Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Mexico
  4. Mexican Stock Exchange
  5. Fomento Económico Mexicano, S.A.B. de C.V.
  6. News
  7. Summary
    FEMSA UBD   MXP320321310

FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.

(FEMSA UBD)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Fomento Económico Mexicano B de C : FEMSA Announces Second Quarter 2021 Results (Form 6-K)

07/28/2021 | 08:44am EDT

FEMSA Announces Second Quarter 2021 Results

Monterrey, Mexico, July 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 second quarter of 2021.

HIGHLIGHTS

· Our results in 2Q20 were significantly impacted by COVID-19 and the related changes in consumer mobility and behavior across markets. As we look at our 2Q21 results, the comparison base of 2Q20 is only a partial benchmark. Therefore, to facilitate the reader's assessment of our business units' performance in 2Q21, we provide the following table that includes variations versus 2Q19 as well.
FINANCIAL SUMMARY FOR THE SECOND QUARTER AND FIRST SIX MONTHS 2021
Information includes figures in millions of Ps. and variations as change vs. respective period
Revenues Gross Profit Income
from Operations
Same-Store Sales
2Q21 % var vs.
2Q20
% var vs.
2Q19
2Q21 % var vs.
2Q20
% var vs.
2Q19
2Q21 % var vs.
2Q20
% var vs.
2Q19
% var vs.
2Q20
% var vs.
2Q19
FEMSA CONSOLIDATED 137,058 19.7% 6.9% 53,858 23.7% 12.4% 13,973 87.4% 17.1%
FEMSA COMERCIO
Proximity Division 50,850 17.1% 7.8% 21,138 22.6% 12.5% 4,569 188.4% (1.4%) 15.6% (2.5%)
Health Division 18,377 17.6% 20.5% 5,434 13.8% 19.7% 1,056 109.1% 59.0% 14.9% 1.2%
Fuel Division (1) 9,974 56.3% (19.7%) 1,297 31.9% (7.6%) 356 107.0% (21.8%) 53.7% (21.8%)
LOGISTICS & DISTRIBUTION 11,266 N/A N/A 2,468 N/A N/A 586 N/A N/A
COCA-COLA FEMSA 47,786 10.9% (0.4%) 22,560 18.3% 2.1% 7,248 41.3% 14.4%

(1) variations vs. comparable results

Eduardo Padilla, FEMSA's CEO, commented:

'One year ago, we were in the eye of the storm. Our focus was on keeping our people and customers safe, preserving our cash, and making sure that we made it through the crisis in the best possible shape. Today, while the health emergency is not over, there is a clear recovery trend across business units and across markets. This improvement is not linear, nor is it the same for every market, but we are in a much better place now than we were last year in every one of our operations, and in some of them we are already above 2019 levels as well.

At OXXO, we are seeing consumers return to the stores as soon as mobility trends improve, and they are filling their needs as they always do, including thirst, hunger, and the occasional treat. And we are seeing some categories that gained momentum during the lockdowns, such as spirits and pantry replenishment, remain strong. Our Health Division continued leveraging its platform, delivering solid results on top of good numbers last year, and OXXO Gas showed great improvement even as we continued to face the headwinds of lower vehicle mobility in Mexico. Our Logistics and Distribution operations continued to see gradual improvement in their markets, although Latin America is reopening more slowly than the United States. For its part, Coca-Cola FEMSA delivered a very strong set of numbers, reflecting solid performance across markets, and the entire organization driving efficiencies that helped profitability.

Despite the uncertainty of the past twelve months, we remained committed to the long-term efforts that will help us build our future, such as the digital initiatives that already begin to enable new growth avenues across our operations. Those opportunities, combined with the encouraging near-term results we are delivering, make us optimistic about the second half of the year, and beyond. And I take this opportunity to again thank our more than three hundred thousand colleagues for their resilience and unwavering effort.'

1

Results are compared to the same period of previous year

femsa consolidateD

FEMSA CONSOLIDATED CONSOLIDATED NET DEBT
2Q21 Financial Summary
(Millions of Ps.) (Millions of Ps.)
2Q21 2Q20 Var. Org. As of June 30, 2021 Ps. US$ 3
Revenues 137,058 114,514 19.7% 15.7% Cash 107,784 5,415
Income from Operations 13,973 7,456 87.4% 84.9% Short-term debt 5,732 288
Income from Operations Margin (%) 10.2 6.5 370 bps Long-term debt 4 176,716 8,878
Operative Cash Flow (EBITDA) 21,349 15,136 41.0% 38.8% Net debt 4 74,664 3,751
Operative Cash Flow (EBITDA) Margin (%) 15.6 13.2 240 bps
Net Income 5,255 (10,775) 148.8%

Total revenues increased 19.7% in 2Q21 compared to 2Q20, reflecting a recovery in consumption during the second quarter coupled with an undemanding comparison across our business units. On an organic1 basis, total revenues increased 15.7%.

Gross profit increased 23.7%. Gross margin expanded 130 basis points, mainly driven by expansion at Coca-Cola FEMSA and FEMSA Comercio's Proximity Division, partially offset by a contraction at FEMSA Comercio's Health and Fuel Divisions.

Income from operations increased 87.4%. On an organic1 basis, income from operations increased 84.9%, reflecting steady recovery trends across all our business units and an undemanding comparison base in the second quarter of 2020, which reflected COVID-19 pandemic containment measures, including operating and category restrictions. Consolidated operating margin increased 370 basis points to 10.2% of total revenues, reflecting margin expansion across all our business units.

Income tax was Ps. 3,311 million in 2Q21.

Net consolidated income increased to Ps. 5,255 million, driven by: i) higher income from operations across all our business units; and ii) an increase in our participation in associates' results, which mainly reflects the results of our investment in Heineken. This was partially offset by a non-cash foreign exchange loss related to FEMSA's U.S. dollar-denominated cash position as impacted by the appreciation of the Mexican peso during the quarter.

Net majority income was Ps. 0.86 per FEMSA Unit2 and US$0.43 per FEMSA ADS.

Capital expenditures amounted to Ps. 5,172 million, reflecting higher 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 June 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 June 30, 2021 was 19.9060 MXN per USD.

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

July 28, 2021 2

FEMSA COMERCIO - Proximity DIVISION

FEMSA COMERCIO - PROXIMITY DIVISION
2Q21 Financial Summary
(Millions of Ps. except same-stores sales)
2Q21 2Q20 Var.
Same-store sales (thousands of Ps.) 801 693 15.6%
Revenues 50,850 43,409 17.1%
Income from Operations 4,569 1,584 188.4%
Income from Operations Margin (%) 9.0 3.6 540 bps
Operative Cash Flow (EBITDA) 7,360 4,628 59.0%
Operative Cash Flow (EBITDA) Margin (%) 14.5 10.7 380 bps

Total revenues increased 17.1% in 2Q21 compared to 2Q20, reflecting a 15.6% average same-store sales increase, driven by a 7.6% growth in average customer ticket and an increase of 7.4% in store traffic. These figures reflect an undemanding comparison base coupled with improving customer mobility and reduced operating restrictions during the second quarter of 2021. During the quarter, OXXO's store base expanded by 128 units to reach 276 total net new store openings for the last twelve months. As of June 30, 2021, FEMSA Comercio's Proximity Division had a total of 19,834 OXXO stores.

Gross profit reached 41.6% of total revenues, reflecting more dynamic commercial income activity and promotional programs with our key supplier partners.

Income from operations amounted to 9.0% of total revenues, driven by higher operating leverage. Operating expenses increased 5.8% to Ps. 16,569 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 2Q20 that included extraordinary expenses in connection to the COVID-19 pandemic.

July 28, 2021 3

FEMSA COMERCIO - HEALTH DIVISION

FEMSA COMERCIO - HEALTH DIVISION
2Q21 Financial Summary
(Millions of Ps. except same-stores sales)
2Q21 2Q20 Var. Org.
Same-store sales (thousands of Ps.) 1,359 1,183 14.9%
Revenues 18,377 15,624 17.6% 0.0%
Income from Operations 1,056 505 109.1% 0.0%
Income from Operations Margin (%) 5.7 3.2 250 bps
Operative Cash Flow (EBITDA) 1,917 1,418 35.2% 0.0%
Operative Cash Flow (EBITDA) Margin (%) 10.4 9.1 130 bps

Total revenues increased 17.6% in 2Q21 compared to 2Q20, mainly reflecting positive trends in our Mexican, Chilean 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 54 units to reach a total of 3,459 points of sale across its territories as of June 30, 2021. This figure reflects the addition of 270 net new store openings for the last twelve months. Same-store sales for drugstores increased an average of 14.9%, reflecting the revenue drivers described above. On a currency-neutral1 basis, total revenues increased 18.9% while same-store sales increased by 21.6%.

Gross profit represented 29.6% of total revenues, reflecting: i) increased promotional activities in our operations in South America; and ii) higher institutional sales in our operations in Chile and Colombia. These were partially offset by improved efficiency and more effective collaboration and execution with key supplier partners in Mexico.

Income from operations amounted to 5.7% of total revenues, reflecting higher operating leverage. Operating expenses increased 2.5% to Ps. 4,378 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.

July 28, 2021 4

FEMSA COMERCIO - FUEL DIVISION

FEMSA COMERCIO - FUEL DIVISION
2Q21 Financial Summary
(Millions of Ps. except same-stations sales)
2Q21 Comparable
2Q20(1)
Var.* Reported
2Q20
Same-station sales (thousands of Ps.) 5,927 3,855 53.7% 3,855
Revenues 9,974 6,382 56.3% 6,382
Income from Operations 356 172 107.0% 51
Income from Operations Margin (%) 3.6 2.7 90 bps 0.8
Operative Cash Flow (EBITDA) 610 388 57.2% 267
Operative Cash Flow (EBITDA) Margin (%) 6.1 6.1 0 bps 4.2
(1)Includes wholesale and distribution operations
*vs. Comparable Results

Total revenues increased 56.3% in 2Q21 compared to 2Q20, reflecting a 53.7% average same-station sales increase, driven by a 24.2% growth in the average volume and a 23.8% increase in the average price per liter. This reflects an undemanding comparison base which was affected by reduced vehicle mobility in connection to the COVID-19 pandemic. During the quarter, the Fuel Division added 2 stations, to reach a total of 563 points of sale as of June 30, 2021. This figure reflects the addition of 12 total net new stations for the last twelve months.

Gross profit reached 13.0% of total revenues.

Income from operations amounted to 3.6% of total revenues. Operating expenses increased 16.0% to Ps. 941 million, below revenues, reflecting tight expense control and increased expense efficiencies.

July 28, 2021 5

Logistics and Distribution

LOGISTICS AND DISTRIBUTION
2Q21 Financial Summary
(Millions of Ps.)
2Q21
Revenues 11,266
Income from Operations 586
Income from Operations Margin (%) 5.2
Operative Cash Flow (EBITDA) 1,197
Operative Cash Flow (EBITDA) Margin (%) 10.6

Total revenues amounted to Ps. 11,266 million, reflecting positive demand dynamics in our operations in Latin America, coupled with a gradual re-opening and recovery of most end-user segments 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 21.9% of total revenues, reflecting favorable sales mix and efficiencies in our Latin American operations.

Income from operations represented 5.2% of total revenues. Operating expenses totaled Ps. 1,882 million, reflecting high operating leverage driven by tight expense control and efficiencies across markets.

July 28, 2021 6

Results are compared to the same period of previous year

femsa consolidated

FEMSA CONSOLIDATED
Financial Summary for the First Six Months
(Millions of Ps.)
2021 2020 Var. Org.
Revenues 261,556 236,716 10.5% 6.1%
Income from Operations 23,498 16,970 38.5% 35.9%
Income from Operations Margin (%) 9.0 7.2 180 bps
Operative Cash Flow (EBITDA) 38,326 32,256 18.8% 16.4%
Operative Cash Flow (EBITDA) Margin (%) 14.7 13.6 110 bps
Net Income 11,514 (1,669) N.S.

Total revenues increased 10.5%. On an organic basis,1 total revenues increased 6.1% reflecting growth across all operations.

Gross profit increased 12.4%. Gross margin increased 70 basis points to 38.4% of total revenues, reflecting gross margin expansion at Coca-Cola FEMSA and FEMSA Comercio's Proximity Division, partially offset by a contraction at FEMSA Comercio's Health and Fuel Divisions.

Income from operations increased 38.5%. On an organic basis,1 it increased 35.9%. Our consolidated operating margin increased 180 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 a Ps. 11,514 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. These were partially offset by a non-cash foreign exchange loss related to FEMSA's U.S. dollar-denominated cash position as impacted by the appreciation of the Mexican peso.

Net majority income per FEMSA Unit2 was Ps. 2.14 (US$1.07 per ADS).

Capital expenditures amounted to Ps. 8,526 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 June 30, 2021 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

July 28, 2021 7

femsa comercio - PROXIMITY division

FEMSA COMERCIO - PROXIMITY DIVISION
Financial Summary for the First Six Months
(Millions of Ps. except same-stores sales)
2021 2020 Var.
Same-store sales (thousands of Ps.) 744 714 4.2%
Revenues 94,268 89,030 5.9%
Income from Operations 6,980 4,639 50.5%
Income from Operations Margin (%) 7.4 5.2 220 bps
Operative Cash Flow (EBITDA) 12,556 10,376 21.0%
Operative Cash Flow (EBITDA) Margin (%) 13.3 11.7 160 bps

Total revenues increased 5.9%. OXXO's same-store sales increased an average of 4.2%, driven by a 11.6% increase in average customer ticket, partially offset by a 6.6% decrease in store traffic.

Gross profit reached 40.9% of total revenues.

Income from operations amounted to 7.4% of total revenues. Operating expenses increased 2.2% to Ps. 31,532 million.

femsa comercio - health division

FEMSA COMERCIO - HEALTH DIVISION
Financial Summary for the First Six Months
(Millions of Ps. except same-stores sales)
2021 2020 Var.
Same-store sales (thousands of Ps.) 1,383 1,200 15.2%
Revenues 36,127 30,920 16.8%
Income from Operations 1,866 890 109.7%
Income from Operations Margin (%) 5.2 2.9 230 bps
Operative Cash Flow (EBITDA) 3,550 2,609 36.1%
Operative Cash Flow (EBITDA) Margin (%) 9.8 8.4 140 bps

Total revenues increased by 16.8%. Same-store sales for drugstores increased by an average of 15.2%, reflecting positive trends in our Mexican, Chilean and Colombian operations coupled with a positive currency translation effect related to the appreciation of the Chilean peso compared to the Mexican peso during the first six months of the year, partially offset by strict mobility restrictions across our South American operations.

Gross profit reached 29.1% of total revenues.

Income from operations amounted to 5.2% of total revenues. Operating expenses increased 5.5% to Ps. 8,637 million.

July 28, 2021 8

FEMSA COMERCIO - FUEL DIVISION

FEMSA COMERCIO - FUEL DIVISION
Financial Summary for the First Six Months
(Millions of Ps. except same-stations sales)
2021 Comparable
2Q20(1)
Var.* Reported
2Q20
Same-station sales (thousands of Ps.) 5,516 5,214 5.8% 5,214
Revenues 18,509 17,239 7.4% 17,239
Income from Operations 564 615 (8.3%) 285
Income from Operations Margin (%) 3.0 3.6 -60 bps 1.7
Operative Cash Flow (EBITDA) 1,044 1,062 (1.7%) 732
Operative Cash Flow (EBITDA) Margin (%) 5.6 6.2 -60 bps 4.2

(1)Includes wholesale and distribution operations

*vs. Comparable Results

Total revenues increased 7.4%. Same-station sales increased an average of 5.8%, reflecting a 11.4% increase in the average price per liter, partially offset by a 5.0% decrease in the average volume.

Gross profit reached 12.8% of total revenues.

Income from operations amounted to 3.0% of total revenues. Operating expenses increased 4.3% to Ps. 1,813 million.

Logistics and Distribution

LOGISTICS AND DISTRIBUTION
Financial Summary for the First Six Months
(Millions of Ps.)
2021
Revenues 22,074
Income from Operations 953
Income from Operations Margin (%) 4.3
Operative Cash Flow (EBITDA) 2,162
Operative Cash Flow (EBITDA) Margin (%) 9.8

Total revenues amounted to Ps. 22,074 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 4.3% of total revenues. Operating expenses totaled Ps. 3,869 million, reflecting high operating leverage driven by tight expense control and efficiencies across markets.

July 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

CONFERENCE CALL INFORMATION:
Our Second Quarter 2021 Conference Call will be held on: Wednesday, July 28, 2021, 10:00 AM Eastern Time (9:00 AM Mexico City Time). To participate in the conference call, please dial: Domestic US: (866) 548 4713; International: +1 (323) 794 2093; Conference Id: 9127072. 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

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 June 30, 2021, which was 19.9060 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

July 28, 2021 10
FEMSA
Consolidated Income Statement
Millions of Pesos
For the second quarter of: For the six months of:
2021 % of rev. 2020 % of rev. % Var. % Org.(A) 2021 % of rev. 2020 % of rev. % Var. % Org.(A)
Total revenues 137,058 100.0 114,514 100.0 19.7 15.7 261,556 100.0 236,716 100.0 10.5 6.1
Cost of sales 83,200 60.7 70,970 62.0 17.2 161,156 61.6 147,369 62.3 9.4
Gross profit 53,858 39.3 43,544 38.0 23.7 100,400 38.4 89,347 37.7 12.4
Administrative expenses 6,573 4.8 5,263 4.6 24.9 12,404 4.7 10,278 4.3 20.7
Selling expenses 33,175 24.2 30,165 26.3 10.0 64,069 24.5 61,162 25.8 4.8
Other operating expenses (income), net (1) 137 0.1 660 0.6 (79.2) 429 0.2 937 0.4 (54.2)
Income from operations(2) 13,973 10.2 7,456 6.5 87.4 84.9 23,498 9.0 16,970 7.2 38.5 35.9
Other non-operating expenses (income) (565) 7,241 (107.8) (1,003) 7,098 (114.1)
Interest expense 4,878 4,184 16.6 8,714 9,518 (8.4)
Interest income 283 629 (55.0) 543 1,319 (58.8)
Interest expense, net 4,595 3,555 29.3 8,171 8,199 (0.3)
Foreign exchange loss (gain) 2,485 207 N.S. 961 (8,117) (111.8)
Other financial expenses (income), net. (107) (83) 28.9 (261) (181) 44.5
Financing expenses, net 6,973 3,679 89.5 8,871 (99) N.S.
Income before income tax and participation in associates results 7,565 (3,464) N.S. 15,630 9,972 56.7
Income tax 3,311 43.8% 5,733 -165.5% (42.2) 5,970 38% 10,455 105% (42.9)
Participation in associates results(3) 1,001 (1,578) 163.4 1,854 (1,185) N.S.
(Loss) Consolidated net income 5,255 (10,775) 148.8 11,514 (1,669) N.S.
Net majority income 3,082 (11,692) 126.4 7,647 (3,911) N.S.
Net minority income 2,173 917 137.0 3,867 2,242 72.5
Operative Cash Flow & CAPEX 2021 % Integral 2020 % Integral % Inc. % Org.(A) 2021 % Integral 2020 % Integral % Inc. % Org.(A)
Income from operations 13,973 10.2 7,456 6.5 87.4 84.9 23,498 9.0 16,970 7.2 38.5 35.9
Depreciation 6,221 4.5 6,348 5.5 (2.0) 12,428 4.8 12,476 5.3 (0.4)
Amortization & other non-cash charges 1,155 0.9 1,332 1.2 (13.3) 2,400 0.9 2,810 1.1 (14.6)
Operative Cash Flow (EBITDA) 21,349 15.6 15,136 13.2 41.0 38.8 38,326 14.7 32,256 13.6 18.8 16.4
CAPEX 5,172 4,384 18.0 8,526 9,693 (12.0)

(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.

July 28, 2021 11
FEMSA
Consolidated Balance Sheet
Millions of Pesos
ASSETS Jun-21 Dec-20 % Inc.
Cash and cash equivalents 107,784 107,624 0.1 160
Investments 10,107 662 N.S.
Accounts receivable 26,886 28,249 (4.8)
Inventories 44,386 44,034 0.8
Other current assets 22,316 20,700 7.8 x
Total current assets 211,479 201,269 5.1
Investments in shares 91,424 98,270 (7.0)
Property, plant and equipment, net 111,475 113,106 (1.4)
Right of use 54,776 54,747 0.1
Intangible assets (1) 154,870 155,501 (0.4)
Other assets 69,701 61,955 12.5
TOTAL ASSETS 693,725 684,848 1.3
LIABILITIES & STOCKHOLDERS´ EQUITY
Bank loans 3,070 4,469 (31.3)
Current maturities of long-term debt 2,662 4,332 (38.6)
Interest payable 1,677 2,069 (18.9)
Current maturities of long-term leases 6,854 6,772 1.2
Operating liabilities 112,706 100,771 11.8
Total current liabilities 126,969 118,413 7.2
Long-term debt (2) 176,716 174,706 1.2
Long-term leases 52,020 51,536 0.9
Laboral obligations 7,443 7,253 2.6
Other liabilities 24,850 25,753 (3.5)
Total liabilities 387,998 377,661 2.7
Total stockholders' equity 305,727 307,187 (0.5)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 693,725 684,848 1.3
June 30, 2021
DEBT MIX (2) % of Total Average Rate
Denominated in:
Mexican pesos 37.3% 7.2%
U.S. Dollars 36.2% 3.3%
Euros 15.6% 5.4%
Colombian pesos 1.0% 3.8%
Argentine pesos 0.4% 46.7%
Brazilian reais 7.2% 6.8%
Chilean pesos 1.6% 1.6%
Uruguayan Pesos 0.7% 7.3%
Guatemalan Quetzal 0.0% 6.3%
Total debt 100.0% 5.5%
Fixed rate (2) 89.5%
Variable rate (2) 10.5%
DEBT MATURITY PROFILE 2021 2022 2023 2024 2025 2026+
% of Total Debt 2.1% 1.6% 3.6% 3.6% 4.3% 84.8%

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

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

July 28, 2021 12
FEMSA Comercio - Proximity Division
Results of Operations
Millions of Pesos
For the second quarter of: For the six months of:
2021 % of rev. 2020 % of rev. % Var. 2021 % of rev. 2020 % of rev. % Var.
Total revenues 50,850 100.0 43,409 100.0 17.1 94,268 100.0 89,030 100.0 5.9
Cost of sales 29,712 58.4 26,167 60.3 13.5 55,756 59.1 53,548 60.1 4.1
Gross profit 21,138 41.6 17,242 39.7 22.6 38,512 40.9 35,482 39.9 8.5
Administrative expenses 1,579 3.1 1,367 3.1 15.5 2,805 3.0 2,654 3.0 5.7
Selling expenses 14,930 29.4 13,937 32.2 7.1 28,596 30.4 27,809 31.3 2.8
Other operating expenses (income), net 60 0.1 354 0.8 (83.1) 131 0.1 380 0.4 (65.5)
Income from operations 4,569 9.0 1,584 3.6 188.4 6,980 7.4 4,639 5.2 50.5
Depreciation 2,572 5.1 2,591 6.0 (0.7) 5,140 5.5 5,105 5.7 0.7
Amortization & other non-cash charges 219 0.4 453 1.1 (51.7) 436 0.4 632 0.8 (31.0)
Operative cash flow (EBITDA) 7,360 14.5 4,628 10.7 59.0 12,556 13.3 10,376 11.7 21.0
CAPEX 1,730 1,693 2.2 3,038 3,948 (23.0)
Information of OXXO Stores
Total stores 19,834 19,558 1.4
Stores Mexico 19,566 19,308 1.3
Stores South America 268 250 7.2
Net new conveniences stores:
vs. Last quarter 128 (40) N.S.
Year-to-date 268 228 17.5
Last-twelve-months 276 950 (70.9)
Same-store data: (1)
Sales (thousands of pesos) 801.2 693.1 15.6 744.1 713.9 4.2
Traffic (thousands of transactions) 17.9 16.6 7.4 17.1 18.3 (6.6)
Ticket (pesos) 44.9 41.7 7.6 43.6 39.1 11.6
(1) Monthly average information per store, considering same stores with more than twelve months of operations, income from services are included.
July 28, 2021 13
FEMSA Comercio - Health Division
Results of Operations
Millions of Pesos
For the second quarter of: For the six months of:
2021 % of rev. 2020 % of rev. % Var. 2021 % of rev. 2020 % of rev. % Var.
Total revenues 18,377 100.0 15,624 100.0 17.6 36,127 100.0 30,920 100.0 16.8
Cost of sales 12,943 70.4 10,849 69.4 19.3 25,624 70.9 21,847 70.7 17.3
Gross profit 5,434 29.6 4,775 30.6 13.8 10,503 29.1 9,073 29.3 15.8
Administrative expenses 819 4.5 868 5.6 (5.6) 1,554 4.3 1,666 5.4 (6.7)
Selling expenses 3,596 19.6 3,377 21.6 6.5 7,113 19.7 6,463 20.8 10.1
Other operating expenses (income), net (37) (0.2) 25 0.2 N.S. (30) (0.1) 54 0.2 (155.6)
Income from operations 1,056 5.7 505 3.2 109.1 1,866 5.2 890 2.9 109.7
Depreciation 741 4.0 782 5.0 (5.2) 1,444 4.0 1,443 4.7 0.1
Amortization & other non-cash charges 120 0.7 131 0.9 (8.4) 240 0.6 276 0.8 (13.0)
Operative cash flow (EBITDA) 1,917 10.4 1,418 9.1 35.2 3,550 9.8 2,609 8.4 36.1
CAPEX 331 363 (8.8) 585 737 (20.7)
Information of Stores
Total Stores 3,459 3,189 8.5
Stores Mexico 1,372 1,275 7.6
Stores South America 2,087 1,914 9.0
Net new stores:
vs. Last quarter 54 -7 N.S.
Year-to-date 91 28 N.S.
Last-twelve-months 270 128 110.9
Same-store data: (1)
Sales (thousands of pesos) 1,359.4 1,183.1 14.9 1,382.5 1,200.3 15.2
(1)Monthly average information per store, considering same stores with more than twelve months of all the operations of FEMSA Comercio - Health Division.
July 28, 2021 14
FEMSA Comercio - Fuel Division
Results of Operations
Millions of Pesos
For the second quarter of:
Comparable (A) As Reported
2021 % of rev. 2020 % of rev. % Var. 2020 % of rev. % Var.
Total revenues 9,974 100.0 6,382 100.0 56.3 6,382 100.0 56.3
Cost of sales 8,677 87.0 5,399 84.6 60.7 5,533 86.7 56.8
Gross profit 1,297 13.0 983 15.4 31.9 849 13.3 52.8
Administrative expenses 84 0.8 71 1.1 18.3 71 1.1 18.3
Selling expenses 855 8.6 735 11.5 16.3 722 11.3 18.4
Other operating expenses (income), net 2 - 5 0.1 (60.0) 5 0.1 (60.0)
Income from operations 356 3.6 172 2.7 107.0 51 0.8 N.S.
Depreciation 247 2.5 206 3.2 19.9 206 3.2 19.9
Amortization & other non-cash charges 7 - 10 0.2 (30.0) 10 0.2 (30.0)
Operative cash flow (EBITDA) 610 6.1 388 6.1 57.2 267 4.2 128.5
CAPEX 82 110 (25.5) 110 (25.5)
Information of OXXO GAS Service Stations
Total service stations 563 551 2.2
Net new service stations
vs. Last quarter 2 1 100.0
Year-to-date 5 6 (16.7)
Last-twelve-months 12 10 20.0
Volume (million of liters) total stations 528 420 25.6
Same-stations data: (1)
Sales (thousands of pesos) 5,927.2 3,855.2 53.7
Volume (thousands of liters) 316.1 254.6 24.2
Average price per liter 18.8 15.1 23.8
(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 six months of:
Comparable (A) As Reported
2021 % of rev. 2020 % of rev. % Var. 2020 % of rev. % Var.
Total revenues 18,509 100.0 17,239 100.0 7.4 17,239 100.0 7.4
Cost of sales 16,132 87.2 14,885 86.3 8.4 15,237 88.4 5.9
Gross profit 2,377 12.8 2,354 13.7 1.0 2,002 11.6 18.7
Administrative expenses 147 0.8 107 0.6 37.4 107 0.6 37.4
Selling expenses 1,672 9.0 1,626 9.5 2.8 1,604 9.3 4.2
Other operating expenses (income), net (6) - 6 - N.S. 6 - N.S.
Income from operations 564 3.0 615 3.6 (8.3) 285 1.7 97.9
Depreciation 476 2.6 429 2.5 11.0 429 2.5 11.0
Amortization & other non-cash charges 4 - 18 0.1 (77.8) 18 - (77.8)
Operative cash flow (EBITDA) 1,044 5.6 1,062 6.2 (1.7) 732 4.2 42.6
CAPEX 169 213 (20.8) 213 (20.8)
Information of OXXO GAS Service Stations
Total service stations 563 551 2.2
Net new service stations
vs. Last quarter 2 1 100.0
Year-to-date 5 6 (16.7)
Last-twelve-months 12 10 20.0
Volume (million of liters) total stations 999 1,041 (4.1)
Same-stations data: (1)
Sales (thousands of pesos) 5,516.5 5,214.0 5.8
Volume (thousands of liters) 299.9 315.8 (5.0)
Average price per liter 18.4 16.5 11.4
(A)Unaudited consolidated financial information
(1)Monthly average information per station, considering same stations with more than twelve months of operations.
July 28, 2021 15
Logistics and Distribution
Results of Operations
Millions of Pesos
For the second quarter of: For the six months of:
2021 % of rev. 2021 % of rev.
Total revenues 11,266 100.0 22,074 100.0
Cost of sales 8,798 78.1 17,254 78.2
Gross profit 2,468 21.9 4,821 21.8
Administrative expenses 1,032 9.2 2,155 9.8
Selling expenses 856 7.6 1,706 7.7
Other operating expenses (income), net (6) (0.1) 8 -
Income from operations 586 5.2 953 4.3
Depreciation 434 3.9 844 3.8
Amortization & other non-cash charges 177 1.5 365 1.7
Operative cash flow (EBITDA) 1,197 10.6 2,162 9.8
CAPEX 130 324
July 28, 2021 16
Coca-Cola FEMSA
Results of Operations
Millions of Pesos
For the second quarter of: For the six months of:
2021 % of rev. 2020 % of rev. % Var. 2021 % of rev. 2020 % of rev. % Var.
Total revenues 47,786 100.0 43,075 100.0 10.9 92,500 100.0 88,341 100.0 4.7
Cost of sales 25,226 52.8 24,000 55.7 5.1 50,009 54.1 48,592 55.0 2.9
Gross profit 22,560 47.2 19,075 44.3 18.3 42,491 45.9 39,749 45.0 6.9
Administrative expenses 2,279 4.8 1,882 4.4 21.1 4,092 4.4 3,733 4.2 9.6
Selling expenses 12,910 26.9 11,748 27.3 9.9 24,899 26.9 24,399 27.6 2.0
Other operating expenses (income), net 123 0.3 315 0.7 (61.0) 353 0.4 763 0.9 (53.7)
Income from operations 7,248 15.2 5,130 11.9 41.3 13,147 14.2 10,854 12.3 21.1
Depreciation 2,179 4.6 2,324 5.4 (6.2) 4,417 4.8 4,577 5.2 (3.5)
Amortization & other non-cash charges 580 1.1 767 1.8 (24.4) 1,252 1.3 1,864 2.1 (32.8)
Operative cash flow (EBITDA) 10,007 20.9 8,221 19.1 21.7 18,816 20.3 17,295 19.6 8.8
CAPEX 2,841 1,788 58.9 4,301 3,867 11.2
Sales volumes
(Millions of unit cases)
Mexico and Central America 545.8 64.1 521.7 66.8 4.6 1,017.1 61.6 998.0 63.4 1.9
South America 106.1 12.5 85.6 11.0 23.9 226.7 13.7 196.8 12.5 15.2
Brazil 199.5 23.4 173.5 22.2 15.0 408.3 24.7 379.6 24.1 7.6
Total 851.4 100.0 780.8 100.0 9.1 1,652.0 100.0 1,574.3 100.0 4.9
July 28, 2021 17
FEMSA
Macroeconomic Information
Inflation End-of-period Exchange Rates
2Q 2021 LTM (1) Jun-21 Jun-21 Dec-20
Per USD Per MXN Per USD Per MXN
Mexico 1.17% 6.02% 19.80 1.0000 19.95 1.0000
Colombia 1.29% 2.89% 3,756.67 0.0053 3,432.50 0.0058
Brazil 1.39% 8.28% 5.00 3.9588 5.20 3.8387
Argentina 6.68% 47.13% 95.72 0.2069 84.15 0.2371
Chile 0.56% 3.29% 735.28 0.0269 711.24 0.0280
Euro Zone 0.16% 2.35% 0.84 23.5896 0.81 24.5213
(1) LTM = Last twelve months.
July 28, 2021 18

Coca-Cola FEMSA Announces Results for the Second Quarter and First Six Months of 2021

Mexico City, July 26, 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 second quarter and the first six months of 2021.

SECOND QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS

· Consolidated volumes increased 9.1% as compared to the second quarter of 2020 and 1.3% as compared to the same period of 2019. This increase was driven by volume growth across all of our territories as a result of solid execution, coupled with economic reopening and increased mobility across our markets.
· Total revenues increased 10.9%, comparable revenues increased 19.2%. This increase was driven mainly by volume growth, coupled with pricing initiatives and favorable price-mix effects. These effects were partially offset by unfavorable currency translation. Total revenues remained flat as compared to the same period of 2019.
· Operating income increased 41.3%, while comparable operating income increased 44.1%. This increase was driven mainly by cost and expense efficiencies, coupled with favorable price-mix effects and raw material hedging initiatives. Additionally, we recognized a positive extraordinary effect of Ps. 1,083 million, driven by the resumption of the recognition of tax credits in Brazil related to the Manaus Free Trade Zone. These effects were partially offset by the normalization of certain operating expenses and unfavorable currency hedging positions. Operating income increased 14.4% as compared to the same period of 2019.
· Majority net income increased 56.8%, driven mainly by operating income growth, coupled with a decline in other non-operating expenses related to impairments of Ps. 903 million recognized during the same period of the previous year.
· Earnings per share1 were Ps. 0.20 (Earnings per unit were Ps. 1.58 and per ADS were Ps. 15.79.).
FINANCIAL SUMMARY FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 2021
Change vs. same period of last year
Total Revenues Gross Profit Operating Income Majority Net Income
2Q 2021 YTD 2021 2Q 2021 YTD 2021 2Q 2021 YTD 2021 2Q 2021 YTD 2021
As Reported Consolidated 10.9% 4.7% 18.3% 6.9% 41.3% 21.1% 56.8% 38.9%
Mexico & Central America 10.5% 6.3% 12.6% 8.9% 9.3% 16.8%
South America 11.7% 2.3% 32.0% 3.1% 387.6% 34.2%
Comparable (2) Consolidated 19.2% 12.2% 26.1% 13.7% 44.1% 26.9%
Mexico & Central America 13.7% 7.9% 15.6% 10.4% 11.1% 17.9%
South America 29.9% 19.6% 55.0% 20.7% 415.3% 58.0%

John Santa Maria, Coca-Cola FEMSA's CEO, commented:

'We are proud that our efforts to accelerate the recovery are reflected in solid second-quarter results and a solid cash flow generation. Our consolidated revenues increased 10.9%, driven by our portfolio and execution initiatives, coupled with recovering mobility and improving price-mix trends. Notably, our Mexico and Central America division delivered double-digit top-line growth, while our South America division's outstanding volume performance was driven mainly by a solid growth in Brazil, coupled with recovering trends in Colombia, Argentina, and Uruguay. As a result, our consolidated volumes already exceed our 2019 baseline by 1.3%. Importantly, as part of our resilient profile and disciplined approach, our favorable raw material hedging initiatives combined with cost and expense efficiencies, are enabling us to protect our profitability, while successfully navigating still volatile environments.

As we enter the second half of the year, we are confident that we are taking the right strategic actions to continue building an unparalleled commercial beverage platform that is digitally integrated in order to carry on capturing opportunities to grow profitability. Moreover, we continue ensuring that our employees, clients and consumers remain at the center of every decision and action we take. By delivering on our objectives, we are confident that we will continue to deliver sustainable value for all of our stakeholders 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 2Q21 Results
July 26, 2021
Page 19 of 34

RECENT DEVELOPMENTS

· After conducting a thorough analysis, Coca-Cola FEMSA has decided to reverse its temporary decision to suspend tax credits on concentrate purchased from the Manaus Free Trade Zone in Brazil as of the second quarter 2021. As a result, the Company is recognizing an extraordinary Ps. 1,083 million at the operating income level equivalent to the accumulated credit suspended since 2019 and until the first quarter of 2021. This decision was supported by recent developments and opinions from external advisors.
· Coca-Cola FEMSA and The Coca-Cola Company have enhanced their Cooperation Framework.

As part of a shared vision for the future, and to continue strengthening its relationship and alignment, Coca-Cola FEMSA and The Coca-Cola Company have agreed to enhance the Cooperation Framework previously announced in July 2016. This enhancement includes additional drivers to grow the business, strengthening our successful and longstanding partnership.

This update contemplates the following main objectives:

o Growth Principles. As part of this milestone, the companies agree to continuously build and align ambitious business growth plans to increase our operating income via top-line growth, cost and expense efficiencies and the implementation of marketing, commercial strategies and productivity programs.
o Relationship Economics. Aimed at ensuring that the economics of our business and management incentives are fully aligned towards long-term system value creation. Potential future concentrate price adjustments for sparkling beverages and flavored water in all our territories will consider investment and profitability levels that are mutually beneficial for both parties.
o Potential new businesses and Ventures. As the System continues to evolve, leveraging Coca-Cola FEMSA's sales and distribution network, the Company may be allowed to engage in the distribution of potential new businesses such as the distribution of beer, spirits and other consumer goods.
o Digital Strategy. Development of a joint general framework for digital initiatives as part of both companies' industry leading digitization efforts.
· On May 4, 2021, Coca-Cola FEMSA paid the first installment of the 2020 dividend in the amount of Ps. 0.63 per share for a total cash distribution of more than Ps. 5,294 million pesos for the first installment.
· On June 30, 2021, Coca-Cola FEMSA published its first Green Bond Report, providing an update on the allocation of the use of proceeds from its first-ever green bond, issued in September 2020 for US$705 million. According to best practices, the company reported the use of proceeds for its look-back period, from 2018 to 2020, having allocated US$235.48 million, representing 33.4% of the proceeds from the green bond.

CONFERENCE CALL INFORMATION

Coca-Cola FEMSA Reports 2Q21 Results
July 26, 2021
Page 20 of 34

CONSOLIDATED SECOND QUARTER RESULTS

CONSOLIDATED SECOND QUARTER RESULTS
As Reported Comparable (1)
Expressed in millions of Mexican pesos 2Q 2021 2Q 2020 Δ% Δ%
Total revenues 47,786 43,075 10.9% 19.2%
Gross profit 22,560 19,075 18.3% 26.1%
Operating income 7,248 5,130 41.3% 44.1%
Operating cash flow (2) 10,007 8,221 21.7% 27.4%

Volume increased 9.1% to 851.4 million unit cases, driven mainly by double-digit growth in South America, coupled with solid volume recoveries in Mexico and Central America. Consolidated volume increased 1.3% versus our 2019 baseline.

Total revenues increased 10.9% to Ps. 47,786 million, driven mainly by volume, 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. On a comparable basis, total revenues would have increased 19.2%. Total revenues declined 0.4% versus the same period of 2019.

Gross profit increased 18.3% to Ps. 22,560 million, and gross margin expanded 290 basis points to 47.2%, driven mainly by cost efficiencies, successful raw material hedging initiatives, 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. These effects were partially offset by an unfavorable currency hedging position and higher concentrate costs in Mexico. On a comparable basis, gross profit would have increased 26.1%. Gross profit increased 2.1% versus the second quarter of 2019.

Operating income increased 41.3% to Ps. 7,248 million, and operating margin expanded 330 basis points to 15.2%. This increase was driven mainly by the increase in gross profit, coupled with operating expense efficiencies. 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. On a comparable basis, excluding currency translation effects, our operating income would have increased 44.1%. Our operating income increased 14.4% 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 2Q21 Results
July 26, 2021
Page 21 of 34

Comprehensive financing resultrecorded an expense of Ps. 1,323 million, compared to an expense of Ps. 1,268 million in the same period of 2020. This increase was driven mainly by a foreign exchange loss of Ps. 171 million, as our cash exposure in U.S. dollars was negatively impacted by the appreciation of the Mexican Peso, as compared to the first quarter of the year. In addition, the Company recorded a lower interest income as compared to the same period of the previous year.

These effects were partially offset by a decrease in interest expenses of Ps. 162 million, driven mainly by the payment of short-term financing incurred during the first quarter of 2020, which was a preventive measure to reinforce the Company's cash position in the face of the uncertainties driven by the COVID-19 pandemic.

Finally, a gain of Ps. 118 million in monetary position in inflationary subsidiaries was recognized as compared to a gain of Ps. 81 million during the same period of 2020.

Income tax as a percentage of income before taxes was 37.9% as compared to 32.6% during the same period of the previous year. This increase was driven mainly by adjustments to deferred tax reserves, the effects of a higher inflation level, and adjustments in the tax provision.

Net income attributable to equity holders of the companyreached Ps. 3,316 million as compared to Ps. 2,115 million during the same period of the previous year. This increase was driven mainly by operating income growth, coupled with impairments recognized in other non-operating expenses of Ps. 903 million during the same period of 2020. Earnings per share1 were Ps. 0.20 (Earnings per unit were Ps. 1.58 and per ADS were Ps. 15.79.).

(1) Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 million shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units.
Coca-Cola FEMSA Reports 2Q21 Results
July26, 2021
Page 22 of 34

CONSOLIDATED FIRST SIX MONTHS RESULTS

CONSOLIDATED FIRST SIX MONTHS RESULTS
As Reported Comparable (1)
Expressed in millions of Mexican pesos YTD 2021 YTD 2020 Δ% Δ%
Total revenues 92,500 88,341 4.7% 12.2%
Gross profit 42,491 39,749 6.9% 13.7%
Operating income 13,147 10,854 21.1% 26.9%
Operating cash flow (2) 18,816 17,295 8.8% 14.8%

Volume increased 4.9% to 1,652.1 million unit cases in the first six 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 0.9% as compared with the same period of 2019.

Total revenues increased 4.7% to Ps. 92,500 million in the first six 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. On a comparable basis, total revenues would have increased 12.2%. Total revenues declined 2.1% versus the same period of 2019.

Gross profit increased 6.9% to Ps. 42,491 million in the first six months of 2021 as compared to the same period of 2020, and gross margin expanded 90 basis points to 45.9%. 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 were partially offset by an unfavorable currency hedging position, the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs, and higher concentrate costs in Mexico. On a comparable basis, gross profit would have increased 13.7%. Gross profit declined 1.4% versus 2019.

Operating income increased 21.1% to Ps. 13,147 million in the first six months of 2021 as compared to the same period of 2020, and operating margin expanded 190 basis points to 14.2%. 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 and unfavorable currency translation effects. On a comparable basis, operating income would have increased 26.9%. Our operating income increased 8.9% 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 2Q21 Results
July 26, 2021
Page 23 of 34

Comprehensive financing resultrecorded an expense of Ps. 2,454 million during the first six months of 2021 compared to an expense of Ps. 3,467 million in the same period of 2020.

Interest expense, net, recorded a decrease during the first six 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 six months of 2021. 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 larger gain in monetary position in inflationary subsidiaries as compared to the same period of 2020.

These effects were partially offset by a foreign exchange loss of Ps. 156 million, as compared to a gain of Ps. 493 million registered during the same period of 2020, as our cash exposure to U.S. dollars was negatively impacted by the appreciation of the Mexican Peso.

Income tax as a percentage of income before taxes was 36.5% as compared to 31.5% during the first six months of the previous year. This increase was driven mainly by tax impacts related to higher inflation in 2021, adjustments of deferred tax assets and effects of certain changes on tax legislation where we operate.

Net income attributable to equity holders of the companyincreased 38.9% to reach Ps. 6,472 million in the first six months of 2020 as compared to Ps. 4,658 million during the same period of the previous year. This increase was driven mainly by an increase in operating income, coupled with lower financial costs related to a one-time increase in our interest expense in 2020 and lower non-operative expenses due to impairments of Ps. 903 million recognized during the first six months of 2020. Earnings per share1 were Ps. 0.39 (Earnings per unit were Ps. 3.08 and earnings per ADS were Ps. 30.81.).

(1) Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 million shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units.
Coca-Cola FEMSA Reports 2Q21 Results
July 26, 2021
Page 24 of 34

MEXICO & CENTRAL AMERICA DIVISION SECOND QUARTER RESULTS

(Mexico, Guatemala, Costa Rica, Panama, and Nicaragua)
MEXICO & CENTRAL AMERICA DIVISION RESULTS
As Reported Comparable (1)
Expressed in millions of Mexican pesos 2Q 2021 2Q 2020 Δ% Δ%
Total revenues 30,262 27,380 10.5% 13.7%
Gross profit 15,175 13,480 12.6% 15.6%
Operating income 5,132 4,696 9.3% 11.1%
Operating cash flow (2) 6,821 6,482 5.2% 7.7%

Volume increased 4.6% to 545.8 million unit cases, driven mainly by double-digit growth in Guatemala, Panama, and Nicaragua, coupled with volume recoveries in Mexico and Costa Rica. Volume declined 1.6% versus our 2019 baseline.

Total revenuesincreased 10.5% to Ps. 30,262 million, driven by volume increases, our pricing initiatives, and favorable price-mix effects. These effects were partially offset by an unfavorable currency translation effect from all our operating currencies in Central America as translated into Mexican Pesos. On a comparable basis, total revenues would have increased 13.7%. Total revenues grew 4.3% versus the same period of 2019.

Gross profitincreased 12.6% to Ps. 15,175 million, and gross margin increased 90 basis points, driven mainly by cost efficiencies coupled with favorable raw material hedging strategies and favorable price-mix effects. 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 15.6%. Gross profit increased 7.1% versus our 2019 baseline.

Operating incomeincreased 9.3% to Ps. 5,132 million, and operating margin contracted 20 basis points to 17.0%, driven mainly by gross profit growth. These effects were partially offset by the normalization of certain operating expenses such as marketing, labor, and maintenance as compared to the same period in 2020. On a comparable basis, operating income would have increased 11.1%. Our operating income increased 13.4% 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 2Q21 Results

July 26, 2021

Page 25 of 34

SOUTH AMERICA DIVISION SECOND QUARTER RESULTS

(Brazil, Argentina, Colombia, and Uruguay)
SOUTH AMERICA DIVISION RESULTS
As Reported Comparable (1)
Expressed in millions of Mexican pesos 2Q 2021 2Q 2020 Δ% Δ%
Total revenues 17,524 15,695 11.7% 29.9%
Gross profit 7,385 5,595 32.0% 55.0%
Operating income 2,116 434 387.6% 415.3%
Operating cash flow (2) 3,186 1,739 83.2% 109.1%

Volume increased 17.9% to 305.6 million unit cases, driven mainly by double-digit growth in all of our markets, led mainly by Brazil and Colombia that grew volumes as compared to 2019. The division's volume increased 6.8% versus our 2019 baseline.

Total revenuesincreased 11.7% to Ps. 17,524 million, driven mainly by volume growth across our territories and favorable price-mix effects, partially offset by an unfavorable currency translation effect resulting from the depreciation of all of our operating currencies in the division as compared to the Mexican Peso. On a comparable basis, excluding currency translation effects, total revenues would have increased 29.9%. Total revenues declined 7.6% versus the same period of 2019, driven mainly by unfavorable currency translation effects.

Gross profitincreased 32.0% to Ps. 7,385 million, and gross margin expanded 650 basis points to 42.1%. This increase is a result of improving operating leverage and price-mix effects, cost efficiencies, and our favorable raw material hedging position, coupled with the recognition of Ps. 1,083 million related to the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone. These effects were partially offset by an unfavorable currency hedging position, the depreciation in the average exchange rate of the Argentine Peso as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 55.0%. Gross profit decreased 7.0% versus our 2019 baseline.

Operating incomeincreased 387.6% to Ps. 2,116 million, and operating margin expanded 930 basis points, driven mainly by gross profit growth, coupled with operating expense efficiencies. These effects were partially offset by the gradual normalization of marketing, labor, and maintenance expenses and an operating foreign exchange loss. On a comparable basis, operating income would have increased 415.3%. Operating income increased 16.8% 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 2Q21 Results

July 26, 2021

Page 26 of 34

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 incomeis a non-GAAP financial measure computed as 'gross profit - operating expenses - other operating expenses, net + operative equity method (gain) loss in associates.'

Operating cash flowis a non-GAAP financial measure computed as 'operating income + depreciation + amortization & other operating non-cash charges.'

Earnings per shareare equal to 'quarterly earnings / outstanding shares.' Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806,658,096 shares outstanding. For the convenience of the reader, as each KOF UBL 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 KOF UBL 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 2Q21 Results

July 26, 2021

Page 27 of 34

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 2Q21 Results

July 26, 2021

Page 28 of 34

COCA-COLA FEMSA

CONSOLIDATED INCOME STATEMENT

Millions of Pesos (1)
For the Second Quarter of: For the First Six 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) 4,660.0 3,636.9 28.1% 28.1% 9,035.0 8,288.0 9.0% 9.0%
Volume (million unit cases) 851.4 780.7 9.1% 9.1% 1,652.1 1,574.3 4.9% 4.9%
Average price per unit case 51.78 50.56 2.4% 51.34 51.18 0.3%
Net revenues 47,639 42,944 10.9% 92,181 87,821 5.0%
Other operating revenues 147 131 12.3% 320 520 -38.5%
Total revenues (2) 47,786 100.0% 43,075 100.0% 10.9% 19.2% 92,500 100.0% 88,341 100.0% 4.7% 12.2%
Cost of goods sold 25,226 52.8% 24,000 55.7% 5.1% 50,009 54.1% 48,593 55.0% 2.9%
Gross profit 22,560 47.2% 19,075 44.3% 18.3% 26.1% 42,491 45.9% 39,749 45.0% 6.9% 13.7%
Operating expenses 15,189 31.8% 13,630 31.6% 11.4% 28,991 31.3% 28,132 31.8% 3.1%
Other operative expenses, net 152 0.3% 206 0.5% -26.2% 364 0.4% 522 0.6% -30.2%
Operative equity method (gain) loss in associates(3) (29) -0.1% 109 0.3% NA (11) 0.0% 241 0.3% NA
Operating income (5) 7,248 15.2% 5,130 11.9% 41.3% 44.1% 13,147 14.2% 10,854 12.3% 21.1% 26.9%
Other non operative expenses, net (83) -0.2% 997 2.3% NA (80) -0.1% 990 1.1% NA
Non Operative equity method (gain) loss in associates (4) 72 0.2% (25) -0.1% NA 71 0.1% (98) -0.1% NA
Interest expense 1,463 1,625 -9.9% 2,936 4,691 -37.4%
Interest income 194 269 -28.0% 356 556 -35.9%
Interest expense, net 1,270 1,356 -6.4% 2,580 4,136 -37.6%
Foreign exchange loss (gain) 171 (8) NA 156 (493) NA
Loss (gain) on monetary position in inflationary subsidiries (118) (81) 46.2% (291) (175) 66.6%
Market value (gain) loss on financial instruments 1 1 -10.4% 9 (1) NA
Comprehensive financing result 1,323 1,268 4.4% 2,454 3,467 -29.2%
Income before taxes 5,936 2,889 105.4% 10,702 6,494 64.8%
Income taxes 2,268 969 133.9% 3,927 2,091 87.8%
Result of discontinued operations - - NA - - NA
Consolidated net income 3,668 1,920 91.1% 6,775 4,403 53.9%
Net income attributable to equity holders of the company 3,316 6.9% 2,115 4.9% 56.8% 6,472 7.0% 4,658 5.3% 38.9%
Non-controlling interest 352 0.7% (195) -0.5% NA 303 0.3% (256) -0.3% 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) 7,248 15.2% 5,130 11.9% 41.3% 13,147 14.2% 10,854 12.3% 21.1%
Depreciation 2,179 2,324 -6.2% 4,417 4,577 -3.5%
Amortization and other operative non-cash charges 580 767 -24.4% 1,252 1,864 -32.8%
Operating cash flow (5)(6) 10,007 20.9% 8,221 19.1% 21.7% 27.4% 18,816 20.3% 17,295 19.6% 8.8% 14.8%
CAPEX 2,841 1,788 58.9% 4,301 3,867 11.2%
(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 Jugos del Valle, Leão Alimentos, and Estrella Azul, 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 2Q21 Results

July 26, 2021

Page 29 of 34
MEXICO & CENTRAL AMERICA DIVISION
RESULTS OF OPERATIONS
Millions of Pesos (1)
For the Second Quarter of: For the First Six 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) 2,790.7 2,346.7 18.9% 18.9% 5,174.6 4,943.0 4.7% 4.7%
Volume (million unit cases) 545.8 521.6 4.6% 4.6% 1,017.1 998.0 1.9% 1.9%
Average price per unit case 55.42 52.45 5.7% 55.28 52.98 4.3%
Net revenues 30,250 27,363 56,224 52,875
Other operating revenues 12 17 19 29
Total Revenues (2) 30,262 100.0% 27,380 100.0% 10.5% 13.7% 56,242 100.0% 52,904 100.0% 6.3% 7.9%
Cost of goods sold 15,087 49.9% 13,899 50.8% 27,995 49.8% 26,970 51.0%
Gross profit 15,175 50.1% 13,480 49.2% 12.6% 15.6% 28,247 50.2% 25,933 49.0% 8.9% 10.4%
Operating expenses 10,000 33.0% 8,614 31.5% 18,572 33.0% 17,185 32.5%
Other operative expenses, net 62 0.2% 128 0.5% 251 0.4% 515 1.0%
Operative equity method (gain) loss in associates (3) (19) -0.1% 42 0.2% (70) -0.1% 103 0.2%
Operating income (4) 5,132 17.0% 4,696 17.2% 9.3% 11.1% 9,494 16.9% 8,131 15.4% 16.8% 17.9%
Depreciation, amortization & other operating non-cash charges 1,689 5.6% 1,786 6.5% 3,490 6.2% 3,955 7.5%
Operating cash flow (4)(5) 6,821 22.5% 6,482 23.7% 5.2% 7.7% 12,984 23.1% 12,085 22.8% 7.4% 8.8%
(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 Estrella Azul, 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 Second Quarter of: For the First Six 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) 1,869.3 1,290.2 44.9% 44.9% 3,860.4 3,345.1 15.4% 15.4%
Volume (million unit cases) 305.6 259.1 17.9% 17.9% 634.9 576.3 10.2% 10.2%
Average price per unit case 45.29 46.75 -3.1% 45.04 48.05 -6.3%
Net revenues 17,389 15,581 35,957 34,946
Other operating revenues 135 114 301 492
Total Revenues (2) 17,524 100.0% 15,695 100.0% 11.7% 29.9% 36,258 100.0% 35,438 100.0% 2.3% 19.6%
Cost of goods sold 10,139 57.9% 10,100 64.4% 22,014 60.7% 21,622 61.0%
Gross profit 7,385 42.1% 5,595 35.6% 32.0% 55.0% 14,244 39.3% 13,815 39.0% 3.1% 20.7%
Operating expenses 5,189 29.6% 5,016 32.0% 10,419 28.7% 10,947 30.9%
Other operative expenses, net 90 0.5% 77 0.5% 113 0.3% 7 0.0%
Operative equity method (gain) loss in associates (3) (10) -0.1% 67 0.4% 59 0.2% 139 0.4%
Operating income (4) 2,116 12.1% 434 2.8% 387.6% 415.3% 3,653 10.1% 2,723 7.7% 34.2% 58.0%
Depreciation, amortization & other operating non-cash charges 1,070 6.1% 1,305 8.3% 2,179 6.0% 2,487 7.0%
Operating cash flow (4)(5) 3,186 18.2% 1,739 11.1% 83.2% 109.1% 5,832 16.1% 5,210 14.7% 11.9% 31.1%
(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 2Q21 Results
July26, 2021
Page 30 of 34
COCA-COLA FEMSA
CONSOLIDATED BALANCE SHEET
Millions of Pesos
Assets Jun-21 Dec-20 % Var. Liabilities & Equity Jun-21 Dec-20 % Var.
Current Assets Current Liabilities
Cash, cash equivalents and marketable securities Short-term bank loans and notes payable 3,148 5,017 -37%
46,786 43,497 8% Suppliers 19,663 17,195 14%
Total accounts receivable 8,895 11,523 -23% Short-term leasing Liabilities 554 560
Inventories 11,580 9,727 19% Other current liabilities 24,614 20,073 23%
Other current assets 7,785 7,693 1% Total current liabilities 47,979 42,845 12%
Total current assets 75,046 72,440 4% Non-Current Liabilities
Non-Current Assets Long-term bank loans and notes payable 81,213 82,461 -2%
Property, plant and equipment 108,334 109,551 -1% Long Term Leasing Liabilities 891 746
Accumulated depreciation (49,910) (50,091) 0% Other long-term liabilities 15,417 14,557 6%
Total property, plant and equipment, net 58,424 59,460 -2% Total liabilities 145,500 140,609 3%
Right of use assets 1,425 1,278 11% Equity
Investment in shares 7,607 7,623 0% Non-controlling interest 6,131 5,583 10%
Intangible assets and other assets 104,248 103,971 0% Total controlling interest 113,454 116,874 -3%
Other non-current assets 18,335 18,294 0% Total equity 119,585 122,457 -2%
Total Assets 265,085 263,066 1% Total Liabilities and Equity 265,085 263,066 1%
June 30, 2021
Debt Mix % Total Debt (1) % Interest Rate Floating (1) (2) Average Rate Debt Maturity Profile
Currency
Mexican Pesos 53.0% 24.1% 7.0%
U.S. Dollars 26.6% 0.0% 2.9%
Colombian Pesos 2.2% 5.7% 3.8%
Brazilian Reals 15.7% 55.6% 6.8%
Uruguayan Pesos 1.6% 0.0% 7.3%
Argentine Pesos 0.8% 0.0% 46.7%
Total Debt 100% 11.0% 6.1%
(1) After giving effect to cross- currency swaps and financial leases.
(2) Calculated by weighting each year´s outstanding debt balance mix.
Financial Ratios 2Q 2021 FY 2020 Δ%
Net debt including effect of hedges (1)(3) 36,392 42,194 -13.8%
Net debt including effect of hedges / Operating cash flow (1)(3) 0.94 1.13
Operating cash flow/ Interest expense, net (1) 7.29 5.46
Capitalization (2) 42.0% 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 2Q21 Results
July26, 2021
Page 31 of 34
COCA-COLA FEMSA
QUARTERLY- VOLUME, TRANSACTIONS & REVENUES
Volume
2Q 2021 2Q 2020 YoY
Sparkling Water (1) Bulk (2) Stills Total Sparkling Water (1) Bulk (2) Stills Total Δ %
Mexico 348.8 23.4 75.9 32.1 480.2 346.5 15.9 76.5 27.0 465.9 3.1%
Guatemala 29.6 1.0 - 1.8 32.4 26.5 0.7 - 0.8 28.0 15.9%
CAM South 27.6 1.6 0.1 3.9 33.2 24.2 0.8 0.1 2.8 27.8 19.3%
Mexico and Central America 406.1 26.0 76.0 37.7 545.8 397.1 17.4 76.6 30.5 521.6 4.6%
Colombia 53.6 5.1 3.5 4.5 66.8 46.5 2.0 3.6 2.1 54.3 23.0%
Brazil (3) 177.0 8.4 1.5 12.7 199.5 157.4 5.7 1.8 8.7 173.5 15.0%
Argentina 24.1 2.1 1.2 2.7 30.1 19.7 1.2 1.2 1.2 23.2 29.4%
Uruguay 8.1 1.0 - 0.1 9.3 7.4 0.6 - 0.1 8.1 14.3%
South America 262.8 16.6 6.2 20.0 305.6 230.9 9.6 6.5 12.0 259.1 17.9%
TOTAL 668.9 42.7 82.2 57.7 851.4 628.0 27.0 83.1 42.6 780.7 9.1%

(1) Excludes water presentations larger than 5.0 Lt ; includes flavored water.

(2) Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water

Transactions
2Q 2021 2Q 2020 YoY
Sparkling Water Stills Total Sparkling Water Stills Total Δ %
Mexico 1,895.5 171.0 225.2 2,291.6 1,709.5 118.0 171.1 1,998.6 14.7%
Guatemala 226.7 10.7 18.0 255.4 161.7 7.5 6.8 176.0 45.1%
CAM South 193.9 10.3 39.3 243.6 141.9 4.7 25.5 172.1 41.5%
Mexico and Central America 2,316.1 192.1 282.5 2,790.7 2,013.1 130.2 203.4 2,346.7 18.9%
Colombia 344.5 56.0 39.2 439.7 236.4 25.0 17.0 278.4 57.9%
Brazil (3) 1,045.4 71.6 129.8 1,246.8 773.1 44.0 76.1 893.3 39.6%
Argentina 111.2 11.9 18.8 142.0 72.9 5.9 7.1 85.9 65.3%
Uruguay 35.9 3.6 1.4 40.9 27.8 3.4 1.4 32.6 25.3%
South America 1,537.0 143.0 189.2 1,869.3 1,110.3 78.3 101.6 1,290.2 44.9%
TOTAL 3,853.2 335.1 471.7 4,660.0 3,123.4 208.5 305.0 3,636.9 28.1%
Revenues
Expressed in million Mexican Pesos 2Q 2021 2Q 2020 Δ %
Mexico 25,201 22,504 12.0%
Guatemala 2,556 2,465 3.7%
CAM South 2,505 2,410 3.9%
Mexico and Central America 30,262 27,380 10.5%
Colombia 3,118 2,606 19.7%
Brazil (4) 12,369 11,406 8.4%
Argentina 1,346 1,066 26.3%
Uruguay 690 617 11.9%
South America 17,524 15,695 11.7%
TOTAL 47,786 43,075 10.9%

(3) Volume and transactions in Brazil do not include beer.

(4) Brazil includes beer revenues of Ps.3,549.0 million for the second quarter of 2021 and Ps.3,467.9 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 2Q21 Results
July26, 2021
Page 32 of 34
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 644.9 41.3 141.8 60.3 888.4 647.9 37.1 144.7 55.5 885.1 0.4%
Guatemala 58.2 1.9 - 3.2 63.3 50.6 1.6 - 1.7 53.9 17.4%
CAM South 54.5 3.1 0.2 7.5 65.4 49.2 2.8 0.3 6.6 58.9 11.0%
Mexico and Central America 757.7 46.4 142.0 71.0 1,017.1 747.7 41.5 145.0 63.9 998.0 1.9%
Colombia 107.9 10.4 7.4 8.7 134.5 96.7 8.4 8.7 5.9 119.7 12.3%
Brazil (3) 358.2 19.8 3.7 26.6 408.3 331.9 21.2 4.7 21.8 379.5 7.6%
Argentina 58.2 5.1 3.0 6.3 72.7 47.0 5.0 2.6 3.9 58.5 24.3%
Uruguay 17.0 2.3 - 0.3 19.6 16.5 1.9 - 0.2 18.6 5.5%
South America 541.3 37.7 14.1 41.9 635.0 492.0 36.5 15.9 31.8 576.3 10.2%
TOTAL 1,298.9 84.0 156.2 113.0 1,652.1 1,239.7 78.0 160.9 95.7 1,574.3 4.9%

(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 3,485.7 302.5 418.8 4,207.0 3,484.6 276.6 385.1 4,146.2 1.5%
Guatemala 443.1 20.0 31.6 494.6 347.4 16.1 16.1 379.5 30.3%
CAM South 377.5 20.3 75.3 473.0 331.6 18.3 67.3 417.2 13.4%
Mexico and Central America 4,306.3 342.7 525.7 5,174.6 4,163.5 311.0 468.5 4,943.0 4.7%
Colombia 693.3 113.8 75.7 882.8 584.7 104.7 54.1 743.5 18.7%
Brazil (3) 2,109.3 167.8 271.6 2,548.7 1,865.0 175.3 207.6 2,247.9 13.4%
Argentina 266.7 29.6 43.9 340.1 215.0 28.0 25.5 268.4 26.7%
Uruguay 77.2 8.3 3.3 88.8 74.0 8.6 2.6 85.2 4.2%
South America 3,146.5 319.5 394.5 3,860.4 2,738.7 316.5 289.8 3,345.1 15.4%
TOTAL 7,452.7 662.2 920.1 9,035.0 6,902.3 627.5 758.3 8,288.0 9.0%
Revenues
Expressed in million Mexican Pesos YTD 2021 YTD 2020 Δ %
Mexico 46,248 43,571 6.1%
Guatemala 5,006 4,453 12.4%
CAM South 4,989 4,880 2.2%
Mexico and Central America 56,242 52,904 6.3%
Colombia 6,403 5,779 10.8%
Brazil (4) 25,172 25,374 -0.8%
Argentina 3,224 2,890 11.6%
Uruguay 1,460 1,394 4.7%
South America 36,258 35,438 2.3%
TOTAL 92,500 88,341 4.7%

(3) Volume and transactions in Brazil do not include beer.

(4) Brazil includes beer revenues of Ps. 7,363.2 million for the first six months of 2021 and Ps. 7,254 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 2Q21 Results
July26, 2021
Page 33 of 34
COCA-COLA FEMSA
MACROECONOMIC INFORMATION
Inflation (1)
LTM 2Q21 YTD
Mexico 6.02% 1.59% 3.30%
Colombia 2.89% 1.65% 3.13%
Brazil 8.28% 2.30% 3.68%
Argentina 47.13% 9.63% 24.53%
Costa Rica 1.82% 0.84% 0.60%
Panama 0.06% 1.24% 1.60%
Guatemala 5.26% 7.65% 2.01%
Nicaragua 3.47% 4.21% 2.28%
Uruguay 6.54% 1.36% 4.38%

(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)
2Q21 2Q20 Δ % YTD 21 YTD 20 Δ %
Mexico 20.05 23.36 -14.2% 20.23 21.61 -6.4%
Colombia 3,695.61 3,847.63 -4.0% 3,675.95 3,692.48 -0.4%
Brazil 5.30 5.39 -1.7% 5.38 4.92 9.3%
Argentina 94.07 67.68 39.0% 93.32 64.59 44.5%
Costa Rica 618.69 575.52 7.5% 617.59 574.89 7.4%
Panama 1.00 1.00 0.0% 1.00 1.00 0.0%
Guatemala 7.72 7.70 0.3% 7.72 7.69 0.4%
Nicaragua 35.08 34.21 2.5% 35.05 34.09 2.8%
Uruguay 43.89 43.13 1.8% 43.99 41.36 6.4%
End-of-period Exchange Rates
Closing Exchange Rate
(Local Currency per USD)
Closing Exchange Rate
(Local Currency per USD)
Jun-21 Jun-20 Δ % Mar-21 Mar-20 Δ %
Mexico 19.80 22.97 -13.8% 20.60 23.51 -12.4%
Colombia 3,756.67 3,758.91 -0.1% 3,736.91 4,064.81 -8.1%
Brazil 5.00 5.48 -8.7% 5.70 5.20 9.6%
Argentina 95.72 70.46 35.9% 92.00 64.47 42.7%
Costa Rica 621.92 583.49 6.6% 615.81 587.37 4.8%
Panama 1.00 1.00 0.0% 1.00 1.00 0.0%
Guatemala 7.74 7.70 0.6% 7.71 7.68 0.4%
Nicaragua 35.17 34.34 2.4% 34.99 34.09 2.7%
Uruguay 43.58 42.21 3.2% 44.19 43.01 2.7%

(2) Average exchange rate for each period computed with the average exchange rate of each month.

Coca-Cola FEMSA Reports 2Q21 Results
July26, 2021
Page 34 of 34

Disclaimer

FEMSA - Fomento Económico Mexicano SA de CV published this content on 28 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2021 12:43:22 UTC.


© Publicnow 2021
All news about FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.
09/13Poupachef Soluções em Informática LTDA announced that it has received $3.5 million in f..
CI
09/08FOMENTO ECONÓMICO MEXICANO B DE C : FEMSA's Envoy Solutions to acquire Penn Jersey Paper f..
MT
09/08FOMENTO ECONÓMICO MEXICANO B DE C : FEMSA's Envoy Solutions to acquire Penn Jersey Paper C..
PU
09/08FOMENTO ECONÓMICO MEXICANO B DE C : FEMSA's Envoy Solutions to acquire Penn Jersey Paper C..
AQ
08/31FOMENTO ECONÓMICO MEXICANO B DE C : Economico Mexicano US Unit to Acquire Daycon Products ..
MT
08/31FOMENTO ECONÓMICO MEXICANO B DE C : FEMSA expands its distribution footprint in the East C..
PU
08/13FOMENTO ECONÓMICO MEXICANO B DE C : Barclays Adjusts Price Target on FEMSA to $90 From $80..
MT
08/13FOMENTO ECONÓMICO MEXICANO B DE C : Goldman Sachs Starts Fomento Economico Mexicano at Buy..
MT
08/03FOMENTO ECONÓMICO MEXICANO B DE C : Barclays Adjusts FEMSA's Price Target to $90 From $80,..
MT
07/28FOMENTO ECONÓMICO MEXICANO B DE C : Economico Mexicano Swings to Q2 Profit as Revenue Gain..
MT
More news
Analyst Recommendations on FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.
More recommendations
Financials
Sales 2021 543 B 27 088 M 27 088 M
Net income 2021 21 990 M 1 097 M 1 097 M
Net Debt 2021 134 B 6 681 M 6 681 M
P/E ratio 2021 28,9x
Yield 2021 1,32%
Capitalization 569 B 28 284 M 28 391 M
EV / Sales 2021 1,29x
EV / Sales 2022 1,16x
Nbr of Employees 314 202
Free-Float 99,0%
Chart FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.
Duration : Period :
Fomento Económico Mexicano, S.A.B. de C.V. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 16
Last Close Price 177,82 MXN
Average target price 195,61 MXN
Spread / Average Target 10,0%
EPS Revisions
Managers and Directors
Miguel Eduardo Padilla Silva Chief Executive Officer & Director
Eugenio Garza Y. Garza CFO, Director-Finance & Corporate Development
José Antonio Fernández Carbajal Executive Chairman
Gerardo Estrada Attolini Vice President-Administration & Corporate Control
Robert Edwin Denham Independent Director