6-K
Mexican Economic Development Inc (FMX)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 2023
FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.
(Exact name of Registrant as specified in its charter)
Mexican Economic Development, Inc.
(Translation of Registrant’s name into English)
United Mexican States
(Jurisdiction of incorporation or organization)
General Anaya No. 601 Pte.
Colonia Bella Vista
Monterrey, Nuevo León 64410
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): ¨
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): ¨
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant 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-_____________
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 of the
undersigned, thereunto duly authorized.
| FOMENTO ECONÓMICO MEXICANO, S.A. DE C.V. | |
|---|---|
| By: | /s/ Eugenio Garza y Garza |
| Eugenio Garza y Garza | |
| Director of Finance and Corporate Development |
Date: October, 27, 2023
Exhibit 99.1
3Q 2023
Results
October 27, 2023
Investor Contact
(52) 818-328-6167
femsa.gcs-web.com
Media Contact
(52) 555-249-6843
femsa.com
October 27, 2023 | Page 1
HIGHLIGHTS
Monterrey, Mexico,October 27, 2023 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today its operational and financial results for the third quarter of 2023.
| • | FEMSA: Total Consolidated Revenues grew 19.3% against 3Q22. |
|---|---|
| • | FEMSA Retail^1^: Proximity Americas total Revenues increased 20.8% against 3Q22. |
| --- | --- |
| • | DIGITAL: Spin by OXXO had 6.4 million active users^2^ while Spin Premia had 17.7 million active loyalty users^2^ and an average tender^3^ of 28.3%. |
| --- | --- |
| • | COCA-COLA FEMSA: Total volume and revenues grew 11.6% and 10.1%, respectively, against 3Q22. |
| --- | --- |
Financial Summaryfor the Third Quarter and First Nine Months 2023
Change vs. comparable period
| Total Revenues | Gross Profit | Income from Operations | Same-Store Sales | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q23 | YTD23 | 3Q23 | YTD23 | 3Q23 | YTD23 | 3Q23 | YTD23 | |||||||||||||||||
| FEMSA Consolidated | 19.3 | % | 19.4 | % | 22.1 | % | 21.3 | % | 12.6 | % | 8.8 | % | ||||||||||||
| Proximity Americas | 20.8 | % | 20.8 | % | 23.9 | % | 21.1 | % | 14.7 | % | 17.2 | % | 15.1 | % | 16.1 | % | ||||||||
| Health | 0.2 | % | 0.1 | % | (0.6 | )% | 3.6 | % | (10.4 | )% | (5.7 | )% | (3.6 | )% | (3.5 | )% | ||||||||
| Fuel | 14.2 | % | 14.3 | % | 10.2 | % | 12.4 | % | 3.3 | % | 10.1 | % | 8.1 | % | 8.8 | % | ||||||||
| Coca-Cola FEMSA | 10.1 | % | 9.2 | % | 13.6 | % | 10.9 | % | 15.3 | % | 13.0 | % |
José Antonio Fernandez Carbajal, FEMSA’s Chief Executive Officer, commented:
“The third quarter was very favorable for our business, with strong momentum across most of our operations. However, our positive results were tempered by the unfortunate passing of FEMSA’s former CEO, Daniel Rodriguez Cofré, in the month of August. We honor his legacy by continuing to execute on the strategy that he helped design and put in place.
Our quarterly results show a continuation, and in some cases an acceleration, of the positive trends that we have seen during the past several quarters, and again offer a glimpse of the significant organic growth potential we have before us. Notably, Proximity Americas increased revenues by more than 20 percent, driven by strong traffic trends at OXXO and reflecting an accelerated store expansion. In Europe, Valora continued to grow its top line, while Health revenues were again stable, reflecting a challenging comparison base in Chile as well as significant currency headwinds. For its part, Coca-Cola FEMSA delivered very strong results across its income statement, while Digital@FEMSA continued to add users at a rapid pace. Importantly, we are achieving solid growth today, while also investing significant capital in the future of our core business verticals, across markets but particularly in Mexico.
On the strategic front, during the third quarter we continued to make progress executing the FEMSA Forward gameplan, announcing the creation of a new distribution platform in the United States by bringing together Envoy Solutions and BradyIFS. The regulatory process has advanced according to schedule, and we expect this transaction to close soon.
As we approach the final stretch, we are well positioned to close the year on a high note, and already begin to look forward to an interesting and dynamic 2024.”
^1^ FEMSA Retail: Proximity Americas & Europe, Fuel and FEMSA Health.
^2^ Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days. Active User for Spin Premia: User that has transacted at least once with OXXO Premia within the last 90 days.
^3^ Tender: OXXO Mexico MXN sales with OXXO Premia or Spin Premia redemption or accrual divided by Total OXXO Mexico MXN Sales, during the period.
October 27, 2023 | Page 2
QUARTERLY RESULTS
Results are comparedto the same period of previous year
| FEMSA CONSOLIDATED |
|---|
3Q23Financial Summary
Amounts expressed in millions of Mexican Pesos (Ps.)
| 3Q23 | 3Q22 | Var. | Org. | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total Revenues | 188,095 | 157,693 | 19.3 | % | 11.9 | % | ||||
| Income from Operations | 15,929 | 14,146 | 12.6 | % | 9.8 | % | ||||
| Operating Margin (%) | 8.5 | 9.0 | (50 | )bps | ||||||
| Adjusted EBITDA^4^ | 25,366 | 22,046 | 15.1 | % | 7.7 | % | ||||
| Adjusted EBITDA Margin (%) | 13.5 | 14.0 | (50 | )bps | ||||||
| Net Income | 12,758 | 13,268 | (3.8 | )% |
NetDebt ex-KOF^5^
Amounts expressed in millions of Mexican Pesos (Ps.)
| As of September 30, 2023 | Ps. | US3 | ||
|---|---|---|---|---|
| Cash | 140,738 | |||
| Long-Term Debt | 75,187 | |||
| Lease Liabilities | 93,338 | |||
| Net debt | 27,787 | |||
| ND / Adj. EBITDA | 0.49 | x |
All values are in US Dollars.
Total revenuesincreased 19.3% in 3Q23 compared to 3Q22, driven by growth across our business units. On an organic^1^ basis, total revenues increased 11.9%.
Gross profitincreased 22.1%. Gross margin expanded 90 basis points, reflecting the consolidation of Proximity Europe, as well as margin expansions at Proximity and Coca-Cola FEMSA. This was partially offset by a margin contraction at Health and Fuel.
Income from operations increased 12.6%. On an organic basis, income from operations increased 9.8%. Consolidated operating margin decreased 50 basis points to 8.5% of total revenues, reflecting margin expansion at Coca-Cola FEMSA, offset by margin contractions at Proximity Americas, Health, and Fuel, as well as the consolidation of Proximity Europe.
Our effective income tax rate was 31.8% in 3Q23 compared to 35.0% in 3Q22. Our income tax provision was Ps. 6,540 million in 3Q23.
Net consolidated income was Ps. 12,758 million, reflecting: i) higher income from operations; ii) a non-cash foreign exchange gain of Ps. 5,374, related to FEMSA’s U.S. dollar-denominated cash position as impacted by the depreciation of the Mexican peso; and iii) a decrease in net interest expenses during the quarter. This was offset by a decrease in net income from discontinued operations compared with 3Q22, which included the results of FEMSA’s participation in Heineken.
Net majority income was Ps. 2.72 per FEMSA Unit^2^ and US$1.56 per FEMSA ADS.
Capital expenditures amounted to Ps. 9,791 million, driven by ongoing investment activities across our business units.
^1^ Excludes the effects of significant mergers and acquisitions in the last twelve months, including the acquisition of Valora.
^2^ FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of September 30, 2023 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.
^3^The exchange rate published by the Federal Reserve Bank of New York for September 30, 2023 was 17.4064 MXN per USD.
^4^ Adjusted EBITDA: Operating Income
- Depreciation + Amortizations.
^5^ ex-KOF: FEMSA Consolidated reported information – Coca-Cola FEMSA Consolidated reported information.
Adjusted EBITDA ex-KOF: FEMSA Consolidated Adjusted EBITDA as described above – Coca-Cola FEMSA’s Consolidated Adjusted EBITDA + Dividends received by FEMSA from Coca-Cola FEMSA and other investments.
All Net Debt calculations are shown on an Ex-KOF basis. For a detailed reconciliation of this metric please see table on page 17 of this document.
October 27, 2023 | Page 3
| PROXIMITY AMERICAS<br><br> <br>OXXO (Mexico & Latam^3^) |
|---|
3Q23 Financial Summary
Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales
| 3Q23 | 3Q22 | Var. | |||||
|---|---|---|---|---|---|---|---|
| Same-store sales (thousands of Ps.) | 1,047.2 | 910.1 | 15.1 | % | |||
| Total Revenues | 74,020 | 61,252 | 20.8 | % | |||
| Income from Operations | 6,577 | 5,734 | 14.7 | % | |||
| Income from Operations Margin (%) | 8.9 | 9.4 | (50 | )bps | |||
| Adjusted EBITDA | 9,963 | 8,768 | 13.6 | % | |||
| Adjusted EBITDA Margin (%) | 13.5 | 14.3 | (80 | )bps | |||
| Net Additions <br><br>Vs. comparable quarter | Store Base <br><br>As of 3Q23 | Same-Store Sales In thousands of Ps. | Adjusted EBITDA <br><br>In millions of Ps. | ||||
| --- | --- | --- | --- |
Total revenuesincreased 20.8% in 3Q23 compared to 3Q22, reflecting a 15.1% average same-store sales increase, driven by 6.6% growth in average customer ticket and an increase of 8.0% in store traffic. These figures reflect a strong performance across most of OXXO’s categories supported by the thirst and gathering occasions, such as beer, snacks, and other beverages. During the quarter, the OXXO store base in Mexico & Latam expanded by 293 units to reach 1,453 total net store additions for the last twelve months. As of September 30, 2023, Proximity Americas had a total of 22,352 OXXO stores.
Gross profitreached 41.2% of total revenues, reflecting strong commercial activity and promotional programs from key suppliers, offset by a decrease in the contribution of financial services relative to 3Q22.
Income fromoperations amounted to 8.9% of total revenues. Operating expenses increased 26.7% to Ps. 23,943 million, above revenues, reflecting an increase in labor expenses in connection with recent labor reforms in Mexico.
^3^ OXXO Latam: OXXO Colombia, Chile and Peru.
October 27, 2023 | Page 4
| PROXIMITY AMERICAS Other formats |
|---|
Bara^1^
Total revenues increased 36.7% in 3Q23 compared to 3Q22, driven by a 15.6% average same-store sales increase, reflecting the strong performance of the groceries, home hygiene and convenience categories, particularly beverages. During the quarter, the Bara store base expanded by 13 units to reach 309 total Bara stores as of September 30, 2023.
Grupo Nós^2^
Total revenues for the period grew 151.6%^3^year-over-year, reaching R$209.3 million^4^. This figure reflects the successful evolution and expansion of the OXXO value proposition which resulted in same-store sales growth at OXXO of 12.4%^3^, as well as the addition of 204 net new OXXO stores for the last twelve months. During the quarter, the store base of Grupo Nós expanded by 30 units, the majority of which are OXXO stores. As of September 30, 2023, Grupo Nós had a total of 1,668 stores, which include 380 company owned and operated OXXO stores.
^1^ Bara store count and results are not consolidated within the Proximity Americas reported figures.
^2^ OXXO’s non-consolidated joint-venture with Raízen in Brazil.
^3^ Local currency, BRL.
^4^ The exchange rate published by the Federal Reserve Bank of New York for September 30, 2023 was 5.0021 BRL per USD.
October 27, 2023 | Page 5
| PROXIMITY EUROPE^1^<br><br> <br>Valora |
|---|
3Q23 Financial Summary
Amounts expressed in millions of Mexican Pesos (Ps.)
| 3Q23 | |
|---|---|
| Total Revenues | 11,194 |
| Income from Operations | 348 |
| Income from Operations Margin (%) | 3.1 |
| Adjusted EBITDA | 1,555 |
| Adjusted EBITDA Margin (%) | 13.9 |
Total revenuesincreased 8.7%^2^in 3Q23 compared to 3Q22 to Ps. 11,194 million, reflecting traffic recovery as well as positive pricing initiatives, and the growth of Valora’s foodservice and B2B business. As of the end of the period, Proximity Europe had 2,810 points of sale.
Gross profitreached 41.8% of total revenues, reflecting the continued recovery of the foodservice category, which has a structurally higher margin.
Income fromoperations amounted to 3.1% of total revenues, reflecting the contribution of foodservice, as well as positive operating leverage.
^1^ The Proximity Europe segment is comprised of Valora. The acquisition of Valora was concluded in October 2022.
^2^ Local currency, CHF.
October 27, 2023 | Page 6
| HEALTH |
|---|
3Q23 Financial Summary
Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales
| 3Q23 | 3Q22 | Var. | ||
|---|---|---|---|---|
| Same-store sales (thousands of Ps.) | 1,131.1 | 1,173.4 | (3.6 | )% |
| Total Revenues | 18,569 | 18,526 | 0.2 | % |
| Income from Operations | 844 | 942 | (10.4 | )% |
| Income from Operations Margin (%) | 4.5 | 5.1 | (60 | )bps |
| Adjusted EBITDA | 1,848 | 1,843 | 0.3 | % |
| Adjusted EBITDA Margin (%) | 10.0 | 9.9 | 10 | bps |
| Net Additions<br><br> <br>Vs.<br> comparable quarter | Locations<br><br> <br>As<br> of 3Q23 | Same-Store Sales<br><br> <br>In<br> thousands of Ps. | Adjusted EBITDA<br><br> <br>In<br> millions of Ps. | |
| --- | --- | --- | --- |
Total revenuesincreased 0.2% in 3Q23 compared to 3Q22, mainly reflecting positive local currency sales trends in Chile and Colombia, offset by a challenging competitive environment in Mexico, and by a negative currency translation effect. During the quarter, FEMSA Health’s store base expanded by 80 units reaching a total of 4,347 locations across its territories as of September 30, 2023. This figure reflects the addition of 365 net new locations for the last twelve months. Same-store sales decreased an average of 3.6%, reflecting the trends described above. However, on a currency-neutral^1^basis, total revenues grew 13.6% while same-store sales increased by 4.7%.
^1^ Calculated by translating comparable period figures at the foreign currency exchange rates used in the current period.
October 27, 2023 | Page 7
Gross profit represented 29.2% of total revenues, reflecting improved efficiency and more effective collaboration and execution with key supplier partners, as well as a negative mix effect reflecting an increase in the contribution of our institutional sales channel in Colombia.
Income from operationsamounted to 4.5% of total revenues. Operating expenses increased 1.4% to Ps. 4,587 million, reflecting an increase in labor expenses in Mexico and Chile, partially offset by tight expense control across our operations.
| FUEL |
|---|
3Q23Financial Summary
Amounts expressed in millions of Mexican Pesos (Ps.) except same-station sales
| 3Q23 | 3Q22 | Var. | ||
|---|---|---|---|---|
| Same-station<br> sales (thousands of Ps.) | 8,236.9 | 7,617.6 | 8.1 | % |
| Total Revenues | 15,782 | 13,823 | 14.2 | % |
| Income from<br> Operations | 710 | 687 | 3.3 | % |
| Income<br> from Operations Margin (%) | 4.5 | 5.0 | (50 | )bps |
| Adjusted EBITDA | 1,026 | 960 | 6.9 | % |
| Adjusted<br> EBITDA Margin (%) | 6.5 | 6.9 | (40 | )bps |
| Net Additions<br><br> <br>Vs.<br> comparable quarter | Service Station Base<br><br> <br>As<br> of 3Q23 | Same-Station Sales<br><br> <br>In<br> thousands of Ps. | Adjusted EBITDA<br><br> <br>In<br> millions of Ps. | |
| --- | --- | --- | --- |
Total revenues increased 14.2% in 3Q23 compared to 3Q22, reflecting a 8.1% average same-station sales increase, driven by 4.0% growth in average volume and 4.0% increase in the average price per liter, as well as volume growth in our institutional and wholesale customer network. The OXXO Gas retail network had 571 points of sale as of September 30, 2023. This figure reflects the addition of three net stations for the last twelve months.
Gross profit was 12.4% of total revenues.
Income from operationsamounted to 4.5% of total revenues. Operating expenses increased 14.5% to Ps. 1,241 million, reflecting increased labor expenses.
October 27, 2023 | Page 8
FEMSARetail Operations Summary
Currency-neutral terms where applicable
TotalRevenue Growth (% vs year ago)
| 3Q23 | |||
|---|---|---|---|
| Proximity Americas | |||
| OXXO^1^ | 20.8 | % | |
| Mexico | 20.7 | % | |
| OXXO<br> Latam^2^ | 28.3 | % | |
| Other Proximity Americas formats | |||
| Bara | 36.7 | % | |
| OXXO<br> Brazil^3^ | 151.6 | % | |
| Proximity Europe^4^ | 8.7 | % | |
| OXXO<br> Gas | 14.2 | % | |
| FEMSA Health^5^ | 13.6 | % | |
| Chile | 6.6 | % | |
| Colombia | 16.9 | % | |
| Ecuador | 0.8 | % | |
| Mexico | 7.0 | % | |
| 1 | OXXO<br> Consolidated figures shown in MXN including currency effects. | ||
| --- | --- | ||
| 2 | Includes<br> OXXO Colombia, Chile and Peru. | ||
| 3 | Operated<br> through Grupo Nós, our joint-venture with Raízen. | ||
| 4 | Local<br> currency (CHF). | ||
| 5 | FEMSA<br> Health Include franchised stores in Ecuador. |
TotalUnit Growth (% vs year ago)
| 3Q23 | |||
|---|---|---|---|
| Proximity Americas | |||
| OXXO | 7.0 | % | |
| Mexico | 5.9 | % | |
| OXXO<br> Latam^1^ | 48.7 | % | |
| Other Proximity Americas formats | |||
| Bara | 28.8 | % | |
| OXXO<br> Brazil^2^ | 115.9 | % | |
| Proximity Europe^3^ | 2.0 | % | |
| OXXO<br> Gas | 0.5 | % | |
| FEMSA<br> Health | 9.5 | % | |
| Chile | 2.1 | % | |
| Colombia | 14.7 | % | |
| Ecuador | 5.9 | % | |
| Mexico | 12.8 | % | |
| 1 | Includes<br> OXXO Colombia, Chile and Perú. | ||
| --- | --- | ||
| 2 | Operated<br> through Grupo Nós, our joint-venture with Raízen. | ||
| 3 | Includes<br> company owned and franchised units. |
Same-StoreSales
| 3Q23 | |||
|---|---|---|---|
| Proximity Americas | |||
| OXXO^1^ | 15.1 | % | |
| Mexico | 15.2 | % | |
| OXXO<br> Latam^2^ | 15.1 | % | |
| Other Proximity Americas formats | |||
| Bara | 15.6 | % | |
| OXXO<br> Brazil^3^ | 12.4 | % | |
| Proximity Europe^4^ | N.A. | ||
| OXXO Gas^5^ | 8.1 | % | |
| FEMSA Health^5^ | 4.7 | % | |
| Chile | 2.3 | % | |
| Colombia | 12.6 | % | |
| Ecuador | 1.3 | % | |
| Mexico | (5.3 | )% | |
| 1 | OXXO<br> Consolidated figures shown in MXN including currency effects. | ||
| --- | --- | ||
| 2 | Includes<br> OXXO Colombia, Chile and Peru. | ||
| 3 | Operated<br> through Grupo Nós, our joint-venture with Raízen. | ||
| 4 | Local<br> currency (CHF). | ||
| 5 | Only<br> includes retail sales. FEMSA Health Include franchised stores in Ecuador. |
October 27, 2023 | Page 9
| DIGITAL@FEMSA^1^ |
|---|
Spin by OXXO
Spin by OXXO acquired 1.2 million users during the quarter to reach 8.8 million total users in 3Q23, compared to 4.3 million users in 3Q22. This represents an increase of 105.8% YoY and a 6.2% compound monthly growth rate. Active users^2^ represented 72.5% of the total acquired user base. Total transactions per month increased 15.6%^3^ during the quarter to reach an average of 41.8 million per month in 3Q23, reflecting an increase in user engagement.
Spin Premia
Spin Premia acquired 3.8 million users during the quarter to reach 36.6 million total users in 3Q23, compared to 22.0 million users in 3Q22. This represents an increase of 66.0% YoY and a 4.3% compound monthly growth rate. Active users^4^ represented 48.3% of the total acquired user base. The average tender^5^ during the quarter was 28.3%.
| 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 coca-colafemsa.com.
^1^Digital@FEMSA’s results are included within the Other business segment.
^2^ Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days.
^3^ Represents the quarter-over-quarter growth of average monthly transactions.
^4^ Active User for Spin Premia: User that has transacted at least once with OXXO Premia or Spin Premia within the last 90 days.
^5^ Tender: OXXO Mexico MXN sales with OXXO Premia or Spin Premia redemption or accrual divided by Total OXXO Mexico MXN Sales, during the period.
October 27, 2023 | Page 10
RESULTSFOR THE FIRST NINE MONTHS OF 2023
Resultsare compared to the same period of previous year
| FEMSA CONSOLIDATED |
|---|
Financial Summaryfor the First Nine Months
Amounts expressed in millions of Mexican Pesos (Ps.)
| 2023 | 2022 | Var. | Org. | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total Revenues | 539,113 | 451,443 | 19.4 | % | 10.9 | % | ||||
| Income from Operations | 44,009 | 40,447 | 8.8 | % | 6.1 | % | ||||
| Operating Margin (%) | 8.2 | 9.0 | (80 | )bps | ||||||
| AdjustedEBITDA^1^ | 72,434 | 63,481 | 14.1 | % | 6.6 | % | ||||
| Adjusted EBITDA Margin (%) | 13.4 | 14.1 | (70 | )bps | ||||||
| Net Income | 71,994 | 26,793 | 168.7 | % |
Total revenuesincreased 19.4%. On an organic basis^2^, total revenues increased 10.9% reflecting growth across most of our operations.
Gross profit increased 21.3%. Gross margin increased 60 basis points to 38.2% of total revenues, reflecting gross margin expansion at Proximity Americas and Coca-Cola FEMSA, as well as the consolidation of Proximity Europe, offset by margin contraction at Health and Fuel.
Income from operationsincreased 8.8%. On an organic basis^2^, income from operations increased 6.1%. Our consolidated operating margin decreased 80 basis points to 8.2% of total revenues, reflecting margin expansions at Coca-Cola FEMSA, offset by margin contractions at Proximity Americas, Fuel, and Health, as well as by the consolidation of Proximity Europe.
Net consolidatedincome increased to Ps. 71,994 million, reflecting; i) a Ps. 35,473 million net income from discontinued operations, mostly reflecting the accounting re-measurement from historical cost to fair value of FEMSA’s investment in Heineken, as well as the divestiture of this investment as part of the FEMSA Forward strategy announced on February 15, 2023, net of taxes; ii) a Ps. 12,963 million non-cash financial product that mostly reflects the repurchase of US$ 1.7 billion^3^ of FEMSA’s outstanding debt at favorable price levels during 1Q23, also in connection with FEMSA Forward; and iii) a Ps. 9,577 other non-operating income, mostly reflecting the divestment of FEMSA’s minority stake in Jetro Restaurant Depot. This was offset by a non-cash foreign exchange loss of Ps. 3,575, related to FEMSA’s U.S. dollar-denominated cash position as impacted by the appreciation of the Mexican peso, during the first nine months of the year.
Net majority incomeper FEMSA Unit^4^ was Ps.17.88 (US$10.27 per ADS).
Capital expenditures amounted to Ps. 23,279 million, reflecting the reactivation of ongoing investment activities at most of our business units.
^1^Adjusted EBITDA: Operating Income + Depreciation + Amortizations.
^2^ Excludes the effects of significant mergers and acquisitions in the last twelve months.
^3^ Face value
^4^ FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of September 30, 2023 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.
October 27, 2023 | Page 11
RECENTDEVELOPMENTS
| · | On<br> Aug 29, 2023, FEMSA announced that it entered into definitive agreements with BradyIFS to<br> create a new platform within the facility care, foodservice disposables, and packaging distribution<br> industries in the United States. The combined platform will bring together Envoy Solutions<br> LLC and BradyIFS in a highly complementary combination, positioned to serve and provide value<br> to its customers and suppliers effectively and efficiently across the country. The transaction<br> is subject to customary conditions and regulatory approvals. |
|---|
Upon closing, FEMSA will receive approximately US$1.7 billion in cash and retain an ownership stake of approximately 37% in the combined entity, which is expected to have pro-forma revenues approaching US$5 billion.
For the purposes of this transaction, the Envoy Solutions valuation implies an unlevered double-digit annualized rate of return on the accumulated capital invested by FEMSA since entering this business in 2020.
Approximately 63% of the combined entity will be owned by existing BradyIFS equity holders led by Kelso & Company and its affiliate funds and including BradyIFS management; by funds managed by Warburg Pincus LLC; and by the current minority shareholders of Envoy Solutions.
| · | On<br> Sep 22, 2023, FEMSA announced changes to its organizational structure that bring it into<br> full alignment with the FEMSA Forward strategy and its three core business verticals: Retail,<br> Coca-Cola FEMSA, and Digital. The Company also announced movements within its senior leadership<br> team, involving internal and newly attracted talent. These changes will enable the organization<br> to operate with maximum focus, positioning FEMSA to pursue and capture its considerable and<br> compelling opportunities for long-term profitable growth. |
|---|
The Retail business vertical will be led by Jose Antonio Fernández Garza-Lagüera. Jose Antonio is currently CEO of Digital@FEMSA, where he nurtured FEMSA’s digital ecosystem from its early days and has helped Spin become the prominent fintech and loyalty platform in Mexico. Before Digital, Jose Antonio held leadership roles at every one of FEMSA’s major business units for over a decade, including as Head of Strategic Planning at OXXO and FEMSA Comercio. Jose Antonio will be supported in his new role by a world-class operational team: Carlos Arenas (Proximity OXXO Mexico), Constantino Spas (Proximity Americas and Fuel), Michael Mueller (Proximity Europe), Jacobo Caller (Proximity Multiformat), and Daniel Belaúnde (FEMSA Health).
Juan Carlos Guillermety is joining the Company as CEO of Digital@FEMSA. Juan Carlos comes to FEMSA from Nubank, where he held various senior leadership positions since 2019, after a long tenure at Visa International. Juan Carlos will lead the rapidly growing talent pool that is shaping the future of FEMSA’s digital ecosystem.
There is no change at Coca-Cola FEMSA. Ian Craig will continue to lead this key business vertical as its CEO. Other operations outside of FEMSA’s core verticals, including those that are in the active process of being divested, will report to the Corporate Office led by Francisco Camacho. These changes to FEMSA’s organizational structure and senior leadership team were designed in conjunction with the FEMSA Forward strategy as announced in February of this year, consistent with FEMSA’s leadership succession and talent development process. The new appointments have been approved by FEMSA’s Board of Directors and will become effective on November 1st, 2023, with executives transitioning into their new roles and responsibilities in the coming months
October 27, 2023 | Page 12
CONFERENCE CALL INFORMATION
Our Third Quarter 2023 Conference Call will be held on: Friday, October 27, 2023, 11:00 AM Eastern Time (9:00 AM Mexico City Time). The conference call will be webcast live through streaming audio.
| Telephone: | Toll Free US: | (866) 580 3963 |
|---|---|---|
| International: | +1 (786) 697 3501 | |
| Webcast: | https://edge.media-server.com/mmc/p/6zh9pt2t/ | |
| --- | --- | |
| Conference ID: | FEMSA |
If you are unable to participate live, the conference call audio will be available on https://femsa.gcs-web.com/financial-reports/quarterly-results
ABOUT FEMSA
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 a Proximity Division operating OXXO, a small-format store chain, and other related retail formats, and Proximity Europe which includes Valora, our European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates though a FEMSA Health, which includes drugstores and related activities and Digital@FEMSA, which includes Spin by OXXO and Spin Premia, among other digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume. Across its business units, FEMSA has more than 350,000 employees in 18 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index: S&P/BMV Total México ESG, among other indexes that evaluate its sustainability performance.
The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the noon buying rate for Mexican pesos as published by the Federal Reserve Bank of New York on September 30, 2023, which was 17.4064 Mexican pesos per US dollar.
FORWARD-LOOKINGSTATEMENTS
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.
Nine pages of tables and Coca-Cola FEMSA’s press release to follow
October 27, 2023 | Page 13
FEMSA – Consolidated Income Statement
Amounts expressed in millions of Mexican Pesos (Ps.)
| For<br> the third quarter of: | For<br> the nine months of: | |||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | %<br><br> of rev. | 2022 | %<br><br> of rev. | %<br> Var. | % Org.^(A)^ | 2023 | %<br><br> of rev. | 2022 | %<br><br> of rev. | %<br> Var. | % Org.^(A)^ | |||||||||||||||||||
| Total revenues | 188,095 | 100.0 | 157,693 | 100.0 | 19.3 | 11.9 | 539,113 | 100.0 | 451,443 | 100.0 | 19.4 | 10.9 | ||||||||||||||||||
| Cost of sales | 116,013 | 61.7 | 98,677 | 62.6 | 17.6 | 333,277 | 61.8 | 281,714 | 62.4 | 18.3 | ||||||||||||||||||||
| Gross profit | 72,081 | 38.3 | 59,016 | 37.4 | 22.1 | 205,836 | 38.2 | 169,729 | 37.6 | 21.3 | ||||||||||||||||||||
| Administrative<br> expenses | 8,339 | 4.4 | 7,365 | 4.7 | 13.2 | 24,862 | 4.6 | 20,534 | 4.5 | 21.1 | ||||||||||||||||||||
| Selling<br> expenses | 48,060 | 25.5 | 37,414 | 23.6 | 28.5 | 136,871 | 25.4 | 108,545 | 24.1 | 26.1 | ||||||||||||||||||||
| Other<br> operating expenses (income), net ^(1)^ | (246 | ) | (0.1 | ) | 91 | 0.1 | N.S. | 94 | - | 203 | - | (53.7 | ) | |||||||||||||||||
| Income<br> from operations ^(2)^ | 15,929 | 8.5 | 14,146 | 9.0 | 12.6 | 9.8 | 44,009 | 8.2 | 40,447 | 9.0 | 8.8 | 6.1 | ||||||||||||||||||
| Other non-operating<br> expenses (income) | (262 | ) | 41 | N.S. | (9,577 | ) | 146 | N.S. | ||||||||||||||||||||||
| Interest<br> expense | 3,170 | 3,615 | (12.3 | ) | 8,964 | 11,965 | (25.1 | ) | ||||||||||||||||||||||
| Interest<br> income | 2,697 | 1,161 | 132.3 | 12,963 | 2,694 | N.S. | ||||||||||||||||||||||||
| Interest<br> expense, net | 472 | 2,455 | (80.8 | ) | (3,999 | ) | 9,270 | N.S. | ||||||||||||||||||||||
| Foreign<br> exchange loss (gain) | (5,374 | ) | (1,212 | ) | N.S. | 3,575 | 211 | N.S. | ||||||||||||||||||||||
| Other<br> financial expenses (income), net | 504 | 47 | N.S. | 520 | 346 | 50.3 | ||||||||||||||||||||||||
| Financing<br> expenses, net | (4,397 | ) | 1,290 | N.S. | 96 | 9,827 | (99.0 | ) | ||||||||||||||||||||||
| Income before income tax and<br> participation in associates results | 20,588 | 12,815 | 60.7 | 53,490 | 30,321 | 76.4 | ||||||||||||||||||||||||
| Income tax | 6,540 | 4,482 | 45.9 | 16,431 | 11,124 | 47.7 | ||||||||||||||||||||||||
| Participation<br> in associates results ^(3)^ | (110 | ) | 37 | N.S. | (538 | ) | 87 | N.S. | ||||||||||||||||||||||
| Continued<br> Operations net income (Loss) | 13,938 | 8,370 | 66.5 | 36,521 | 19,284 | 89.4 | ||||||||||||||||||||||||
| Discontinued<br> Operations net income (Loss) | (1,180 | ) | 4,898 | (108.9 | ) | 35,473 | 7,509 | 32.4 | ||||||||||||||||||||||
| Consolidated<br> net income (Loss) | 12,758 | 13,268 | (3.8 | ) | 71,994 | 26,793 | 168.7 | |||||||||||||||||||||||
| Net majority income | 9,742 | 10,748 | (9.4 | ) | 63,964 | 19,980 | N.S. | |||||||||||||||||||||||
| Net minority<br> income | 3,016 | 2,520 | 19.7 | 8,030 | 6,813 | 17.9 | ||||||||||||||||||||||||
| Operative<br> Cash Flow & CAPEX | 2023 | %<br> <br> of rev. | 2022 | %<br><br> of rev. | %<br> Var. | % Org.^(A)^ | 2023 | %<br><br> of rev. | 2022 | %<br><br> of rev. | %<br> Var. | % Org.^(A)^ | ||||||||||||||||||
| Income<br> from operations | 15,929 | 8.5 | 14,146 | 9.0 | 12.6 | 9.8 | 44,009 | 8.2 | 40,447 | 9.0 | 8.8 | 6.1 | ||||||||||||||||||
| Depreciation | 8,234 | 4.4 | 6,669 | 4.2 | 23.5 | 24,328 | 4.5 | 19,533 | 4.3 | 24.5 | ||||||||||||||||||||
| Amortization<br> & other non-cash charges | 1,190 | 0.6 | 1,230 | 0.8 | (3.2 | ) | 4,097 | 0.7 | 3,502 | 0.8 | 17.0 | |||||||||||||||||||
| Adjusted<br> EBITDA | 25,366 | 13.5 | 22,046 | 14.0 | 15.1 | 7.7 | 72,434 | 13.4 | 63,481 | 14.1 | 14.1 | 6.6 | ||||||||||||||||||
| CAPEX | 9,791 | 8,017 | 22.1 | 23,279 | 19,900 | 17.0 |
^(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 results of our joint-venture with Raízen, Grupo Nós, net of taxes.
^(4)^ At the end of September, the CAPEX effectively paid is equivalent to Ps. 23,800 million.
October 27, 2023 | Page 14
FEMSA – Consolidated Balance SheetAmounts expressed in millions of Mexican Pesos (Ps.)
| ASSETS | Sep-23 | Dec-22 | %<br> Inc. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash<br> and cash equivalents | 160,442 | 83,439 | 92.3 | |||||||||||||||
| Investments | 18,840 | 51 | N.S. | |||||||||||||||
| Accounts<br> receivable | 45,304 | 45,527 | (0.5 | ) | ||||||||||||||
| Inventories | 55,782 | 62,224 | (10.4 | ) | ||||||||||||||
| Other<br> current assets | 43,350 | 35,208 | 23.1 | |||||||||||||||
| Current<br> Assets Available for sale | 54,723 | - | N.S. | |||||||||||||||
| Total<br> current assets | 378,441 | 226,449 | 67.1 | |||||||||||||||
| Investments in shares | 10,876 | 103,669 | (89.5 | ) | ||||||||||||||
| Property,<br> plant and equipment, net | 138,420 | 134,001 | 3.3 | |||||||||||||||
| Right of use | 85,076 | 83,966 | 1.3 | |||||||||||||||
| Intangible<br> assets ^(1)^ | 153,133 | 190,772 | (19.7 | ) | ||||||||||||||
| Other<br> assets | 52,212 | 59,958 | (12.9 | ) | ||||||||||||||
| TOTAL<br> ASSETS | 818,158 | 798,815 | 2.4 | |||||||||||||||
| LIABILITIES & STOCKHOLDERS’ EQUITY | Sep-23 | Dec-22 | % Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| Bank loans | 2,936 | 1,862 | 57.7 | |||||||||||||||
| Current maturities of long-term debt | 6,062 | 14,471 | (58.1 | ) | ||||||||||||||
| Interest payable | 1,770 | 2,075 | (14.7 | ) | ||||||||||||||
| Current maturities of long-term leases | 11,743 | 12,095 | (2.9 | ) | ||||||||||||||
| Operating liabilities | 164,085 | 144,411 | 13.6 | |||||||||||||||
| Short term liabilities available for sale | 9,828 | - | N.S. | |||||||||||||||
| Total current liabilities | 196,424 | 174,914 | 12.3 | |||||||||||||||
| Long-term debt ^(2)^ | 132,350 | 170,989 | (22.6 | ) | ||||||||||||||
| Long-term leases | 83,210 | 81,222 | 2.4 | |||||||||||||||
| Laboral obligations | 7,583 | 7,048 | 7.6 | |||||||||||||||
| Other liabilities | 22,690 | 26,841 | (15.5 | ) | ||||||||||||||
| Total liabilities | 442,257 | 461,014 | (4.1 | ) | ||||||||||||||
| Total stockholders’ equity | 375,901 | 337,801 | 11.3 | |||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 818,158 | 798,815 | 2.4 | |||||||||||||||
| September 30,<br> 2023 | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| DEBT MIX ^(2)^ | %<br> of Total | Average<br> <br><br> Rate | ||||||||||||||||
| Denominated<br> in: | ||||||||||||||||||
| Mexican<br> pesos | 50.9 | % | 7.8 | % | ||||||||||||||
| U.S.<br> Dollars | 28.8 | % | 3.2 | % | ||||||||||||||
| Euros | 8.4 | % | 2.7 | % | ||||||||||||||
| Swiss<br> Francs | 1.0 | % | 1.3 | % | ||||||||||||||
| Colombian<br> pesos | 0.6 | % | 0.0 | % | ||||||||||||||
| Argentine<br> pesos | 0.0 | % | 0.0 | % | ||||||||||||||
| Brazilian<br> reais | 9.2 | % | 0.0 | % | ||||||||||||||
| Chilean<br> pesos | 1.0 | % | 10.5 | % | ||||||||||||||
| Uruguayan<br> Pesos | 0.0 | % | 0.0 | % | ||||||||||||||
| Guatemalan<br> Quetzal | 0.0 | % | 0.0 | % | ||||||||||||||
| Total<br> debt | 100.0 | % | 5.2 | % | ||||||||||||||
| Fixed<br> rate ^(2)^ | 82.6 | % | ||||||||||||||||
| Variable<br> rate ^(2)^ | 17.4 | % | ||||||||||||||||
| DEBT<br> MATURITY PROFILE | 2024 | 2025 | 2026 | 2027 | 2028 | 2029+ | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| %<br> of Total Debt | 0.4 | % | 3.8 | % | 1.5 | % | 8.8 | % | 13.9 | % | 71.5 | % |
^(1)^ Includes mainly the intangible assets generated by acquisitions.
^(2)^ Includes the effect of derivative financial instruments on long-term debt.
October 27, 2023 | Page 15
Net Debt & Adjusted EBITDA ex-KOF
Amounts expressed in millions of US Dollars (US.)
| Twelve<br> months ended September 30, 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Reported<br> Adj. EBITDA | Adjustments | Adj. EBITDA Ex-KOF^4^ | |||||||
| Proximity<br> Americas & Europe^1^ | 2,482 | - | 2,482 | ||||||
| Fuel | 202 | - | 202 | ||||||
| Health<br> Division | 431 | - | 431 | ||||||
| Envoy<br> Solutions | - | - | - | ||||||
| Coca-Cola<br> FEMSA^2^ | 2,544 | (2,544 | ) | - | |||||
| Other^3^ | (189 | ) | - | (189 | ) | ||||
| FEMSA<br> Consolidated | 5,471 | (2,544 | ) | 2,926 | |||||
| Dividends<br> Received^4^ | - | 405 | 405 | ||||||
| FEMSA<br> Consolidated ex-KOF | 5,471 | (2,139 | ) | 3,332 | |||||
| As<br> of September 30, 2023 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | ||
| Reported | Adjustments | Ex-KOF | |||||||
| Cash &<br> Equivalents | 8,209 | - | 8,209 | ||||||
| Coca-Cola<br> FEMSA Cash & Equivalents | 2,248 | (2,248 | ) | - | |||||
| Cash &<br> Equivalents | 10,457 | (2,248 | ) | 8,209 | |||||
| Financial<br> Debt^5^ | 4,386 | - | 4,386 | ||||||
| Coca-Cola<br> FEMSA Financial Debt | 3,859 | (3,859 | ) | - | |||||
| Lease<br> Liabilities | 5,444 | - | 5,444 | ||||||
| Coca-Cola<br> FEMSA Lease Liabilities | 94 | (94 | ) | - | |||||
| Debt | 13,783 | (3,953 | ) | 9,830 | |||||
| FEMSA<br> Net Debt | 3,326 | (1,705 | ) | 1,621 |
Translated to USD for readers’ convenience using the exchange rate published by the Federal Reserve Bank of New York for September 30, 2023 which was 17.4064 MXN per USD.
1 Includes Proximity Europe only for the consolidated period.
2 Coca-Cola FEMSA adjustment represents 100% of its LTM Adjusted EBITDA.
3 Includes FEMSA Other Businesses (including Solistica and Digital@FEMSA), FEMSA corporate expenses and the effects of consolidation adjustments
4 Reflects cash dividends received from Coca-Cola FEMSA for approximately US$295 mm, US$45 mm from JRD, and US$57 mm from Heineken during the last twelve months. 5 Includes EUR€ 500.0 mm in notes convertible to Heineken Holding N.V. shares.
October 27, 2023 | Page 16
ProximityAmericas – Results of Operations
Amounts expressed in millions of Mexican Pesos (Ps.)
| For<br> the third quarter of: | For<br> the nine months of: | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | %<br> <br><br> of rev. | 2022 | %<br> <br><br> of rev. | %<br> Var. | 2023 | %<br> <br><br> of rev. | 2022 | %<br> <br><br> of rev. | %<br> Var. | |||||||||||
| Total<br> revenues | 74,020 | 100.0 | 61,252 | 100.0 | 20.8 | 206,990 | 100.0 | 171,306 | 100.0 | 20.8 | ||||||||||
| Cost<br> of sales | 43,500 | 58.8 | 36,620 | 59.8 | 18.8 | 122,381 | 59.1 | 101,419 | 59.2 | 20.7 | ||||||||||
| Gross<br> profit | 30,520 | 41.2 | 24,632 | 40.2 | 23.9 | 84,609 | 40.9 | 69,887 | 40.8 | 21.1 | ||||||||||
| Administrative<br> expenses | 1,737 | 2.3 | 1,496 | 2.4 | 16.1 | 4,507 | 2.2 | 4,372 | 2.6 | 3.1 | ||||||||||
| Selling<br> expenses | 22,110 | 29.9 | 17,363 | 28.3 | 27.3 | 61,687 | 29.8 | 49,785 | 29.0 | 23.9 | ||||||||||
| Other<br> operating expenses (income), net | 96 | 0.1 | 39 | 0.1 | 146.2 | 164 | 0.1 | 158 | 0.1 | 3.8 | ||||||||||
| Income<br> from operations | 6,577 | 8.9 | 5,734 | 9.4 | 14.7 | 18,251 | 8.8 | 15,572 | 9.1 | 17.2 | ||||||||||
| Depreciation | 3,140 | 4.2 | 2,831 | 4.6 | 10.9 | 9,157 | 4.4 | 8,231 | 4.8 | 11.3 | ||||||||||
| Amortization&<br> other non-cash charges | 246 | 0.4 | 203 | 0.3 | 21.2 | 688 | 0.4 | 767 | 0.4 | (10.3 | ) | |||||||||
| Adjusted<br> EBITDA | 9,963 | 13.5 | 8,768 | 14.3 | 13.6 | 28,096 | 13.6 | 24,570 | 14.3 | 14.4 | ||||||||||
| CAPEX | 4,198 | 2,985 | 40.6 | 9,804 | 6,776 | 44.7 | ||||||||||||||
| Information<br> of OXXO Stores | ||||||||||||||||||||
| Total<br> stores | 22,352 | 20,899 | 7.0 | |||||||||||||||||
| Stores<br> Mexico | 21,583 | 20,382 | 5.9 | |||||||||||||||||
| Stores<br> South America | 769 | 517 | 48.7 | |||||||||||||||||
| Net<br> new convenience stores: | ||||||||||||||||||||
| vs.<br> Last quarter | 293 | 231 | 26.8 | |||||||||||||||||
| Year-to-date | 894 | 468 | 91.0 | |||||||||||||||||
| Last-twelve-months | 1,453 | 902 | 61.1 | |||||||||||||||||
| Same-store<br> data: ^(1)^ | ||||||||||||||||||||
| Sales<br> (thousands of pesos) | 1,047.2 | 910.1 | 15.1 | 994.9 | 857 | 16.1 | ||||||||||||||
| Traffic<br> (thousands of transactions) | 19.5 | 18.1 | 8.0 | 18.7 | 17.5 | 7.1 | ||||||||||||||
| Ticket<br> (pesos) | 53.6 | 50.3 | 6.6 | 53.2 | 49.1 | 8.4 |
^(1)^ Monthly average information per store, considering same stores with more than twelve months of operations, income from services are included.
October 27, 2023 | Page 17
ProximityEurope – Results of Operations
Amounts expressed in millions of Mexican Pesos (Ps.)
| For<br>the third quarter of: | For<br>the nine months of: | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | %of rev. | 2023 | %of rev. | ||||||||
| Total<br>revenues | 11,194 | 100.0 | 32,137 | 100.0 | |||||||
| Cost<br>of sales | 6,516 | 58.2 | 18,635 | 58.0 | |||||||
| Gross<br>profit | 4,678 | 41.8 | 13,502 | 42.0 | |||||||
| Administrative<br>expenses | 815 | 7.3 | 2,335 | 7.3 | |||||||
| Selling<br>expenses | 3,518 | 31.4 | 10,416 | 32.4 | |||||||
| Other<br>operating expenses (income), net | (3 | ) | - | (53 | ) | (0.2 | ) | ||||
| Income<br>from operations | 348 | 3.1 | 804 | 2.5 | |||||||
| Depreciation | 1,079 | 9.6 | 3,261 | 10.1 | |||||||
| Amortization &<br>other non-cash charges | 128 | 1.2 | 337 | 1.1 | |||||||
| Adjusted<br>EBITDA | 1,555 | 13.9 | 4,402 | 13.7 | |||||||
| CAPEX | 468 | 742 |
October 27, 2023 | Page 18
HealthDivision – Results of Operations
Amounts expressed in millions of Mexican Pesos (Ps.)
| For<br> the third quarter of: | For<br> the nine months of: | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | %<br><br> of rev. | 2022 | %<br> <br><br> of rev. | %<br> Var. | 2023 | %<br> <br><br> of rev. | 2022 | %<br> <br><br> of rev. | %<br> Var. | |||||||||||||||||
| Total<br> revenues | 18,569 | 100.0 | 18,526 | 100.0 | 0.2 | 56,105 | 100.0 | 56,026 | 100.0 | 0.1 | ||||||||||||||||
| Cost<br> of sales | 13,138 | 70.8 | 13,061 | 70.5 | 0.6 | 39,228 | 69.9 | 39,732 | 70.9 | (1.3 | ) | |||||||||||||||
| Gross<br> profit | 5,431 | 29.2 | 5,465 | 29.5 | (0.6 | ) | 16,877 | 30.1 | 16,294 | 29.1 | 3.6 | |||||||||||||||
| Administrative<br> expenses | 768 | 4.1 | 953 | 5.1 | (19.4 | ) | 2,238 | 4.0 | 2,135 | 3.8 | 4.8 | |||||||||||||||
| Selling<br> expenses | 3,836 | 20.7 | 3,580 | 19.4 | 7.2 | 11,867 | 21.2 | 11,236 | 20.1 | 5.6 | ||||||||||||||||
| Other<br> operating expenses (income), net | (17 | ) | (0.1 | ) | (10 | ) | (0.1 | ) | 70.0 | 16 | - | (1 | ) | - | N.S. | |||||||||||
| Income<br> from operations | 844 | 4.5 | 942 | 5.1 | (10.4 | ) | 2,756 | 4.9 | 2,924 | 5.2 | (5.7 | ) | ||||||||||||||
| Depreciation | 762 | 4.1 | 727 | 3.9 | 4.8 | 2,311 | 4.1 | 2,203 | 3.9 | 4.9 | ||||||||||||||||
| Amortization&<br> other non-cash charges | 242 | 1.4 | 174 | 0.9 | 39.1 | 744 | 1.4 | 550 | 1.0 | 35.3 | ||||||||||||||||
| Adjusted<br> EBITDA | 1,848 | 10.0 | 1,843 | 9.9 | 0.3 | 5,811 | 10.4 | 5,677 | 10.1 | 2.4 | ||||||||||||||||
| CAPEX | 378 | 245 | 54.3 | 996 | 245 | N.S. | ||||||||||||||||||||
| Information of<br> Stores | ||||||||||||||||||||||||||
| Total<br> stores | 4,347 | 3,971 | 9.5 | |||||||||||||||||||||||
| Stores<br> Mexico | 1,710 | 1,516 | 12.8 | |||||||||||||||||||||||
| Stores<br> South America | 2,637 | 2,455 | 7.5 | |||||||||||||||||||||||
| Net<br> new stores: | ||||||||||||||||||||||||||
| vs.<br> Last quarter | 80 | 84 | (4.8 | ) | ||||||||||||||||||||||
| Year-to-date | 241 | 319 | (24.5 | ) | ||||||||||||||||||||||
| Last-twelve-months | 365 | 431 | (15.3 | ) | ||||||||||||||||||||||
| Same-store<br> data: ^(1)^ | ||||||||||||||||||||||||||
| Sales<br> (thousands of pesos) | 1,131.1 | 1,173.4 | (3.6 | ) | 1,174.5 | 1,216.9 | (3.5 | ) |
^(1)^ Monthly average information per store, considering same stores with more than twelve months of all the retail operations of the Health Division.
October 27, 2023 | Page 19
Fuel – Results of Operations
Amounts expressed in millions of Mexican Pesos (Ps.)
| For the<br> third quarter of: | For the<br> nine months of: | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | %<br> <br>of rev. | 2022 | %<br> <br>of rev. | % Var. | 2023 | %<br> <br>of rev. | 2022 | %<br> <br>of rev. | % Var. | |||||||||||||
| Total revenues | 15,782 | 100.0 | 13,823 | 100.0 | 14.2 | 43,378 | 100.0 | 37,938 | 100.0 | 14.3 | ||||||||||||
| Cost of sales | 13,831 | 87.6 | 12,052 | 87.2 | 14.8 | 38,056 | 87.7 | 33,203 | 87.5 | 14.6 | ||||||||||||
| Gross profit | 1,951 | 12.4 | 1,771 | 12.8 | 10.2 | 5,322 | 12.3 | 4,735 | 12.5 | 12.4 | ||||||||||||
| Administrative expenses | 70 | 0.4 | 58 | 0.4 | 20.7 | 199 | 0.5 | 148 | 0.4 | 34.5 | ||||||||||||
| Selling expenses | 1,152 | 7.4 | 1,029 | 7.4 | 12.0 | 3,303 | 7.6 | 2,963 | 7.8 | 11.5 | ||||||||||||
| Other operating expenses (income), net | 19 | 0.1 | (3 | ) | - | N.S. | 19 | - | (12 | ) | - | N.S. | ||||||||||
| Income from operations | 710 | 4.5 | 687 | 5.0 | 3.3 | 1,801 | 4.2 | 1,636 | 4.3 | 10.1 | ||||||||||||
| Depreciation | 285 | 1.8 | 266 | 1.9 | 7.1 | 844 | 1.9 | 784 | 2.1 | 7.7 | ||||||||||||
| Amortization & other non-cash<br> charges | 31 | 0.2 | 7 | - | N.S. | 60 | 0.1 | 31 | 0.1 | 93.5 | ||||||||||||
| Adjusted EBITDA | 1,026 | 6.5 | 960 | 6.9 | 6.9 | 2,705 | 6.2 | 2,451 | 6.5 | 10.4 | ||||||||||||
| CAPEX | 48 | 22 | 115.7 | 116 | 58 | 98.7 | ||||||||||||||||
| Information of OXXO GAS Service Stations | ||||||||||||||||||||||
| Total stores | 571 | 568 | 0.5 | |||||||||||||||||||
| Net new convenience stores: | ||||||||||||||||||||||
| vs. Last quarter | 1 | (1 | ) | - | ||||||||||||||||||
| Year-to-date | 3 | 1 | - | |||||||||||||||||||
| Last-twelve-months | 3 | 2 | 50.0 | |||||||||||||||||||
| Volume (millions of liters) total stations | 616 | 613 | 0.6 | 1,840 | 1,755 | 4.8 | ||||||||||||||||
| Same-store<br> data: ^(1)^ | ||||||||||||||||||||||
| Sales (thousands of pesos) | 8,236.9 | 7,617.6 | 8.1 | 7,430.3 | 6,826.7 | 8.8 | ||||||||||||||||
| Traffic (thousands of liters) | 391.7 | 376.8 | 4.0 | 358.7 | 342.2 | 4.8 | ||||||||||||||||
| Average price per liter | 21.0 | 20.2 | 4.0 | 20.8 | 20.0 | 3.8 |
^(A)^ Unaudited consolidated financial information.
^(1)^ Monthly average information per station, considering same stations with more than twelve months of operations.
October 27, 2023 | Page 20
Coca-Cola FEMSA – Results of Operations
Amounts expressed in millions of Mexican Pesos (Ps.)
| For the<br> third quarter of: | For the<br> nine months of: | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | %<br> <br>of rev. | 2022 | %<br> <br>of rev. | % Var. | 2023 | %<br> <br>of rev. | 2022 | %<br> <br>of rev. | % Var. | |||||||||||||
| Total revenues | 62,853 | 100.0 | 57,093 | 100.0 | 10.1 | 181,376 | 100.0 | 166,042 | 100.0 | 9.2 | ||||||||||||
| Cost of sales | 34,005 | 54.1 | 31,702 | 55.5 | 7.3 | 99,926 | 55.1 | 92,573 | 55.8 | 7.9 | ||||||||||||
| Gross profit | 28,848 | 45.9 | 25,392 | 44.5 | 13.6 | 81,451 | 44.9 | 73,469 | 44.2 | 10.9 | ||||||||||||
| Administrative expenses | 3,239 | 5.2 | 2,895 | 5.1 | 11.9 | 9,824 | 5.4 | 8,238 | 5.0 | 19.3 | ||||||||||||
| Selling expenses | 16,731 | 26.5 | 15,038 | 26.4 | 11.3 | 46,676 | 25.8 | 43,052 | 25.8 | 8.4 | ||||||||||||
| Other operating expenses (income), net | 418 | 0.7 | 124 | 0.2 | N.S. | 235 | 0.1 | 298 | 0.2 | (21.1 | ) | |||||||||||
| Income from operations | 8,460 | 13.5 | 7,335 | 12.8 | 15.3 | 24,716 | 13.6 | 21,881 | 13.2 | 13.0 | ||||||||||||
| Depreciation | 2,468 | 3.9 | 2,515 | 4.4 | (1.9 | ) | 7,179 | 4.0 | 7,287 | 4.4 | (1.5 | ) | ||||||||||
| Amortization & other non-cash<br> charges | 912 | 1.4 | 776 | 1.4 | 17.5 | 1,851 | 1.0 | 1,983 | 1.2 | (6.7 | ) | |||||||||||
| Adjusted EBITDA | 11,840 | 18.8 | 10,626 | 18.6 | 11.4 | 33,746 | 18.6 | 31,151 | 18.8 | 8.3 | ||||||||||||
| CAPEX | 4,964 | 4,034 | 23.1 | 11,713 | - | N.S. | ||||||||||||||||
| Sales Volumes | ||||||||||||||||||||||
| (Millions of unit cases) | ||||||||||||||||||||||
| Mexico and Central America | 633.2 | 61.3 | 555.8 | 60.0 | 13.9 | 1,813.9 | 60.6 | 1,640.5 | 59.4 | 10.6 | ||||||||||||
| South America | 144.0 | 13.9 | 131.1 | 14.2 | 9.8 | 420.5 | 14.1 | 398.9 | 14.5 | 5.4 | ||||||||||||
| Brazil | 255.9 | 24.8 | 238.9 | 25.8 | 7.1 | 757.2 | 25.3 | 720.5 | 26.1 | 5.1 | ||||||||||||
| Total | 1,033.1 | 100.0 | 925.8 | 100.0 | 11.6 | 2,991.6 | 100.0 | 2,759.9 | 100.0 | 8.4 |
^(1)^ Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.
October 27, 2023 | Page 21
FEMSA Macroeconomic Information
| Inflation | End-of-period<br> Exchange Rates | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q<br> 2023 | LTM ^(1)^ Sep-23 | Sep-23 | Sep-22 | |||||||||
| Per | Per MXN | Per | Per MXN | |||||||||
| Mexico | 1.01 | % | 4.44 | % | 1.0000 | 1.0000 | ||||||
| Colombia | 1.20 | % | 11.49 | % | 0.0043 | 0.0045 | ||||||
| Brazil | 0.51 | % | 4.43 | % | 3.5186 | 3.7557 | ||||||
| Argentina | 20.26 | % | 128.90 | % | 0.0503 | 0.1378 | ||||||
| Chile | 0.35 | % | 4.59 | % | 0.0197 | 0.0211 | ||||||
| Euro Zone | 0.74 | % | 5.18 | % | 18.5710 | 19.6142 |
All values are in US Dollars.
^(1)^ LTM = Last twelve months.
October 27, 2023 | Page 22
MexicoCity, October 25, 2023, Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFUBL, NYSE: KOF) (“Coca-Cola FEMSA”, “KOF” or the “Company”), the largest Coca-Cola franchise bottler in the world by sales volume, announces results for the third quarter of 2023.
THIRD QUARTERHIGHLIGHTS
| • | Volume<br> growth 11.6% |
|---|---|
| • | Revenue<br> growth 10.1% |
| --- | --- |
| • | Operating<br> income growth 15.3% |
| --- | --- |
| • | Majority<br> net income growth 23.0% |
| --- | --- |
| • | Earnings<br> per share^1^ were Ps. 0.32. (Earnings per unit were Ps. 2.56 and per ADS were Ps.<br> 25.61.) |
| --- | --- |
| • | Achieved<br> more than 946 thousand monthly active buyers on Juntos+, our omnichannel B2B platform |
| --- | --- |
FIRST NINE MONTHSHIGHLIGHTS
| • | Volume<br> growth 8.4% |
|---|---|
| • | Revenue<br> growth 9.2% |
| --- | --- |
| • | Operating<br> income growth 13.0% |
| --- | --- |
| • | Majority<br> net income growth 19.1% |
| --- | --- |
| • | Earnings<br> per share^1^ were Ps. 0.85. (Earnings per unit were Ps. 6.77 and per ADS were Ps.<br> 67.66.) |
| --- | --- |
| • | Achieved<br> more than US$1.7 billion in digital revenues through Juntos+ |
| --- | --- |
FINANCIALSUMMARY FOR THE THIRD QUARTER RESULTS
Change vs. same period of last year
| Total Revenues | Gross Profit | Operating<br> Income | Majority<br> Net Income | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q23 | YTD 2023 | 3Q23 | YTD 2023 | 3Q23 | YTD 2023 | 3Q23 | YTD 2023 | ||||||||||||||||||
| Consolidated | 10.1 | % | 9.2 | % | 13.6 | % | 10.9 | % | 15.3 | % | 13.0 | % | 23.0 | % | 19.1 | % | |||||||||
| As Reported | Mexico &<br> Central America | 15.5 | % | 14.9 | % | 17.9 | % | 14.9 | % | 19.2 | % | 11.5 | % | ||||||||||||
| South<br> America | 2.2 | % | 1.2 | % | 6.5 | % | 4.0 | % | 6.7 | % | 16.6 | % | |||||||||||||
| Consolidated | 19.2 | % | 19.2 | % | 22.9 | % | 20.5 | % | 24.1 | % | 21.0 | % | |||||||||||||
| Comparable ^(2)^ | Mexico &<br> Central America | 18.2 | % | 17.0 | % | 20.5 | % | 16.8 | % | 22.5 | % | 13.5 | % | ||||||||||||
| South<br> America | 21.0 | % | 23.0 | % | 27.4 | % | 28.2 | % | 28.1 | % | 44.7 | % |
IanCraig, Coca-Cola FEMSA’s CEO, commented:
“We are pleased to report solid third quarter results. Our strategic focus on growth has enabled us to build and sustain strong momentum, delivering a quarterly volume increase of 11.6% year on year. This performance includes growth across all of our operations, with double-digit growth in Mexico, Guatemala, Colombia, Uruguay, Costa Rica, and Nicaragua. Notably, on a currency neutral basis, our top-line increased 19.2%, and our operating income increased 24.1%, underscoring the resilience of our company.
As we deliver on our growing the core strategic priority, we continue increasing investments in both manufacturing and distribution capacity to debottleneck our infrastructure and unlock growth. We continue accelerating the rollout of our omnichannel B2B platform, Juntos+, which now serves 946 thousand monthly active buyers and have completed the rollout of our app version 4.0 in Brazil.
We have confidence that Coca-Cola FEMSA’s team execution of our strategy, is setting us on a path towards long-term sustainable growth and value creation.”
| ^(1)^ | Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 million shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units. |
|---|---|
| ^(2)^ | Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance. |
| --- | --- |
| **Coca-Cola FEMSA Reports 3Q23 Results** | **Page 2** **of 17** |
| --- | --- | | October 25, 2023 | |
RECENTDEVELOPMENTS
| • | On<br> September 14, 2023, Coca-Cola FEMSA commemorated the 30th anniversary of its initial<br> public offering and trading of its shares on the Mexican Stock Exchange (“BMV”)<br> and the New York Stock Exchange (“NYSE”). Since 1993, The Coca-Cola Company has<br> maintained a significant interest in the capital stock of Coca-Cola FEMSA which in time has<br> helped its growth from a Mexico-based bottler to extend its footprint to other countries<br> and become the largest Coca-Cola bottler in the world in terms of sales volume. |
|---|---|
| • | On<br> November 3, 2023, Coca-Cola FEMSA will pay the second installment of the ordinary dividend<br> approved for Ps. 0.3625 per share, for a total cash distribution of Ps. 6,092 million. |
| --- | --- |
CONFERENCECALL INFORMATION
| **Coca-Cola FEMSA Reports 3Q23 Results** | **Page 3** **of 17** |
| --- | --- | | October 25, 2023 | |
CONSOLIDATEDthird QUARTER RESULTS
CONSOLIDATEDTHIRD QUARTER RESULTS
| As Reported | Comparable ^(1)^ | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Expressed in millions<br> of Mexican pesos | 3Q<br> 2023 | 3Q<br> 2022 | Δ% | Δ% | ||||||
| Total revenues | 62,853 | 57,093 | 10.1 | % | 19.2 | % | ||||
| Gross profit | 28,848 | 25,392 | 13.6 | % | 22.9 | % | ||||
| Operating income | 8,460 | 7,335 | 15.3 | % | 24.1 | % | ||||
| Adj.<br> EBITDA ^(2)^ | 11,830 | 10,626 | 11.3 | % | 20.5 | % |
Volumeincreased 11.6% to 1,033.1 million unit cases, driven by volume growth in all of our territories, including double-digit volume growth in Mexico, Guatemala, Costa Rica, Nicaragua, Colombia, and Uruguay. Excluding the acquisition of the Cristal bulk water business in Mexico, total volume would have increased 9.8%.
Totalrevenues increased 10.1% to Ps. 62,853 million. This increase was driven mainly by volume growth, partially offset by unfavorable currency translation effects from most of our operating currencies into Mexican Pesos. Excluding currency translation effects, total revenues increased 19.2%.
Grossprofit increased 13.6% to Ps. 28,848 million, and gross margin expanded 140 basis points to 45.9%. This expansion was driven mainly by our top-line growth, easing packaging costs, and the appreciation of most of our operating currencies as applied to our U.S dollar-denominated raw material costs. These effects were partially offset by higher sweetener costs across our territories. Excluding currency translation effects, gross profit increased 22.9%.
Operatingincome increased 15.3% to Ps. 8,460 million, and operating margin expanded 70 basis points to 13.5%. This expansion was driven mainly by a solid top-line performance, easing packaging costs, and the appreciation of most of our operating currencies as applied to our U.S. dollar denominated raw material costs. These effects were partially offset by an increase in sweeteners, fixed costs, and expenses such as labor, marketing, and maintenance. Excluding currency translation effects, operating income increased 24.1%.
| ^(1)^ | Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance. |
|---|---|
| ^(2)^ | Adjusted EBITDA = operating income + depreciation + amortization & other operating non-cash charges. |
| --- | --- |
| Coca-Cola FEMSA Reports 3Q23 Results | Page 4 of 17 |
| --- | --- |
| October 25, 2023 |
Comprehensivefinancing result recorded an expense of Ps. 552 million, compared to an expense of Ps. 682 million in the previous year. This decrease was driven mainly by a foreign exchange gain of Ps. 322 million as compared to a gain of Ps. 40 million, as our net cash exposure in U.S. dollars was positively impacted by the depreciation of the Mexican Peso and other operating currencies as compared to the previous quarter.
Additionally, we recorded a gain of Ps. 95 million in financial instruments as compared to a loss of Ps. 157 million during the previous year, driven mainly by a decrease in interest rates in Brazil.
These effects were partially offset by an increase in our interest expense, net. This quarter we recorded a higher interest expense of Ps. 1,707 million as compared to an expense of Ps. 1,339 million during the previous year, as a result of the tender offer completed during the third quarter of 2022 which lowered our comparison base. This increase in interest expense was partially offset by an increase in our interest income, driven by higher interest rates.
Finally, we recognized a lower gain in monetary position in inflationary subsidiaries of Ps. 17 million, as compared to a gain of Ps. 124 million during the same period of the previous year.
Incometax as a percentage of income before taxes was 29.6% as compared to 33.5% during the same period of 2022. This decrease was driven mainly by favorable inflationary adjustments in Mexico and deferred taxes.
Netincome attributable to equity holders of the company was Ps. 5,380 million as compared to Ps. 4,374 million during the same period of the previous year. This increase was driven mainly by operating income growth, coupled with a decrease in our comprehensive financing result. Earnings per share^1^ were Ps. 0.32 (Earnings per unit were Ps. 2.56 and per ADS were Ps. 25.61.).
| ^(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 3Q23 Results | Page 5 of 17 |
| --- | --- |
| October 25, 2023 |
CONSOLIDATED FIRST ninemonths RESULTS
CONSOLIDATED FIRST NINE MONTHS RESULTS
| As Reported | Comparable ^(1)^ | |||||||
|---|---|---|---|---|---|---|---|---|
| Expressed in millions of Mexican pesos | YTD 2023 | YTD 2022 | Δ% | Δ% | ||||
| Total revenues | 181,376 | 166,042 | 9.2 | % | 19.2 | % | ||
| Gross profit | 81,451 | 73,469 | 10.9 | % | 20.5 | % | ||
| Operating income | 24,716 | 21,881 | 13.0 | % | 21.0 | % | ||
| Adj. EBITDA ^(2)^ | 33,737 | 31,151 | 8.3 | % | 17.3 | % |
Volumeincreased 8.4% to 2,991.6 million unit cases, driven by volume growth in all of our territories, including strong performances in Mexico, Brazil, and Guatemala. Excluding the acquisition of the Cristal bulk water business in Mexico, total volume increased 6.5%.
Totalrevenues increased 9.2% to Ps. 181,376 million. Volume growth, revenue management initiatives, and favorable mix effects drove this increase. These factors were partially offset by unfavorable currency translation effects from most of our operating currencies into Mexican Pesos. Excluding currency translation effects, total revenues increased 19.2%.
Grossprofit increased 10.9% to Ps. 81,451 million, and gross margin expanded 70 basis points to 44.9%. This gross profit increase was driven mainly by our top-line growth, easing packaging costs, and favorable raw material hedging initiatives. These effects were partially offset by higher sweetener costs across our territories. Excluding currency translation effects, gross profit increased 20.5%.
Operatingincome increased 13.0% to Ps. 24,716 million, and operating margin expanded 40 basis points to 13.6%. This growth was driven mainly by a solid top-line performance and an operating foreign exchange gain in Mexico as a result of the appreciation of the Mexican Peso. These effects were partially offset by an increase in raw material costs, mainly sweeteners, coupled with an increase in operating expenses such as labor, marketing, and maintenance. Excluding currency translation effects, operating income increased 21.0%.
| ^(1)^ | Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance. |
|---|---|
| ^(2)^ | Adjusted EBITDA = operating income + depreciation + amortization & other operating non-cash charges. |
| --- | --- |
| Coca-Cola FEMSA Reports 3Q23 Results | Page 6 of 17 |
| --- | --- |
| October 25, 2023 |
Comprehensivefinancing result recorded an expense of Ps. 3,329 million, compared to an expense of Ps. 3,438 million in the previous year. This slight decrease was driven mainly by a gain in financial instruments of Ps. 80 million as compared to a loss of Ps. 738 million during the same period of the previous year. This was driven mainly by a market value loss recorded during the first quarter of 2022, partially offset by a market value gain recognized during the second quarter of 2022. In accordance with IFRS 9, as of the second quarter of 2022, we are recognizing the hedging gain or loss on the debt instrument that is being hedged using interest rate derivatives.
In addition, we recorded a decrease in our interest expense, net of 9.2% mainly as a result of a gain in our interest income that was driven by an increase in interest rates. Additionally, we recorded a decrease in our interest expense, as a result of the tender offer completed during the third quarter of 2022, which reduced our baseline.
These effects were partially offset by a higher foreign exchange loss of Ps. 739 million as compared to a loss of Ps. 46 million during the first nine months of the previous year, mainly as our net cash exposure in U.S. dollars was negatively impacted by the appreciation of the Mexican Peso. In addition, we recorded a lower gain in monetary position in inflationary subsidiaries of Ps. 134 million as compared to a gain of Ps. 434 million during the same period of the previous year.
Incometax as a percentage of income before taxes was 29.6% as compared to 33.5% during the same period of 2022. This decrease was driven mainly by favorable inflationary effects in Mexico and deferred taxes.
Netincome attributable to equity holders of the company increased 19.1% to reach Ps. 14,213 million during the first nine months of 2023, as compared to Ps. 11,931 million during the same period of the previous year. This increase was driven mainly by operating income growth. Earnings per share^1^ were Ps. 0.85 (Earnings per unit were Ps. 6.77 and per ADS were Ps. 67.66.).
| ^(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 3Q23 Results | Page 7 of 17 |
| --- | --- |
| October 25, 2023 |
MEXICO & CENTRALAMERICA DIVISION third QUARTER RESULTS
| (Mexico, Guatemala, Costa Rica, Panama, and Nicaragua) |
|---|
MEXICO & CENTRAL AMERICA DIVISION RESULTS
| As Reported | Comparable ^(1)^ | |||||||
|---|---|---|---|---|---|---|---|---|
| Expressed in millions of Mexican pesos | 3Q 2023 | 3Q 2022 | Δ% | Δ% | ||||
| Total revenues | 39,035 | 33,799 | 15.5 | % | 18.2 | % | ||
| Gross profit | 18,689 | 15,855 | 17.9 | % | 20.5 | % | ||
| Operating income | 6,032 | 5,059 | 19.2 | % | 22.5 | % | ||
| Adj. EBITDA ^(2)^ | 8,182 | 7,171 | 14.1 | % | 17.0 | % |
Volumeincreased 13.9%, driven by double-digit growth in Mexico, Guatemala, Costa Rica, and Nicaragua. These volumes include the integration of the Cristal bulk water business, excluding this effect, volume increased 11.0% in the division and 9.7% in Mexico.
Totalrevenues increased 15.5% to Ps. 39,035 million, driven by volume growth, partially offset by unfavorable currency translation effects from most of our operating currencies in Central America. Excluding currency translation effects, total revenues increased 18.2%.
Grossprofit increased 17.9% to Ps. 18,689 million, and gross margin expanded 100 basis points to 47.9%. This margin expansion was driven mainly by our top-line growth, easing packaging costs, and the appreciation of the Mexican Peso as applied to our U.S. dollar-denominated raw material costs. These effects were partially offset by an increase in sweeteners costs. Excluding currency translation effects, gross profit increased 20.5%.
Operatingincome increased 19.2% to Ps. 6,032 million, and operating margin expanded 50 basis points to 15.5%, driven mainly by our top-line and gross profit growth. These effects were partially offset by an increase in operating expenses such as labor and maintenance. Excluding currency translation effects, operating income increased 22.5%.
| ^(1)^ | Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance. |
|---|---|
| ^(2)^ | Adjusted EBITDA = operating income + depreciation + amortization & other operating non-cash charges. |
| --- | --- |
| Coca-Cola FEMSA Reports 3Q23 Results | Page 8 of 17 |
| --- | --- |
| October 25, 2023 |
SOUTHAMERICA DIVISION third QUARTER RESULTS
| (Brazil, Argentina, Colombia, and Uruguay) |
|---|
SOUTH AMERICA DIVISION RESULTS
| As Reported | Comparable ^(1)^ | |||||||
|---|---|---|---|---|---|---|---|---|
| Expressed in millions of Mexican pesos | 3Q 2023 | 3Q 2022 | Δ% | Δ% | ||||
| Total revenues | 23,818 | 23,294 | 2.2 | % | 21.0 | % | ||
| Gross profit | 10,159 | 9,537 | 6.5 | % | 27.4 | % | ||
| Operating income | 2,428 | 2,275 | 6.7 | % | 28.1 | % | ||
| Adj. EBITDA ^(2)^ | 3,647 | 3,455 | 5.6 | % | 29.1 | % |
Volumeincreased 8.1%, driven by growth across all of our territories in the division with a solid performance in Brazil, Colombia, and Uruguay, coupled with a slight volume growth in Argentina.
Totalrevenues increased 2.2% to Ps. 23,818 million. This increase was driven mainly by volume growth, offset by unfavorable currency translation effects of all of our operating currencies in the division into Mexican Pesos. Excluding currency translation effects, total revenues increased 21.0%.
Grossprofit increased 6.5% to Ps. 10,159 million, and gross margin expanded 180 basis points to 42.7%. This increase was driven mainly by our top-line growth, easing packaging costs, and the appreciation of most of our operating currencies as compared to the U.S. dollar. These effects were partially offset by increases in sweeteners and the depreciation of the Argentine Peso as applied to our U.S. dollar-denominated raw material costs. Excluding currency translation effects, gross profit increased 27.4%.
Operatingincome increased 6.7% to Ps. 2,428 million, resulting in an operating margin expansion of 40 basis points to 10.2%. This increase was driven mainly by operating expense efficiencies and an increase in operating leverage resulting from volume growth. These effects were partially offset by higher labor and freight expenses. Excluding currency translation effects, operating income increased 28.1%.
| ^(1)^ | Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance. |
|---|---|
| ^(2)^ | Adjusted EBITDA = operatingincome + depreciation + amortization & other operating non-cash charges. |
| --- | --- |
| Coca-Cola FEMSA Reports 3Q23 Results | Page 9 of 17 |
| --- | --- |
| October 25, 2023 |
DEFINITIONS
Volumeis 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.
Transactionsrefers 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.
Operatingincome is a non-GAAP financial measure computed as “gross profit – operating expenses – other operating expenses, net + operative equity method (gain) loss in associates.”
AdjustedEBITDA is a non-GAAP financial measure computed as “operating income + depreciation + amortization & other operating non-cash charges.”
Earningsper share are equal to “quarterly earnings / outstanding shares.” Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806,658,096 shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units.
COMPARABILITY
Our “comparable” term means, with respect to a year-over-year comparison, the change of a given measure excluding the effects of: (i) mergers, acquisitions, and divestitures, in this case the acquisition of CVI in Brazil, integrated as of February 2022; 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 3Q23 Results | Page 10 of 17 |
|---|---|
| October 25, 2023 |
ABOUTTHE 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 131 brands to a population of more than 266 million. With over 80 thousand employees, the Company markets and sells approximately 3.5 billion unit cases through 2 million points of sale a year. Operating 49 manufacturing plants and 260 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.
ADDITIONALINFORMATION
All of the financial information presented in this report was prepared under International Financial Reporting Standards (IFRS).
This news release may contain forward-looking statements concerning Coca-Cola FEMSA’s future performance, which should be considered as good faith estimates by Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA’s control, which could materially impact the Company’s actual performance. References herein to “US$” are to United States dollars. This news release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations should not be construed as representations that Mexican peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated.
(6 pages of tables to follow)
| Coca-Cola FEMSA Reports 3Q23 Results | Page 11 of 17 |
|---|---|
| October 25, 2023 |
COCA-COLA FEMSA
CONSOLIDATED INCOME STATEMENT
Millions of Pesos ^(1)^
| For<br> the Third Quarter of: | For<br> the First Nine Months of: | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | %<br> <br><br>of Rev. | 2022 | %<br> <br><br>of Rev. | Δ%<br><br><br> Reported | Δ% Comparable ^(7)^ | 2023 | %<br> <br><br>of Rev. | 2022 | %<br> <br><br>of Rev. | Δ%<br><br><br> Reported | Δ% Comparable ^(7)^ | |||||||||||||||||||||||||
| Transactions<br> (million transactions) | 6,048.6 | 5,507.3 | 9.8 | % | 9.8 | % | 17,548.7 | 16,327.4 | 7.5 | % | 7.4 | % | ||||||||||||||||||||||||
| Volume (million unit cases) | 1,033.1 | 925.8 | 11.6 | % | 11.6 | % | 2,991.6 | 2,759.9 | 8.4 | % | 8.3 | % | ||||||||||||||||||||||||
| Average price per unit case | 58.87 | 60.15 | -2.1 | % | 58.72 | 58.65 | 0.1 | % | ||||||||||||||||||||||||||||
| Net revenues | 62,612 | 57,017 | 9.8 | % | 180,780 | 165,723 | 9.1 | % | ||||||||||||||||||||||||||||
| Other operating revenues | 241 | 77 | 213.6 | % | 596 | 319 | 86.8 | % | ||||||||||||||||||||||||||||
| Total revenues ^(2)^ | 62,853 | 100.0 | % | 57,093 | 100.0 | % | 10.1 | % | 19.2 | % | 181,376 | 100.0 | % | 166,042 | 100.0 | % | 9.2 | % | 19.2 | % | ||||||||||||||||
| Cost of goods sold | 34,005 | 54.1 | % | 31,702 | 55.5 | % | 7.3 | % | 99,925 | 55.1 | % | 92,573 | 55.8 | % | 7.9 | % | ||||||||||||||||||||
| Gross profit | 28,848 | 45.9 | % | 25,392 | 44.5 | % | 13.6 | % | 22.9 | % | 81,451 | 44.9 | % | 73,469 | 44.2 | % | 10.9 | % | 20.5 | % | ||||||||||||||||
| Operating expenses | 19,970 | 31.8 | % | 17,933 | 31.4 | % | 11.4 | % | 56,500 | 31.2 | % | 51,290 | 30.9 | % | 10.2 | % | ||||||||||||||||||||
| Other operative expenses, net | 500 | 0.8 | % | 167 | 0.3 | % | 200.0 | % | 421 | 0.2 | % | 451 | 0.3 | % | -6.7 | % | ||||||||||||||||||||
| Operative<br> equity method (gain) loss in associates^(3)^ | (82 | ) | -0.1 | % | (43 | ) | -0.1 | % | 91.3 | % | (187 | ) | -0.1 | % | (152 | ) | -0.1 | % | 22.5 | % | ||||||||||||||||
| Operating income ^(5)^ | 8,460 | 13.5 | % | 7,335 | 12.8 | % | 15.3 | % | 24.1 | % | 24,716 | 13.6 | % | 21,881 | 13.2 | % | 13.0 | % | 21.0 | % | ||||||||||||||||
| Other non operative expenses,<br> net | 138 | 0.2 | % | 94 | 0.2 | % | 46.5 | % | 484 | 0.3 | % | 343 | 0.2 | % | 40.9 | % | ||||||||||||||||||||
| Non<br> Operative equity method (gain) loss in associates ^(4)^ | (16 | ) | 0.0 | % | (113 | ) | -0.2 | % | -85.6 | % | 149 | 0.1 | % | (141 | ) | -0.1 | % | -205.5 | % | |||||||||||||||||
| Interest expense | 1,707 | 1,339 | 27.5 | % | 5,382 | 4,694 | 14.6 | % | ||||||||||||||||||||||||||||
| Interest income | 721 | 649 | 11.1 | % | 2,578 | 1,606 | 60.5 | % | ||||||||||||||||||||||||||||
| Interest expense, net | 986 | 690 | 42.9 | % | 2,804 | 3,088 | -9.2 | % | ||||||||||||||||||||||||||||
| Foreign exchange loss (gain) | (322 | ) | (40 | ) | 696.8 | % | 739 | 46 | 1518.8 | % | ||||||||||||||||||||||||||
| Loss (gain) on monetary position<br> in inflationary subsidiaries | (17 | ) | (124 | ) | -86.3 | % | (134 | ) | (434 | ) | -69.1 | % | ||||||||||||||||||||||||
| Market value (gain) loss on financial<br> instruments | (95 | ) | 157 | -160.4 | % | (80 | ) | 738 | -110.8 | % | ||||||||||||||||||||||||||
| Comprehensive financing result | 552 | 682 | -19.0 | % | 3,329 | 3,438 | -3.2 | % | ||||||||||||||||||||||||||||
| Income before taxes | 7,786 | 6,671 | 16.7 | % | 20,754 | 18,241 | 13.8 | % | ||||||||||||||||||||||||||||
| Income taxes | 2,273 | 2,166 | 4.9 | % | 6,128 | 5,972 | 2.6 | % | ||||||||||||||||||||||||||||
| Result of discontinued operations | - | - | NA | - | - | NA | ||||||||||||||||||||||||||||||
| Consolidated net income | 5,513 | 4,505 | 22.4 | % | 14,627 | 12,269 | 19.2 | % | ||||||||||||||||||||||||||||
| Net income attributable to<br> equity holders of the company | 5,380 | 8.6 | % | 4,374 | 7.7 | % | 23.0 | % | 33.9 | % | 14,213 | 7.8 | % | 11,931 | 7.2 | % | 19.1 | % | 30.2 | % | ||||||||||||||||
| Non-controlling interest | 133 | 0.2 | % | 131 | 0.2 | % | 1.4 | % | 414 | 0.2 | % | 339 | 0.2 | % | 22.1 | % | ||||||||||||||||||||
| Adj.<br> EBITDA & CAPEX | 2023 | %<br><br><br> of Rev. | 2022 | %<br><br><br> of Rev. | Δ%<br><br><br> Reported | Δ% Comparable ^(7)^ | 2023 | %<br> <br><br>of Rev. | 2022 | %<br> <br><br>of Rev. | Δ%<br><br><br> Reported | Δ% Comparable ^(7)^ | ||||||||||||||||||||||||
| Operating<br> income ^(5)^ | 8,460 | 13.5 | % | 7,335 | 12.8 | % | 15.3 | % | 24.1 | % | 24,716 | 13.6 | % | 21,881 | 13.2 | % | 13.0 | % | 21.0 | % | ||||||||||||||||
| Depreciation | 2,468 | 2,515 | -1.9 | % | 7,179 | 7,287 | -1.5 | % | ||||||||||||||||||||||||||||
| Amortization and other operative<br> non-cash charges | 902 | 777 | 16.1 | % | 1,841 | 1,983 | -7.2 | % | ||||||||||||||||||||||||||||
| Adj. EBITDA ^(5)(6)^ | 11,830 | 18.8 | % | 10,626 | 18.6 | % | 11.3 | % | 20.5 | % | 33,737 | 18.6 | % | 31,151 | 18.8 | % | 8.3 | % | 17.3 | % | ||||||||||||||||
| CAPEX^(8)^ | 4,976 | 4,026 | 23.6 | % | 11,713 | 11,191 | 4.7 | % | ||||||||||||||||||||||||||||
| ^(1)^ | Except volume and average price per unit case figures. | |||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||
| ^(2)^ | Please refer to page 15 for revenue breakdown. | |||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||
| ^(3)^ | Includes equity method in Jugos del Valle and Leão Alimentos, among others. | |||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||
| ^(4)^ | Includes equity method in PIASA, IEQSA, Beta San Miguel, IMER, and KSP Participacoes, among others. | |||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||
| ^(5)^ | The operating income and Adjusted EBITDA lines are presented as non-GAAP measures for the convenience of the reader. | |||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||
| ^(6)^ | Adjusted EBITDA = operating income + depreciation, amortization & other operating non-cash charges. | |||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||
| ^(7)^ | Please refer to page 10 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance. | |||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||
| ^(8)^ | As of September 30, 2023, the investment in fixed assets effectively paid is equivalent to Ps. 11,792 million. | |||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||
| Coca-Cola FEMSA Reports 3Q23 Results | Page 12 of 17 | |||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||
| October 25, 2023 |
MEXICO & CENTRAL AMERICA DIVISION
RESULTS OF OPERATIONS
Millionsof Pesos ^(1)^
| For<br> the Third Quarter of: | For<br> the First Nine Months of: | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | %<br> <br><br>of Rev. | 2022 | %<br><br><br> of Rev. | Δ%<br><br><br> Reported | Δ% Comparable ^(6)^ | 2023 | %<br><br><br> of Rev. | 2022 | %<br><br><br> of Rev. | Δ%<br><br><br> Reported | Δ% Comparable ^(6)^ | |||||||||||||||||||||||||
| Transactions<br> (million transactions) | 3,232.8 | 2,937.1 | 10.1 | % | 10.1 | % | 9,363.2 | 8,712.0 | 7.5 | % | 7.5 | % | ||||||||||||||||||||||||
| Volume<br> (million unit cases) | 633.2 | 555.8 | 13.9 | % | 13.9 | % | 1,813.9 | 1,640.5 | 10.6 | % | 10.6 | % | ||||||||||||||||||||||||
| Average<br> price per unit case | 61.28 | 60.80 | 0.8 | % | 61.36 | 59.24 | 3.6 | % | ||||||||||||||||||||||||||||
| Net<br> revenues | 39,024 | 33,791 | 111,717 | 97,184 | ||||||||||||||||||||||||||||||||
| Other<br> operating revenues | 11 | 8 | 23 | 25 | ||||||||||||||||||||||||||||||||
| Total Revenues ^(2)^ | 39,035 | 100.0 | % | 33,799 | 100.0 | % | 15.5 | % | 18.2 | % | 111,740 | 100.0 | % | 97,209 | 100.0 | % | 14.9 | % | 17.0 | % | ||||||||||||||||
| Cost<br> of goods sold | 20,346 | 52.1 | % | 17,945 | 53.1 | % | 58,497 | 52.4 | % | 50,853 | 52.3 | % | ||||||||||||||||||||||||
| Gross<br> profit | 18,689 | 47.9 | % | 15,855 | 46.9 | % | 17.9 | % | 20.5 | % | 53,243 | 47.6 | % | 46,356 | 47.7 | % | 14.9 | % | 16.8 | % | ||||||||||||||||
| Operating<br> expenses | 12,370 | 31.7 | % | 10,710 | 31.7 | % | 35,680 | 0.3 | 30,378 | 0.3 | ||||||||||||||||||||||||||
| Other<br> operative expenses, net | 344 | 0.9 | % | 121 | 0.4 | % | 132 | 0.1 | % | 355 | 0.4 | % | ||||||||||||||||||||||||
| Operative<br> equity method (gain) loss in associates ^(3)^ | (57 | ) | -0.1 | % | (36 | ) | -0.1 | % | (121 | ) | -0.1 | % | (112 | ) | -0.1 | % | ||||||||||||||||||||
| Operating income ^(4)^ | 6,032 | 15.5 | % | 5,059 | 15.0 | % | 19.2 | % | 22.5 | % | 17,552 | 15.7 | % | 15,736 | 16.2 | % | 11.5 | % | 11.5 | % | ||||||||||||||||
| Depreciation,<br> amortization & other operating non-cash charges | 2,151 | 5.5 | % | 2,111 | 6.2 | % | 5,566 | 5.0 | % | 5,690 | 5.9 | % | ||||||||||||||||||||||||
| Adj. EBITDA ^(4)(5)^ | 8,182 | 21.0 | % | 7,171 | 21.2 | % | 14.1 | % | 17.0 | % | 23,118 | 20.7 | % | 21,426 | 22.0 | % | 7.9 | % | 7.9 | % |
*^(1)^*Except volume and average price per unit case figures.
*^(2)^*Please refer to page 15 for revenue breakdown.
*^(3)^*Includes equity method in Jugos del Valle, among others.
*^(4)^*The operating income and Adjusted EBITDA lines are presented as non-GAAP measures forthe convenience of the reader.
*^(5)^*Adjusted EBITDA = operating income + depreciation, amortization & other operatingnon-cash charges.
*^(6)^*Please refer to page 10 for our definition of “comparable” and a descriptionof the factors affecting the comparability of our financial and operating performance.
SOUTH AMERICA DIVISION
RESULTS OF OPERATIONS
Millions of Pesos ^(1)^
| For<br> the Third Quarter of: | For<br> the First Nine Months of: | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | %<br><br><br> of Rev. | 2022 | %<br><br><br> of Rev. | Δ%<br><br><br> Reported | Δ% Comparable ^(6)^ | 2023 | %<br><br><br> of Rev. | 2022 | %<br> <br><br>of Rev. | Δ%<br><br><br> Reported | Δ% Comparable ^(6)^ | |||||||||||||||||||||||||
| Transactions<br> (million transactions) | 2,815.8 | 2,570.2 | 9.6 | % | 9.6 | % | 8,185.5 | 7,615.4 | 7.5 | % | 7.2 | % | ||||||||||||||||||||||||
| Volume<br> (million unit cases) | 399.9 | 370.0 | 8.1 | % | 8.1 | % | 1,177.7 | 1,119.4 | 5.2 | % | 4.9 | % | ||||||||||||||||||||||||
| Average<br> price per unit case | 55.05 | 59.18 | -7.0 | % | 54.65 | 57.78 | -5.4 | % | ||||||||||||||||||||||||||||
| Net<br> revenues | 23,588 | 23,225 | 69,063 | 68,539 | ||||||||||||||||||||||||||||||||
| Other<br> operating revenues | 230 | 69 | 573 | 293 | ||||||||||||||||||||||||||||||||
| Total Revenues ^(2)^ | 23,818 | 100.0 | % | 23,294 | 100.0 | % | 2.2 | % | 21.0 | % | 69,636 | 100.0 | % | 68,833 | 100.0 | % | 1.2 | % | 23.0 | % | ||||||||||||||||
| Cost<br> of goods sold | 13,659 | 57.3 | % | 13,757 | 59.1 | % | 41,428 | 59.5 | % | 41,720 | 60.6 | % | ||||||||||||||||||||||||
| Gross<br> profit | 10,159 | 42.7 | % | 9,537 | 40.9 | % | 6.5 | % | 27.4 | % | 28,208 | 40.5 | % | 27,113 | 39.4 | % | 4.0 | % | 28.2 | % | ||||||||||||||||
| Operating<br> expenses | 7,600 | 31.9 | % | 7,223 | 31.0 | % | 20,820 | 29.9 | % | 20,912 | 30.4 | % | ||||||||||||||||||||||||
| Other<br> operative expenses, net | 156 | 0.7 | % | 46 | 0.2 | % | 289 | 0.4 | % | 96 | 0.1 | % | ||||||||||||||||||||||||
| Operative<br> equity method (gain) loss in associates ^(3)^ | (25 | ) | -0.1 | % | (7 | ) | 0.0 | % | (66 | ) | -0.1 | % | (40 | ) | -0.1 | % | ||||||||||||||||||||
| Operating income ^(4)^ | 2,428 | 10.2 | % | 2,275 | 9.8 | % | 6.7 | % | 28.1 | % | 7,165 | 10.3 | % | 6,145 | 8.9 | % | 16.6 | % | 44.7 | % | ||||||||||||||||
| Depreciation,<br> amortization & other operating non-cash charges | 1,220 | 5.1 | % | 1,180 | 5.1 | % | 3,454 | 5.0 | % | 3,580 | 5.2 | % | ||||||||||||||||||||||||
| Adj. EBITDA ^(4)(5)^ | 3,647 | 15.3 | % | 3,455 | 14.8 | % | 5.6 | % | 29.1 | % | 10,619 | 15.2 | % | 9,724 | 14.1 | % | 9.2 | % | 38.0 | % |
*^(1)^*Except volume and average price per unit case figures.
*^(2)^*Please refer to page 15 for revenue breakdown.
*^(3)^*Includes equity method in LeãoAlimentos, among others.
*^(4)^*The operating income and Adjusted EBITDA lines are presented as non-GAAP measures forthe convenience of the reader.
*^(5)^*Adjusted EBITDA = operating income + depreciation, amortization & other operatingnon-cash charges.
*^(6)^*Please refer to page 10 for our definition of “comparable” and a descriptionof the factors affecting the comparability of our financial and operating performance.
| **Coca-Cola FEMSA Reports 3Q23 Results** | **Page 13** **of 17** |
| --- | --- | | October 25, 2023 | |
COCA-COLA FEMSA
CONSOLIDATED BALANCE SHEET
Millions of Pesos
| Assets | Sep-23 | Dec-22 | % Var. | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Current Assets | |||||||||
| Cash, cash equivalents and marketable securities | 38,544 | 40,277 | -4 | % | |||||
| Total accounts receivable | 14,292 | 16,318 | -12 | % | |||||
| Inventories | 11,591 | 11,888 | -2 | % | |||||
| Other current assets | 8,329 | 10,729 | -22 | % | |||||
| Total current assets | 72,756 | 79,211 | -8 | % | |||||
| Non-Current Assets | |||||||||
| Property, plant and equipment | 130,010 | 125,293 | 4 | % | |||||
| Accumulated depreciation | (56,024 | ) | (54,088 | ) | 4 | % | |||
| Total property, plant and equipment, net | 73,986 | 71,205 | 4 | % | |||||
| Right of use assets | 2,119 | 2,069 | 2 | % | |||||
| Investment in shares | 8,664 | 8,452 | 3 | % | |||||
| Intangible assets and other assets | 101,241 | 103,122 | -2 | % | |||||
| Other non-current assets | 15,851 | 13,936 | 14 | % | |||||
| Total Assets | 274,616 | 277,995 | -1 | % | |||||
| Liabilities & Equity | Sep-23 | Dec-22 | % Var. | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | ||
| Current Liabilities | |||||||||
| Short-term bank loans and notes payable | 38 | 8,524 | -100 | % | |||||
| Suppliers | 24,452 | 26,834 | -9 | % | |||||
| Short-term leasing Liabilities | 609 | 472 | 29 | % | |||||
| Other current liabilities | 33,847 | 22,129 | 53 | % | |||||
| Total current liabilities | 58,947 | 57,959 | 2 | % | |||||
| Non-Current Liabilities | |||||||||
| Long-term bank loans and notes payable | 66,123 | 70,146 | -6 | % | |||||
| Long Term Leasing Liabilities | 1,615 | 1,663 | -3 | % | |||||
| Other long-term liabilities | 17,107 | 16,351 | 5 | % | |||||
| Total liabilities | 143,791 | 146,119 | -2 | % | |||||
| Equity | |||||||||
| Non-controlling interest | 6,597 | 6,491 | 2 | % | |||||
| Total controlling interest | 124,228 | 125,384 | -1 | % | |||||
| Total equity | 130,825 | 131,876 | -1 | % | |||||
| Total Liabilities and Equity | 274,616 | 277,995 | -1 | % | |||||
| September 30, 2023 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Debt Mix | % Total<br><br>Debt ^(1)^ | % Interest Rate<br><br> Floating ^(1) (2)^ | Average Rate | ||||||
| Currency | |||||||||
| Mexican Pesos | 62.4 | % | 7.2 | % | 8.7 | % | |||
| U.S. Dollars | 16.7 | % | 37.4 | % | 4.8 | % | |||
| Colombian Pesos | 1.3 | % | 0.0 | % | 6.3 | % | |||
| Brazilian Reals | 19.5 | % | 74.6 | % | 10.3 | % | |||
| Total Debt | 100 | % | 25.4 | % | 8.3 | % |
^(1)^ After giving effect to cross-currency swaps.
^(2)^ Calculated by weighting eachyear´s outstanding debt balance mix
Debt Maturity Profile
| Financial Ratios | 3Q 2023 | FY 2022 | Δ% | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net debt including effect of hedges ^(1)(3)^ | 29,580 | 38,104 | -22.4 | % | |||||
| Net debt including effect of hedges / Adj.EBITDA ^(1)(3)^ | 0.65 | 0.89 | |||||||
| Adj. EBITDA/ Interest expense, net ^(1)^ | 12.03 | 10.34 | |||||||
| Capitalization ^(2)^ | 33.6 | % | 38.9 | % |
(1) Net debt = total debt - cash
(2) Total debt / (total debt + shareholders' equity)
(3) After giving effect to cross-currency swaps.
| **Coca-Cola FEMSA Reports 3Q23 Results** | **Page 14** **of 17** |
| --- | --- | | October 25, 2023 | |
COCA-COLA FEMSA
QUARTERLY- VOLUME, TRANSACTIONS & REVENUES
Volume
| 3Q<br> 2023 | 3Q<br> 2022 | YoY | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sparkling | Water ^(1)^ | Bulk ^(2)^ | Stills | Total | Sparkling | Water ^(1)^ | Bulk ^(2)^ | Stills | Total | Δ<br> % | |||||||||||||
| Mexico<br> ^(3)^ | 377.2 | 31.8 | 98.7 | 37.5 | 545.3 | 344.8 | 26.8 | 76.4 | 34.0 | 481.9 | 13.1 | % | |||||||||||
| Guatemala | 41.3 | 2.1 | - | 2.3 | 45.7 | 34.1 | 0.6 | - | 2.3 | 36.9 | 23.9 | % | |||||||||||
| CAM South | 34.3 | 1.3 | 0.8 | 5.7 | 42.2 | 29.7 | 1.7 | 0.2 | 5.3 | 36.9 | 14.3 | % | |||||||||||
| Mexico and<br>Central America | 452.8 | 35.3 | 99.6 | 45.5 | 633.2 | 408.6 | 29.1 | 76.6 | 41.5 | 555.8 | 13.9 | % | |||||||||||
| Colombia | 68.6 | 11.0 | 3.7 | 7.7 | 91.0 | 61.8 | 8.8 | 3.2 | 7.1 | 80.8 | 12.6 | % | |||||||||||
| Brazil<br> ^(4)^ | 214.1 | 18.2 | 2.4 | 21.2 | 255.9 | 204.1 | 14.6 | 2.0 | 18.2 | 238.9 | 7.1 | % | |||||||||||
| Argentina | 31.5 | 4.7 | 1.4 | 3.4 | 41.0 | 32.3 | 3.6 | 0.8 | 3.2 | 39.9 | 2.6 | % | |||||||||||
| Uruguay | 9.4 | 2.1 | - | 0.5 | 12.0 | 8.8 | 1.2 | - | 0.4 | 10.3 | 15.7 | % | |||||||||||
| South America | 323.6 | 35.9 | 7.5 | 32.8 | 399.9 | 307.0 | 28.2 | 6.0 | 28.8 | 370.0 | 8.1 | % | |||||||||||
| TOTAL | 776.5 | 71.2 | 107.1 | 78.4 | 1,033.1 | 715.6 | 57.3 | 82.5 | 70.4 | 925.8 | 11.6 | % |
^(1)^ Excludeswater presentations larger than 5.0 Lt ; includes flavored water.
^(2)^ BulkWater = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water
^(3)^ Includes16.6 million unit cases corresponding to the acquisition of Cristal from Embotelladoras Bepensa
Transactions
| 3Q 2023 | 3Q 2022 | YoY | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sparkling | Water | Stills | Total | Sparkling | Water | Stills | Total | Δ<br> % | |||||||||||
| Mexico<br> ^(3)^ | 2,067.6 | 225.8 | 260.4 | 2,553.7 | 1,920.9 | 188.6 | 239.7 | 2,349.2 | 8.7 | % | |||||||||
| Guatemala | 313.4 | 14.8 | 24.0 | 352.2 | 266.2 | 4.7 | 34.8 | 305.8 | 15.2 | % | |||||||||
| CAM South | 254.1 | 13.1 | 59.7 | 326.9 | 222.4 | 11.8 | 47.9 | 282.1 | 15.9 | % | |||||||||
| Mexico and<br>Central America | 2,635.1 | 253.7 | 344.0 | 3,232.8 | 2,409.5 | 205.1 | 322.5 | 2,937.1 | 10.1 | % | |||||||||
| Colombia | 508.2 | 115.4 | 77.1 | 700.7 | 458.5 | 93.8 | 75.8 | 628.1 | 11.6 | % | |||||||||
| Brazil<br> ^(4)^ | 1,433.2 | 158.4 | 239.5 | 1,831.1 | 1,334.8 | 130.4 | 203.2 | 1,668.4 | 9.7 | % | |||||||||
| Argentina | 165.6 | 30.8 | 31.9 | 228.2 | 171.5 | 24.3 | 27.8 | 223.6 | 2.1 | % | |||||||||
| Uruguay | 44.0 | 7.6 | 4.2 | 55.8 | 42.2 | 4.6 | 3.3 | 50.1 | 11.5 | % | |||||||||
| South America | 2,151.0 | 312.2 | 352.6 | 2,815.8 | 2,007.1 | 253.1 | 310.0 | 2,570.2 | 9.6 | % | |||||||||
| TOTAL | 4,786.0 | 565.9 | 696.7 | 6,048.6 | 4,416.6 | 458.2 | 632.5 | 5,507.3 | 9.8 | % | |||||||||
| Revenues | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| Expressed in million Mexican Pesos | 3Q 2023 | 3Q 2022 | Δ % | ||||||||||||||||
| Mexico | 32,378 | 27,797 | 16.5 | % | |||||||||||||||
| Guatemala | 3,331 | 3,083 | 8.0 | % | |||||||||||||||
| CAM South | 3,327 | 2,920 | 13.9 | % | |||||||||||||||
| Mexico and Central America | 39,035 | 33,799 | 15.5 | % | |||||||||||||||
| Colombia | 4,801 | 4,372 | 9.8 | % | |||||||||||||||
| Brazil ^(5)^ | 15,760 | 15,281 | 3.1 | % | |||||||||||||||
| Argentina | 2,245 | 2,691 | -16.6 | % | |||||||||||||||
| Uruguay | 1,012 | 950 | 6.6 | % | |||||||||||||||
| South America | 23,818 | 23,294 | 2.2 | % | |||||||||||||||
| TOTAL | 62,853 | 57,093 | 10.1 | % |
^(4)^ Volumeand transactions in Brazil do not include beer
^(5)^ Brazilincludes beer revenues of Ps. 1,421.6 million for the third quarter of 2023 and Ps.1,325.2 million for the same period of the previousyear.
| ^(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 3Q23 Results** | **Page 15** **of 17** |
| --- | --- | | October 25, 2023 | |
COCA-COLA FEMSA
YTD- VOLUME, TRANSACTIONS & REVENUES
Volume
| YTD<br> 2023 | YTD<br> 2022 | YoY | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sparkling | Water ^(1)^ | Bulk ^(2)^ | Stills | Total | Sparkling | Water ^(1)^ | Bulk ^(2)^ | Stills | Total | Δ<br> % | |||||||||||||
| Mexico<br> ^(3)^ | 1,062.7 | 95.3 | 290.7 | 110.8 | 1,559.5 | 1,013.5 | 79.4 | 225.8 | 101.5 | 1,420.2 | 9.8 | % | |||||||||||
| Guatemala | 117.1 | 5.7 | - | 6.9 | 129.8 | 97.7 | 3.7 | - | 6.6 | 108.0 | 20.1 | % | |||||||||||
| CAM<br>South | 100.8 | 4.8 | 1.9 | 17.1 | 124.6 | 91.5 | 4.7 | 0.6 | 15.4 | 112.3 | 10.9 | % | |||||||||||
| Mexico<br>and Central America | 1,280.6 | 105.8 | 292.6 | 134.9 | 1,813.9 | 1,202.7 | 87.8 | 226.4 | 123.6 | 1,640.5 | 10.6 | % | |||||||||||
| Colombia | 193.9 | 29.1 | 10.5 | 22.3 | 255.7 | 188.5 | 24.9 | 9.1 | 22.1 | 244.7 | 4.5 | % | |||||||||||
| Brazil<br> ^(4)^ | 636.0 | 52.8 | 7.0 | 61.4 | 757.2 | 604.6 | 46.2 | 7.9 | 61.8 | 720.5 | 5.1 | % | |||||||||||
| Argentina | 97.3 | 14.5 | 3.9 | 11.9 | 127.6 | 98.3 | 11.1 | 2.7 | 10.3 | 122.3 | 4.3 | % | |||||||||||
| Uruguay | 28.6 | 7.1 | - | 1.6 | 37.3 | 26.9 | 4.0 | - | 1.0 | 31.9 | 16.8 | % | |||||||||||
| South<br>America | 955.7 | 103.4 | 21.4 | 97.1 | 1,177.7 | 918.3 | 86.1 | 19.7 | 95.2 | 1,119.4 | 5.2 | % | |||||||||||
| TOTAL | 2,236.3 | 209.2 | 314.1 | 232.0 | 2,991.6 | 2,121.1 | 174.0 | 246.1 | 218.8 | 2,759.9 | 8.4 | % |
(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
(3) Includes 49.2 million unit cases corresponding to the acquisition of Cristal from Embotelladoras Bepensa
Transactions
| YTD 2023 | YTD 2022 | YoY | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sparkling | Water | Stills | Total | Sparkling | Water | Stills | Total | Δ% | |||||||||||
| Mexico ^(3)^ | 5,935.0 | 675.7 | 783.1 | 7,393.8 | 5,681.0 | 559.7 | 727.8 | 6,968.5 | 6.1 | % | |||||||||
| Guatemala | 886.3 | 43.7 | 70.3 | 1,000.3 | 765.8 | 27.4 | 64.9 | 858.1 | 16.6 | % | |||||||||
| CAM South | 745.3 | 40.6 | 183.2 | 969.1 | 673.3 | 36.8 | 175.2 | 885.3 | 9.5 | % | |||||||||
| Mexico and Central America | 7,566.6 | 760.0 | 1,036.5 | 9,363.2 | 7,120.1 | 624.0 | 968.0 | 8,712.0 | 7.5 | % | |||||||||
| Colombia | 1,429.1 | 305.2 | 234.1 | 1,968.4 | 1,353.0 | 267.3 | 237.5 | 1,857.8 | 6.0 | % | |||||||||
| Brazil ^(4)^ | 4,182.7 | 463.8 | 689.0 | 5,335.5 | 3,899.2 | 404.0 | 629.8 | 4,933.0 | 8.2 | % | |||||||||
| Argentina | 507.3 | 94.2 | 104.9 | 706.3 | 511.7 | 71.8 | 85.0 | 668.6 | 5.6 | % | |||||||||
| Uruguay | 135.7 | 26.0 | 13.8 | 175.4 | 131.3 | 15.3 | 9.4 | 156.0 | 12.4 | % | |||||||||
| South America | 6,254.6 | 889.2 | 1,041.8 | 8,185.6 | 5,895.2 | 758.5 | 961.7 | 7,615.4 | 7.5 | % | |||||||||
| TOTAL | 13,821.3 | 1,649.2 | 2,078.3 | 17,548.8 | 13,015.3 | 1,382.4 | 1,929.7 | 16,327.4 | 7.5 | % |
Revenues
| Expressed in million Mexican Pesos | YTD 2023 | YTD 2022 | Δ % | ||||
|---|---|---|---|---|---|---|---|
| Mexico | 91,906 | 79,524 | 15.6 | % | |||
| Guatemala | 9,664 | 8,929 | 8.2 | % | |||
| CAM South | 10,171 | 8,756 | 16.2 | % | |||
| Mexico and Central America | 111,740 | 97,209 | 14.9 | % | |||
| Colombia | 12,585 | 13,233 | -4.9 | % | |||
| Brazil ^(5)^ | 46,838 | 44,651 | 4.9 | % | |||
| Argentina | 7,102 | 8,154 | -12.9 | % | |||
| Uruguay | 3,110 | 2,795 | 11.3 | % | |||
| South America | 69,636 | 68,833 | 1.2 | % | |||
| TOTAL | 181,376 | 166,042 | 9.2 | % |
*^(4)^*Volume and transactions in Brazil do not include beer
*^(5)^*Brazil includes beer revenues of Ps. 4,382.5 million for the first six months of 2023 and Ps. 3,857.5 million for the same period of the previous year.
| ^(1)^ | Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product. |
|---|---|
| ^(2)^ | Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving. |
| **Coca-Cola FEMSA Reports 3Q23 Results** | **Page 16** **of 17** |
| --- | --- | | October 25, 2023 | |
COCA-COLA FEMSA
MACROECONOMIC INFORMATION
Inflation ^(1)^
| LTM | 3Q23 | YTD | ||||
|---|---|---|---|---|---|---|
| Mexico | 4.44 | % | 1.57 | % | 2.86 | % |
| Colombia | 11.49 | % | 1.46 | % | 7.81 | % |
| Brasil | 4.43 | % | 0.26 | % | 3.65 | % |
| Argentina | 128.90 | % | 28.97 | % | 93.58 | % |
| Costa Rica | -3.22 | % | -0.89 | % | -2.02 | % |
| Panama | 2.17 | % | 0.10 | % | 1.92 | % |
| Guatemala | 4.19 | % | 0.95 | % | 3.07 | % |
| Nicaragua | 7.58 | % | 1.31 | % | 4.56 | % |
| Uruguay | 4.07 | % | -0.64 | % | 3.95 | % |
^(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 ) | Year to Date Exchange Rate (Local Currency per ) | |||||
|---|---|---|---|---|---|---|
| 3Q23 | Δ% | YTD 23 | Δ% | |||
| México | 17.06 | -15.7 | % | 17.83 | -12.0 | % |
| Colombia | 4,047.64 | -7.7 | % | 4,410.88 | 8.3 | % |
| Brasil | 4.88 | -7.0 | % | 5.01 | -2.4 | % |
| Argentina | 312.85 | 130.4 | % | 245.82 | 104.7 | % |
| Costa Rica | 543.28 | -18.3 | % | 551.67 | -16.8 | % |
| Panama | 1.00 | 0.0 | % | 1.00 | 0.0 | % |
| Guatemala | 7.86 | 1.3 | % | 7.83 | 1.5 | % |
| Nicaragua | 36.49 | 1.5 | % | 36.40 | 1.7 | % |
| Uruguay | 37.96 | -7.0 | % | 38.58 | -7.2 | % |
All values are in US Dollars.
End-of-period Exchange Rates
| Closing Exchange Rate (Local Currency per ) | Closing Exchange Rate (Local Currency per ) | |||||
|---|---|---|---|---|---|---|
| Sep-23 | Δ% | Jun-23 | Δ% | |||
| México | 17.62 | -13.2 | % | 17.07 | -14.6 | % |
| Colombia | 4,053.76 | -10.6 | % | 4,191.28 | 1.5 | % |
| Brasil | 5.01 | -7.4 | % | 4.82 | -8.0 | % |
| Argentina | 349.95 | 137.5 | % | 256.70 | 105.0 | % |
| Costa Rica | 542.35 | -14.3 | % | 549.48 | -20.6 | % |
| Panama | 1.00 | 0.0 | % | 1.00 | 0.0 | % |
| Guatemala | 7.86 | -0.3 | % | 7.85 | 1.2 | % |
| Nicaragua | 36.53 | 1.3 | % | 36.44 | 1.6 | % |
| Uruguay | 38.56 | -7.6 | % | 37.41 | -6.2 | % |
All values are in US Dollars.
^(2)^ Average exchange rate for each period computed with the average exchange rate of each month.
| **Coca-Cola FEMSA Reports 3Q23 Results** | **Page 17** **of 17** |
| --- | --- | | October 25, 2023 | |