0 134,508 100.0 7.9
Cost of sales 29,799 58.7 27,528 60.5 8.2 85,555 59.0 81,076 60.3 5.5
Gross profit 21,009 41.3 17,950 39.5 17.0 59,521 41.0 53,432 39.7 11.4
Administrative expenses 1,464 2.9 1,334 2.9 9.7 4,269 2.9 3,988 3.0 7.0
Selling expenses 14,831 29.2 14,061 31.0 5.5 43,427 30.0 41,870 31.1 3.7
Other operating expenses (income), net 72 0.1 81 0.2 (11.1 ) 203 0.1 461 0.3 (56.0 )
Income from operations 4,642 9.1 2,474 5.4 87.6 11,622 8.0 7,113 5.3 63.4
Depreciation 2,620 5.2 2,600 5.7 0.8 7,760 5.3 7,705 5.7 0.7
Amortization & other non-cash charges 240 0.5 195 0.5 23.1 676 0.5 827 0.6 (18.3 )
Operative cash flow (EBITDA) 7,502 14.8 5,269 11.6 42.4 20,058 13.8 15,645 11.6 28.2
CAPEX 2,195 1,740 26.2 5,233 5,688 (8.0 )
Information of OXXO Stores
Total stores 19,997 19,633 1.9
Stores Mexico 19,719 19,373 1.8
Stores South America 278 260 6.9
Net new conveniences stores:
vs. Last quarter 163 75 117.3
Year-to-date 431 303 42.2
Last-twelve-months 364 793 (54.1 )
Same-store data: (1)
Sales (thousands of pesos) 794.6 724.1 9.7 761.1 717.3 6.1
Traffic (thousands of transactions) 17.6 17.1 2.8 17.3 17.9 (3.6 )
Ticket (pesos) 45.1 42.2 6.8 44.1 40.1 10.0

(1) Monthly average information per store, considering same stores with more than twelve months of operations, income from services are included.

October 28, 2021 14

FEMSA Comercio - Health Division

Results of Operations

Millions of Pesos

For the third quarter of: For the nine months of:
2021 % of rev. 2020 % of rev. % Var. 2021 % of rev. 2020 % of rev. % Var.
Total revenues 18,319 100.0 16,932 100.0 8.2 54,446 100.0 47,852 100.0 13.8
Cost of sales 12,824 70.0 11,783 69.6 8.8 38,448 70.6 33,630 70.3 14.3
Gross profit 5,495 30.0 5,149 30.4 6.7 15,998 29.4 14,222 29.7 12.5
Administrative expenses 795 4.3 798 4.7 (0.4 ) 2,349 4.3 2,465 5.2 (4.7 )
Selling expenses 3,653 20.0 3,410 20.1 7.1 10,766 19.8 9,872 20.5 9.1
Other operating expenses (income), net 80 0.4 18 0.1 N.S. 50 0.1 72 0.2 (30.6 )
Income from operations 967 5.3 923 5.5 4.8 2,833 5.2 1,813 3.8 56.3
Depreciation 698 3.8 744 4.4 (6.2 ) 2,142 3.9 2,187 4.6 -2.1
Amortization & other non-cash charges 203 1.1 179 1.0 13.4 443 0.9 454 0.9 (2.4 )
Operative cash flow (EBITDA) 1,868 10.2 1,846 10.9 1.2 5,418 10.0 4,454 9.3 21.6
CAPEX 424 325 30.5 1,009 1,062 (5.0 )
Information of Stores
Total Stores 3,540 3,249 9.0
Stores Mexico 1,394 1,290 8.1
Stores South America 2,146 1,959 9.5
Net new stores:
vs. Last quarter 81 60 35.0
Year-to-date 172 88 95.5
Last-twelve-months 291 119 144.5
Same-store data: (1)
Sales (thousands of pesos) 1,374.3 1,318.8 4.2 1,379.6 1,243.0 11.0

(1) Monthly average information per store, considering same stores with more than twelve months of all the operations of FEMSA Comercio - Health Division.

October 28, 2021 15

FEMSA Comercio - Fuel Division

Results of Operations

Millions of Pesos

For the third quarter of:
Comparable (A) As Reported
2021 % of rev. 2020 % of rev. % Var. 2020 % of rev. % Var.
Total revenues 10,349 100.0 8,585 100.0 20.5 8,568 100.0 20.8
Cost of sales 9,019 87.1 7,402 86.2 21.8 7,401 86.4 21.9
Gross profit 1,330 12.9 1,183 13.8 12.4 1,167 13.6 14.0
Administrative expenses 65 0.6 71 0.8 (8.5 ) 71 0.8 (8.5 )
Selling expenses 848 8.3 804 9.4 5.5 780 9.1 8.7
Other operating expenses (income), net - - - - - - - -
Income from operations 417 4.0 308 3.6 35.4 316 3.7 32.0
Depreciation 240 2.3 219 2.6 9.6 219 2.6 9.6
Amortization & other non-cash charges (1 ) - 5 - (120.0 ) 5 - (120.0 )
Operative cash flow 656 6.3 532 6.2 23.3 540 6.3 21.5
CAPEX 40 124 (67.6 ) 124 (67.6 )
Information of OXXO GAS Service Stations
Total service stations 566 551 2.7
Net new service stations
vs. Last quarter 3 - -
Year-to-date 8 6 33.3
Last-twelve-months 15 10 50.0
Volume (million of liters) total stations 540 509 6.0
Same-stations data: (1)
Sales (thousands of pesos) 6,077.0 5,206.1 16.7
Volume (thousands of liters) 324.5 309.6 4.8
Average price per liter 18.7 16.8 11.4

(A) Unaudited consolidated financial information

(1) Monthly average information per station, considering same stations with more than twelve months of operations.

FEMSA Comercio - Fuel Division

Results of Operations

Millions of Pesos

For the nine months of:
Comparable (A) As Reported
2021 % of rev. 2020 % of rev. % Var. 2020 % of rev. % Var.
Total revenues 28,858 100.0 25,824 100.0 11.7 25,808 100.0 11.8
Cost of sales 25,151 87.2 22,287 86.3 12.8 22,639 87.7 11.1
Gross profit 3,707 12.8 3,537 13.7 4.8 3,169 12.3 17.0
Administrative expenses 211 0.7 178 0.7 18.5 178 0.7 18.5
Selling expenses 2,521 8.7 2,430 9.4 3.7 2,383 9.3 5.8
Other operating expenses (income), net (6 ) - 6 - N.S. 6 - N.S.
Income from operations 981 3.4 923 3.6 6.3 602 2.3 63.0
Depreciation 715 2.5 648 2.5 10.3 648 2.5 10.3
Amortization & other non-cash charges 4 - 22 0.1 (81.8 ) 22 0.1 (81.8 )
Operative cash flow 1,700 5.9 1,593 6.2 6.7 1,272 4.9 33.6
CAPEX 209 337 (38.0 ) 337 (38.0 )
Information of OXXO GAS Service Stations
Total service stations 566 551 2.7
Net new service stations
vs. Last quarter 3 - -
Year-to-date 8 6 33.3
Last-twelve-months 15 10 50.0
Volume (million of liters) total stations 1,539 1,551 (0.8 )
Same-stations data: (1)
Sales (thousands of pesos) 5,702.8 5,211.4 9.4
Volume (thousands of liters) 308.1 313.7 (1.8 )
Average price per liter 18.5 16.6 11.4

(A) Unaudited consolidated financial information

(1) Monthly average information per station, considering same stations with more than twelve months of operations.

October 28, 2021 15

Logistics and Distribution

Results of Operations

Millions of Pesos

For the third quarter of: For the nine months of:
2021 % of rev. 2021 % of rev.
Total revenues 11,734 100.0 33,809 100.0
Cost of sales 9,172 78.2 26,427 78.2
Gross profit 2,561 21.8 7,382 21.8
Administrative expenses 1,077 9.2 3,232 9.6
Selling expenses 888 7.6 2,595 7.6
Other operating expenses (income), net (6 ) (0.1 ) 2 -
Income from operations 602 5.1 1,553 4.6
Depreciation 463 3.9 1,307 3.9
Amortization & other non-cash charges 192 1.7 558 1.6
Operative cash flow (EBITDA) 1,257 10.7 3,418 10.1
CAPEX 108 433
October 28, 2021 16

Coca-Cola FEMSA

Results of Operations

Millions of pesos

For the third quarter of: For the nine months of:
2021 % of rev. 2020 % of rev. % Var. 2021 % of rev. 2020 % of rev. % Var.
Total revenues 48,316 100.0 46,734 100.0 3.4 141,091 100.0 135,015 100.0 4.5
Cost of sales 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 64,423 45.7 61,088 45.2 5.5
Administrative expenses 2,653 5.5 2,079 4.4 27.6 6,759 4.8 5,808 4.3 16.4
Selling expenses 12,877 26.7 12,137 26.0 6.1 37,876 26.9 36,511 27.0 3.7
Other operating expenses (income), net (190 ) (0.4 ) 32 0.1 N.S. 168 0.1 796 0.6 (78.9 )
Income from operations 6,476 13.4 7,119 15.2 (9.0 ) 19,620 13.9 17,973 13.3 9.2
Depreciation 2,202 4.6 2,281 4.9 (3.5 ) 6,640 4.7 6,853 5.1 (3.1 )
Amortization & other non-cash charges 641 1.3 674 1.5 (4.9 ) 1,899 1.4 2,537 1.9 (25.1 )
Operative cash flow (EBITDA) 9,320 19.3 10,075 21.6 (7.5 ) 28,159 20.0 27,363 20.3 2.9
CAPEX 3,907 2,397 63.0 8,222 6,262 31.3
Sales volumes
(Millions of unit cases)
Mexico and Central America 509.0 59.6 498.7 61.7 2.1 1,526.1 60.9 1,496.7 62.8 2.0
South America 122.6 14.4 101.3 12.5 21.1 349.3 13.9 298.0 12.5 17.2
Brazil 222.8 26.1 208.0 25.7 7.1 631.1 25.2 587.5 24.7 7.4
Total 854.5 100.0 807.9 100.0 5.9 2,506.5 100.0 2,382.2 100.0 5.2
October 28, 2021 18

FEMSA

Macroeconomic Information

End-of-period Exchange Rates
Inflation Sep-21 Dec-20
3Q 2021 LTM (1) Sep-21 Per USD Per MXN Per USD Per MXN
Mexico 0.79 % 5.87 % 20.31 1.0000 19.95 1.0000
Colombia 0.77 % 4.46 % 3,834.68 0.0053 3,432.50 0.0058
Brazil 1.76 % 9.80 % 5.44 3.7331 5.20 3.8387
Argentina 5.29 % 48.27 % 98.74 0.2057 84.15 0.2371
Chile 1.41 % 4.76 % 803.59 0.0253 711.24 0.0280
Euro Zone 0.35 % 3.75 % 0.85 23.8952 0.81 24.5213

(1) LTM = Last twelve months.

October 28, 2021 19

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
Consolidated 3.4 % 4.5 % 2.1 % 5.5 % (9.0 )% 9.2 % 38.8 % 39.0%
As Reported 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 %
Consolidated 8.8 % 11.1 % 6.8 % 11.3 % (7.0 )% 13.3 %
Comparable (2) 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.
Coca-Cola FEMSA Reports 3Q2021 Results
October 27, 2021
Page 20 of 35

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 21 of 35

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 22 of 35

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 23 of 35

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 24 of 35

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 25 of 35

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 26 of 35

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 27 of 35

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 28 of 35

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 29 of 35
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 30 of 35
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 31 of 35
COCA-COLA FEMSA
CONSOLIDATED BALANCE SHEET
Millions of Pesos
Sep-21 Dec-20 % Var.
Assets
Current Assets
Cash, cash equivalents and marketable securities 50,088 43,497 15 %
Total accounts receivable 8,928 11,523 -23 %
Inventories 13,634 9,727 40 %
Other current assets 6,608 7,693 -14 %
Total current assets 79,259 72,440 9 %
Non-Current Assets
Property, plant and equipment 109,888 109,551 0 %
Accumulated depreciation (50,813 ) (50,091 ) 1 %
Total property, plant and equipment, net 59,076 59,460 -1 %
Right of use assets 1,374 1,278 7 %
Investment in shares 7,372 7,623 -3 %
Intangible assets and other assets 102,542 103,971 -1 %
Other non-current assets 19,468 18,294 6 %
Total Assets 269,090 263,066 2 %
Liabilities & Equity
Current Liabilities
Short-term bank loans and notes payable 2,704 5,017 -46 %
Suppliers 19,755 17,195 15 %
Short-term leasing Liabilities 558 560
Other current liabilities 25,409 20,073 27 %
Total current liabilities 48,426 42,845 13 %
Non-Current Liabilities
Long-term bank loans and notes payable 82,690 82,461 0 %
Long Term Leasing Liabilities 838 746
Other long-term liabilities 14,391 14,557 -1 %
Total liabilities 146,345 140,609 4 %
Equity
Non-controlling interest 5,917 5,583 6 %
Total controlling interest 116,828 116,874 0 %
Total equity 122,745 122,457 0 %
Total Liabilities and Equity 269,090 263,066 2 %
Liabilities & Equity Sep-21 Dec-20 % Var.
Current Liabilities
Short-term bank loans and notes payable 2,704 5,017 -46 %
Suppliers 19,755 17,195 15 %
Short-term leasing Liabilities 558 560
Other current liabilities 25,409 20,073 27 %
Total current liabilities 48,426 42,845 13 %
Non-Current Liabilities
Long-term bank loans and notes payable 82,690 82,461 0 %
Long Term Leasing Liabilities 838 746
Other long-term liabilities 14,391 14,557 -1 %
Total liabilities 146,345 140,609 4 %
Equity
Non-controlling interest 5,917 5,583 6 %
Total controlling interest 116,828 116,874 0 %
Total equity 122,745 122,457 0 %
Total Liabilities and Equity 269,090 263,066 2 %
September 30, 2021
Debt Mix % Total Debt
(1)
% Interest Rate
Floating (1) (2)
Average
Rate
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.

Debt Maturity Profile

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 32 of 35
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 33 of 35

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 34 of 35

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 35 of 35

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FEMSA - Fomento Económico Mexicano SA 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 21:37:09 UTC.