6-K
Coca Cola Femsa Sab De CV (KOF)
UNITEDSTATES
SECURITIESAND EXCHANGE COMMISSION
Washington,D.C. 20549
FORM6-K
REPORTOF FOREIGN PRIVATE ISSUER
PURSUANTTO RULE 13a-16 OR 15d-16 UNDER
THESECURITIES EXCHANGE ACT OF 1934
For the month of July 2021
Commission File Number 1-12260
COCA-COLA FEMSA, S.A.B.de C.V.
(Translation of registrant’s name into English)
United Mexican States
(Jurisdiction of incorporation or organization)
Calle Mario Pani No. 100,Santa Fe Cuajimalpa,Cuajimalpa de Morelos,05348, Ciudad de México,
México
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)
Yes No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)
Yes No X
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82-__.
**** 
Coca-Cola FEMSA Announces Resultsfor the Second Quarter and First Six Months of 2021
Mexico City, July 26, 2021, Coca-Cola FEMSA, S.A.B.de C.V. (BMV: KOF UBL, NYSE: KOF) (“Coca-Cola FEMSA”, “KOF” or the “Company”), the largest Coca-Cola franchise bottler in the world by sales volume, announces results for the second quarter and the first six months of 2021.
SECOND QUARTER OPERATIONAL ANDFINANCIAL HIGHLIGHTS
| · | Consolidated volumes increased 9.1% as compared to the second quarter of<br>2020 and 1.3% as compared to the same period of 2019. This increase was driven by volume growth across all of our territories as a result<br>of solid execution, coupled with economic reopening and increased mobility across our markets. | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| · | Total revenues increased 10.9%, comparable revenues increased 19.2%. This<br>increase was driven mainly by volume growth, coupled with pricing initiatives and favorable price-mix effects. These effects were<br>partially offset by unfavorable currency translation. Total revenues remained flat as compared to the same period of 2019. | ||||||||
| --- | --- | ||||||||
| · | Operating income increased 41.3%, while comparable operating income increased<br>44.1%. This increase was driven mainly by cost and expense efficiencies, coupled with favorable price-mix effects and raw material hedging<br>initiatives. Additionally, we recognized a positive extraordinary effect of Ps. 1,083 million, driven by the resumption of the recognition<br>of tax credits in Brazil related to the Manaus Free Trade Zone. These effects were partially offset by the normalization of certain operating<br>expenses and unfavorable currency hedging positions. Operating income increased 14.4% as compared to the same period of 2019. | ||||||||
| --- | --- | ||||||||
| · | Majority net income increased 56.8%, driven mainly by operating income growth,<br>coupled with a decline in other non-operating expenses related to impairments of Ps. 903 million recognized during the same period of<br>the previous year. | ||||||||
| --- | --- | ||||||||
| · | Earnings per share^1^ were Ps. 0.20 (Earnings per unit were Ps.<br>1.58 and per ADS were Ps. 15.79.). | ||||||||
| --- | --- | ||||||||
| FINANCIAL SUMMARY FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 2021 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Change vs. same period of last year | |||||||||
| Total Revenues | Gross Profit | Operating Income | Majority Net Income | ||||||
| 2Q 2021 | YTD 2021 | 2Q 2021 | YTD 2021 | 2Q 2021 | YTD 2021 | 2Q 2021 | YTD 2021 | ||
| As Reported | Consolidated | 10.9% | 4.7% | 18.3% | 6.9% | 41.3% | 21.1% | 56.8% | 38.9% |
| Mexico & Central America | 10.5% | 6.3% | 12.6% | 8.9% | 9.3% | 16.8% | |||
| South America | 11.7% | 2.3% | 32.0% | 3.1% | 387.6% | 34.2% | |||
| Comparable ^(2)^ | Consolidated | 19.2% | 12.2% | 26.1% | 13.7% | 44.1% | 26.9% | ||
| Mexico & Central America | 13.7% | 7.9% | 15.6% | 10.4% | 11.1% | 17.9% | |||
| South America | 29.9% | 19.6% | 55.0% | 20.7% | 415.3% | 58.0% |
John Santa Maria, Coca-Cola FEMSA’s CEO,commented:
“We are proud that our efforts to accelerate the recovery are reflected in solid second-quarter results and a solid cash flow generation. Our consolidated revenues increased 10.9%, driven by our portfolio and execution initiatives, coupled with recovering mobility and improving price-mix trends. Notably, our Mexico and Central America division delivered double-digit top-line growth, while our South America division’s outstanding volume performance was driven mainly by a solid growth in Brazil, coupled with recovering trends in Colombia, Argentina, and Uruguay. As a result, our consolidated volumes already exceed our 2019 baseline by 1.3%. Importantly, as part of our resilient profile and disciplined approach, our favorable raw material hedging initiatives combined with cost and expense efficiencies, are enabling us to protect our profitability, while successfully navigating still volatile environments.
As we enter the second half of the year, we are confident that we are taking the right strategic actions to continue building an unparalleled commercial beverage platform that is digitally integrated in order to carry on capturing opportunities to grow profitability. Moreover, we continue ensuring that our employees, clients and consumers remain at the center of every decision and action we take. By delivering on our objectives, we are confident that we will continue to deliver sustainable value for all of our stakeholders for many years to come.”
________________________________
| ^(1)^ | Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 millionshares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares),earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units. |
|---|---|
| ^(2)^ | Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparabilityof our financial and operating performance.^^ |
| --- | --- |
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 1 of 16** |
| --- | --- |
RECENT DEVELOPMENTS
| · | After conducting a thorough analysis, Coca-Cola<br>FEMSA has decided to reverse its temporary decision to suspend tax credits on concentrate purchased from the Manaus Free Trade Zone in<br>Brazil as of the second quarter 2021. As a result, the Company is recognizing an extraordinary Ps. 1,083 million at the operating income<br>level equivalent to the accumulated credit suspended since 2019 and until the first quarter of 2021. This decision was supported by recent<br>developments and opinions from external advisors. |
|---|---|
| · | Coca-Cola FEMSA and The Coca-Cola Company<br>have enhanced their Cooperation Framework. |
| --- | --- |
As part of a shared vision for the future, and to continue strengthening its relationship and alignment, Coca-Cola FEMSA and The Coca-Cola Company have agreed to enhance the Cooperation Framework previously announced in July 2016. This enhancement includes additional drivers to grow the business, strengthening our successful and longstanding partnership.
This update contemplates the following main objectives:
| o | Growth Principles. As part<br>of this milestone, the companies agree to continuously build and align ambitious business growth plans to increase our operating income<br>via top-line growth, cost and expense efficiencies and the implementation of marketing, commercial strategies and productivity programs. |
|---|---|
| o | Relationship Economics. Aimed<br>at ensuring that the economics of our business and management incentives are fully aligned towards long-term system value creation. Potential<br>future concentrate price adjustments for sparkling beverages and flavored water in all our territories will consider investment and profitability<br>levels that are mutually beneficial for both parties. |
| --- | --- |
| o | Potential new businesses and Ventures.<br>As the System continues to evolve, leveraging Coca-Cola FEMSA’s sales and distribution network, the Company may be allowed to engage<br>in the distribution of potential new businesses such as the distribution of beer, spirits and other consumer goods. |
| --- | --- |
| o | Digital Strategy. Development<br>of a joint general framework for digital initiatives as part of both companies’ industry leading digitization efforts. |
| --- | --- |
| · | On May 4, 2021, Coca-Cola FEMSA paid the first installment of the 2020 dividend<br>in the amount of Ps. 0.63 per share for a total cash distribution of more than Ps. 5,294 million pesos for the first installment. |
| --- | --- |
| · | On June 30, 2021, Coca-Cola FEMSA published<br>its first Green Bond Report, providing an update on the allocation of the use of proceeds from its first-ever green bond, issued in September<br>2020 for US$705 million. According to best practices, the company reported the use of proceeds for its look-back period, from 2018 to<br>2020, having allocated US$235.48 million, representing 33.4% of the proceeds from the green bond. |
| --- | --- |
CONFERENCE CALL INFORMATION
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 2 of 16** |
| --- | --- |
CONSOLIDATED SECOND QUARTER RESULTS
| CONSOLIDATED SECOND QUARTER RESULTS | ||||
|---|---|---|---|---|
| As Reported | Comparable ^(1)^ | |||
| Expressed in millions of Mexican pesos | 2Q 2021 | 2Q 2020 | Δ% | Δ% |
| Total revenues | 47,786 | 43,075 | 10.9% | 19.2% |
| Gross profit | 22,560 | 19,075 | 18.3% | 26.1% |
| Operating income | 7,248 | 5,130 | 41.3% | 44.1% |
| Operating cash flow ^(2)^ | 10,007 | 8,221 | 21.7% | 27.4% |
Volume increased 9.1% to 851.4 million unit cases, driven mainly by double-digit growth in South America, coupled with solid volume recoveries in Mexico and Central America. Consolidated volume increased 1.3% versus our 2019 baseline.
Total revenues increased 10.9% to Ps. 47,786 million, driven mainly by volume, our pricing initiatives and favorable price-mix effects across our markets. These effects were partially offset by unfavorable currency translation effects from all of our operating currencies. On a comparable basis, total revenues would have increased 19.2%. Total revenues declined 0.4% versus the same period of 2019.
Gross profit increased 18.3% to Ps. 22,560 million, and gross margin expanded 290 basis points to 47.2%, driven mainly by cost efficiencies, successful raw material hedging initiatives, favorable price-mix effects, and the recognition of Ps. 1,083 million related to the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone. These effects were partially offset by an unfavorable currency hedging position and higher concentrate costs in Mexico. On a comparable basis, gross profit would have increased 26.1%. Gross profit increased 2.1% versus the second quarter of 2019.
Operating incomeincreased 41.3% to Ps. 7,248 million, and operating margin expanded 330 basis points to 15.2%. This increase was driven mainly by the increase in gross profit, coupled with operating expense efficiencies. These effects were partially offset by the normalization of certain operating expenses such as marketing, labor, and maintenance related to increases in mobility across our operations. On a comparable basis, excluding currency translation effects, our operating income would have increased 44.1%. Our operating income increased 14.4% versus our 2019 baseline.
________________________________
| ^(1)^ | Please refer to page 9 for our definition of “comparable” and a description of the factorsaffecting the comparability of our financial and operating performance. |
|---|---|
| ^(2)^ | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges. |
| --- | --- |
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 3 of 16** |
| --- | --- |
Comprehensive financingresult recorded an expense of Ps. 1,323 million, compared to an expense of Ps. 1,268 million in the same period of 2020. This increase was driven mainly by a foreign exchange loss of Ps. 171 million, as our cash exposure in U.S. dollars was negatively impacted by the appreciation of the Mexican Peso, as compared to the first quarter of the year. In addition, the Company recorded a lower interest income as compared to the same period of the previous year.
These effects were partially offset by a decrease in interest expenses of Ps. 162 million, driven mainly by the payment of short-term financing incurred during the first quarter of 2020, which was a preventive measure to reinforce the Company’s cash position in the face of the uncertainties driven by the COVID-19 pandemic.
Finally, a gain of Ps. 118 million in monetary position in inflationary subsidiaries was recognized as compared to a gain of Ps. 81 million during the same period of 2020.
Income tax as a percentage of income before taxes was 37.9% as compared to 32.6% during the same period of the previous year. This increase was driven mainly by adjustments to deferred tax reserves, the effects of a higher inflation level, and adjustments in the tax provision.
Net income attributableto equity holders of the company reached Ps. 3,316 million as compared to Ps. 2,115 million during the same period of the previous year. This increase was driven mainly by operating income growth, coupled with impairments recognized in other non-operating expenses of Ps. 903 million during the same period of 2020. Earnings per share^1^ were Ps. 0.20 (Earnings per unit were Ps. 1.58 and per ADS were Ps. 15.79.).
________________________________
| ^(1)^ | Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 millionshares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares),earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units. |
|---|
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 4 of 16** |
| --- | --- |
CONSOLIDATED FIRST SIX MONTHS RESULTS
| CONSOLIDATED FIRST SIX MONTHS RESULTS | ||||
|---|---|---|---|---|
| As Reported | Comparable ^(1)^ | |||
| Expressed in millions of Mexican pesos | YTD 2021 | YTD 2020 | Δ% | Δ% |
| Total revenues | 92,500 | 88,341 | 4.7% | 12.2% |
| Gross profit | 42,491 | 39,749 | 6.9% | 13.7% |
| Operating income | 13,147 | 10,854 | 21.1% | 26.9% |
| Operating cash flow ^(2)^ | 18,816 | 17,295 | 8.8% | 14.8% |
Volume increased 4.9% to 1,652.1 million unit cases in the first six months of 2021 as compared to the same period of 2020, driven mainly by gradual recoveries and increases in mobility across our markets. Consolidated volume increased 0.9% as compared with the same period of 2019.
Total revenues increased 4.7% to Ps. 92,500 million in the first six months of 2021 as compared to the same period of 2020, driven mainly by volume growth, coupled with our pricing initiatives and favorable price-mix effects. These factors were partially offset by unfavorable currency translation effects resulting from the depreciation of all of our operating currencies into Mexican Pesos. On a comparable basis, total revenues would have increased 12.2%. Total revenues declined 2.1% versus the same period of 2019.
Gross profit increased 6.9% to Ps. 42,491 million in the first six months of 2021 as compared to the same period of 2020, and gross margin expanded 90 basis points to 45.9%. Our raw material hedging initiatives, cost efficiencies, favorable price-mix effects, and the recognition of Ps. 1,083 million related to the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone were partially offset by an unfavorable currency hedging position, the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs, and higher concentrate costs in Mexico. On a comparable basis, gross profit would have increased 13.7%. Gross profit declined 1.4% versus 2019.
Operating incomeincreased 21.1% to Ps. 13,147 million in the first six months of 2021 as compared to the same period of 2020, and operating margin expanded 190 basis points to 14.2%. This increase was driven mainly by operating expense efficiencies and an increase in gross profit. These effects were partially offset by the normalization of certain operating expenses such as marketing, labor, and maintenance related to increases in mobility across our operations and unfavorable currency translation effects. On a comparable basis, operating income would have increased 26.9%. Our operating income increased 8.9% versus our 2019 baseline.
________________________________
| ^(1)^ | Please refer to page 9 for our definition of “comparable” and a description of the factorsaffecting the comparability of our financial and operating performance. |
|---|---|
| ^(2)^ | Operating cash flow = operating income + depreciation + amortization & other operating non-cashcharges. |
| --- | --- |
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 5 of 16** |
| --- | --- |
Comprehensive financingresult recorded an expense of Ps. 2,454 million during the first six months of 2021 compared to an expense of Ps. 3,467 million in the same period of 2020.
Interest expense, net, recorded a decrease during the first six months of 2021, driven mainly by a one-time interest expense related to our successful debt refinancing initiatives during the first quarter of 2020, coupled with the payment of short-term financings during the first six months of 2021. These short-term financings were a preventive measure to reinforce the Company’s cash position in the face of the uncertainties driven by the COVID-19 pandemic.
In addition, we recognized a larger gain in monetary position in inflationary subsidiaries as compared to the same period of 2020.
These effects were partially offset by a foreign exchange loss of Ps. 156 million, as compared to a gain of Ps. 493 million registered during the same period of 2020, as our cash exposure to U.S. dollars was negatively impacted by the appreciation of the Mexican Peso.
Income tax as a percentage of income before taxes was 36.5% as compared to 31.5% during the first six months of the previous year. This increase was driven mainly by tax impacts related to higher inflation in 2021, adjustments of deferred tax assets and effects of certain changes on tax legislation where we operate.
Net income attributableto equity holders of the company increased 38.9% to reach Ps. 6,472 million in the first six months of 2020 as compared to Ps. 4,658 million during the same period of the previous year. This increase was driven mainly by an increase in operating income, coupled with lower financial costs related to a one-time increase in our interest expense in 2020 and lower non-operative expenses due to impairments of Ps. 903 million recognized during the first six months of 2020. Earnings per share^1^ were Ps. 0.39 (Earnings per unit were Ps. 3.08 and earnings per ADS were Ps. 30.81.).
________________________________
| ^(1)^ | Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 millionshares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares),earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units. |
|---|
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 6 of 16** |
| --- | --- |
^^
MEXICO & CENTRAL AMERICA DIVISIONSECOND QUARTER RESULTS
| (Mexico, Guatemala, Costa Rica, Panama, and Nicaragua) |
|---|
| MEXICO & CENTRAL AMERICA DIVISION RESULTS | ||||
|---|---|---|---|---|
| As Reported | Comparable ^(1)^ | |||
| Expressed in millions of Mexican pesos | 2Q 2021 | 2Q 2020 | Δ% | Δ% |
| Total revenues | 30,262 | 27,380 | 10.5% | 13.7% |
| Gross profit | 15,175 | 13,480 | 12.6% | 15.6% |
| Operating income | 5,132 | 4,696 | 9.3% | 11.1% |
| Operating cash flow ^(2)^ | 6,821 | 6,482 | 5.2% | 7.7% |
Volume increased 4.6% to 545.8 million unit cases, driven mainly by double-digit growth in Guatemala, Panama, and Nicaragua, coupled with volume recoveries in Mexico and Costa Rica. Volume declined 1.6% versus our 2019 baseline.
Total revenues increased 10.5% to Ps. 30,262 million, driven by volume increases, our pricing initiatives, and favorable price-mix effects. These effects were partially offset by an unfavorable currency translation effect from all our operating currencies in Central America as translated into Mexican Pesos. On a comparable basis, total revenues would have increased 13.7%. Total revenues grew 4.3% versus the same period of 2019.
Gross profit increased 12.6% to Ps. 15,175 million, and gross margin increased 90 basis points, driven mainly by cost efficiencies coupled with favorable raw material hedging strategies and favorable price-mix effects. These factors were partially offset by higher concentrate costs in Mexico and an unfavorable currency hedging position. On a comparable basis, gross profit would have increased 15.6%. Gross profit increased 7.1% versus our 2019 baseline.
Operating income increased 9.3% to Ps. 5,132 million, and operating margin contracted 20 basis points to 17.0%, driven mainly by gross profit growth. These effects were partially offset by the normalization of certain operating expenses such as marketing, labor, and maintenance as compared to the same period in 2020. On a comparable basis, operating income would have increased 11.1%. Our operating income increased 13.4% versus our 2019 baseline.
________________________________
| ^(1)^ | Please refer to page 9 for our definition of “comparable” and a description of the factorsaffecting the comparability of our financial and operating performance. |
|---|---|
| ^(2)^ | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges. |
| --- | --- |
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 7 of 16** |
| --- | --- |
SOUTH AMERICA DIVISION SECONDQUARTER RESULTS
| (Brazil, Argentina, Colombia, and Uruguay) |
|---|
| SOUTH AMERICA DIVISION RESULTS | ||||
|---|---|---|---|---|
| As Reported | Comparable ^(1)^ | |||
| Expressed in millions of Mexican pesos | 2Q 2021 | 2Q 2020 | Δ% | Δ% |
| Total revenues | 17,524 | 15,695 | 11.7% | 29.9% |
| Gross profit | 7,385 | 5,595 | 32.0% | 55.0% |
| Operating income | 2,116 | 434 | 387.6% | 415.3% |
| Operating cash flow ^(2)^ | 3,186 | 1,739 | 83.2% | 109.1% |
^^
^^
Volume increased 17.9% to 305.6 million unit cases, driven mainly by double-digit growth in all of our markets, led mainly by Brazil and Colombia that grew volumes as compared to 2019. The division’s volume increased 6.8% versus our 2019 baseline.
Total revenues increased 11.7% to Ps. 17,524 million, driven mainly by volume growth across our territories and favorable price-mix effects, partially offset by an unfavorable currency translation effect resulting from the depreciation of all of our operating currencies in the division as compared to the Mexican Peso. On a comparable basis**,** excluding currency translation effects, total revenues would have increased 29.9%. Total revenues declined 7.6% versus the same period of 2019, driven mainly by unfavorable currency translation effects.
Gross profit increased 32.0% to Ps. 7,385 million, and gross margin expanded 650 basis points to 42.1%. This increase is a result of improving operating leverage and price-mix effects, cost efficiencies, and our favorable raw material hedging position, coupled with the recognition of Ps. 1,083 million related to the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone. These effects were partially offset by an unfavorable currency hedging position, the depreciation in the average exchange rate of the Argentine Peso as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 55.0%. Gross profit decreased 7.0% versus our 2019 baseline.
Operating income increased 387.6% to Ps. 2,116 million, and operating margin expanded 930 basis points, driven mainly by gross profit growth, coupled with operating expense efficiencies. These effects were partially offset by the gradual normalization of marketing, labor, and maintenance expenses and an operating foreign exchange loss. On a comparable basis, operating income would have increased 415.3%. Operating income increased 16.8% versus our 2019 baseline.
________________________________
| ^(1)^ | Please refer to page 9 for our definition of “comparable” and a description of the factorsaffecting the comparability of our financial and operating performance. |
|---|---|
| ^(2)^ | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges. |
| --- | --- |
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 8 of 16** |
| --- | --- |
DEFINITIONS
Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.
Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.
Operating income is a non-GAAP financial measure computed as “gross profit – operating expenses – other operating expenses, net + operative equity method (gain) loss in associates.”
Operating cash flow is a non-GAAP financial measure computed as “operating income + depreciation + amortization & other operating non-cash charges.”
Earnings per share are equal to “quarterly earnings / outstanding shares.” Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806,658,096 shares outstanding. For the convenience of the reader, as each KOF UBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOF UBL Units.
COMPARABILITY
In an effort to provide our readers with a more useful representation of our company's underlying financial and operating performance, as of the first quarter 2020, we adjusted our methodology to calculate our comparable figures, no longer excluding hyperinflationary operations. Due to this change, our “comparable” term means, with respect to a year-over-year comparison, the change of a given measure excluding the effects of: (i) mergers, acquisitions, and divestitures; and (ii) translation effects resulting from exchange rate movements. In preparing this measure, management has used its best judgment, estimates, and assumptions in order to maintain comparability.
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 9 of 16** |
| --- | --- |
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 129 brands to a population of more than 265 million. With over 80 thousand employees, the Company markets and sells approximately 3.3 billion unit cases through close to 2 million points of sale a year. Operating 49 manufacturing plants and 268 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value for all of its stakeholders across the value chain. The Company is a member of the Dow Jones Sustainability Emerging Markets Index, Dow Jones Sustainability MILA Pacific Alliance Index, FTSE4Good Emerging Index, and the Mexican Stock Exchange’s IPC and Social Responsibility and Sustainability Indices, among others. Its operations encompass franchise territories in Mexico, Brazil, Guatemala, Colombia, and Argentina, and, nationwide, in Costa Rica, Nicaragua, Panama, Uruguay, and Venezuela through its investment in KOF Venezuela. For further information, please visit www.coca-colafemsa.com.
ADDITIONAL INFORMATION
All of the financial information presented in this report was prepared under International Financial Reporting Standards (IFRS).
This news release may contain forward-looking statements concerning Coca-Cola FEMSA’s future performance, which should be considered as good faith estimates by Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA’s control, which could materially impact the Company’s actual performance. References herein to “US$” are to United States dollars. This news release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations should not be construed as representations that Mexican peso amounts actually represent such U.S. dollars amounts or could be converted into U.S. dollars at the rate indicated.
(6 pages of tables to follow)
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 10 of 16** |
| --- | --- | | COCA-COLA FEMSA | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | CONSOLIDATED INCOME STATEMENT | | | | | | | | | | | | | | Millions of Pesos ^(1)^ | | | | | | | | | | | | | | | For the Second Quarter of: | | | | | | For the First Six Months of: | | | | | | | | 2021 | % of Rev. | 2020 | % of Rev. | Δ% Reported | Δ% Comparable ^(7)^ | 2021 | % of Rev. | 2020 | % of Rev. | Δ% Reported | Δ% Comparable ^(7)^ | | Transactions (million transactions) | 4,660.0 | | 3,636.9 | | 28.1% | 28.1% | 9,035.0 | | 8,288.0 | | 9.0% | 9.0% | | Volume (million unit cases)^^ | 851.4 | | 780.7 | | 9.1% | 9.1% | 1,652.1 | | 1,574.3 | | 4.9% | 4.9% | | Average price per unit case | 51.78 | | 50.56 | | 2.4% | | 51.34 | | 51.18 | | 0.3% | | | Net revenues | 47,639 | | 42,944 | | 10.9% | | 92,181 | | 87,821 | | 5.0% | | | Other operating revenues | 147 | | 131 | | 12.3% | | 320 | | 520 | | -38.5% | | | Total revenues ^(2)^ | 47,786 | 100.0% | 43,075 | 100.0% | 10.9% | 19.2% | 92,500 | 100.0% | 88,341 | 100.0% | 4.7% | 12.2% | | Cost of goods sold | 25,226 | 52.8% | 24,000 | 55.7% | 5.1% | | 50,009 | 54.1% | 48,593 | 55.0% | 2.9% | | | Gross profit | 22,560 | 47.2% | 19,075 | 44.3% | 18.3% | 26.1% | 42,491 | 45.9% | 39,749 | 45.0% | 6.9% | 13.7% | | Operating expenses | 15,189 | 31.8% | 13,630 | 31.6% | 11.4% | | 28,991 | 31.3% | 28,132 | 31.8% | 3.1% | | | Other operative expenses, net | 152 | 0.3% | 206 | 0.5% | -26.2% | | 364 | 0.4% | 522 | 0.6% | -30.2% | | | Operative equity method (gain) loss in associates^(3)^ | (29) | -0.1% | 109 | 0.3% | NA | | (11) | 0.0% | 241 | 0.3% | NA | | | Operating income ^(5)^ | 7,248 | 15.2% | 5,130 | 11.9% | 41.3% | 44.1% | 13,147 | 14.2% | 10,854 | 12.3% | 21.1% | 26.9% | | Other non operative expenses, net | (83) | -0.2% | 997 | 2.3% | NA | | (80) | -0.1% | 990 | 1.1% | NA | | | Non Operative equity method (gain) loss in associates ^(4)^ | 72 | 0.2% | (25) | -0.1% | NA | | 71 | 0.1% | (98) | -0.1% | NA | | | Interest expense | 1,463 | | 1,625 | | -9.9% | | 2,936 | | 4,691 | | -37.4% | | | Interest income | 194 | | 269 | | -28.0% | | 356 | | 556 | | -35.9% | | | Interest expense, net | 1,270 | | 1,356 | | -6.4% | | 2,580 | | 4,136 | | -37.6% | | | Foreign exchange loss (gain) | 171 | | (8) | | NA | | 156 | | (493) | | NA | | | Loss (gain) on monetary position in inflationary subsidiries | (118) | | (81) | | 46.2% | | (291) | | (175) | | 66.6% | | | Market value (gain) loss on financial instruments | 1 | | 1 | | -10.4% | | 9 | | (1) | | NA | | | Comprehensive financing result | 1,323 | | 1,268 | | 4.4% | | 2,454 | | 3,467 | | -29.2% | | | Income before taxes | 5,936 | | 2,889 | | 105.4% | | 10,702 | | 6,494 | | 64.8% | | | Income taxes | 2,268 | | 969 | | 133.9% | | 3,927 | | 2,091 | | 87.8% | | | Result of discontinued operations | - | | - | | NA | | - | | - | | NA | | | Consolidated net income | 3,668 | | 1,920 | | 91.1% | | 6,775 | | 4,403 | | 53.9% | | | Net income attributable to equity holders of the company | 3,316 | 6.9% | 2,115 | 4.9% | 56.8% | | 6,472 | 7.0% | 4,658 | 5.3% | 38.9% | | | Non-controlling interest | 352 | 0.7% | (195) | -0.5% | NA | | 303 | 0.3% | (256) | -0.3% | NA | | | Operating Cash Flow & CAPEX | 2021 | % of Rev. | 2020 | % of Rev. | Δ% Reported | Δ% Comparable ^(7)^ | 2021 | % of Rev. | 2020 | % of Rev. | Δ% Reported | Δ% Comparable ^(7)^ | | Operating income ^(5)^ | 7,248 | 15.2% | 5,130 | 11.9% | 41.3% | | 13,147 | 14.2% | 10,854 | 12.3% | 21.1% | | | Depreciation | 2,179 | | 2,324 | | -6.2% | | 4,417 | | 4,577 | | -3.5% | | | Amortization and other operative non-cash charges | 580 | | 767 | | -24.4% | | 1,252 | | 1,864 | | -32.8% | | | Operating cash flow ^(5)(6)^ | 10,007 | 20.9% | 8,221 | 19.1% | 21.7% | 27.4% | 18,816 | 20.3% | 17,295 | 19.6% | 8.8% | 14.8% | | CAPEX | 2,841 | | 1,788 | | 58.9% | | 4,301 | | 3,867 | | 11.2% | |
^(1)^Except volume and average price per unit case figures.
^(2)^Please refer to page 14 and 15 for revenue breakdown.
^(3)^Includes equity method in Jugos del Valle, Leão Alimentos, and Estrella Azul, among others.
^(4)^Includes equity method in PIASA, IEQSA, Beta San Miguel, IMER, and KSP Participacoes, among others.
^(5)^The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
^(6)^Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
^(7)^Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparabilityof our financial and operating performance.
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 11 of 16** |
| --- | --- | | RESULTS OF OPERATIONS | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Millions of Pesos ^(1)^ | | | | | | | | | | | | | | | For the Second Quarter of: | | | | | | For the First Six Months of: | | | | | | | | 2021 | % of Rev. | 2020 | % of Rev. | Δ%<br><br> Reported | Δ%<br><br> Comparable ^(6)^ | 2021 | % of Rev. | 2020 | % of Rev. | Δ%<br><br> Reported | Δ% <br><br>Comparable ^(6)^ | | Transactions (million transactions) | 2,790.7 | | 2,346.7 | | 18.9% | 18.9% | 5,174.6 | | 4,943.0 | | 4.7% | 4.7% | | Volume (million unit cases)^^ | 545.8 | | 521.6 | | 4.6% | 4.6% | 1,017.1 | | 998.0 | | 1.9% | 1.9% | | Average price per unit case | 55.42 | | 52.45 | | 5.7% | | 55.28 | | 52.98 | | 4.3% | | | Net revenues | 30,250 | | 27,363 | | | | 56,224 | | 52,875 | | | | | Other operating revenues | 12 | | 17 | | | | 19 | | 29 | | | | | Total Revenues ^(2)^ | 30,262 | 100.0% | 27,380 | 100.0% | 10.5% | 13.7% | 56,242 | 100.0% | 52,904 | 100.0% | 6.3% | 7.9% | | Cost of goods sold | 15,087 | 49.9% | 13,899 | 50.8% | | | 27,995 | 49.8% | 26,970 | 51.0% | | | | Gross profit | 15,175 | 50.1% | 13,480 | 49.2% | 12.6% | 15.6% | 28,247 | 50.2% | 25,933 | 49.0% | 8.9% | 10.4% | | Operating expenses | 10,000 | 33.0% | 8,614 | 31.5% | | | 18,572 | 33.0% | 17,185 | 32.5% | | | | Other operative expenses, net | 62 | 0.2% | 128 | 0.5% | | | 251 | 0.4% | 515 | 1.0% | | | | Operative equity method (gain) loss in associates ^(3)^ | (19) | -0.1% | 42 | 0.2% | | | (70) | -0.1% | 103 | 0.2% | | | | Operating income ^(4)^ | 5,132 | 17.0% | 4,696 | 17.2% | 9.3% | 11.1% | 9,494 | 16.9% | 8,131 | 15.4% | 16.8% | 17.9% | | Depreciation, amortization & other operating non-cash charges | 1,689 | 5.6% | 1,786 | 6.5% | | | 3,490 | 6.2% | 3,955 | 7.5% | | | | Operating cash flow ^(4)(5)^ | 6,821 | 22.5% | 6,482 | 23.7% | 5.2% | 7.7% | 12,984 | 23.1% | 12,085 | 22.8% | 7.4% | 8.8% |
^(1)^Except volume and average price per unit case figures.
^(2)^Please refer to page 14 and 15 for revenue breakdown.
^(3)^Includes equity method in Jugos del Valle and Estrella Azul, among others.
^(4)^The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
^(5)^Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
^(6)^Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparabilityof our financial and operating performance.
| SOUTH AMERICA DIVISION | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RESULTS OF OPERATIONS | ||||||||||||
| Millions of Pesos ^(1)^ | ||||||||||||
| For the Second Quarter of: | For the First Six Months of: | |||||||||||
| 2021 | % of Rev. | 2020 | % of Rev. | Δ%<br><br> Reported | Δ%<br><br> Comparable ^(6)^ | 2021 | % of Rev. | 2020 | % of Rev. | Δ%<br><br> Reported | Δ% <br><br>Comparable ^(6)^ | |
| Transactions (million transactions) | 1,869.3 | 1,290.2 | 44.9% | 44.9% | 3,860.4 | 3,345.1 | 15.4% | 15.4% | ||||
| Volume (million unit cases)^^ | 305.6 | 259.1 | 17.9% | 17.9% | 634.9 | 576.3 | 10.2% | 10.2% | ||||
| Average price per unit case | 45.29 | 46.75 | -3.1% | 45.04 | 48.05 | -6.3% | ||||||
| Net revenues | 17,389 | 15,581 | 35,957 | 34,946 | ||||||||
| Other operating revenues | 135 | 114 | 301 | 492 | ||||||||
| Total Revenues ^(2)^ | 17,524 | 100.0% | 15,695 | 100.0% | 11.7% | 29.9% | 36,258 | 100.0% | 35,438 | 100.0% | 2.3% | 19.6% |
| Cost of goods sold | 10,139 | 57.9% | 10,100 | 64.4% | 22,014 | 60.7% | 21,622 | 61.0% | ||||
| Gross profit | 7,385 | 42.1% | 5,595 | 35.6% | 32.0% | 55.0% | 14,244 | 39.3% | 13,815 | 39.0% | 3.1% | 20.7% |
| Operating expenses | 5,189 | 29.6% | 5,016 | 32.0% | 10,419 | 28.7% | 10,947 | 30.9% | ||||
| Other operative expenses, net | 90 | 0.5% | 77 | 0.5% | 113 | 0.3% | 7 | 0.0% | ||||
| Operative equity method (gain) loss in associates ^(3)^ | (10) | -0.1% | 67 | 0.4% | 59 | 0.2% | 139 | 0.4% | ||||
| Operating income ^(4)^ | 2,116 | 12.1% | 434 | 2.8% | 387.6% | 415.3% | 3,653 | 10.1% | 2,723 | 7.7% | 34.2% | 58.0% |
| Depreciation, amortization & other operating non-cash charges | 1,070 | 6.1% | 1,305 | 8.3% | 2,179 | 6.0% | 2,487 | 7.0% | ||||
| Operating cash flow ^(4)(5)^ | 3,186 | 18.2% | 1,739 | 11.1% | 83.2% | 109.1% | 5,832 | 16.1% | 5,210 | 14.7% | 11.9% | 31.1% |
| ^(1)^ | Except volume and average price per unit case figures. | |||||||||||
| --- | --- | |||||||||||
| ^(2)^ | Please refer to page 14 and 15 for revenue breakdown. | |||||||||||
| --- | --- | |||||||||||
| ^(3)^ | Includes equity method in Leão Alimentos and Verde Campo, amongothers. | |||||||||||
| --- | --- | |||||||||||
| ^(4)^ | The operating income and operating cash flow lines are presented as non-GAAPmeasures for the convenience of the reader. | |||||||||||
| --- | --- | |||||||||||
| ^(5)^ | Operating cash flow = operating income + depreciation, amortization &other operating non-cash charges. | |||||||||||
| --- | --- | |||||||||||
| ^(6)^ | Please refer to page 9 for our definition of “comparable”and a description of the factors affecting the comparability of our financial and operating performance. | |||||||||||
| --- | --- |
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 12 of 16** |
| --- | --- |
| COCA-COLA<br> FEMSA | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| CONSOLIDATED<br> BALANCE SHEET | | | | | | | |
| Millions<br> of Pesos | | | | | | | |
| Assets | Jun-21 | Dec-20 | %<br> Var. | Liabilities<br> & Equity | Jun-21 | Dec-20 | %<br> Var. |
| Current Assets | | | | Current Liabilities | | | |
| Cash,<br> cash equivalents and marketable securities | | | | Short-term<br> bank loans and notes payable | 3,148 | 5,017 | -37% |
| | 46,786 | 43,497 | 8% | Suppliers | 19,663 | 17,195 | 14% |
| Total<br> accounts receivable | 8,895 | 11,523 | -23% | Short-term<br> leasing Liabilities | 554 | 560 | |
| Inventories | 11,580 | 9,727 | 19% | Other<br> current liabilities | 24,614 | 20,073 | 23% |
| Other<br> current assets | 7,785 | 7,693 | 1% | Total<br> current liabilities | 47,979 | 42,845 | 12% |
| Total<br> current assets | 75,046 | 72,440 | 4% | Non-Current<br> Liabilities | | | |
| Non-Current<br> Assets | | | | Long-term<br> bank loans and notes payable | 81,213 | 82,461 | -2% |
| Property, plant<br> and equipment | 108,334 | 109,551 | -1% | Long<br> Term Leasing Liabilities | 891 | 746 | |
| Accumulated<br> depreciation | (49,910) | (50,091) | 0% | Other<br> long-term liabilities | 15,417 | 14,557 | 6% |
| Total<br> property, plant and equipment, net | 58,424 | 59,460 | -2% | Total<br> liabilities | 145,500 | 140,609 | 3% |
| Right<br> of use assets | 1,425 | 1,278 | 11% | Equity | | | |
| Investment in<br> shares | 7,607 | 7,623 | 0% | Non-controlling<br> interest | 6,131 | 5,583 | 10% |
| Intangible<br> assets and other assets | 104,248 | 103,971 | 0% | Total<br> controlling interest | 113,454 | 116,874 | -3% |
| Other<br> non-current assets | 18,335 | 18,294 | 0% | Total<br> equity | 119,585 | 122,457 | -2% |
| Total<br> Assets | 265,085 | 263,066 | 1% | Total<br> Liabilities and Equity | 265,085 | 263,066 | 1% |
| | June<br> 30, 2021 | | | | | | |
| Debt<br> Mix | %<br> Total Debt ^(1)^ | %<br> Interest Rate Floating ^(1) (2)^ | Average<br> Rate | Debt<br> Maturity Profile | | | |
| Currency | | | | 
| | | |
| Mexican<br> Pesos | 53.0% | 24.1% | 7.0% | |
| U.S. Dollars | 26.6% | 0.0% | 2.9% | |
| Colombian<br> Pesos | 2.2% | 5.7% | 3.8% | |
| Brazilian Reals | 15.7% | 55.6% | 6.8% | |
| Uruguayan<br> Pesos | 1.6% | 0.0% | 7.3% | |
| Argentine Pesos | 0.8% | 0.0% | 46.7% | |
| Total<br> Debt | 100% | 11.0% | 6.1% | |
| ^(1)^After giving effect to cross- currency swaps and financial leases. | | | | | | | |
| ^(2)^Calculated by weighting each year´s outstanding debt balance mix. | | | | | | | |
| Financial<br> Ratios | 2Q<br> 2021 | FY<br> 2020 | Δ% | | | | |
| Net<br> debt including effect of hedges ^(1)(3)^ | 36,392 | 42,194 | -13.8% | | | | |
| Net<br> debt including effect of hedges / Operating cash flow ^(1)(3)^ | 0.94 | 1.13 | | | | | |
| Operating<br> cash flow/ Interest expense, net ^(1)^ | 7.29 | 5.46 | | | | | |
| Capitalization<br> ^(2)^ | 42.0% | 42.7% | | | | | |
| ^(1)^Net debt = total debt - cash | | | | | | | |
| ^(2)^Total debt / (long-term debt + shareholders' equity) | | | | | | | |
| ^(3)^ After giving effect to cross-currency swaps. | | | | | | | |
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 13 of 16** |
| --- | --- | | COCA-COLA<br> FEMSA | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | QUARTERLY-<br> VOLUME, TRANSACTIONS & REVENUES | | | | | | | | | | | | | Volume | | | | | | | | | | | | | | 2Q<br> 2021 | | | | | 2Q<br> 2020 | | | | | YoY | | | Sparkling | Water<br> ^(1)^ | Bulk<br> ^(2)^ | Stills | Total | Sparkling | Water<br> ^(1)^ | Bulk<br> ^(2)^ | Stills | Total | Δ<br> % | | Mexico | 348.8 | 23.4 | 75.9 | 32.1 | 480.2 | 346.5 | 15.9 | 76.5 | 27.0 | 465.9 | 3.1% | | Guatemala | 29.6 | 1.0 | - | 1.8 | 32.4 | 26.5 | 0.7 | - | 0.8 | 28.0 | 15.9% | | CAM South | 27.6 | 1.6 | 0.1 | 3.9 | 33.2 | 24.2 | 0.8 | 0.1 | 2.8 | 27.8 | 19.3% | | Mexico<br> and Central America | 406.1 | 26.0 | 76.0 | 37.7 | 545.8 | 397.1 | 17.4 | 76.6 | 30.5 | 521.6 | 4.6% | | Colombia | 53.6 | 5.1 | 3.5 | 4.5 | 66.8 | 46.5 | 2.0 | 3.6 | 2.1 | 54.3 | 23.0% | | Brazil ^(3)^ | 177.0 | 8.4 | 1.5 | 12.7 | 199.5 | 157.4 | 5.7 | 1.8 | 8.7 | 173.5 | 15.0% | | Argentina | 24.1 | 2.1 | 1.2 | 2.7 | 30.1 | 19.7 | 1.2 | 1.2 | 1.2 | 23.2 | 29.4% | | Uruguay | 8.1 | 1.0 | - | 0.1 | 9.3 | 7.4 | 0.6 | - | 0.1 | 8.1 | 14.3% | | South<br> America | 262.8 | 16.6 | 6.2 | 20.0 | 305.6 | 230.9 | 9.6 | 6.5 | 12.0 | 259.1 | 17.9% | | TOTAL | 668.9 | 42.7 | 82.2 | 57.7 | 851.4 | 628.0 | 27.0 | 83.1 | 42.6 | 780.7 | 9.1% | | ^(1)^Excludes water presentations larger than 5.0 Lt ; includes flavored water. | | | | | | | | | | | | | ^(2)^Bulk Water= Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water | | | | | | | | | | | | | Transactions | | | | | | | | | | | | | | 2Q<br> 2021 | | | | | 2Q<br> 2020 | | | | | YoY | | | Sparkling | Water | | Stills | Total | Sparkling | Water | | Stills | Total | Δ<br> % | | Mexico | 1,895.5 | 171.0 | | 225.2 | 2,291.6 | 1,709.5 | 118.0 | | 171.1 | 1,998.6 | 14.7% | | Guatemala | 226.7 | 10.7 | | 18.0 | 255.4 | 161.7 | 7.5 | | 6.8 | 176.0 | 45.1% | | CAM South | 193.9 | 10.3 | | 39.3 | 243.6 | 141.9 | 4.7 | | 25.5 | 172.1 | 41.5% | | Mexico<br> and Central America | 2,316.1 | 192.1 | | 282.5 | 2,790.7 | 2,013.1 | 130.2 | | 203.4 | 2,346.7 | 18.9% | | Colombia | 344.5 | 56.0 | | 39.2 | 439.7 | 236.4 | 25.0 | | 17.0 | 278.4 | 57.9% | | Brazil ^(3)^ | 1,045.4 | 71.6 | | 129.8 | 1,246.8 | 773.1 | 44.0 | | 76.1 | 893.3 | 39.6% | | Argentina | 111.2 | 11.9 | | 18.8 | 142.0 | 72.9 | 5.9 | | 7.1 | 85.9 | 65.3% | | Uruguay | 35.9 | 3.6 | | 1.4 | 40.9 | 27.8 | 3.4 | | 1.4 | 32.6 | 25.3% | | South<br> America | 1,537.0 | 143.0 | | 189.2 | 1,869.3 | 1,110.3 | 78.3 | | 101.6 | 1,290.2 | 44.9% | | TOTAL | 3,853.2 | 335.1 | | 471.7 | 4,660.0 | 3,123.4 | 208.5 | | 305.0 | 3,636.9 | 28.1% | | Revenues | | | | | | | | | | | | | Expressed in million<br> Mexican Pesos | 2Q<br> 2021 | 2Q<br> 2020 | Δ<br> % | | | | | | | | | | Mexico | 25,201 | 22,504 | 12.0% | | | | | | | | | | Guatemala | 2,556 | 2,465 | 3.7% | | | | | | | | | | CAM South | 2,505 | 2,410 | 3.9% | | | | | | | | | | Mexico and Central America | 30,262 | 27,380 | 10.5% | | | | | | | | | | Colombia | 3,118 | 2,606 | 19.7% | | | | | | | | | | Brazil ^(4)^ | 12,369 | 11,406 | 8.4% | | | | | | | | | | Argentina | 1,346 | 1,066 | 26.3% | | | | | | | | | | Uruguay | 690 | 617 | 11.9% | | | | | | | | | | South America | 17,524 | 15,695 | 11.7% | | | | | | | | | | TOTAL | 47,786 | 43,075 | 10.9% | | | | | | | | | | ^(3)^Volume and transactions in Brazil do not include beer. | | | | | | | | | | | | | ^(4)^Brazil includes beer revenues of Ps.3,549.0 million for the second quarter of 2021 and Ps.3,467.9 million for the same period of the previous year. | | | | | | | | | | | |
________________________________
| ^(1)^ | Volume is expressed in unit cases. Unit case refers to 192 ounces of finishedbeverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentratethat 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 representmultiple transactions based on a standard 12 oz. serving. |
| --- | --- |
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 14 of 16** |
| --- | --- | | COCA-COLA<br> FEMSA | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | YTD<br> - VOLUME, TRANSACTIONS & REVENUES | | | | | | | | | | | | | Volume | | | | | | | | | | | | | | YTD<br> 2021 | | | | | YTD<br> 2020 | | | | | YoY | | | Sparkling | Water<br> ^(1)^ | Bulk<br> ^(2)^ | Stills | Total | Sparkling | Water<br> ^(1)^ | Bulk<br> ^(2)^ | Stills | Total | Δ<br> % | | Mexico | 644.9 | 41.3 | 141.8 | 60.3 | 888.4 | 647.9 | 37.1 | 144.7 | 55.5 | 885.1 | 0.4% | | Guatemala | 58.2 | 1.9 | - | 3.2 | 63.3 | 50.6 | 1.6 | - | 1.7 | 53.9 | 17.4% | | CAM South | 54.5 | 3.1 | 0.2 | 7.5 | 65.4 | 49.2 | 2.8 | 0.3 | 6.6 | 58.9 | 11.0% | | Mexico<br> and Central America | 757.7 | 46.4 | 142.0 | 71.0 | 1,017.1 | 747.7 | 41.5 | 145.0 | 63.9 | 998.0 | 1.9% | | Colombia | 107.9 | 10.4 | 7.4 | 8.7 | 134.5 | 96.7 | 8.4 | 8.7 | 5.9 | 119.7 | 12.3% | | Brazil ^(3)^ | 358.2 | 19.8 | 3.7 | 26.6 | 408.3 | 331.9 | 21.2 | 4.7 | 21.8 | 379.5 | 7.6% | | Argentina | 58.2 | 5.1 | 3.0 | 6.3 | 72.7 | 47.0 | 5.0 | 2.6 | 3.9 | 58.5 | 24.3% | | Uruguay | 17.0 | 2.3 | - | 0.3 | 19.6 | 16.5 | 1.9 | - | 0.2 | 18.6 | 5.5% | | South<br> America | 541.3 | 37.7 | 14.1 | 41.9 | 635.0 | 492.0 | 36.5 | 15.9 | 31.8 | 576.3 | 10.2% | | TOTAL | 1,298.9 | 84.0 | 156.2 | 113.0 | 1,652.1 | 1,239.7 | 78.0 | 160.9 | 95.7 | 1,574.3 | 4.9% | | ^(1)^Excludes water presentations larger than 5.0 Lt ; includes flavored water. | | | | | | | | | | | | | ^(2)^Bulk Water= Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water | | | | | | | | | | | | | Transactions | | | | | | | | | | | | | | YTD<br> 2021 | | | | | YTD<br> 2020 | | | | | YoY | | | Sparkling | Water | | Stills | Total | Sparkling | Water | | Stills | Total | Δ<br> % | | Mexico | 3,485.7 | 302.5 | | 418.8 | 4,207.0 | 3,484.6 | 276.6 | | 385.1 | 4,146.2 | 1.5% | | Guatemala | 443.1 | 20.0 | | 31.6 | 494.6 | 347.4 | 16.1 | | 16.1 | 379.5 | 30.3% | | CAM South | 377.5 | 20.3 | | 75.3 | 473.0 | 331.6 | 18.3 | | 67.3 | 417.2 | 13.4% | | Mexico<br> and Central America | 4,306.3 | 342.7 | | 525.7 | 5,174.6 | 4,163.5 | 311.0 | | 468.5 | 4,943.0 | 4.7% | | Colombia | 693.3 | 113.8 | | 75.7 | 882.8 | 584.7 | 104.7 | | 54.1 | 743.5 | 18.7% | | Brazil ^(3)^ | 2,109.3 | 167.8 | | 271.6 | 2,548.7 | 1,865.0 | 175.3 | | 207.6 | 2,247.9 | 13.4% | | Argentina | 266.7 | 29.6 | | 43.9 | 340.1 | 215.0 | 28.0 | | 25.5 | 268.4 | 26.7% | | Uruguay | 77.2 | 8.3 | | 3.3 | 88.8 | 74.0 | 8.6 | | 2.6 | 85.2 | 4.2% | | South<br> America | 3,146.5 | 319.5 | | 394.5 | 3,860.4 | 2,738.7 | 316.5 | | 289.8 | 3,345.1 | 15.4% | | TOTAL | 7,452.7 | 662.2 | | 920.1 | 9,035.0 | 6,902.3 | 627.5 | | 758.3 | 8,288.0 | 9.0% | | Revenues | | | | | | | | | | | | | Expressed in million<br> Mexican Pesos | YTD<br> 2021 | YTD<br> 2020 | Δ<br> % | | | | | | | | | | Mexico | 46,248 | 43,571 | 6.1% | | | | | | | | | | Guatemala | 5,006 | 4,453 | 12.4% | | | | | | | | | | CAM South | 4,989 | 4,880 | 2.2% | | | | | | | | | | Mexico and Central America | 56,242 | 52,904 | 6.3% | | | | | | | | | | Colombia | 6,403 | 5,779 | 10.8% | | | | | | | | | | Brazil ^(4)^ | 25,172 | 25,374 | -0.8% | | | | | | | | | | Argentina | 3,224 | 2,890 | 11.6% | | | | | | | | | | Uruguay | 1,460 | 1,394 | 4.7% | | | | | | | | | | South America | 36,258 | 35,438 | 2.3% | | | | | | | | | | TOTAL | 92,500 | 88,341 | 4.7% | | | | | | | | | | ^(3)^Volume and transactions in Brazil do not include beer. | | | | | | | | | | | | | ^(4)^Brazil includes beer revenues of Ps. 7,363.2 million for the first six months of 2021 and Ps. 7,254 million for the same period of the previous year. | | | | | | | | | | | |
________________________________
| (1) | Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required toproduce 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 theirsize or volume or whether they are sold individually or in multipacks, except for soda fountains which represent multiple transactionsbased on a standard 12 oz. serving. |
| --- | --- |
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 15 of 16** |
| --- | --- | | COCA-COLA FEMSA | | | | | | --- | --- | --- | --- | --- | | MACROECONOMIC INFORMATION | | | | | | Inflation ^(1)^ | | | | | | | LTM | YTD | | | | Mexico | 6.02% | 3.30% | | | | Colombia | 2.89% | 3.13% | | | | Brazil | 8.28% | 3.68% | | | | Argentina | 47.13% | 24.53% | | | | Costa Rica | 1.82% | 0.60% | | | | Panama | 0.06% | 1.60% | | | | Guatemala | 5.26% | 2.01% | | | | Nicaragua | 3.47% | 2.28% | | | | Uruguay | 6.54% | 4.38% | | | | ^(1)^ Source: inflation estimated by the company based on historic publications from the Central Bank of each country. | | | | | | Average Exchange Rates for each period ^(2)^ | | | | | | | Quarterly Exchange Rate <br> (Local Currency per ) | | Year to Date Exchange Rate <br> (Local Currency per ) | | | | 2Q21 | Δ % | YTD 21 | Δ % | | Mexico | 20.05 | -14.2% | 20.23 | -6.4% | | Colombia | 3,695.61 | -4.0% | 3,675.95 | -0.4% | | Brazil | 5.30 | -1.7% | 5.38 | 9.3% | | Argentina | 94.07 | 39.0% | 93.32 | 44.5% | | Costa Rica | 618.69 | 7.5% | 617.59 | 7.4% | | Panama | 1.00 | 0.0% | 1.00 | 0.0% | | Guatemala | 7.72 | 0.3% | 7.72 | 0.4% | | Nicaragua | 35.08 | 2.5% | 35.05 | 2.8% | | Uruguay | 43.89 | 1.8% | 43.99 | 6.4% | | End-of-period Exchange Rates | | | | | | | Closing Exchange Rate<br> (Local Currency per ) | | Closing Exchange Rate <br> (Local Currency per ) | | | | Jun-21 | Δ % | Mar-21 | Δ % | | Mexico | 19.80 | -13.8% | 20.60 | -12.4% | | Colombia | 3,756.67 | -0.1% | 3,736.91 | -8.1% | | Brazil | 5.00 | -8.7% | 5.70 | 9.6% | | Argentina | 95.72 | 35.9% | 92.00 | 42.7% | | Costa Rica | 621.92 | 6.6% | 615.81 | 4.8% | | Panama | 1.00 | 0.0% | 1.00 | 0.0% | | Guatemala | 7.74 | 0.6% | 7.71 | 0.4% | | Nicaragua | 35.17 | 2.4% | 34.99 | 2.7% | | Uruguay | 43.58 | 3.2% | 44.19 | 2.7% | | ^(2)^ Average exchange rate for each period computed with the average exchange rate of each month. | | | | |
All values are in US Dollars.
| **Coca-Cola FEMSA Reports 2Q21 Results**<br><br>**July 26, 2021** | **Page 16 of 16** |
| --- | --- |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| COCA-COLA FEMSA, S.A.B. DE C.V. | |
|---|---|
| By: /s/ Constantino Spas Montesinos | |
| Constantino Spas Montesinos<br><br> <br>Chief Financial Officer | |
| Date: July 26, 2021 |