UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2019
Commission File Number1-12260
COCA-COLA FEMSA, S.A.B. de C.V.
(Translation of registrant’s name into English)
United Mexican States
(Jurisdiction of incorporation or organization)
Calle Mario Pani No. 100,
Santa Fe Cuajimalpa,
Cuajimalpa de Morelos,
05348, Ciudad de México,
México
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)
Yes No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)
Yes No X
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82-__.
Coca-Cola FEMSA Announces Results for Third Quarter and First Nine Months of 2019
Mexico City, October 25, 2019, 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 2019.
THIRD QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS
· Volumes increased in Brazil and Central America, while remaining stable in Mexico; transactions outperformed volumes in Argentina and Brazil.
· Revenues increased 10.3%, while comparable revenues grew 11.6%. Solid pricing, revenue management initiatives across our operations, volume growth in Brazil and Central America, and extraordinary other operating revenues related to tax reclaims in Brazil were partially offset by unfavorable currency translation effects mainly from the Argentine and Colombian Peso.
· Operating income increased 21.4%, while comparable operating income increased 22.8%. A favorable price mix, stable raw material prices, operating expense efficiencies, and extraordinary tax effects in Brazil were partially offset by higher concentrate costs and the depreciation of all of our operating currencies as applied to our U.S. dollar-denominated raw material costs.
· Earnings per share1 were Ps. 0.24 (Earnings per unit were Ps. 1.92 and per ADS were Ps. 19.17).
FINANCIAL SUMMARY FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2019 | ||||||||||||
Change vs. same period of last year | ||||||||||||
Total Revenues | Gross Profit | Operating Income | Majority Net Income | |||||||||
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| 3Q 2019 | YTD 2019 | 3Q 2019 | YTD 2019 | 3Q 2019 | YTD 2019 | 3Q 2019 | YTD 2019 | |||
As Reported(2) | Consolidated | 10.3% | 9.1% | 7.1% | 7.2% | 21.4% | 11.3% | 23.3% | 23.1% | |||
Mexico & Central America | 8.0% | 9.7% | 6.5% | 9.5% | 9.2% | 14.5% | ||||||
South America | 13.6% | 8.4% | 7.9% | 3.8% | 43.9% | 6.6% | ||||||
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Comparable(3) | Consolidated | 11.6% | 11.0% | 7.6% | 8.8% | 22.8% | 15.6% | |||||
Mexico & Central America | 7.9% | 8.2% | 6.4% | 8.0% | 9.1% | 13.5% | ||||||
South America | 17.4% | 15.7% |
| 9.9% | 10.4% |
| 49.5% | 19.4% |
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John Santa Maria, Coca-Cola FEMSA’s CEO, commented:
“I am encouraged by our positive operating performance across our divisions. In Mexico and Central America, our solid top-line growth was underscored by our resilient Mexico operation—where our affordability, portfolio innovation, and commercial initiatives are enabling us to drive price mix improvements—coupled with solid volume growth in Central America, driven by our improved route to market. In South America, I am pleased by the turnaround of our Brazilian operation, which continues to post solid volume performance, as it builds on two years of continuous growth. This is driven by our relentless focus on our consumers, resulting in market share gains across key categories. In addition, our Colombia operation’s single-serve affordability strategy is gaining traction as we focus on the profitability of our portfolio.
Moreover, we were selected for the Dow Jones Sustainability Emerging Markets Index, reaffirming our commitment and challenging us to continue evolving our sustainability strategy.
As we approach the final stretch of the year, we are encouraged that our fundamental transformation has a long runway, which commits us to working extensively to continue delivering value for all of our stakeholders.”
(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 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.
(2) According to IFRS 5, figures for 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(3) Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
Page 1 of 16
RECENT DEVELOPMENTS
· 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 an extraordinary positive effect on its third-quarter results, affecting mainly other operating revenues and other operating expenses, net. The total net amount of extraordinary tax effects in Brazil in the operating income is Ps. 1,139 million for the period.
· On October 19, 2019, Coca-Cola FEMSA announced its inclusion in the Dow Jones Sustainability Emerging Markets Index for the seventh consecutive year and its inclusion in the Dow Jones Sustainability MILA Pacific Alliance Index for the third consecutive year, confirming its sustainability commitment and leadership.
· On November 1, 2019, Coca-Cola FEMSA will pay the second installment of the 2018 dividend approved for Ps. 0.4425 per share (equivalent to Ps. 3.54 per unit).
· As of November 2019, Maria Dyla Castro, who has served as Investor Relations Director at Coca-Cola FEMSA since October 2016, took on new responsibilities as Director of Global Business Services for the Finance area.
Jorge Collazo, who has been Investor Relations Manager since October 2016 and has worked in the company since 2014, has been appointed the new Head of Investor Relations.
CONFERENCE CALL INFORMATION
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 2 of 16 |
CONSOLIDATED THIRD-QUARTER RESULTS
CONSOLIDATED THIRD QUARTER RESULTS | ||||||
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| As Reported(1) |
| Comparable (2) | ||
Expressed in millions of Mexican pesos |
| 3Q 2019 | 3Q 2018 | Δ% |
| Δ% |
Total revenues |
| 48,699 | 44,148 | 10.3% |
| 11.6% |
Gross profit | 21,667 | 20,237 | 7.1% | 7.6% | ||
Operating income | 7,013 | 5,777 | 21.4% | 22.8% | ||
Operating cash flow(3) |
| 10,069 | 8,492 | 18.6% |
| 21.2% |
Volumeincreased 0.3% to 842.1 million unit cases, driven mainly by 5.6% growth in Brazil, 2.8% growth in Central America, and stable performance in Mexico, partially offset by volume declines in Argentina, Colombia, and Uruguay. On a comparable basis, total volumes increased 1.4%.
Total revenuesincreased 10.3% to Ps. 48,699 million. This figure includes extraordinary other operating revenues related to an entitlement to reclaim tax payments in Brazil. Our revenues were driven mainly by healthy pricing in Mexico, Brazil, and Colombia, revenue management initiatives across our territories, volume growth in Brazil and Central America, and a favorable mix effect driven by transactions growing ahead of volumes mainly in Brazil. These factors were partially offset by the negative translation effect resulting from the depreciation of the Argentine Peso, the Colombian Peso, the Uruguayan Peso, and the Nicaraguan Cordoba as compared to the Mexican Peso, combined with volume declines in Argentina, Colombia, and Uruguay. On a comparable basis, total revenues would have increased 11.6%.
Gross profitincreased 7.1% to Ps. 21,667 million, and gross margin contracted 130 basis points to 44.5%. Lower packaging prices, stable sweetener prices mainly in Brazil, and a favorable currency hedging position in most of our operations were offset by: i) higher concentrate costs in Mexico; ii) higher concentrate costs in Brazil, related to the reduction of tax credits on concentrate purchased from the Manaus Free Trade Zone; and iii) 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 increased 7.6%.
(1) According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(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.
(3) Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 3 of 16 |
Operating incomeincreased 21.4% to Ps. 7,013 million, and operating margin expanded 130 basis points to 14.4%. This increase was driven mainly by operating expense efficiencies and tax reclaims in Brazil, partially offset by restructuring severance payments of Ps. 367 million related to our efficiency program and other tax-related provisions. The total net amount of extraordinary tax effects in Brazil this quarter is Ps. 1,139 million. On a comparable basis, operating income increased 22.8%.
Comprehensive financing result recorded an expense of Ps. 1,430 million, compared to an expense of Ps. 1,322 million in the same period of 2018. This increase was driven mainly by a market value loss in financial instruments recognized during the quarter. This effect was partially offset by a reduction in our interest expense, net, as compared to the same period of 2018 and a foreign exchange gain—as our cash exposure in U.S. dollars was positively impacted by the depreciation of the Mexican Peso during the third quarter of 2019.
Income taxasa percentage of income before taxes was 25.9% as compared to 31.4% during the same period of the previous year. This decrease was driven mainly by the increase in the relative weight of our Mexico operation´s profits in our consolidated results, which have a lower tax rate, coupled with certain tax efficiencies across our operations.
Net income attributable to equity holders of the company reached Ps. 4,027 million as compared to Ps. 3,266 million during the same period of the previous year. Earnings per share1 were Ps. 0.24 (Earnings per unit were Ps. 1.92, and earnings per ADS were Ps. 19.17.).
(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 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.
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 4 of 16 |
CONSOLIDATED FIRST NINE MONTHS RESULTS
CONSOLIDATED FIRST NINE MONTHS RESULTS | ||||||
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| As Reported(1) |
| Comparable (2) | ||
Expressed in millions of Mexican pesos |
| YTD 2019 | YTD 2018 | Δ% |
| Δ% |
Total revenues |
| 142,504 | 130,577 | 9.1% |
| 11.0% |
Gross profit | 64,473 | 60,150 | 7.2% | 8.8% | ||
Operating income | 19,041 | 17,103 | 11.3% | 15.6% | ||
Operating cash flow(3) |
| 27,726 | 24,909 | 11.3% |
| 14.0% |
Volumeincreased 1.2% to 2,479.3 million unit cases in the first nine months of 2019 as compared to the same period of 2018, driven mainly by solid growth in Brazil and the consolidation of acquired territories in Guatemala and Uruguay, partially offset by volume declines in Argentina, Colombia, and Mexico. On a comparable basis, total volumes increased 0.9%.
Total revenuesincreased 9.1% to Ps. 142,504 million in the first nine months of 2019 as compared to the same period of 2018. This figure includes extraordinary other operating revenues related to an entitlement to reclaim tax payments in Brazil. Total revenues were driven mainly by healthy pricing, revenue management initiatives across our territories, volume growth in Brazil, the consolidation of recently acquired territories in Guatemala and Uruguay, and a favorable mix effect driven by transactions growing ahead of volumes in Argentina, Brazil, and Central America. These factors were partially offset by the negative translation effect resulting from the depreciation of all of our operating currencies as compared to the Mexican Peso, combined with volume declines in Argentina, Colombia, and Mexico. On a comparable basis, total revenues increased 11.0%.
Gross profitincreased 7.2% to Ps. 64,473 million in the first nine months of 2019 as compared to the same period of 2018, and gross margin contracted 90 basis points to 45.2%. More stable sweetener and PET prices were offset by: i) higher concentrate costs in Mexico; ii) higher concentrate costs in Brazil, related to the reduction of tax credits on concentrate purchased from the Manaus Free Trade Zone; and iii) the depreciation in the average exchange rate of all of our operating currencies as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit increased 8.8%.
(1) According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(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.
(3) Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 5 of 16 |
Operating incomeincreased 11.3% to Ps. 19,041 million in the first nine months of 2019 as compared to the same period of 2018, and operating margin expanded 30 basis points to 13.4%. This increase was driven mainly by operating expense efficiencies and tax reclaims in Brazil, partially offset by restructuring severance payments of Ps. 1,068 million related to our efficiency program and other tax-related provisions. On a comparable basis, operating income increased 15.6%.
Comprehensive financing result recorded an expense of Ps. 4,566 million during the first nine months of 2019 compared to an expense of Ps. 4,837 million in the same period of 2018. For this period, we had a reduction in our interest expense, net, as compared to the same period of 2018, a foreign exchange loss—as our cash exposure in U.S. dollars was negatively impacted by the appreciation of the Mexican Peso during the first nine months of 2019—and a reduction in other financial expenses.
Income taxasa percentage of income before taxes was 27.4% as compared to 31.2 % during the first nine months of the previous year. This decrease was driven mainly by the increase in the relative weight of our Mexico operation´s profits in our consolidated results, which have a lower tax rate, coupled with certain tax efficiencies across our operations.
Net income attributable to equity holders of the company reached Ps. 10,095 million in the first nine months of 2019 as compared to Ps. 8,201 million during the same period of the previous year. Earnings per share1 were Ps. 0.60 (Earnings per unit were Ps. 4.81, and earnings per ADS were Ps. 48.05.).
(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 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.
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 6 of 16 |
MEXICO & CENTRAL AMERICA DIVISION THIRD QUARTER RESULTS
(Mexico, Guatemala, Costa Rica, Panama, and Nicaragua) |
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MEXICO & CENTRAL AMERICA DIVISION RESULTS | ||||||
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| As Reported(1) |
| Comparable (2) | ||
Expressed in millions of Mexican pesos |
| 3Q 2019 | 3Q 2018 | Δ% |
| Δ% |
Total revenues |
| 28,166 | 26,069 | 8.0% |
| 7.9% |
Gross profit | 13,388 | 12,566 | 6.5% | 6.4% | ||
Operating income | 4,095 | 3,750 | 9.2% | 9.1% | ||
Operating cash flow(3) |
| 5,922 | 5,402 | 9.6% |
| 9.5% |
Volume increased 0.3% to 535.7 million unit cases, driven by solid volume growth in Guatemala and Costa Rica and stable performance in Mexico, partially offset by volume declines in Nicaragua and Panama.
Total revenues increased 8.0% to Ps. 28,166 million, driven by pricing ahead of inflation in Mexico, coupled with volume growth in Guatemala and Costa Rica and stable volumes in Mexico. These effects were partially offset by volume declines in Nicaragua and Panama and a slightly unfavorable mix driven by volumes outperforming transactions. On a comparable basis, total revenues increased 7.9%.
Gross profitincreased 6.5% to Ps. 13,388 million, and gross profit margin contracted 70 basis points to 47.5% driven mainly by our pricing initiatives and lower PET costs. These factors were partially offset by higher concentrate costs in Mexico and an unfavorable currency hedging position.On a comparable basis, gross profit increased 6.4%.
Operating incomeincreased 9.2% to Ps. 4,095 million in the third quarter of 2019, and operating income margin expanded 10 basis points to 14.5% during the period, driven mainly by operating expense efficiencies offset by restructuring severance payments of Ps. 207 million related to our efficiency program.On a comparable basis, operating income increased 9.1%.
(1) According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(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.
(3) Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 7 of 16 |
SOUTH AMERICA DIVISION THIRD QUARTER RESULTS
(Brazil, Argentina, Colombia, and Uruguay) |  |
SOUTH AMERICA DIVISION RESULTS | ||||||
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| As Reported(1) |
| Comparable (2) | ||
Expressed in millions of Mexican pesos |
| 3Q 2019 | 3Q 2018 | Δ% |
| Δ% |
Total revenues |
| 20,533 | 18,079 | 13.6% |
| 17.4% |
Gross profit | 8,279 | 7,671 | 7.9% | 9.9% | ||
Operating income | 2,918 | 2,028 | 43.9% | 49.5% | ||
Operating cash flow(3) |
| 4,147 | 3,090 | 34.2% |
| 44.4% |
Volume increased 0.4% to 306.4 million unit cases, driven by strong volume growth of 5.6% in Brazil, partially offset by volume declines in Argentina, Colombia, and Uruguay. On a comparable basis, volume grew 3.7%.
Total revenues increased 13.6% to Ps. 20,533 million. This figure includes extraordinary other operating revenues related to an entitlement to reclaim tax payments in Brazil. Revenues were driven mainly by strong volume growth in Brazil, pricing ahead of inflation in Brazil, and a favorable mix effect driven by transactions outperforming volumes in Argentina and Brazil. These factors were partially offset by volume contractions in Argentina, Colombia, and Uruguay, coupled with an unfavorable currency translation effect resulting from the depreciation of the Argentine Peso, Colombian Peso, and Uruguayan Peso as compared to the Mexican Peso.On a comparable basis,total revenues increased 17.4%.
Gross profitincreased 7.9% to Ps. 8,279 million, and gross profit margin contracted 210 basis points to 40.3%. This isa result of our revenue management initiatives, a favorable currency hedging position, combined with lower PET prices in the division, and lower sweetener prices mainly in Brazil. These factors were partially offset by higher concentrate costs in Brazil related to the reduction of tax credits on concentrate purchased from the Manaus free trade zone, and 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.On a comparable basis,gross profit increased 9.9%.
Operating incomeincreased 43.9% to Ps. 2,918 million in the third quarter of 2019, resulting in a margin expansion of 300 basis points to 14.2%. This result includes operating expense efficiencies and tax reclaims in Brazil, partially offset by a decline in Argentina´s top line and restructuring severance payments of Ps. 160 million related to our efficiency program and other tax-related provisions. The total net amount of extraordinary tax effects in Brazil this quarter is Ps. 1,139 million.On a comparable basis,operating income increased 49.5%.
(1) According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(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.
(3) Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.
(4)
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 8 of 16 |
DEFINITIONS
Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.
Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.
Operating income is a non-GAAP financial measure computed as “gross profit – operating expenses – other operating expenses, net + operative equity method (gain) loss in associates.”
Operating cash flow is a non-GAAP financial measure computed as “operating income + depreciation + amortization & other operating non-cash charges.”
Earnings per share are equal to “Earnings / outstanding shares.” Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806,658,096 shares outstanding. For the convenience of the reader, as each 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, we are including the term “Comparable.” This means, with respect to a year-over-year comparison, the change of a given measure excluding the effects of: (i) mergers, acquisitions, and divestitures, including acquisitions made in Guatemala and Uruguay as of May and July 2018, respectively; (ii) translation effects resulting from exchange rate movements; and (iii) the results of hyperinflationary subsidiaries in both periods: Argentina’s results from 2019 and 2018. In preparing this measure, management has used its best judgment, estimates, and assumptions in order to maintain comparability. The relation between our reported and comparable figures is described in the following chart:
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 9 of 16 |
ABOUT THE COMPANY
Stock listing information: Mexican Stock Exchange, Ticker: KOF UBL | NYSE (ADS), Ticker: KOF | Ratio of KOF UBL 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 atwww.sec.gov, the BMV’s website atwww.bmv.com.mx, and our website atwww.coca-colafemsa.com.
Coca-Cola FEMSA, S.A.B. de C.V. is the largest Coca-Cola franchise bottler in the world by sales volume. The Company produces and distributes trademark beverages of The Coca-Cola Company, offering a wide portfolio of 131 brands to a population of more than 257 million. With over 83 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 275 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 visitwww.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 3Q2019 Results October 25, 2019 | Page 10 of 16 |
CONSOLIDATED INCOME STATEMENT | ||||||||||||||
Millions of Pesos(1) | ||||||||||||||
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| For the Third Quarter of: | For the First Nine Months of: | |||||||||||
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| 2019 | % of Rev. | 2018(4) | % of Rev. | Δ% Reported | Δ% Comparable(8) |
| 2019 | % of Rev. | 2018(4) | % of Rev. | Δ% Reported | Δ% Comparable(8) |
Transactions (million transactions) |
| 5,037.8 |
| 4,973.1 |
| 1.3% | 2.1% | 14,888.0 |
| 14,539.0 |
| 2.4% | 1.5% | |
Volume (million unit cases) |
| 842.1 |
| 839.2 |
| 0.3% | 1.4% | 2,479.3 |
| 2,450.1 |
| 1.2% | 0.9% | |
Average price per unit case |
| 52.09 |
| 48.95 |
| 6.4% |
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| 52.32 |
| 49.34 |
| 6.0% |
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Net revenues |
| 47,294 |
| 44,012 |
| 7.5% |
| 140,571 |
| 130,252 |
| 7.9% |
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Other operating revenues |
| 1,404 |
| 136 |
| 929.6% |
| 1,933 |
| 325 |
| 494.5% |
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Total revenues(2) |
| 48,699 | 100.0% | 44,148 | 100.0% | 10.3% | 11.6% | 142,504 | 100.0% | 130,577 | 100.0% | 9.1% | 11.0% | |
Cost of goods sold |
| 27,032 | 55.5% | 23,911 | 54.2% | 13.0% |
| 78,030 | 54.8% | 70,427 | 53.9% | 10.8% |
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Gross profit |
| 21,667 | 44.5% | 20,237 | 45.8% | 7.1% | 7.6% | 64,473 | 45.2% | 60,150 | 46.1% | 7.2% | 8.8% | |
Operating expenses |
| 14,703 | 30.2% | 14,256 | 32.3% | 3.1% |
| 44,429 | 31.2% | 42,225 | 32.3% | 5.2% |
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Other operative expenses, net |
| (63) | -0.1% | 118 | 0.3% | NA |
| 895 | 0.6% | 621 | 0.5% | 44.1% |
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Operative equity method (gain) loss in associates(3) |
| 15 | 0.0% | 85 | 0.2% | -82.6% |
| 109 | 0.1% | 201 | 0.2% | -45.6% |
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Operating income(6) |
| 7,013 | 14.4% | 5,777 | 13.1% | 21.4% | 22.8% | 19,041 | 13.4% | 17,103 | 13.1% | 11.3% | 15.6% | |
Other non operative expenses, net |
| 2 | 0.0% | 95 | 0.2% | NA |
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| 75 | 0.1% | 216 | 0.2% | -65.4% |
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Non Operative equity method (gain) loss in associates(5) |
| 16 | 0.0% | (34) | -0.1% | NA |
| (14) | 0.0% | (40) | 0.0% | NA |
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Interest expense |
| 1,786 |
| 1,834 |
| -2.6% |
| 5,235 |
| 5,461 |
| -4.1% |
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Interest income |
| 365 |
| 276 |
| 32.3% |
| 907 |
| 702 |
| 29.3% |
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Interest expense, net |
| 1,421 |
| 1,558 |
| -8.8% |
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| 4,328 |
| 4,759 |
| -9.1% |
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Foreign exchange loss (gain) |
| (38) |
| (60) |
| NA |
| 166 |
| (51) |
| NA |
| |
Loss (gain) on monetary position in inflationary subsidiries |
| (103) |
| (117) |
| NA |
| (78) |
| (117) |
| NA |
| |
Market value (gain) loss on financial instruments |
| 150 |
| (59) |
| NA |
|
| 150 |
| 246 |
| NA |
|
Comprehensive financing result |
| 1,430 |
| 1,322 |
| 8.1% |
|
| 4,566 |
| 4,837 |
| -5.6% |
|
Income before taxes |
| 5,564 |
| 4,394 |
| 26.6% |
|
| 14,415 |
| 12,091 |
| 19.2% |
|
Income taxes |
| 1,439 |
| 1,382 |
| 4.2% |
|
| 3,953 |
| 3,773 |
| 4.8% |
|
Result of discontinued operations |
| - |
| 410 |
| NA |
|
| - |
| 576 |
| NA |
|
Consolidated net income |
| 4,125 |
| 3,422 |
| 20.5% |
|
| 10,462 |
| 8,894 |
| 17.6% |
|
Net income attributable to equity holders of the company |
| 4,027 | 8.3% | 3,266 | 7.4% | 23.3% |
|
| 10,095 | 7.1% | 8,201 | 6.3% | 23.1% |
|
Non-controlling interest |
| 98 | 0.2% | 156 | 0.4% | -37.0% |
|
| 367 | 0.3% | 693 | 0.5% | -47.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating Cash Flow & CAPEX |
| 2019 | % of Rev. | 2018(4) | % of Rev. | Δ% Reported | Δ% Comparable(8) | 2019 | % of Rev. | 2018(4) | % of Rev. | Δ% Reported | Δ% Comparable(8) | |
Operating income(6) |
| 7,013 | 14.4% | 5,777 | 13.1% | 21.4% |
| 19,041 | 13.4% | 17,103 | 13.1% | 11.3% |
| |
Depreciation |
| 2,251 |
| 2,190 |
| 2.8% |
| 6,699 |
| 6,178 |
| 8.4% |
| |
Amortization and other operative non-cash charges |
| 805 |
| 524 |
| 53.6% |
| 1,986 |
| 1,627 |
| 22.0% |
| |
Operating cash flow(6)(7) |
| 10,069 | 20.7% | 8,492 | 19.2% | 18.6% | 21.2% | 27,726 | 19.5% | 24,909 | 19.1% | 11.3% | 14.0% | |
CAPEX |
| 2,772 |
| 3,103 |
| -10.7% |
| 6,681 |
| 7,120 |
| -6.2% |
| |
(1) Except volume and average price per unit case figures.
(2) Please refer to pages 14 and 15 for revenue breakdown.
(3) Includes equity method in Jugos del Valle, Leao Alimentos, and Estrella Azul, among others.
(4) According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(5) Includes equity method in PIASA, IEQSA, Beta San Miguel, IMER and KSP Participacoes, among others.
(6) The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
(7) Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
(8) 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 3Q2019 Results October 25, 2019 | Page 11 of 16 |
MEXICO & CENTRAL AMERICA DIVISION | ||||||||||||||
RESULTS OF OPERATIONS | ||||||||||||||
Millions of Pesos(1) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Third Quarter of: |
| For the First Nine Months of: | ||||||||||
|
| 2019 | % of Rev. | 2018 | % of Rev. | Δ% | Δ% |
| 2019 | % of Rev. | 2018 | % of Rev. | Δ% | Δ% |
Transactions (million transactions) |
| 2,946.3 |
| 2,953.8 |
| -0.3% | -0.3% |
| 8,695.3 |
| 8,700.0 |
| -0.1% | -1.8% |
Volume (million unit cases) |
| 535.7 |
| 534.1 |
| 0.3% | 0.3% |
| 1,568.4 |
| 1,561.2 |
| 0.5% | -0.8% |
Average price per unit case |
| 52.53 |
| 48.78 |
| 7.7% |
|
| 52.24 |
| 47.85 |
| 9.2% |
|
Net revenues |
| 28,144 |
| 26,056 |
|
|
|
| 81,933 |
| 74,708 |
|
|
|
Other operating revenues |
| 22 |
| 13 |
|
|
|
| 64 |
| 30 |
|
|
|
Total Revenues(2) |
| 28,166 | 100.0% | 26,069 | 100.0% | 8.0% | 7.9% |
| 81,996 | 100.0% | 74,738 | 100.0% | 9.7% | 8.2% |
Cost of goods sold |
| 14,778 | 52.5% | 13,503 | 51.8% |
|
|
| 42,662 | 52.0% | 38,808 | 51.9% |
|
|
Gross profit |
| 13,388 | 47.5% | 12,566 | 48.2% | 6.5% | 6.4% |
| 39,334 | 48.0% | 35,930 | 48.1% | 9.5% | 8.0% |
Operating expenses |
| 8,949 | 31.8% | 8,748 | 33.6% |
|
|
| 26,634 | 32.5% | 25,334 | 33.9% |
|
|
Other operative expenses, net |
| 300 | 1.1% | (31) | -0.1% |
|
|
| 834 | 1.0% | 141 | 0.2% |
|
|
Operative equity method (gain) loss in associates(3) |
| 45 | 0.2% | 99 | 0.4% |
|
|
| 168 | 0.2% | 243 | 0.3% |
|
|
Operating income (4) |
| 4,095 | 14.5% | 3,750 | 14.4% | 9.2% | 9.1% |
| 11,698 | 14.3% | 10,212 | 13.7% | 14.5% | 13.5% |
Depreciation, amortization & other operating non-cash charges | 1,827 | 6.5% | 1,653 | 6.3% |
|
| 5,281 | 6.4% | 4,900 | 6.6% |
|
| ||
Operating cash flow(4)(5) |
| 5,922 | 21.0% | 5,402 | 20.7% | 9.6% | 9.5% |
| 16,979 | 20.7% | 15,112 | 20.2% | 12.4% | 11.0% |
(1) Except volume and average price per unit case figures.
(2) Please refer to pages 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 Third Quarter of: |
| For the First Nine Months of: | ||||||||||
|
| 2019 | % of Rev. | 2018 | % of Rev. | Δ% | Δ% |
| 2019 | % of Rev. | 2018 | % of Rev. | Δ% | Δ% |
Transactions (million transactions) |
| 2,091.4 |
| 2,019.3 |
| 3.6% | 5.9% |
| 6,192.6 |
| 5,838.9 |
| 6.1% | 7.1% |
Volume (million unit cases) |
| 306.4 |
| 305.1 |
| 0.4% | 3.7% |
| 910.9 |
| 888.9 |
| 2.5% | 4.5% |
Average price per unit case |
| 51.31 |
| 49.25 |
| 4.2% |
|
| 52.47 |
| 51.96 |
| 1.0% |
|
Net revenues |
| 19,151 |
| 17,955 |
|
|
|
| 58,638 |
| 55,544 |
|
|
|
Other operating revenues |
| 1,382 |
| 124 |
|
|
|
| 1,869 |
| 295 |
|
|
|
Total Revenues(2) |
| 20,533 | 100.0% | 18,079 | 100.0% | 13.6% | 17.4% |
| 60,507 | 100.0% | 55,839 | 100.0% | 8.4% | 15.7% |
Cost of goods sold |
| 12,254 | 59.7% | 10,408 | 57.6% |
|
|
| 35,369 | 58.5% | 31,619 | 56.6% |
|
|
Gross profit |
| 8,279 | 40.3% | 7,671 | 42.4% | 7.9% | 9.9% |
| 25,139 | 41.5% | 24,220 | 43.4% | 3.8% | 10.4% |
Operating expenses |
| 5,754 | 28.0% | 5,507 | 30.5% |
|
|
| 17,794 | 29.4% | 16,891 | 30.3% |
|
|
Other operative expenses, net |
| (363) | -1.8% | 150 | 0.8% |
|
|
| 60 | 0.1% | 480 | 0.9% |
|
|
Operative equity method (gain) loss in associates(3) |
| (30) | -0.1% | (14) | -0.1% |
|
|
| (58) | -0.1% | (42) | -0.1% |
|
|
Operating income (4) |
| 2,918 | 14.2% | 2,028 | 11.2% | 43.9% | 49.5% |
| 7,343 | 12.1% | 6,891 | 12.3% | 6.6% | 19.4% |
Depreciation, amortization & other operating non-cash charges | 1,229 | 6.0% | 1,062 | 5.9% |
|
| 3,404 | 5.6% | 2,906 | 5.2% |
|
| ||
Operating cash flow(4)(5) |
| 4,147 | 20.2% | 3,090 | 17.1% | 34.2% | 44.4% |
| 10,747 | 17.8% | 9,797 | 17.5% | 9.7% | 19.6% |
(1) Except volume and average price per unit case figures.
(2) Please refer to pages 14 and 15 for revenue breakdown.
(3) Includes equity method in Leao 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.
(7)
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 12 of 16 |
COCA-COLA FEMSA | ||||||||||
CONSOLIDATED BALANCE SHEET | ||||||||||
Millions of Pesos | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
Assets | Sep-19 | Dec-18 | % Var. |
| Liabilities & Equity | Sep-19 | Dec-18 | % Var. | ||
Current Assets |
|
|
|
|
| Current Liabilities |
|
|
|
|
Cash, cash equivalents and marketable securities |
|
|
|
|
| Short-term bank loans and notes payable |
| 16,699 | 11,604 | 44% |
30,230 | 23,727 | 27% |
| Suppliers |
| 17,712 | 19,746 | -10% | ||
Total accounts receivable |
| 10,951 | 14,847 | -26% |
| Short-term leasing Liabilities |
| 471 | - |
|
Inventories | 9,658 | 10,051 | -4% |
| Other current liabilities |
| 21,405 | 14,174 | 51% | |
Other current assets |
| 11,170 | 8,865 | 26% |
| Total current liabilities |
| 56,286 | 45,524 | 24% |
Total current assets |
| 62,008 | 57,490 | 8% |
| Non-Current Liabilities |
|
|
|
|
Non-Current Assets |
|
|
|
|
| Long-term bank loans and notes payable |
| 59,834 | 70,201 | -15% |
Property, plant and equipment | 106,184 | 106,259 | 0% |
| Long Term Leasing Liabilities |
| 913 | - |
| |
Accumulated depreciation |
| (46,779) | (44,316) | 6% |
| Other long-term liabilities |
| 15,964 | 16,313 | -2% |
Total property, plant and equipment, net |
| 59,406 | 61,942 | -4% |
| Total liabilities |
| 132,997 | 132,037 | 1% |
Right of use assets |
| 1,357 | - | NA |
| Equity |
|
|
|
|
Investment in shares | 10,587 | 10,518 | 1% |
| Non-controlling interest |
| 6,659 | 6,807 | -2% | |
Intangible assets and other assets |
| 112,464 | 116,804 | -4% |
| Total controlling interest |
| 123,041 | 124,943 | -2% |
Other non-current assets |
| 16,875 | 17,033 | -1% |
| Total equity |
| 129,700 | 131,750 | -2% |
Total Assets | 262,697 | 263,788 | -0.4% |
| Total Liabilities and Equity | 262,697 | 263,788 | -0.4% | ||
|
|
|
|
|
|
|
|
|
|
|
|
| September 30, 2019 |
|
|
|
|
|
| ||
Debt Mix | % Total Debt(1) | % Interest Rate Floating(1) (2) | Average Rate |
| Debt Maturity Profile | |||||
| ||||||||||
Currency |
| �� |
|
|
|
|
|
|
|
|
Mexican Pesos |
| 64.2% | 26.5% | 8.4% |
|
| ||||
U.S. Dollars |
| 9.2% | 0.0% | 3.9% |
| |||||
Colombian Pesos |
| 1.6% | 100.0% | 5.2% |
| |||||
Brazilian Reals |
| 23.0% | 1.9% | 8.3% |
| |||||
Uruguayan Pesos |
| 1.8% | 0.0% | 9.7% |
| |||||
Argentine Pesos |
| 0.2% | 20.0% | 65.9% |
| |||||
Total Debt |
| 100% | 12.2% | 8.1% |
| |||||
(1) After giving effect to cross- currency swaps. |
|
|
|
|
|
|
|
|
| |
(2) Calculated by weighting each year´s outstanding debt balance mix. |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios |
| LTM 2019 | FY 2018 | Δ% |
|
|
|
|
|
|
Net debt including effect of hedges(1)(3) | 44,455 | 56,934 | -6.5% |
|
|
|
|
|
| |
Net debt including effect of hedges / Operating cash flow(1)(3) |
| 1.17 | 1.61 |
|
|
|
|
|
| |
Operating cash flow/ Interest expense, net(1) | 6.41 | 5.40 |
|
|
|
|
|
|
| |
Capitalization(2) |
| 40.4% | 40.5% |
|
|
|
|
|
|
|
(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 3Q2019 Results October 25, 2019 | Page 13 of 16 |
COCA-COLA FEMSA | ||||||||||||||
QUARTERLY- VOLUME, TRANSACTIONS & REVENUES | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume | ||||||||||||||
|
| 3Q 2019 |
| 3Q 2018(3) |
| YoY | ||||||||
| Sparkling | Water(1) | Bulk(2) | Stills | Total |
| Sparkling | Water(1) | Bulk(2) | Stills | Total |
| Δ % | |
Mexico | 351.8 | 23.3 | 72.8 | 29.6 | 477.5 |
| 349.1 | 25.9 | 72.0 | 30.6 | 477.6 |
| 0.0% | |
Central America | 50.1 | 2.9 | 0.1 | 5.1 | 58.2 |
| 48.4 | 2.7 | 0.1 | 5.3 | 56.6 |
| 2.8% | |
Mexico and Central America | 401.9 | 26.2 | 73.0 | 34.6 | 535.7 |
| 397.5 | 28.6 | 72.1 | 35.9 | 534.1 |
| 0.3% | |
Colombia | 53.4 | 6.6 | 5.0 | 3.9 | 68.9 |
| 53.3 | 6.7 | 5.1 | 4.4 | 69.5 |
| -0.8% | |
Brazil | 170.3 | 11.2 | 1.8 | 11.9 | 195.2 |
| 162.3 | 10.0 | 1.6 | 11.0 | 184.9 |
| 5.6% | |
Argentina | 26.7 | 3.2 | 0.9 | 2.2 | 33.0 |
| 34.1 | 3.9 | 0.9 | 2.5 | 41.4 |
| -20.2% | |
Uruguay | 8.5 | 0.7 | - | 0.1 | 9.3 |
| 8.7 | 0.6 | - | 0.0 | 9.4 |
| -0.8% | |
South America | 258.9 | 21.7 | 7.8 | 18.0 | 306.4 |
| 258.4 | 21.1 | 7.6 | 18.0 | 305.1 |
| 0.4% | |
TOTAL |
| 660.8 | 47.9 | 80.7 | 52.7 | 842.1 |
| 656.0 | 49.7 | 79.7 | 53.8 | 839.2 |
| 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2019 |
| 3Q 2018(3) |
| YoY | ||||||||
| Sparkling | Water | Stills | Total |
| Sparkling | Water | Stills | Total | Δ % | ||||
Mexico | 2,061.0 | 150.6 | 249.2 | 2,460.9 |
| 2,042.4 | 192.6 | 242.2 | 2,477.2 | -0.7% | ||||
Central America | 404.1 | 22.7 | 58.7 | 485.4 | 393.0 | 20.9 | 62.7 | 476.6 | 1.8% | |||||
Mexico and Central America | 2,465.1 | 173.3 | 307.9 | 2,946.3 |
| 2,435.5 | 213.5 | 304.9 | 2,953.8 | -0.3% | ||||
Colombia | 385.7 | 87.2 | 43.4 | 516.3 |
| 384.9 | 95.3 | 46.8 | 526.9 | -2.0% | ||||
Brazil | 1,114.1 | 100.6 | 126.6 | 1,341.2 |
| 1,019.2 | 89.5 | 114.6 | 1,223.4 | 9.6% | ||||
Argentina | 150.2 | 20.3 | 16.2 | 186.7 |
| 180.6 | 21.9 | 18.8 | 221.4 | -15.7% | ||||
Uruguay | 43.2 | 3.0 | 0.9 | 47.2 |
| 44.3 | 2.7 | 0.6 | 47.6 | -0.8% | ||||
South America | 1,693.2 | 211.1 | 187.1 | 2,091.4 |
| 1,629.0 | 209.5 | 180.8 | 2,019.3 | 3.6% | ||||
TOTAL |
| 4,158.3 | 384.4 | 495.1 | 5,037.8 |
| 4,064.5 | 423.0 | 485.7 | 4,973.1 |
| 1.3% | ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Revenues |
|
|
|
| ||||||||||
Expressed in million Mexican Pesos |
| 3Q 2019 | 3Q 2018(3) | Δ % |
|
|
|
|
|
|
|
|
|
|
Mexico |
| 23,702 | 21,909 | 8.2% |
|
|
|
|
|
|
|
|
|
|
Central America |
| 4,464 | 4,160 | 7.3% |
|
|
|
|
|
|
|
|
|
|
Mexico and Central America |
| 28,166 | 26,069 | 8.0% |
|
|
|
|
|
|
|
|
|
|
Colombia |
| 3,479 | 3,697 | -5.9% |
|
|
|
|
|
|
|
|
|
|
Brazil(4) |
| 14,808 | 11,924 | 24.2% |
|
|
|
|
|
|
|
|
|
|
Argentina |
| 1,484 | 1,671 | -11.2% |
|
|
|
|
|
|
|
|
|
|
Uruguay |
| 762 | 788 | -3.3% |
|
|
|
|
|
|
|
|
|
|
South America |
| 20,533 | 18,079 | 13.6% |
|
|
|
|
|
|
|
|
|
|
TOTAL |
| 48,699 | 44,148 | 10.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Volume, transactions and revenues for 3Q 2018 are re-presented excluding the Philippines. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Brazil includes beer revenues of Ps.3,428.3 million for the third quarter of 2019 and Ps. 2,928.8 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 3Q2019 Results October 25, 2019 | Page 14 of 16 |
COCA-COLA FEMSA | ||||||||||||||
YTD - VOLUME, TRANSACTIONS & REVENUES | ||||||||||||||
|
|
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|
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|
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|
|
|
|
Volume | ||||||||||||||
|
| YTD 2019 |
| YTD 2018(3) |
| YoY | ||||||||
| Sparkling | Water(1) | Bulk(2) | Stills | Total |
| Sparkling | Water(1) | Bulk(2) | Stills | Total |
| Δ % | |
Mexico | 1,013.4 | 73.5 | 216.5 | 90.2 | 1,393.6 |
| 1,020.1 | 80.1 | 214.8 | 91.2 | 1,406.2 |
| -0.9% | |
Central America | 149.7 | 9.1 | 0.5 | 15.6 | 174.8 |
| 130.8 | 8.3 | 0.5 | 15.5 | 155.0 |
| 12.8% | |
Mexico and Central America | 1,163.1 | 82.6 | 216.9 | 105.8 | 1,568.4 |
| 1,150.9 | 88.4 | 215.3 | 106.7 | 1,561.2 |
| 0.5% | |
Colombia | 147.7 | 18.7 | 14.4 | 10.7 | 191.4 |
| 151.0 | 19.4 | 14.9 | 12.7 | 197.9 |
| -3.3% | |
Brazil | 513.4 | 35.7 | 5.7 | 36.0 | 590.9 |
| 481.7 | 31.6 | 5.2 | 31.9 | 550.5 |
| 7.3% | |
Argentina | 79.6 | 10.1 | 2.8 | 6.7 | 99.3 |
| 105.9 | 12.8 | 3.4 | 9.0 | 131.1 |
| -24.2% | |
Uruguay | 26.7 | 2.3 | - | 0.2 | 29.3 |
| 8.7 | 0.6 | - | 0.0 | 9.4 |
| 212.0% | |
South America | 767.3 | 66.9 | 23.0 | 53.7 | 910.9 |
| 747.3 | 64.5 | 23.5 | 53.7 | 888.9 |
| 2.5% | |
TOTAL |
| 1,930.4 | 149.5 | 239.9 | 159.5 | 2,479.3 |
| 1,898.1 | 152.8 | 238.8 | 160.4 | 2,450.1 |
| 1.2% |
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(1) Excludes water presentations larger than 5.0 Lt ; includes flavored water. |
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(2) Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water |
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Transactions |
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| YTD 2019 |
| YTD 2018(3) |
| YoY | ||||||||
| Sparkling | Water | Stills | Total |
| Sparkling | Water | Stills | Total | Δ % | ||||
Mexico | 6,001.1 | 544.4 | 698.3 | 7,243.8 |
| 6,083.7 | 586.7 | 733.7 | 7,404.1 | -2.2% | ||||
Central America | 1,201.3 | 70.4 | 179.8 | 1,451.5 | 1,048.6 | 60.5 | 186.7 | 1,295.9 | 12.0% | |||||
Mexico and Central America | 7,202.4 | 614.8 | 878.1 | 8,695.3 |
| 7,132.3 | 647.3 | 920.5 | 8,700.0 | -0.1% | ||||
Colombia | 1,071.9 | 249.8 | 116.9 | 1,438.6 |
| 1,107.2 | 262.9 | 137.1 | 1,507.3 | -4.6% | ||||
Brazil | 3,342.8 | 317.0 | 374.1 | 4,033.8 |
| 2,979.5 | 280.1 | 338.0 | 3,597.6 | 12.1% | ||||
Argentina | 457.6 | 63.3 | 49.5 | 570.4 |
| 554.5 | 69.9 | 62.1 | 686.5 | -16.9% | ||||
Uruguay | 137.1 | 10.3 | 2.5 | 149.8 |
| 44.3 | 2.7 | 0.6 | 47.6 | 214.7% | ||||
South America | 5,009.4 | 640.3 | 542.9 | 6,192.6 |
| 4,685.6 | 615.7 | 537.7 | 5,838.9 | 6.1% | ||||
TOTAL |
| 12,211.8 | 1,255.2 | 1,421.0 | 14,888.0 |
| 11,817.9 | 1,262.9 | 1,458.2 | 14,539.0 |
| 2.4% | ||
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Revenues |
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Expressed in million Mexican Pesos |
| YTD 2019 | YTD 2018(3) | Δ % |
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Mexico |
| 68,750 | 63,430 | 8.4% |
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Central America |
| 13,246 | 11,308 | 17.1% |
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Mexico and Central America |
| 81,996 | 74,738 | 9.7% |
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Colombia |
| 9,888 | 10,790 | -8.4% |
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Brazil(4) |
| 43,586 | 39,090 | 11.5% |
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Argentina |
| 4,619 | 5,172 | -10.7% |
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Uruguay |
| 2,415 | 788 | 206.6% |
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South America |
| 60,507 | 55,839 | 8.4% |
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TOTAL |
| 142,504 | 130,577 | 9.1% |
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(3) Volume, transactions and revenues for Year to date are re-presented excluding the Philippines. |
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(4) Brazil includes beer revenues of Ps. 10,848.2 million for the first nine months of 2019 and Ps. 9,357.9 million for the same period of the previous year. |
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(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.
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 15 of 16 |
COCA-COLA FEMSA | ||||||||
MACROECONOMIC INFORMATION | ||||||||
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Inflation(1) |
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| LTM | 3Q19 | YTD |
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Mexico | 2.55% | 0.70% | 0.61% | |||||
Colombia | 3.72% | 0.35% | 3.12% | |||||
Brazil | 3.64% | 0.29% | 2.65% | |||||
Argentina | 54.58% | 10.07% | 35.18% | |||||
Costa Rica | 2.82% | 0.68% | 1.50% | |||||
Panama | -0.94% | -0.74% | -0.06% | |||||
Guatemala | 1.67% | -1.22% | 1.34% | |||||
Nicaragua | 6.52% | -0.39% | 4.00% | |||||
Uruguay |
| 7.99% | 2.80% | 7.95% | ||||
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(1) Source: inflation estimated by the company based on historic publications from the Central Bank of each country. |
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Average Exchange Rates for each period(2) | ||||||||
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| Quarterly Exchange Rate (Local Currency per USD) | Quarterly Exchange Rate (Local Currency per USD) | |||||
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| 3Q19 | 3Q18 | Δ % | YTD 19 | YTD 18 | Δ % | |
Mexico |
| 19.42 | 18.98 | 2.3% | 19.25 | 19.04 | 1.1% | |
Colombia |
| 3,339.68 | 2,960.28 | 12.8% | 3,237.95 | 2,886.98 | 12.2% | |
Brazil |
| 3.97 | 3.96 | 0.4% | 3.89 | 3.60 | 7.9% | |
Argentina |
| 50.53 | 32.09 | 57.5% | 44.53 | 25.11 | 77.4% | |
Costa Rica |
| 577.77 | 574.59 | 0.6% | 594.57 | 571.86 | 4.0% | |
Panama |
| 1.00 | 1.00 | 0.0% | 1.00 | 1.00 | 0.0% | |
Guatemala |
| 7.68 | 7.55 | 1.8% | 7.69 | 7.45 | 3.2% | |
Nicaragua |
| 33.33 | 31.74 | 5.0% | 32.93 | 31.36 | 5.0% | |
Uruguay |
| 35.82 | 31.78 | 12.7% | 34.50 | 30.10 | 14.6% | |
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End-of-period Exchange Rates | ||||||||
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| Closing Exchange Rate |
| Closing Exchange Rate (Local Currency per USD) | ||||
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| Sep-19 | Sep-18 | Δ % |
| Jun-19 | Jun-18 | Δ % |
Mexico |
| 19.64 | 18.81 | 4.4% | 19.17 | 19.86 | -3.5% | |
Colombia |
| 3,462.01 | 2,972.18 | 16.5% | 3,205.67 | 2,930.80 | 9.4% | |
Brazil |
| 4.16 | 4.00 | 4.0% | 3.83 | 3.86 | -0.6% | |
Argentina |
| 57.59 | 41.25 | 39.6% | 42.46 | 28.85 | 47.2% | |
Costa Rica |
| 583.88 | 585.80 | -0.3% | 583.64 | 570.08 | 2.4% | |
Panama |
| 1.00 | 1.00 | 0.0% | 1.00 | 1.00 | 0.0% | |
Guatemala |
| 7.74 | 7.70 | 0.4% | 7.71 | 7.49 | 2.9% | |
Nicaragua |
| 33.53 | 31.94 | 5.0% | 33.12 | 31.55 | 5.0% | |
Uruguay |
| 36.94 | 33.21 | 11.2% |
| 32.39 | 28.76 | 12.6% |
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(2) Average exchange rate for each period computed with the average exchange rate of each month. | ||||||||
Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 16 of 16 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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| COCA-COLA FEMSA, S.A.B. DE C.V. |
| By: /s/ Constantino Spas Montesinos |
| Constantino Spas Montesinos Chief Financial Officer |
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Date: October24, 2019 |
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