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 2014
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/ Javier Astaburuaga |
|
|
Javier Astaburuaga |
|
|
Chief Financial Officer |
Date: October 28, 2014 |
|
|
FEMSA
Delivers Double Digit
Operating
Income Growth in 3Q14
Monterrey, Mexico, October 28, 2014
— Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) announced today its operational and financial
results for the third quarter of 2014.
Third Quarter 2014
Highlights:
| · | FEMSA consolidated total revenues increased
13.2% and income from operations grew 15.8% compared to the third quarter of 2013, reflecting growth at FEMSA Comercio and
Coca-Cola FEMSA. On an organic basis1 total revenues and income from operations increased 7.9% and 10.8%, respectively. |
| · | Coca-Cola FEMSA total revenues increased
11.4% and income from operations increased 15.1% compared to the third quarter of 2013, reflecting the integration of Fluminense,
and Spaipa combined with revenue growth in most markets. On an organic basis1 total revenues and income from
operations grew 2.5% and 7.9%, respectively. |
| · | FEMSA Comercio achieved total revenues
growth of 12.7% and income from operations growth of 17.6% compared to the third quarter of 2013, driven by 1,185 net
new store openings in the last twelve months and 3.1% growth in same-store sales. On an organic basis1 total revenues
and income from operations grew 12.2% and 18.0%, respectively. |
Carlos Salazar Lomelín, FEMSA CEO,
commented: “During the third quarter, we saw improving trends in certain operations and certain geographies, but there remain
some headwinds ahead of us in the short term. We are encouraged, for example, by the moderate improvement in comparable sales
at FEMSA Comercio, but they are still below the growth levels that we aspire to generate. Volume performance at Coca-Cola
FEMSA Mexico was strong in the face of significant tax-driven price increases carried out earlier in the year, but it belies the
general softness still present in the Mexican consumer environment. And we continue to face challenging demand dynamics in
some markets like Brazil.
Having said that, as we approach the end
of the year, we are optimistic that the favorable macro data that we are seeing in Mexico will eventually make its way to the pocket
of our consumers, and that once we turn the page on 2014, we will cycle the pressures brought about by incremental taxation.
And together with the hard work and continued excellent execution delivered daily by our more than 200,000 colleagues across the
10 countries where we operate, we have every confidence that we are moving in the right direction.”
1 Excludes
non-comparable results from Coca-Cola FEMSA and FEMSA Comercio acquisitions in the last twelve months.
FEMSA Consolidated
Total revenues increased 13.2% compared
to 3Q13 to Ps. 72.391 billion in 3Q14 driven by Coca-Cola FEMSA and FEMSA Comercio. On an organic basis1 total revenues
increased 7.9% compared to 3Q13.
For the first nine months of 2014, consolidated
total revenues increased 13.1% compared to the same period in 2013 to Ps. 208.782 billion driven by Coca-Cola FEMSA and FEMSA Comercio.
On an organic basis1, total revenues for the first nine months of 2014 increased 5.8% compared to the same period in
2013.
Gross profit increased 13.4% compared
to 3Q13 to Ps. 30.654 billion in 3Q14. Gross margin remained stable compared to the same period in 2013 at 42.3% of total revenues.
For the first nine months of 2014, gross
profit increased 12.5% compared to the same period in 2013 to Ps. 87.543 billion. Gross margin decreased 20 basis points compared
to the same period in 2013 to 41.9% of total revenues reflecting a gross margin contraction at Coca-Cola FEMSA and the effect of
the faster growth of lower-margin FEMSA Comercio, which tends to compress FEMSA’s consolidated gross margins over time.
Income from operations increased
15.8% compared to 3Q13 to Ps. 8.323 billion in 3Q14. On an organic basis1 income from operations increased 10.8% compared
to the same period in 2013. Consolidated operating margin increased by 30 basis points compared to 3Q13 to 11.5% of total revenues
in 3Q14, driven by operating margin expansions at both Coca-Cola FEMSA and FEMSA Comercio.
For the first nine months of 2014, income
from operations increased 12.8% compared to the same period in 2013 to Ps. 22.362 billion. On an organic basis1
income from operations increased 7.5%. Our consolidated operating margin year-to-date remained stable at 10.7% as a percentage
of total revenues as compared to the same period of 2013.
Our
effective income tax rate was 19.9% in 3Q14 compared to 32.6% in 3Q13 largely reflecting a
one-time benefit resulting from the settlement of certain contingent tax liabilities at Coca-Cola FEMSA under the tax amnesty program
offered by the Brazilian tax authorities. For the first nine months of 2014, our effective tax rate was in line with our expected
medium-term range of low 30s.
Net consolidated income increased
10.0% compared to 3Q13 to Ps. 6.717 billion in 3Q14, mainly as a result of the growth in our income from operations combined with
a lower income tax rate that compensated for higher financing expenses related to bonds issued recently by Coca-Cola FEMSA.
For the first nine months of 2014, net
consolidated income decreased 1.2% to Ps. 15.037 billion compared to the same period of 2013, reflecting higher financing expenses
related to bonds issued recently by Coca-Cola FEMSA and FEMSA, which was partially compensated by the growth in our income from
operations.
Net majority income for 3Q14 was
Ps. 1.34 per FEMSA Unit2. Net majority income per FEMSA ADS was US$ 1.00 for 3Q14. For the first nine months of 2014,
net majority income per FEMSA Unit was Ps. 2.90 (US$ 2.16 per ADS).
Capital expenditures amounted to
Ps. 4.857 billion in 3Q14, reflecting lower investments at Coca-Cola FEMSA and FEMSA Comercio.
Our consolidated balance sheet as
of September 30, 2014 recorded a cash balance of Ps. 41.751 billion (US$ 3.109 billion), an increase of Ps. 14.366 billion (US$
1.070 million) compared to December 31, 2013. Short-term debt was Ps. 1.879 billion (US$ 139.9 million), while long-term debt was
Ps. 75.659 billion (US$ 5.635 billion). Our consolidated net debt balance was Ps. 35.787 billion (US$ 2.665 billion).
1 Excludes
non-comparable results from Coca-Cola FEMSA and FEMSA Comercio acquisitions in the last twelve months
2 FEMSA Units consist of FEMSA BD Units and FEMSA
B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit
is comprised of five Series B Shares. The number of FEMSA Units outstanding as of September 30, 2014 was 3,578,226,270, equivalent
to the total number of FEMSA Shares outstanding as of the same date, divided by 5.
Soft Drinks –
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 www.coca-colafemsa.com.
FEMSA Comercio
Total revenues increased 12.7% compared
to 3Q13 to Ps. 28.545 billion in 3Q14, mainly driven by the opening of 191 net new stores in the quarter reaching 1,185 total net
new store openings for the last twelve months. On an organic basis3, total revenues increased 12.2% compared to 3Q13.
As of September 30, 2014, FEMSA Comercio had a total of 12,395 convenience stores. Same-store sales increased an average of 3.1%
for the third quarter of 2014 over 3Q13, reflecting a 3.3% increase in average customer ticket that offset a 0.2% decrease in store
traffic.
For the first nine months of 2014, total
revenues increased 12.5% compared to the same period in 2013, to Ps. 80.812 billion. On an organic basis3, total revenues
for the first nine months of 2014 increased 10.6% compared to the same period in 2013. FEMSA Comercio’s same-store sales
increased an average of 2.4% compared to the same period in 2013, driven by a 2.6% increase in average customer ticket that offset
a 0.2% decrease in store traffic.
Gross profit increased by 15.4%
in 3Q14 compared to 3Q13, resulting in a 90 basis point gross margin expansion to 36.0% of total revenues. This increase was largely
driven by increased promotional activity in certain categories during the summer months, as certain suppliers brought forward some
resources that would historically have been deployed later in the year. The increase therefore reflects an effective collaboration
and execution with our key supplier partners. For the first nine months of 2014, gross margin expanded by 40 basis points compared
to the same period in 2013, to 34.8% of total revenues.
Income from operations increased
17.6% over 3Q13 to Ps. 2.339 billion in 3Q14. On an organic basis3, income from operations increased 18.0% in 3Q14 compared
to 3Q13. Operating expenses increased 14.8% in 3Q14 to Ps. 7.930 billion, reflecting the strong growth in new stores, the continued
rollout of new initiatives, as well as expenses related to the incorporation of FEMSA Comercio’s new quick-service-restaurant
operation. Operating margin expanded 30 basis points compared to 3Q13, to 8.2% of total revenues in 3Q14.
For the first nine months of 2014, income
from operations increased 12.0% compared to the same period in 2013 to Ps. 5.500 billion, resulting in an operating margin of 6.8%,
which remained stable when compared to the same period in the prior year. On an organic basis3, income from operations
increased 11.7% in 3Q14 compared to the same period in 2013.
3 Excludes non-comparable results from FEMSA Comercio’s
acquisitions over the last twelve months.
CONFERENCE
CALL INFORMATION:
Our
Third Quarter of 2014 Conference Call will be held on: Tuesday, October 28, 2014, 12:00 PM Eastern Time (10:00 AM Mexico City
Time). To participate in the conference call, please dial: Domestic US: (888) 481-2877; International: (719) 325-2484; Conference
ID: 9266507. The conference call will be webcast live through streaming audio. For details please visit www.femsa.com/investor.
If
you are unable to participate live, the conference call audio will be available on http://ir.FEMSA.com/results.cfm.
FEMSA is a leading company that participates
in the beverage industry through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world; and in the
beer industry, through its ownership of the second largest equity stake in Heineken, one of the world’s leading brewers with operations
in over 70 countries. In the retail industry it participates with FEMSA Comercio, operating various small-format chain stores,
including OXXO, the largest and fastest-growing chain of stores in Latin America. All of which is supported by a Strategic Business
unit.
The translations of Mexican pesos into
US dollars in this report are included solely for the convenience of the reader, using the noon day buying rate for Mexican Pesos
as published by the U.S. Federal Reserve Board in its H.10 weekly Release of Foreign Exchange Rates for September 30, 2014, which
was 13.4270 Mexican Pesos per US Dollar.
FORWARD-LOOKING STATEMENTS
This report may contain certain forward-looking
statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking
statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future
events and uncertainties, which could materially impact our actual performance.
Five pages of tables and Coca-Cola FEMSA’s
press release follow.
FEMSA
Consolidated Income Statement
Millions of Pesos
|
|
For the
third quarter of: |
|
|
For the
nine months of: |
|
|
|
2014 |
|
|
% of rev. |
|
|
2013 |
|
|
% of rev. |
|
|
% Var. |
|
|
% Org (A) |
|
|
2014 |
|
|
% of rev. |
|
|
2013 |
|
|
% of rev. |
|
|
% Var. |
|
|
% Org (A) |
|
Total revenues |
|
|
72,391 |
|
|
|
100.0 |
|
|
|
63,977 |
|
|
|
100.0 |
|
|
|
13.2 |
|
|
|
7.9 |
|
|
|
208,782 |
|
|
|
100.0 |
|
|
|
184,617 |
|
|
|
100.0 |
|
|
|
13.1 |
|
|
|
5.8 |
|
Cost of sales |
|
|
41,737 |
|
|
|
57.7 |
|
|
|
36,940 |
|
|
|
57.7 |
|
|
|
13.0 |
|
|
|
|
|
|
|
121,239 |
|
|
|
58.1 |
|
|
|
106,806 |
|
|
|
57.9 |
|
|
|
13.5 |
|
|
|
|
|
Gross profit |
|
|
30,654 |
|
|
|
42.3 |
|
|
|
27,037 |
|
|
|
42.3 |
|
|
|
13.4 |
|
|
|
|
|
|
|
87,543 |
|
|
|
41.9 |
|
|
|
77,811 |
|
|
|
42.1 |
|
|
|
12.5 |
|
|
|
|
|
Administrative expenses |
|
|
2,853 |
|
|
|
3.9 |
|
|
|
2,550 |
|
|
|
4.0 |
|
|
|
11.9 |
|
|
|
|
|
|
|
8,273 |
|
|
|
4.0 |
|
|
|
7,289 |
|
|
|
3.9 |
|
|
|
13.5 |
|
|
|
|
|
Selling expenses |
|
|
19,102 |
|
|
|
26.4 |
|
|
|
17,273 |
|
|
|
27.1 |
|
|
|
10.6 |
|
|
|
|
|
|
|
55,930 |
|
|
|
26.7 |
|
|
|
50,538 |
|
|
|
27.4 |
|
|
|
10.7 |
|
|
|
|
|
Other Operating expenses (income), net (1) |
|
|
376 |
|
|
|
0.5 |
|
|
|
27 |
|
|
|
- |
|
|
|
N.A. |
|
|
|
|
|
|
|
978 |
|
|
|
0.5 |
|
|
|
168 |
|
|
|
- |
|
|
|
N.A. |
|
|
|
|
|
Income from operations(2) |
|
|
8,323 |
|
|
|
11.5 |
|
|
|
7,187 |
|
|
|
11.2 |
|
|
|
15.8 |
|
|
|
10.8 |
|
|
|
22,362 |
|
|
|
10.7 |
|
|
|
19,816 |
|
|
|
10.7 |
|
|
|
12.8 |
|
|
|
7.5 |
|
Other Non-Operating expenses (income) |
|
|
(263 |
) |
|
|
|
|
|
|
(79 |
) |
|
|
|
|
|
|
N.A. |
|
|
|
|
|
|
|
(210 |
) |
|
|
|
|
|
|
42 |
|
|
|
|
|
|
|
N.A. |
|
|
|
|
|
Interest expense |
|
|
1,787 |
|
|
|
|
|
|
|
910 |
|
|
|
|
|
|
|
96.4 |
|
|
|
|
|
|
|
5,162 |
|
|
|
|
|
|
|
2,523 |
|
|
|
|
|
|
|
N.A. |
|
|
|
|
|
Interest income |
|
|
228 |
|
|
|
|
|
|
|
427 |
|
|
|
|
|
|
|
(46.6 |
) |
|
|
|
|
|
|
745 |
|
|
|
|
|
|
|
811 |
|
|
|
|
|
|
|
(8.1 |
) |
|
|
|
|
Foreign exchange loss (gain) |
|
|
356 |
|
|
|
|
|
|
|
163 |
|
|
|
|
|
|
|
N.A. |
|
|
|
|
|
|
|
350 |
|
|
|
|
|
|
|
289 |
|
|
|
|
|
|
|
21.1 |
|
|
|
|
|
Other financial expenses (income), net. |
|
|
282 |
|
|
|
|
|
|
|
(74 |
) |
|
|
|
|
|
|
N.A. |
|
|
|
|
|
|
|
681 |
|
|
|
|
|
|
|
201 |
|
|
|
|
|
|
|
N.A. |
|
|
|
|
|
Financing expenses, net |
|
|
2,197 |
|
|
|
|
|
|
|
572 |
|
|
|
|
|
|
|
N.A. |
|
|
|
|
|
|
|
5,448 |
|
|
|
|
|
|
|
2,202 |
|
|
|
|
|
|
|
N.A. |
|
|
|
|
|
Income before income tax and Participation in Associates results |
|
|
6,389 |
|
|
|
|
|
|
|
6,694 |
|
|
|
|
|
|
|
(4.6 |
) |
|
|
|
|
|
|
17,124 |
|
|
|
|
|
|
|
17,572 |
|
|
|
|
|
|
|
(2.5 |
) |
|
|
|
|
Income tax |
|
|
1,274 |
|
|
|
|
|
|
|
2,182 |
|
|
|
|
|
|
|
(41.6 |
) |
|
|
|
|
|
|
5,060 |
|
|
|
|
|
|
|
5,670 |
|
|
|
|
|
|
|
(10.8 |
) |
|
|
|
|
Participation in associates results(3) |
|
|
1,602 |
|
|
|
|
|
|
|
1,594 |
|
|
|
|
|
|
|
0.5 |
|
|
|
|
|
|
|
2,973 |
|
|
|
|
|
|
|
3,315 |
|
|
|
|
|
|
|
(10.3 |
) |
|
|
|
|
Net consolidated income |
|
|
6,717 |
|
|
|
|
|
|
|
6,106 |
|
|
|
|
|
|
|
10.0 |
|
|
|
|
|
|
|
15,037 |
|
|
|
|
|
|
|
15,217 |
|
|
|
|
|
|
|
(1.2 |
) |
|
|
|
|
Net majority income |
|
|
4,806 |
|
|
|
|
|
|
|
4,478 |
|
|
|
|
|
|
|
7.3 |
|
|
|
|
|
|
|
10,390 |
|
|
|
|
|
|
|
10,750 |
|
|
|
|
|
|
|
(3.3 |
) |
|
|
|
|
Net minority income |
|
|
1,911 |
|
|
|
|
|
|
|
1,628 |
|
|
|
|
|
|
|
17.4 |
|
|
|
|
|
|
|
4,647 |
|
|
|
|
|
|
|
4,467 |
|
|
|
|
|
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
%
of rev. |
|
|
2013 |
|
|
%
of rev. |
|
|
%
Var. |
|
|
%
Org (A) |
|
|
2014 |
|
|
%
of rev. |
|
|
2013 |
|
|
%
of rev. |
|
|
%
Var. |
|
|
%
Org (A) |
|
Operative Cash Flow & CAPEX |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
8,323 |
|
|
|
11.5 |
|
|
|
7,187 |
|
|
|
11.2 |
|
|
|
15.8 |
|
|
|
10.8 |
|
|
|
22,362 |
|
|
|
10.7 |
|
|
|
19,816 |
|
|
|
10.7 |
|
|
|
12.8 |
|
|
|
7.5 |
|
Depreciation |
|
|
2,331 |
|
|
|
3.2 |
|
|
|
2,161 |
|
|
|
3.4 |
|
|
|
7.9 |
|
|
|
|
|
|
|
7,077 |
|
|
|
3.4 |
|
|
|
6,269 |
|
|
|
3.4 |
|
|
|
12.9 |
|
|
|
|
|
Amortization & other non-cash charges |
|
|
758 |
|
|
|
1.1 |
|
|
|
298 |
|
|
|
0.5 |
|
|
|
N.A. |
|
|
|
|
|
|
|
2,151 |
|
|
|
1.0 |
|
|
|
859 |
|
|
|
0.5 |
|
|
|
N.A. |
|
|
|
|
|
Operative Cash Flow (EBITDA) |
|
|
11,412 |
|
|
|
15.8 |
|
|
|
9,646 |
|
|
|
15.1 |
|
|
|
18.3 |
|
|
|
13.8 |
|
|
|
31,590 |
|
|
|
15.1 |
|
|
|
26,944 |
|
|
|
14.6 |
|
|
|
17.2 |
|
|
|
11.8 |
|
CAPEX |
|
|
4,857 |
|
|
|
|
|
|
|
5,360 |
|
|
|
|
|
|
|
(9.4 |
) |
|
|
|
|
|
|
11,969 |
|
|
|
|
|
|
|
12,269 |
|
|
|
|
|
|
|
(2.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios |
|
2014 |
|
|
|
|
|
|
2013 |
|
|
|
|
|
|
Var.
p.p. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity(4) |
|
|
1.56 |
|
|
|
|
|
|
|
1.51 |
|
|
|
|
|
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest coverage(5) |
|
|
7.32 |
|
|
|
|
|
|
|
19.97 |
|
|
|
|
|
|
|
(12.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage(6) |
|
|
0.63 |
|
|
|
|
|
|
|
0.61 |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization(7) |
|
|
25.59 |
% |
|
|
|
|
|
|
25.79 |
% |
|
|
|
|
|
|
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) % Org. represents the variation
in a given measure excluding the effects of mergers, acquisitions and divestitures of Coca Coca FEMSA and FEMSA Comercio. In preparing
this measure, management has used its best judgment, estimates and assumptions in order to maintain comparability.
(1) Other Operating expenses (income),
net = Other Operating expenses (income) +(-) Equity method from operated associates.
(2) Income from operations = Gross profit
- Administrative and selling expenses - Other operating expenses (income), net.
(3) Mainly represents the equity method
participation in Heineken´s results, net.
(4) Total current assets / total current
liabilities.
(5) Income from operations + depreciation
+ amortization & other / interest expense, net.
(6) Total liabilities / total stockholders’
equity.
(7) Total debt / long-term debt + stockholders’
equity.
Total debt = short-term bank loans + current maturities
of long-term debt + long-term bank loans.
FEMSA
Consolidated Balance Sheet
Millions of Pesos
ASSETS | |
Sep-14 | | |
Dec-13 | | |
% Var. | |
Cash and cash equivalents | |
| 41,751 | | |
| 27,385 | | |
| 52.5 | |
Accounts receivable | |
| 13,012 | | |
| 13,641 | | |
| (4.6 | ) |
Inventories | |
| 16,455 | | |
| 18,289 | | |
| (10.0 | ) |
Other current assets | |
| 12,789 | | |
| 14,254 | | |
| (10.3 | ) |
Total current assets | |
| 84,007 | | |
| 73,569 | | |
| 14.2 | |
Investments in shares | |
| 94,831 | | |
| 98,330 | | |
| (3.6 | ) |
Property, plant and equipment, net | |
| 75,427 | | |
| 73,955 | | |
| 2.0 | |
Intangible assets (1) | |
| 102,650 | | |
| 103,293 | | |
| (0.6 | ) |
Other assets | |
| 12,570 | | |
| 10,045 | | |
| 25.1 | |
TOTAL ASSETS | |
| 369,485 | | |
| 359,192 | | |
| 2.9 | |
| |
| | | |
| | | |
| | |
LIABILITIES & STOCKHOLDERS´ EQUITY | |
| | | |
| | | |
| | |
Bank loans | |
| 335 | | |
| 529 | | |
| (36.7 | ) |
Current maturities of long-term debt | |
| 1,544 | | |
| 3,298 | | |
| (53.2 | ) |
Interest payable | |
| 1,004 | | |
| 409 | | |
| N.A. | |
Operating liabilities | |
| 50,926 | | |
| 44,633 | | |
| 14.1 | |
Total current liabilities | |
| 53,809 | | |
| 48,869 | | |
| 10.1 | |
Long-term debt (2) | |
| 75,659 | | |
| 72,185 | | |
| 4.8 | |
Labor liabilities | |
| 4,099 | | |
| 4,074 | | |
| 0.6 | |
Other liabilities | |
| 8,583 | | |
| 11,514 | | |
| (25.5 | ) |
Total liabilities | |
| 142,150 | | |
| 136,642 | | |
| 4.0 | |
Total stockholders’ equity | |
| 227,335 | | |
| 222,550 | | |
| 2.2 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| 369,485 | | |
| 359,192 | | |
| 2.9 | |
| |
September 30, 2014 | |
DEBT MIX (2) | |
% of Total | | |
Average Rate | |
Denominated in: | |
| | | |
| | |
Mexican pesos | |
| 43.9 | % | |
| 5.6 | % |
Dollars | |
| 20.8 | % | |
| 6.2 | % |
Colombian pesos | |
| 1.0 | % | |
| 5.6 | % |
Argentine pesos | |
| 1.2 | % | |
| 26.6 | % |
Brazilian Reais | |
| 33.0 | % | |
| 10.5 | % |
Total debt | |
| 100 | % | |
| 7.6 | % |
| |
| | | |
| | |
Fixed rate(2) | |
| 71.1 | % | |
| | |
Variable rate(2) | |
| 28.9 | % | |
| | |
% of Total Debt | |
2014 | | |
2015 | | |
2016 | | |
2017 | | |
2018 | | |
2019+ | |
DEBT MATURITY PROFILE | |
| 0.9 | % | |
| 1.7 | % | |
| 6.3 | % | |
| 3.7 | % | |
| 22.2 | % | |
| 65.2 | % |
(1) Includes mainly the intangible assets generated
by acquisitions.
(2) Includes the effect of derivative financial instruments
on long-term debt.
Coca-Cola FEMSA
Results of Operations
Millions of Pesos
| |
For
the third quarter of: | | |
For
the nine months of: | |
| |
2014 | | |
%
of rev. | | |
2013 | | |
%
of rev. | | |
%
Var. | | |
%
Org (A) | | |
2014 | | |
%
of rev. | | |
2013 | | |
%
of rev. | | |
%
Var. | | |
%
Org (A) | |
Total revenues | |
| 41,781 | | |
| 100.0 | | |
| 37,494 | | |
| 100.0 | | |
| 11.4 | | |
| 2.5 | | |
| 123,114 | | |
| 100.0 | | |
| 109,737 | | |
| 100.0 | | |
| 12.2 | | |
| 1.2 | |
Cost of sales | |
| 22,196 | | |
| 53.1 | | |
| 19,919 | | |
| 53.1 | | |
| 11.4 | | |
| | | |
| 65,478 | | |
| 53.2 | | |
| 58,225 | | |
| 53.1 | | |
| 12.5 | | |
| | |
Gross profit | |
| 19,585 | | |
| 46.9 | | |
| 17,575 | | |
| 46.9 | | |
| 11.4 | | |
| | | |
| 57,636 | | |
| 46.8 | | |
| 51,512 | | |
| 46.9 | | |
| 11.9 | | |
| | |
Administrative expenses | |
| 1,811 | | |
| 4.3 | | |
| 1,647 | | |
| 4.4 | | |
| 10.0 | | |
| | | |
| 5,369 | | |
| 4.4 | | |
| 4,709 | | |
| 4.3 | | |
| 14.0 | | |
| | |
Selling expenses | |
| 11,629 | | |
| 27.9 | | |
| 10,859 | | |
| 29.0 | | |
| 7.1 | | |
| | | |
| 34,906 | | |
| 28.3 | | |
| 32,208 | | |
| 29.3 | | |
| 8.4 | | |
| | |
Other Operating expenses (income), net | |
| 320 | | |
| 0.8 | | |
| 6 | | |
| - | | |
| N.A.
| | |
| | | |
| 845 | | |
| 0.7 | | |
| 95 | | |
| 0.1 | | |
| N.A.
| | |
| | |
Income from operations | |
| 5,825 | | |
| 13.9 | | |
| 5,063 | | |
| 13.5 | | |
| 15.1 | | |
| 7.9 | | |
| 16,516 | | |
| 13.4 | | |
| 14,500 | | |
| 13.2 | | |
| 13.9 | | |
| 6.7 | |
Depreciation | |
| 1,520 | | |
| 3.6 | | |
| 1,562 | | |
| 4.2 | | |
| (2.7 | ) | |
| | | |
| 4,836 | | |
| 3.9 | | |
| 4,555 | | |
| 4.2 | | |
| 6.2 | | |
| | |
Amortization & other non-cash charges | |
| 663 | | |
| 1.7 | | |
| 186 | | |
| 0.5 | | |
| N.A.
| | |
| | | |
| 1,851 | | |
| 1.5 | | |
| 521 | | |
| 0.4 | | |
| N.A.
| | |
| | |
Operative Cash Flow | |
| 8,008 | | |
| 19.2 | | |
| 6,811 | | |
| 18.2 | | |
| 17.6 | | |
| 11.1 | | |
| 23,203 | | |
| 18.8 | | |
| 19,576 | | |
| 17.8 | | |
| 18.5 | | |
| 11.3 | |
CAPEX | |
| 2,947 | | |
| | | |
| 3,458 | | |
| | | |
| (14.8 | ) | |
| | | |
| 6,994 | | |
| | | |
| 8,092 | | |
| | | |
| (13.6 | ) | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Sales volumes | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
(Millions of unit cases) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Mexico and Central America | |
| 497.0 | | |
| 58.1 | | |
| 494.3 | | |
| 62.2 | | |
| 0.5 | | |
| 0.5 | | |
| 1,445.1 | | |
| 57.3 | | |
| 1,454.0 | | |
| 62.6 | | |
| (0.6 | ) | |
| (3.3 | ) |
South America | |
| 191.9 | | |
| 22.4 | | |
| 182.7 | | |
| 23.0 | | |
| 5.0 | | |
| 5.0 | | |
| 557.7 | | |
| 22.1 | | |
| 527.8 | | |
| 22.7 | | |
| 5.7 | | |
| 5.7 | |
Brazil | |
| 166.5 | | |
| 19.5 | | |
| 118.4 | | |
| 14.9 | | |
| 40.6 | | |
| (5.5 | ) | |
| 517.7 | | |
| 20.5 | | |
| 340.9 | | |
| 14.7 | | |
| 51.8 | | |
| 3.6 | |
Total | |
| 855.4 | | |
| 100.0 | | |
| 795.4 | | |
| 100.0 | | |
| 7.6 | | |
| 0.7 | | |
| 2,520.5 | | |
| 79.4 | | |
| 2,322.7 | | |
| 85.3 | | |
| 8.5 | | |
| (0.7 | ) |
(A) % Org. represents the variation in a given
measure excluding the effects of mergers, acquisitions and divestitures of Coca Coca FEMSA . In preparing this measure, management
has used its best judgment, estimates and assumptions in order to maintain comparability.
FEMSA Comercio
Results of Operations
Millions of Pesos
| |
For
the third quarter of: | | |
For
the nine months of: | |
| |
2014 | | |
%
of rev. | | |
2013 | | |
%
of rev. | | |
%
Var. | | |
%
Org (A) | | |
2014 | | |
%
of rev. | | |
2013 | | |
%
of rev. | | |
%
Var. | | |
%
Org (A) | |
Total revenues | |
| 28,545 | | |
| 100.0 | | |
| 25,337 | | |
| 100.0 | | |
| 12.7 | | |
| 12.2 | | |
| 80,812 | | |
| 100.0 | | |
| 71,848 | | |
| 100.0 | | |
| 12.5 | | |
| 10.6 | |
Cost of sales | |
| 18,276 | | |
| 64.0 | | |
| 16,442 | | |
| 64.9 | | |
| 11.2 | | |
| | | |
| 52,717 | | |
| 65.2 | | |
| 47,150 | | |
| 65.6 | | |
| 11.8 | | |
| | |
Gross profit | |
| 10,269 | | |
| 36.0 | | |
| 8,895 | | |
| 35.1 | | |
| 15.4 | | |
| | | |
| 28,095 | | |
| 34.8 | | |
| 24,698 | | |
| 34.4 | | |
| 13.8 | | |
| | |
Administrative expenses | |
| 500 | | |
| 1.8 | | |
| 448 | | |
| 1.8 | | |
| 11.6 | | |
| | | |
| 1,526 | | |
| 1.9 | | |
| 1,410 | | |
| 2.0 | | |
| 8.2 | | |
| | |
Selling expenses | |
| 7,371 | | |
| 25.8 | | |
| 6,432 | | |
| 25.3 | | |
| 14.6 | | |
| | | |
| 20,941 | | |
| 25.9 | | |
| 18,305 | | |
| 25.5 | | |
| 14.4 | | |
| | |
Other Operating expenses (income), net | |
| 59 | | |
| 0.2 | | |
| 26 | | |
| 0.1 | | |
| N.A.
| | |
| | | |
| 128 | | |
| 0.2 | | |
| 71 | | |
| 0.1 | | |
| 80.3 | | |
| | |
Income from operations | |
| 2,339 | | |
| 8.2 | | |
| 1,989 | | |
| 7.9 | | |
| 17.6 | | |
| 18.0 | | |
| 5,500 | | |
| 6.8 | | |
| 4,912 | | |
| 6.8 | | |
| 12.0 | | |
| 11.7 | |
Depreciation | |
| 703 | | |
| 2.5 | | |
| 575 | | |
| 2.3 | | |
| 22.3 | | |
| | | |
| 2,049 | | |
| 2.5 | | |
| 1,645 | | |
| 2.3 | | |
| 24.6 | | |
| | |
Amortization & other non-cash charges | |
| 82 | | |
| 0.2 | | |
| 93 | | |
| 0.3 | | |
| (11.8 | ) | |
| | | |
| 227 | | |
| 0.3 | | |
| 261 | | |
| 0.4 | | |
| (13.0 | ) | |
| | |
Operative Cash Flow | |
| 3,124 | | |
| 10.9 | | |
| 2,657 | | |
| 10.5 | | |
| 17.6 | | |
| 17.8 | | |
| 7,776 | | |
| 9.6 | | |
| 6,818 | | |
| 9.5 | | |
| 14.1 | | |
| 13.5 | |
CAPEX | |
| 1,386 | | |
| | | |
| 1,720 | | |
| | | |
| (19.4 | ) | |
| | | |
| 3,547 | | |
| - | | |
| 3,765 | | |
| - | | |
| (5.8 | ) | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Information of OXXO Stores | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total stores | |
| 191 | | |
| | | |
| 195 | | |
| | | |
| (2.1 | ) | |
| | | |
| 12,395 | | |
| | | |
| 11,210 | | |
| | | |
| 10.6 | | |
| | |
Net new convenience stores: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
vs. September prior year | |
| 1,185 | | |
| | | |
| 1,043 | | |
| | | |
| 13.6 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
vs. December prior year | |
| 674 | | |
| | | |
| 609 | | |
| | | |
| 10.7 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Same store data: (1) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Sales (thousands of pesos) | |
| 699.6 | | |
| | | |
| 678.5 | | |
| | | |
| 3.1 | | |
| | | |
| 679.5 | | |
| | | |
| 663.3 | | |
| | | |
| 2.4 | | |
| | |
Traffic (thousands of transactions) | |
| 24.7 | | |
| | | |
| 24.8 | | |
| | | |
| (0.2 | ) | |
| | | |
| 24.2 | | |
| | | |
| 24.3 | | |
| | | |
| (0.2 | ) | |
| | |
Ticket (pesos) | |
| 28.3 | | |
| | | |
| 27.4 | | |
| | | |
| 3.3 | | |
| | | |
| 28.0 | | |
| | | |
| 27.3 | | |
| | | |
| 2.6 | | |
| | |
(1) Monthly average information per store, considering
same stores with more than twelve months of operations.
(A)
% Org. represents the variation in a given measure excluding the effects of mergers, acquisitions and divestitures
of FEMSA Comercio. In preparing this measure, management has used its best judgment, estimates and assumptions in order to maintain
comparability.
FEMSA
Macroeconomic Information
| |
| | |
| | |
End of period, Exchange Rates | |
| |
Inflation | | |
Sep-14 | | |
Sep-13 | |
| |
| | |
| | |
| | |
| | |
| | |
| |
| |
3Q 2014 | | |
LTM(1) Sep-14 | | |
Per USD | | |
Per Mx. Peso | | |
Per USD | | |
Per Mx. Peso | |
Mexico | |
| 1.08 | % | |
| 4.22 | % | |
| 13.45 | | |
| 1.0000 | | |
| 13.01 | | |
| 1.0000 | |
Colombia | |
| 0.49 | % | |
| 2.86 | % | |
| 2,028.48 | | |
| 0.0066 | | |
| 1,914.65 | | |
| 0.0068 | |
Venezuela | |
| 11.85 | % | |
| 63.44 | % | |
| 12.00 | | |
| 1.1212 | | |
| 6.30 | | |
| 2.0654 | |
Brazil | |
| 0.83 | % | |
| 6.75 | % | |
| 2.45 | | |
| 5.4892 | | |
| 2.23 | | |
| 5.8349 | |
Argentina | |
| 4.20 | % | |
| 23.75 | % | |
| 8.43 | | |
| 1.5960 | | |
| 5.79 | | |
| 2.2461 | |
Euro Zone | |
| -0.13 | % | |
| 0.29 | % | |
| 0.79 | | |
| 17.1123 | | |
| 0.73 | | |
| 17.7523 | |
(1) LTM = Last twelve months
![](tpg10.jpg) |
|
2014 THIRD - QUARTER AND FIRST NINE
MONTHS RESULTS |
|
|
|
|
|
Third
Quarter |
|
|
|
Excluding M&A |
|
YTD |
|
|
|
Excluding M&A |
|
|
|
|
2014 |
|
2013 |
|
Reported
Δ% |
|
Effects
Δ%(5) |
|
2014 |
|
2013 |
|
Reported
Δ% |
|
Effects
Δ%(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
41,781 |
|
37,494 |
|
11.4 |
% |
2.5 |
% |
123,114 |
|
109,737 |
|
12.2 |
% |
1.2 |
% |
|
Gross Profit |
|
19,585 |
|
17,575 |
|
11.4 |
% |
4.5 |
% |
57,636 |
|
51,512 |
|
11.9 |
% |
3.3 |
% |
|
Operating Income |
|
5,825 |
|
5,063 |
|
15.1 |
% |
7.9 |
% |
16,516 |
|
14,500 |
|
13.9 |
% |
6.7 |
% |
|
Net Income Attributable to equity holders of the company |
|
3,343 |
|
2,954 |
|
13.2 |
% |
|
|
8,415 |
|
8,292 |
|
1.5 |
% |
|
|
|
Earnings per Share(1) |
|
1.61 |
|
1.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operative cash flow(2) |
|
8,008 |
|
6,811 |
|
17.6 |
% |
11.1 |
% |
23,203 |
|
19,576 |
|
18.5 |
% |
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTM 3Q 2014 |
|
FY 2013 |
|
Δ% |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
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|
|
|
|
|
Net Debt (3) |
|
39,953 |
|
45,155 |
|
-11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Debt / Operative cash flow(3) |
|
1.26 |
|
1.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operative cash flow/ Interest Expense, net(3) |
|
6.12 |
|
10.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization (4) |
|
35.1 |
% |
34.7 |
% |
|
|
|
|
|
|
|
|
|
|
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|
Expressed in millions of Mexican pesos. |
|
(1)
Quarterly earnings / outstanding shares as of the end of period. Outstanding shares as of 3Q’13 were 2,072.9 million.
Outstanding shares as of 3Q’14 were 2,072.9 million. |
|
(2)
Operative cash flow = operating income + depreciation + amortization & other operative non-cash charges. |
|
(3)
Net debt = total debt - cash |
|
(4)
Total debt / (long-term debt + shareholders’ equity) |
|
(5)
Excluding M&A effects means, with respect to a year over year comparison, the increase in a given measure excluding
the effects of mergers, acquisitions and divestitures. |
|
We believe this measure
allows us to provide investors and other market participants with a better representation of the performance of our business.
In preparing this measure, management has used its best judgment, estimates and assumptions in order to maintain comparability. |
|
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|
![](tbullet.jpg) |
Reported total revenues
reached Ps. 41,781 million in the third quarter of 2014, an increase of 11.4% as compared to the third quarter of 2013. On
a currency neutral basis and excluding the non-comparable effect of the integration of Companhia Fluminense de Refrigerantes
(“Fluminense”) and Spaipa S.A. Industria Brasileira de Bebidas (“Spaipa”) in our Brazilian
operation, total revenues grew 21.3%. |
|
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|
![](tbullet.jpg) |
Reported operating income reached Ps. 5,825 million in the third quarter of 2014, an increase of 15.1% as compared to the
same period of the previous year, resulting in an operating margin of 13.9%. |
|
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|
|
![](tbullet.jpg) |
Reported operative cash flow grew 17.6% to Ps. 8,008 million in the third quarter of 2014, as compared to the same period
in 2013. Our reported operative cash flow margin expanded 100 basis points to 19.2%. Excluding the recently integrated territories
in Brazil, operating cash flow grew 11.1% resulting in a margin expansion of 150 basis points to reach 19.7%. |
|
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|
![](tbullet.jpg) |
Reported consolidated net controlling interest income grew 13.2% to Ps. 3,343 million in the third quarter of 2014, resulting
in earnings per share of Ps. 1.61. |
|
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|
Mexico City October 22, 2014, Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL, NYSE: KOF) (“Coca-Cola FEMSA” or the “Company”),
the largest franchise bottler in the world, announces results for the third quarter of 2014. |
|
|
|
“As we enter the final stretch of the year, we continue to build positive momentum in our operations. This quarter, our operators
delivered solid bottom-line growth, despite the many challenges we face across our markets. In Mexico, superior point of sale
execution, hard work, and packaging and brand innovation continue to yield encouraging results. Importantly, at the beginning
of September, we launched Coca-Cola Life, a mid-calorie option naturally sweetened with Stevia and sugar, refreshing the Coke
category in Mexico with benchmark results for the system. Colombia and Central America continue to accelerate volume growth
in their operations, while our revenue management initiatives, coupled with the synergies captured from our recent integrations,
have enabled us to improve the profitability of Brazil. Argentina and Venezuela delivered positive results, despite a difficult
macroeconomic and operating environment. Our implementation of an improved route-to-market, an efficient supply chain, and
a renewed portfolio underscore our long-term commitment to develop our Philippine operation to capture the potential that
we envision together with our partner, The Coca-Cola Company, in that region. We look forward to 2015, recognizing that we
have the right team to win in the marketplace, delivering sustained economic, social, and environmental value for all of our
stakeholders,” said John Santa Maria Otazua, Chief Executive Officer of the Company. |
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October 22, 2014 | ![](tfooter.jpg) | Page 10 |
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All the financial information presented
in this report was prepared under International Financial Reporting Standards (IFRS).
Starting on February 2013, we are incorporating
our stake of the results of Coca-Cola Bottlers Philippines, Inc. through the equity method on an estimated basis.
As of the first quarter of 2014, Coca-Cola
FEMSA has adopted the state-run Supplementary Currency Administration System (SICAD) alternate exchange rate to translate its Venezuelan
operation’s results into its reporting currency, the Mexican peso. The SICAD exchange rate used to translate the third quarter
and first nine months results of 2014 was 12.00 bolivars per U.S. dollar as per the auction held on September 25, 2014.
Our reported total revenues increased 11.4%
to Ps. 41,781 million in the third quarter of 2014, compared to the third quarter of 2013, driven by the integration of Fluminense
and Spaipa in our Brazilian territories(1) and revenue growth in our Mexican, Brazilian, Colombian, and Central American
operations. Excluding the recently integrated territories in Brazil,(1) total revenues increased 2.5%. On a currency
neutral basis and excluding the new franchises in Brazil,(1) total revenues grew 21.3%, driven by average price per
unit case growth in most of our territories and volume growth in Colombia, Central America and Venezuela.
Reported total sales volume increased 7.5%
to 855.4 million unit cases in the third quarter of 2014 as compared to the same period in 2013. Excluding the integration of Fluminense
and Spaipa in Brazil,(1) volumes increased 0.7% to 800.8 million unit cases. On the same basis, our water portfolio,
including bulk water, grew 2.6%, mainly driven by 2% growth in brand Ciel in Mexico. Our sparkling and still beverage
categories remained flat.
Our reported gross profit increased 11.4%
to Ps. 19,585 million in the third quarter of 2014, as compared to the same period of 2013. Lower sweetener and PET prices in most
of our territories were offset by the depreciation of the average exchange rate of most of the currencies in our South America
division and the Mexican peso(2) as applied to our U.S. dollar-denominated raw material costs. Reported gross margin
remained flat at 46.9% in the third quarter of 2014.
Our reported operating income increased
15.1% to Ps. 5,825 million in the third quarter of 2014 and our reported operating margin was 13.9%. Excluding the integration
of the new territories in Brazil,(1) operating income increased 7.9%, reaching Ps. 5,464 million and representing an
operating margin of 14.2%. Excluding the non-comparable effect of Fluminense and Spaipa(1) operating expenses decreased
as a percentage of revenues in the majority of our territories.
During the third quarter of 2014, the other
operative expenses, net line recorded an expense of Ps. 103 million, mainly due to restructuring charges in our Mexican operation
and operative currency fluctuation effects in most of our subsidiaries.
The
share of the profits of associates and joint ventures line recorded a loss of Ps. 217 million in the third quarter of 2014, mainly
due to an equity method loss from our participation in Coca-Cola Bottlers Philippines, Inc., and Estrella Azul in Panama, which
were partially compensated by a gain in the participation of our non-carbonated beverage joint-ventures in Brazil.
Reported operative cash flow grew 17.6%
to Ps. 8,008 million in the third quarter of 2014 as compared to the same period in 2013. Our reported operative cash flow margin
expanded 100 basis points to reach 19.2% in the third quarter of 2014. Excluding the recently integrated territories in Brazil,
operating cash flow margin expanded 150 basis points to 19.7%.
Our comprehensive financing result in the
third quarter of 2014 recorded an expense of Ps. 2,046 million as compared to an expense of Ps. 457 million in the same period
of 2013. The financing of the most recent acquisitions in Brazil generated an increase in interest expenses due to a larger debt
position and higher interest rates related to the debt balance swapped to Brazilian reals. In addition, during the quarter we registered
a foreign exchange loss as a result of the quarterly depreciation of the Mexican peso(2) as applied to our
US dollar-denominated net debt position and a loss on the monetary position of Venezuela generated by a larger monetary asset position.
During the third quarter of 2014, income
tax, as a percentage of income before taxes, was 14.2% as compared to 34.7% in the same period of 2013. The lower effective tax
rate registered during the third quarter of 2014 is related to a one-time benefit resulting from the settlement of certain contingent
tax liabilities under the tax amnesty program offered by the Brazilian tax authorities.
The benefit resulting from the settlement
of this tax contingency was recorded as (i) a gain in the other non-operative expenses line due to the cancellation of a previously
recorded provision and (ii) a reduction of income taxes.
Our reported consolidated net controlling
interest grew 13.2% to Ps. 3,343 million in the third quarter of 2014. Earnings per share (EPS) in the third quarter of 2014 were
Ps. 1.61 (Ps. 16.12 per ADS) computed on the basis of 2,072.9 million shares (each ADS represents 10 local shares).
| (1) | The Company’s South America division’s operating results include the non-comparable
effect of Fluminense’s results for the months of July, 2014 and August, 2014, and Spaipa’s results for the months of
July, 2014 through September, 2014. |
| (2) | See page 13 for average and end of period exchange rates for the third quarter and the first nine
months of 2014. |
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October 22, 2014 | ![](tfooter.jpg) | Page 11 |
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As of September 30, 2014, we had a cash
balance of Ps. 21,597 million, including US$513 million denominated in U.S. dollars, an increase of Ps. 6,291 million compared
to December 31, 2013. This difference was mainly driven by cash generated by our operations.
As of September 30, 2014, total short-term
debt was Ps. 1,636 million and long-term debt was Ps. 59,914 million. Total debt increased by Ps. 1,089 million, compared to year
end 2013 mainly due to debt issuance at the beginning of the year and the negative translation effect resulting from the devaluation
of the end of period exchange rate of the Mexican peso(1) as applied to our U.S. dollar denominated debt position.
Net debt decreased Ps. 5,202 million compared to year end 2013.
The weighted average cost of debt for
the quarter was 7.94%. The following charts set forth the Company’s debt profile by currency and interest rate type and
by maturity date as of September 30, 2014.
Currency | |
% Total Debt(1) | | |
% Interest Rate Floating(1)(2) | |
Mexican pesos | |
| 30.1 | % | |
| 24.9 | % |
U.S. dollars | |
| 26.5 | % | |
| 0.0 | % |
Colombian pesos | |
| 1.3 | % | |
| 100.0 | % |
Brazilian reals | |
| 40.5 | % | |
| 97.4 | % |
Argentine pesos | |
| 1.6 | % | |
| 36.8 | % |
| (1) | After giving effect to interest rate swaps |
| (2) | Calculated by weighting each year’s outstanding debt balance mix |
Debt Maturity Profile
Maturity Date | |
2014 | | |
2015 | | |
2016 | | |
2017 | | |
2018 | | |
2019+ | |
% of Total Debt | |
| 1.0 | % | |
| 1.8 | % | |
| 7.8 | % | |
| 0.4 | % | |
| 29.1 | % | |
| 59.9 | % |
| (1) | See page 13 for average and end of period exchange rates for the third quarter and the first nine
months of 2014. |
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October 22, 2014 | ![](tfooter.jpg) | Page 12 |
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For reporting purposes, all
corporate expenses, including the equity method recorded from our stake of the results of Coca-Cola Bottlers Philippines, Inc.,
are included in the results of the Mexico and Central America division.
Revenues
Reported total revenues from
our Mexico and Central America division increased 3.6% to Ps. 18,580 million in the third quarter of 2014, as compared to the same
period in 2013, driven by revenue growth in all of our operations. Our average price per unit case, which is presented net of taxes,
grew 3.4%, reaching Ps. 37.34, mainly supported by a price adjustment implemented in Mexico during the first quarter of 2014. On
a currency neutral basis, total revenues in the division increased 3.8%.
Reported total sales volume
increased 0.5% to 497.0 million unit cases in the third quarter of 2014, as compared to the third quarter of 2013. Our sparkling
beverage category increased 0.6%, driven by 2% growth of brand Coca-Cola. Our water portfolio, including bulk water, grew
2.2%, mainly driven by 2% growth of brand Ciel. These increases compensated for a 5.9% decrease of our still beverage category.
Operating Income
Our reported gross profit increased
5.3% to Ps. 9,365 million in the third quarter of 2014 as compared to the same period in 2013. Lower sweetener and PET prices
in the division were partially offset by the depreciation of the average exchange rate of most of our division’s currencies(1)
as applied to our U.S. dollar-denominated raw material costs. Reported gross margin reached 50.4% in the third quarter of
2014, an expansion of 80 basis points as compared to the same period of the previous year.
Reported
operating income(2) increased 1.3% to Ps. 2,869 million in the third quarter of 2014. Our reported operating margin
reached 15.4% in the third quarter of 2014. Our operating expenses increased only 2.3% and decreased as a percentage of revenues
in the division as compared with the third quarter of 2013.
Reported operative cash flow
grew 6.8% to Ps. 4,093 million in the third quarter of 2014 as compared to the same period in 2013. Our reported operative cash
flow margin was 22.0%, an expansion of 60 basis points.
| (1) | See page 13 for average and end of period exchange rates for the third quarter and the first nine
months of 2014. |
| (2) | For reporting purposes, all corporate expenses, including the equity method recorded from our stake
of the results of Coca-Cola Bottlers Philippines, Inc., are included in the results of the Mexico and Central America division. |
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October 22, 2014 | ![](tfooter.jpg) | Page 13 |
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As of the first quarter of
2014, Coca-Cola FEMSA has adopted the state-run Supplementary Currency Administration System (SICAD) alternate exchange rate to
translate its Venezuelan operation’s results into its reporting currency, the Mexican peso. The SICAD exchange rate used
to translate the third quarter and first nine months results of 2014 was 12.00 bolivars per U.S. dollar as per the auction held
on September 25, 2014.
Volume and average price
per unit case exclude beer results.
Revenues
Reported total revenues were
Ps. 23,201 million in the third quarter of 2014, an increase of 18.6% as compared to the same period of 2013, as a result of (i)
the integration of Fluminense and Spaipa in Brazil,(1) (ii) revenue growth in our Colombian and Brazilian operations,
and (iii) despite the negative translation effect of the devaluation of the currencies in the division.(2) Excluding
beer, which accounted for Ps. 1,589 million during the quarter, revenues increased 15.3% to Ps. 21,612 million. On a currency
neutral basis and excluding Fluminense and Spaipa,(1) total revenues increased 37.3% due to average price per unit
case increases in Venezuela, Brazil and Argentina, and volume growth in Colombia and Venezuela.
Reported total sales volume
in our South America division increased 19.0% to 358.4 million unit cases in the third quarter of 2014 as compared to the same
period of 2013, as a result of the integration of Fluminense and Spaipa in Brazil(1) and volume growth in Colombia
and Venezuela. Excluding the non-comparable effect of the acquisitions in Brazil,(1) volume increased 0.9% to 303.8
million unit cases. On the same basis, our still beverage category grew 11.1% driven by the Jugos del Valle line of business in
the division, including growth of del Valle Fresh in Colombia. Our bottled water category grew 9.5% driven by Aquarius
and Bonaqua in Argentina and Crystal in Brazil. Our sparkling beverage category remained flat. These increases
compensated for a volume decline in our bulk water category.
Operating Income
Reported gross profit reached
Ps. 10,222 million, an increase of 17.8% in the third quarter of 2014, as compared to the same period of 2013. In local currency,
lower sweetener and PET prices in most of our territories were compensated by the depreciation of the average exchange rate of
most of the currencies in the division (2) as applied to our U.S. dollar-denominated raw material costs. Reported gross
margin reached 44.1% in the third quarter of 2014.
Our reported operating income
increased 32.5% to Ps. 2,957 million in the third quarter of 2014, compared to the same period of 2013, as a result of the integration
of Fluminense and Spaipa in Brazil,(1) and operating income growth in all of the territories of our South America division.
This growth was partially offset by the negative translation effect resulting from using the SICAD exchange rate to translate
the results of our Venezuelan operation. Excluding the recently integrated territories in Brazil, operating expenses decreased
0.9% despite higher labor and freight costs in Venezuela, Colombia and Brazil, and continued marketing investments to support
our marketplace execution and bolster our returnable packaging base in Brazil. Our reported operating margin expanded 130 basis
points to 12.7% in the third quarter of 2014.
Reported operative cash flow
grew 31.5% to Ps. 3,915 million in the third quarter of 2014 as compared to the same period in 2013. Our reported operative cash
flow margin expanded 170 basis points to 16.9%. Excluding the recently integrated territories in Brazil, operating cash flow margin
expanded 230 basis points to 17.5%.
| (1) | The Company’s South America division’s operating results include the non-comparable
effect of Fluminense’s results for the months of July, 2014 and August, 2014, and Spaipa’s results for the months of
July, 2014 through September, 2014. |
| (2) | See page 13 for average and end of period exchange rates for the third quarter and the first nine
months of 2014. |
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October 22, 2014 | ![](tfooter.jpg) | Page 14 |
![](theader5.jpg)
The Company’s Mexico
& Central America divisions’ operating results include the non-comparable effect of Grupo Yoli’s results for the
months of January, 2014 through May, 2014.
The Company’s South
America divisions’ operating results include the non-comparable effect of Fluminense’s results for the months of January,
2014 through August, 2014 and Spaipa’s results for the months of January, 2014 through September, 2014.
As of February 2013, we are
incorporating our stake of the results of Coca-Cola Bottlers Philippines, Inc. through the equity method on an estimated basis.
As of the first quarter of
2014, Coca-Cola FEMSA has adopted the state-run Supplementary Currency Administration System (SICAD) alternate exchange rate to
translate its Venezuelan operation’s results into its reporting currency, the Mexican peso. The SICAD exchange rate used
to translate the third quarter and first nine months results of 2014 was 12.00 bolivars per U.S. dollar as per the auction held
on September 25, 2014.
Our reported consolidated total
revenues increased 12.2% to Ps. 123,114 million in the first nine months of 2014, as compared to the same period of 2013, driven
by (i) the integration of Fluminense and Spaipa in our Brazilian territories and Yoli in Mexico,(1)(2) (ii) revenue
growth in our Venezuelan operation, despite using the SICAD exchange rate for translation purposes, (iii) revenue growth in most
of our territories, and (iv) despite the negative translation effect originated by the devaluation of the currencies in most of
our territories.(3) Excluding the integrated territories in Brazil and Mexico,(1)(2) total revenues increased
1.2%. On a currency neutral basis and excluding the non-comparable effect of Fluminense and Spaipa in Brazil, and Yoli in Mexico,(1)(2)
total revenues grew 22.4%, in the first nine months of 2014.
Reported total sales volume
increased 8.5% to 2,520.5 million unit cases in the first nine months of 2014, as compared to the same period in 2013. Excluding
the integration of Fluminense and Spaipa in Brazil, and Yoli in Mexico,(1)(2) volumes remained almost flat at 2,305.5
million unit cases, mainly due to the volume contraction originated by the price increases that were implemented due to the excise
tax in Mexico. On the same basis, the bottled water portfolio grew 5.3%, driven by Crystal in Brazil, Nevada in Venezuela
and Bonaqua in Argentina. The still beverage category grew 2.8%, mainly driven by the performance of the Jugos del Valle
line of business and Powerade across most of our territories. These increases partially compensated for a volume decline
in our sparkling beverage category and our bulk water business.
Our reported gross profit increased
11.9% to Ps. 57,636 million in the first nine months of 2014, as compared to the same period of 2013. Lower sweetener and PET prices
in most of our operations were offset by the depreciation of the average exchange rate of the Argentine peso,(3) the
Brazilian real,(3) the Colombian peso(3) and the Mexican peso(3) as applied to our U.S. dollar-denominated
raw material costs. Reported gross margin remained almost flat at 46.8%.
Our reported operating income
increased 13.9% to Ps. 16,516 million in the first nine months of 2014 and our reported operating margin was 13.4%. Excluding the
integration of the new territories in Brazil and Mexico,(1)(2) operating income increased 6.7%, reaching Ps. 15,471
million, representing an operating margin of 13.9%. Excluding the non-comparable effect of Fluminense, Spaipa and Yoli,(1)(2)
operating expenses decreased as a percentage of revenues in most of our territories.
During the first nine months
of 2014, the other operative expenses, net line recorded an expense of Ps. 462 million, mainly related to (i) an operative currency
fluctuation effect in Venezuela, (ii) restructuring charges in our Mexican operation and (iii) the loss on sale of certain fixed
assets.
The
share of the profits of associates and joint ventures line recorded a loss of Ps. 383 million in
the first nine months of 2014, mainly due to an equity method loss from our participation in Coca-Cola Bottlers Philippines, Inc.,
and Estrella Azul in Panama, which were partially compensated by a gain in the participation of our non-carbonated beverage joint-ventures
in Brazil.
Reported operative cash flow
grew 18.5% to Ps. 23,203 million in the first nine months of 2014 as compared to the same period in 2013. Our reported operative
cash flow margin expanded 100 basis points to 18.8%. Excluding the recently integrated territories in Brazil and Mexico,(1)(2)
operating cash flow margin expanded 180 basis points to 19.6%.
During the first nine months
of 2014, income tax, as a percentage of income before taxes, was 27.4% as compared to 32.5% in the same period of 2013. The lower
effective tax rate registered during 2014 is related to a one-time benefit resulting from the settlement of certain contingent
tax liabilities under the tax amnesty program offered by the Brazilian tax authorities.
The benefit resulting from the
settlement of this tax contingency was recorded as (i) a gain in the other non-operative expenses line due to the cancellation
of a previously recorded provision and (ii) a reduction of income taxes.
Our consolidated net controlling
interest income grew 1.5% to Ps. 8,415 million in the first nine months of 2014. Earnings per share (EPS) in the first nine months
of 2014 were Ps. 4.06 (Ps. 40.59 per ADS) computed on the basis of 2,072.9 million shares outstanding (each ADS represents 10 local
shares).
| (1) | The Company’s South America division’s operating results include the non-comparable
effect of Fluminense’s results for the months of January, 2014 through August, 2014 and Spaipa’s results for the months
of January, 2014 through September, 2014. |
| (2) | The Company’s Mexico & Central America division’s operating results include the
non-comparable effect of Grupo Yoli’s results for the months of January, 2014 through May, 2014. |
| (3) | See page 13 for average and end of period exchange rates for the third quarter and the first nine
months of 2014. |
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October 22, 2014 | ![](tfooter.jpg) | Page 15 |
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Philippines Operation
Volume in the third quarter
of 2014 grew close to 3% as compared to the same period of 2013. Supported by the performance of our new one-way single-serve platform,
brands Coca-Cola, Royal and Sprite grew 7%, 22% and 19%, respectively. We continue with the expansion of our
route-to-market model, reaching now close to 500,000 clients through a team of more than 2,100 pre-sellers. To this date, we have
installed 4 new production lines to reinforce our single-serve one-way PET capacity, supporting our portfolio strategy.
RECENT DEVELOPMENTS
| ![](tbullet.jpg) | On September 11, 2014, Coca-Cola FEMSA was the only Mexican beverage company selected as a part
of the Dow Jones Sustainability Emerging Markets Index, comprised of a group of only 86 emerging markets companies. This is the
second consecutive time that our Company has had the privilege to be part of this group. |
| ![](tbullet.jpg) | As of the first quarter of 2014, Coca-Cola FEMSA has adopted the state-run Supplementary Currency
Administration System (SICAD) currency rate to translate its Venezuelan operation’s results into its reporting currency,
the Mexican peso. The exchange rate used to translate the third quarter and first nine months results was 12.00 bolivars per U.S.
dollar as per the auction held on September 25, 2014. As of October 20, 2014, the SICAD II exchange rate was 49.99 bolivars per
U.S. dollar. |
| ![](tbullet.jpg) | As of November, 2014 we will pay the second installment of the 2013 dividend in the amount of Ps.
1.45 per share. |
CONFERENCE CALL INFORMATION
Our third quarter 2014 conference
call will be held on October 22, 2014, at 11:00 A.M. Eastern Time (10:00 A.M. Mexico City Time). To participate in the conference
call, please dial: Domestic U.S.: 888-430-8709 or International: 719-457-2645. Participant code: 9882269. We invite investors to
listen to the live audiocast of the conference call on the Company’s website, www.coca-colafemsa.com. If you are unable
to participate live, the conference call audio will be available at www.coca-colafemsa.com.
v v v
Coca-Cola FEMSA, S.A.B. de C.V.
produces and distributes Coca-Cola, Fanta, Sprite, Del Valle, and other trademark beverages of The
Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City, as well as southeast and northeast Mexico),
Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia
(most of the country), Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state of Mato Grosso
do Sul, the state of Paraná, part of the state of Goias, part of the state of Rio de Janeiro and part of the state of Minas
Gerais), Argentina (federal capital of Buenos Aires and surrounding areas) and Philippines (nationwide), along with bottled water,
juices, teas, isotonics, beer, and other beverages in some of these territories. The Company has 64 bottling facilities and serves
more than 346 million consumers through close to 2,900,000 retailers with more than 120,000 employees worldwide.
v v v
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.
v v v
(6 pages of tables to follow)
Mexican Stock Exchange Quarterly
Filing
Coca-Cola FEMSA encourages the
reader to refer to our quarterly filing to the Mexican Stock Exchange (Bolsa Mexicana de Valores or BMV) for more detailed information.
This filing contains a detailed cash flow statement and selected notes to the financial statements, including segment information.
This filing is available at www.bmv.com.mx in the Información Financiera section for Coca-Cola FEMSA (KOF).
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October 22, 2014 | ![](tfooter.jpg) | Page 16 |
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Consolidated Income Statement |
Expressed in millions of Mexican pesos(1) |
| |
3Q 14 | | |
% Rev | | |
3Q 13 | | |
% Rev | | |
Reported Δ% | | |
Excluding M&A
Effects Δ% (9) | | |
YTD 14 | | |
% Rev | | |
YTD 13 | | |
% Rev | | |
Reported
Δ% | | |
Excluding M&A
Effects Δ%(9) | |
Volume (million
unit cases) (2) | |
| 855.4 | | |
| | | |
| 795.4 | | |
| | | |
| 7.5 | % | |
| 0.7 | % | |
| 2,520.5 | | |
| | | |
| 2,322.7 | | |
| | | |
| 8.5 | % | |
| -0.7 | % |
Average price per unit case (2) | |
| 46.88 | | |
| | | |
| 45.83 | | |
| | | |
| 2.3 | % | |
| 2.1 | % | |
| 46.83 | | |
| | | |
| 45.91 | | |
| | | |
| 2.0 | % | |
| 0.8 | % |
Net revenues | |
| 41,689 | | |
| | | |
| 37,272 | | |
| | | |
| 11.9 | % | |
| | | |
| 122,883 | | |
| | | |
| 109,123 | | |
| | | |
| 12.6 | % | |
| | |
Other operating revenues | |
| 92 | | |
| | | |
| 222 | | |
| | | |
| -58.6 | % | |
| | | |
| 231 | | |
| | | |
| 614 | | |
| | | |
| -62.4 | % | |
| | |
Total revenues (3) | |
| 41,781 | | |
| 100 | % | |
| 37,494 | | |
| 100 | % | |
| 11.4 | % | |
| 2.5 | % | |
| 123,114 | | |
| 100 | % | |
| 109,737 | | |
| 100 | % | |
| 12.2 | % | |
| 1.2 | % |
Cost of goods sold | |
| 22,196 | | |
| 53.1 | % | |
| 19,919 | | |
| 53.1 | % | |
| 11.4 | % | |
| | | |
| 65,478 | | |
| 53.2 | % | |
| 58,225 | | |
| 53.1 | % | |
| 12.5 | % | |
| | |
Gross profit | |
| 19,585 | | |
| 46.9 | % | |
| 17,575 | | |
| 46.9 | % | |
| 11.4 | % | |
| 4.5 | % | |
| 57,636 | | |
| 46.8 | % | |
| 51,512 | | |
| 46.9 | % | |
| 11.9 | % | |
| 3.3 | % |
Operating expenses | |
| 13,440 | | |
| 32.2 | % | |
| 12,506 | | |
| 33.4 | % | |
| 7.5 | % | |
| | | |
| 40,275 | | |
| 32.7 | % | |
| 36,917 | | |
| 33.6 | % | |
| 9.1 | % | |
| | |
Mexico | |
| 103 | | |
| 0.2 | % | |
| (22 | ) | |
| -0.1 | % | |
| -568.2 | % | |
| | | |
| 462 | | |
| 0.4 | % | |
| 216 | | |
| 0.2 | % | |
| 113.9 | % | |
| | |
Operative equity method (gain)
loss in associates(4)(5) | |
| 217 | | |
| 0.5 | % | |
| 28 | | |
| 0.1 | % | |
| 675.0 | % | |
| | | |
| 383 | | |
| 0.3 | % | |
| (121 | ) | |
| -0.1 | % | |
| -416.5 | % | |
| | |
Operating income (6) | |
| 5,825 | | |
| 13.9 | % | |
| 5,063 | | |
| 13.5 | % | |
| 15.1 | % | |
| 7.9 | % | |
| 16,516 | | |
| 13.4 | % | |
| 14,500 | | |
| 13.2 | % | |
| 13.9 | % | |
| 6.7 | % |
Other non operative expenses, net | |
| (291 | ) | |
| -0.7 | % | |
| 51 | | |
| 0.1 | % | |
| -672.5 | % | |
| | | |
| (233 | ) | |
| -0.2 | % | |
| 232 | | |
| 0.2 | % | |
| -200.6 | % | |
| | |
Non Operating equity method
(gain) loss in associates(7) | |
| (24 | ) | |
| -0.1 | % | |
| (48 | ) | |
| -0.1 | % | |
| -48.7 | % | |
| | | |
| (96 | ) | |
| -0.1 | % | |
| (111 | ) | |
| -0.1 | % | |
| -13.7 | % | |
| | |
Interest expense | |
| 1,454 | | |
| | | |
| 623 | | |
| | | |
| 133.4 | % | |
| | | |
| 4,305 | | |
| | | |
| 1,830 | | |
| | | |
| 135.2 | % | |
| | |
Interest income | |
| 85 | | |
| | | |
| 220 | | |
| | | |
| -61.4 | % | |
| | | |
| 403 | | |
| | | |
| 441 | | |
| | | |
| -8.6 | % | |
| | |
Interest expense, net | |
| 1,369 | | |
| | | |
| 403 | | |
| | | |
| 239.7 | % | |
| | | |
| 3,902 | | |
| | | |
| 1,389 | | |
| | | |
| 180.9 | % | |
| | |
Foreign exchange loss (gain) | |
| 375 | | |
| | | |
| 162 | | |
| | | |
| 131.5 | % | |
| | | |
| 322 | | |
| | | |
| 319 | | |
| | | |
| 0.9 | % | |
| | |
Loss (gain) on monetary position in Inflationary subsidiries | |
| 209 | | |
| | | |
| (76 | ) | |
| | | |
| -375.0 | % | |
| | | |
| 744 | | |
| | | |
| 150 | | |
| | | |
| 4.0 | | |
| | |
Market value (gain) loss on ineffective
portion of derivative instruments | |
| 93 | | |
| | | |
| (32 | ) | |
| | | |
| -390.6 | % | |
| | | |
| (67 | ) | |
| | | |
| (18 | ) | |
| | | |
| 272.2 | % | |
| | |
Comprehensive financing result | |
| 2,046 | | |
| | | |
| 457 | | |
| | | |
| 347.7 | % | |
| | | |
| 4,901 | | |
| | | |
| 1,840 | | |
| | | |
| 166.4 | % | |
| | |
Income before taxes | |
| 4,094 | | |
| | | |
| 4,603 | | |
| | | |
| -11.1 | % | |
| | | |
| 11,944 | | |
| | | |
| 12,539 | | |
| | | |
| -4.7 | % | |
| | |
Income taxes | |
| 581 | | |
| | | |
| 1,596 | | |
| | | |
| -63.6 | % | |
| | | |
| 3,275 | | |
| | | |
| 4,077 | | |
| | | |
| -19.7 | % | |
| | |
Consolidated net income | |
| 3,513 | | |
| | | |
| 3,007 | | |
| | | |
| 16.8 | % | |
| | | |
| 8,669 | | |
| | | |
| 8,462 | | |
| | | |
| 2.4 | % | |
| | |
Net income attributable to equity holders of the Company | |
| 3,343 | | |
| 8.0 | % | |
| 2,954 | | |
| 7.9 | % | |
| 13.2 | % | |
| | | |
| 8,415 | | |
| 6.8 | % | |
| 8,292 | | |
| 7.6 | % | |
| 1.5 | % | |
| | |
Non-controlling interest | |
| 170 | | |
| | | |
| 53 | | |
| | | |
| 220.8 | % | |
| | | |
| 254 | | |
| | | |
| 170 | | |
| | | |
| 49.4 | % | |
| | |
Operating income (6) | |
| 5,825 | | |
| 13.9 | % | |
| 5,063 | | |
| 13.5 | % | |
| 15.1 | % | |
| 7.9 | % | |
| 16,516 | | |
| 13.4 | % | |
| 14,500 | | |
| 13.2 | % | |
| 13.9 | % | |
| 6.7 | % |
Depreciation | |
| 1,520 | | |
| | | |
| 1,562 | | |
| | | |
| -2.7 | % | |
| | | |
| 4,836 | | |
| | | |
| 4,555 | | |
| | | |
| 6.2 | % | |
| | |
Amortization and other operative non-cash charges | |
| 663 | | |
| | | |
| 186 | | |
| | | |
| 256.5 | % | |
| | | |
| 1,851 | | |
| | | |
| 521 | | |
| | | |
| 255.3 | % | |
| | |
Operative cash flow (6)(8) | |
| 8,008 | | |
| 19.2 | % | |
| 6,811 | | |
| 18.2 | % | |
| 17.6 | % | |
| 11.1 | % | |
| 23,203 | | |
| 18.8 | % | |
| 19,576 | | |
| 17.8 | % | |
| 18.5 | % | |
| 11.3 | % |
| (1) | Except volume and average
price per unit case figures. |
| (2) | Sales volume and average
price per unit case exclude beer results. |
| (3) | Includes total revenues
of Ps. 16,405 million from our Mexican operation and Ps. 10,147 million from our Brazilian
operation. |
| (4) | Includes equity method
in Jugos del Valle, Coca-Cola Bottlers Philippines, Inc., Leao Alimentos and Estrella
Azul, among others. |
| (5) | As of February 2013, we
are incorporating our stake of the results of Coca-Cola Bottlers Philippines, Inc. through
the equity method on an estimated basis in this line. |
| (6) | The operating income and
operative cash flow lines are presented as non-gaap measures for the convenience of the
reader. |
| (7) | Includes equity method
in PIASA, IEQSA, Beta San Miguel, IMER and KSP Participacoes. |
| (8) | Operative cash flow = operating
income + depreciation, amortization & other operative non-cash charges. |
| (9) | Excluding M&A effects
means, with respect to a year over year comparison, the increase in a given measure excluding
the effects of mergers, acquisitions and divestitures. |
| | We believe this measure allows us to
provide investors and other market participants with a better representation of the performance
of our business. In preparing this measure, management has used its best judgment, estimates
and assumptions in order to maintain comparability. |
| | As of June 2013, we integrated Grupo
Yoli in our Mexican operation. |
| | As of September 2013, we integrated Fluminense
in our Brazilian operation. |
| | As of November 2013, we integrated Spaipa
in our Brazilian operation. |
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October 22, 2014 | ![](tfooter.jpg) | Page 17 |
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Consolidated Balance Sheet |
Expressed in millions of Mexican pesos. |
Assets | |
Sep-14 | | |
Dec-13 | |
Current Assets | |
| | | |
| | |
Cash, cash equivalents and marketable securities | |
Ps. | 21,597 | | |
Ps. | 15,306 | |
Total accounts receivable | |
| 8,647 | | |
| 9,958 | |
Inventories | |
| 8,427 | | |
| 9,130 | |
Other current assets | |
| 8,312 | | |
| 8,837 | |
Total current assets | |
| 46,983 | | |
| 43,231 | |
Property, plant and equipment | |
| | | |
| | |
Property, plant and equipment | |
| 86,464 | | |
| 86,961 | |
Accumulated depreciation | |
| (35,170 | ) | |
| (35,176 | ) |
Total property, plant and equipment, net | |
| 51,294 | | |
| 51,785 | |
Investment in shares | |
| 16,704 | | |
| 16,767 | |
Intangibles assets and other assets | |
| 102,372 | | |
| 103,556 | |
Other non-current assets | |
| 2,547 | | |
| 1,326 | |
Total Assets | |
Ps. | 219,900 | | |
Ps. | 216,665 | |
Liabilities and Equity | |
| Sep-14 | | |
| Dec-13 | |
Current Liabilities | |
| | | |
| | |
Short-term bank loans and notes payable | |
Ps. | 1,636 | | |
Ps. | 3,586 | |
Suppliers | |
| 16,083 | | |
| 16,220 | |
Other current liabilities | |
| 18,138 | | |
| 12,592 | |
Total Current Liabilities | |
| 35,857 | | |
| 32,398 | |
Long-term bank loans and notes payable | |
| 59,914 | | |
| 56,875 | |
Other long-term liabilities | |
| 8,702 | | |
| 10,239 | |
Total Liabilities | |
| 104,473 | | |
| 99,512 | |
Equity | |
| | | |
| | |
Non-controlling interest | |
| 4,256 | | |
| 4,042 | |
Total controlling interest | |
| 111,171 | | |
| 113,111 | |
Total equity (1) | |
| 115,427 | | |
| 117,153 | |
Total Liabilities and Equity | |
Ps. | 219,900 | | |
Ps. | 216,665 | |
| (1) | Includes the effect originated
by using the state-run SICAD exchange rate of 12.00 bolivars per U.S. dollar as of September
25, 2014. |
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October 22, 2014 | ![](tfooter.jpg) | Page 18 |
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Mexico & Central America Division |
Expressed in millions of Mexican pesos(1) |
| |
3Q
14 | | |
%
Rev | | |
3Q
13 | | |
%
Rev | | |
Reported
Δ% | | |
Excluding
M&A Effects Δ%(7) | | |
YTD
14 | | |
%
Rev | | |
YTD
13 | | |
%
Rev | | |
Reported
Δ% | | |
Excluding
M&A Effects Δ%(7) | |
Volume (million
unit cases) | |
| 497.0 | | |
| | | |
| 494.3 | | |
| | | |
| 0.5 | % | |
| 0.5 | % | |
| 1,445.1 | | |
| | | |
| 1,454.0 | | |
| | | |
| -0.6 | % | |
| -3.3 | % |
Average price per unit case | |
| 37.34 | | |
| | | |
| 36.09 | | |
| | | |
| 3.4 | % | |
| 3.4 | % | |
| 37.25 | | |
| | | |
| 35.83 | | |
| | | |
| 4.0 | % | |
| 3.7 | % |
Net revenues | |
| 18,557 | | |
| | | |
| 17,841 | | |
| | | |
| 4.0 | % | |
| | | |
| 53,823 | | |
| | | |
| 52,092 | | |
| | | |
| 3.3 | % | |
| | |
Other operating revenues | |
| 23 | | |
| | | |
| 94 | | |
| | | |
| -75.5 | % | |
| | | |
| 67 | | |
| | | |
| 256 | | |
| | | |
| -73.8 | % | |
| | |
Total revenues
(2) | |
| 18,580 | | |
| 100.0 | % | |
| 17,935 | | |
| 100.0 | % | |
| 3.6 | % | |
| 3.6 | % | |
| 53,890 | | |
| 100.0 | % | |
| 52,348 | | |
| 100.0 | % | |
| 2.9 | % | |
| -0.1 | % |
Cost of goods sold | |
| 9,215 | | |
| 49.6 | % | |
| 9,038 | | |
| 50.4 | % | |
| 2.0 | % | |
| | | |
| 26,573 | | |
| 49.3 | % | |
| 26,487 | | |
| 50.6 | % | |
| 0.3 | % | |
| | |
Gross profit | |
| 9,365 | | |
| 50.4 | % | |
| 8,897 | | |
| 49.6 | % | |
| 5.3 | % | |
| 5.3 | % | |
| 27,317 | | |
| 50.7 | % | |
| 25,861 | | |
| 49.4 | % | |
| 5.6 | % | |
| 2.8 | % |
Operating expenses | |
| 6,187 | | |
| 33.3 | % | |
| 6,048 | | |
| 33.7 | % | |
| 2.3 | % | |
| | | |
| 18,189 | | |
| 33.8 | % | |
| 17,460 | | |
| 33.4 | % | |
| 4.2 | % | |
| | |
Other operative expenses, net | |
| 75 | | |
| 0.4 | % | |
| (21 | ) | |
| -0.1 | % | |
| -457.1 | % | |
| | | |
| 216 | | |
| 0.4 | % | |
| 59 | | |
| 0.1 | % | |
| 266.1 | % | |
| | |
Operative equity
method (gain) loss in associates (3)(4) | |
| 234 | | |
| 1.3 | % | |
| 39 | | |
| 0.2 | % | |
| 500.0 | % | |
| | | |
| 463 | | |
| 0.9 | % | |
| (97 | ) | |
| -0.2 | % | |
| -577.3 | % | |
| | |
Operating income
(5) | |
| 2,869 | | |
| 15.4 | % | |
| 2,831 | | |
| 15.8 | % | |
| 1.3 | % | |
| 1.3 | % | |
| 8,449 | | |
| 15.7 | % | |
| 8,439 | | |
| 16.1 | % | |
| 0.1 | % | |
| -1.0 | % |
Depreciation, amortization
& other operative non-cash charges | |
| 1,224 | | |
| 6.6 | % | |
| 1,003 | | |
| 5.6 | % | |
| 22.0 | % | |
| | | |
| 3,600 | | |
| 6.7 | % | |
| 2,646 | | |
| 5.1 | % | |
| 36.1 | % | |
| | |
Operative cash
flow (5)(6) | |
| 4,093 | | |
| 22.0 | % | |
| 3,834 | | |
| 21.4 | % | |
| 6.8 | % | |
| 6.8 | % | |
| 12,049 | | |
| 22.4 | % | |
| 11,085 | | |
| 21.2 | % | |
| 8.7 | % | |
| 7.1 | % |
| (1) | Except volume and average
price per unit case figures. |
| (3) | Includes total revenues
of Ps. 16,405 million from our Mexican operation. |
| (3) | Includes equity method
in Jugos del Valle, Coca-Cola Bottlers Philippines, Inc. and Estrella Azul, among others. |
| (4) | As of February 2013, we
are incorporating our stake of the results of Coca-Cola Bottlers Philippines, Inc. through
the equity method on an estimated basis in this line. |
| (5) | The operating income and
operative cash flow lines are presented as non-gaap measures for the convenience of the
reader. |
| (6) | Operative cash flow = operating
income + depreciation, amortization & other operative non-cash charges. |
| (7) | Excluding M&A effects
means, with respect to a year over year comparison, the increase in a given measure excluding
the effects of mergers, acquisitions and divestitures. |
| | We believe this measure allows us to
provide investors and other market participants with a better representation of the performance
of our business. In preparing this measure, management has used its best judgment, estimates
and assumptions in order to maintain comparability. |
| | As of June 2013, we integrated Grupo
Yoli in our Mexican operation. |
South America Division |
Expressed in millions of Mexican pesos(1) |
| |
3Q 14 | | |
% Rev | | |
3Q 13 | | |
% Rev | | |
Reported Δ% | | |
Excluding M&A Effects Δ%(7) | | |
YTD 14 | | |
% Rev | | |
YTD 13 | | |
% Rev | | |
Reported Δ% | | |
Excluding M&A
Effects Δ%(7) | |
Volume
(million unit cases) (2) | |
| 358.4 | | |
| | | |
| 301.1 | | |
| | | |
| 19.0 | % | |
| 0.9 | % | |
| 1,075.4 | | |
| | | |
| 868.7 | | |
| | | |
| 23.8 | % | |
| 3.6 | % |
Average price per unit case (2)
| |
| 60.11 | | |
| | | |
| 61.81 | | |
| | | |
| -2.8 | % | |
| 0.8 | % | |
| 59.70 | | |
| | | |
| 62.79 | | |
| | | |
| -4.9 | % | |
| -2.2 | % |
Net revenues | |
| 23,133 | | |
| | | |
| 19,431 | | |
| | | |
| 19.1 | % | |
| | | |
| 69,060 | | |
| | | |
| 57,031 | | |
| | | |
| 21.1 | % | |
| | |
Other operating revenues | |
| 68 | | |
| | | |
| 128 | | |
| | | |
| -46.9 | % | |
| | | |
| 167 | | |
| | | |
| 358 | | |
| | | |
| -53.4 | % | |
| | |
Total revenues
(3) | |
| 23,201 | | |
| 100.0 | % | |
| 19,559 | | |
| 100.0 | % | |
| 18.6 | % | |
| 1.6 | % | |
| 69,227 | | |
| 100.0 | % | |
| 57,389 | | |
| 100.0 | % | |
| 20.6 | % | |
| 2.4 | % |
Cost of goods sold | |
| 12,979 | | |
| 55.9 | % | |
| 10,881 | | |
| 55.6 | % | |
| 19.3 | % | |
| | | |
| 38,907 | | |
| 56.2 | % | |
| 31,738 | | |
| 55.3 | % | |
| 22.6 | % | |
| | |
Gross profit | |
| 10,222 | | |
| 44.1 | % | |
| 8,678 | | |
| 44.4 | % | |
| 17.8 | % | |
| 3.8 | % | |
| 30,320 | | |
| 43.8 | % | |
| 25,651 | | |
| 44.7 | % | |
| 18.2 | % | |
| 3.7 | % |
Operating expenses | |
| 7,253 | | |
| 31.3 | % | |
| 6,458 | | |
| 33.0 | % | |
| 12.3 | % | |
| | | |
| 22,089 | | |
| 31.9 | % | |
| 19,464 | | |
| 33.9 | % | |
| 13.5 | % | |
| | |
Other operative expenses, net | |
| 29 | | |
| 0.1 | % | |
| (1 | ) | |
| 0.0 | % | |
| -3000.0 | % | |
| | | |
| 244 | | |
| 0.4 | % | |
| 150 | | |
| 0.3 | % | |
| 62.7 | % | |
| | |
Operative equity
method (gain) loss in associates (4) | |
| (17 | ) | |
| -0.1 | % | |
| (11 | ) | |
| -0.1 | % | |
| 54.5 | % | |
| | | |
| (80 | ) | |
| -0.1 | % | |
| (24 | ) | |
| 0.0 | % | |
| 233.3 | % | |
| | |
Operating income
(5) | |
| 2,957 | | |
| 12.7 | % | |
| 2,232 | | |
| 11.4 | % | |
| 32.5 | % | |
| 16.3 | % | |
| 8,067 | | |
| 11.7 | % | |
| 6,061 | | |
| 10.6 | % | |
| 33.1 | % | |
| 17.4 | % |
Depreciation, amortization
& other operative non-cash charges | |
| 958 | | |
| 4.1 | % | |
| 745 | | |
| 3.8 | % | |
| 28.6 | % | |
| | | |
| 3,088 | | |
| 4.5 | % | |
| 2,430 | | |
| 4.2 | % | |
| 27.1 | % | |
| | |
Operative cash
flow (5)(6) | |
| 3,915 | | |
| 16.9 | % | |
| 2,977 | | |
| 15.2 | % | |
| 31.5 | % | |
| 16.8 | % | |
| 11,155 | | |
| 16.1 | % | |
| 8,491 | | |
| 14.8 | % | |
| 31.4 | % | |
| 16.8 | % |
| (1) | Except volume and average
price per unit case figures. |
| (2) | Sales volume and average
price per unit case exclude beer results. |
| (3) | Includes total revenues
of Ps. 10,147 million from our Brazilian operation. |
| (4) | Includes equity method
in Leao Alimentos, among others. |
| (5) | The operating income and
operative cash flow lines are presented as non-gaap measures for the convenience of the
reader. |
| (6) | Operative cash flow = operating
income + depreciation, amortization & other operative non-cash charges. |
| (7) | Excluding
M&A effects means, with respect to a year over year comparison, the increase in a
given measure excluding the effects of mergers, acquisitions and divestitures. |
| | We believe this measure allows us to
provide investors and other market participants with a better representation of the performance
of our business. In preparing this measure, management has used its best judgment, estimates
and assumptions in order to maintain comparability. |
| | As of September 2013, we integrated Fluminense
in our Brazilian operation. |
| | As of November 2013, we integrated Spaipa
in our Brazilian operation. |
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SELECTED INFORMATION |
|
For the three months ended September 30, 2014 and 2013 |
|
Expressed in millions of Mexican pesos. |
|
3Q 14 |
|
|
3Q 13 |
Capex |
|
|
|
2,946.8 |
|
Capex |
|
|
|
3,458.3 |
Depreciation |
1,520.0 |
|
Depreciation |
1,562.0 |
Amortization &
Other non-cash charges |
663.0 |
|
Amortization &
Other non-cash charges |
186.0 |
VOLUME
Expressed in million unit cases
Mexico |
3Q
14 |
|
3Q
13 |
|
Sparkling |
Water
(1) |
Bulk
Water (2) |
Still |
Total |
|
Sparkling |
Water
(1) |
Bulk
Water (2) |
Still |
Total |
Mexico |
330.9 |
25.4 |
78.1 |
22.3 |
456.7 |
|
331.8 |
23.7 |
77.5 |
24.3 |
457.3 |
Central America |
33.6 |
2.4 |
0.1 |
4.2 |
40.3 |
|
30.9 |
1.8 |
0.1 |
4.2 |
37.0 |
Mexico & Central America |
364.5 |
27.8 |
78.2 |
26.5 |
497.0 |
|
362.7 |
25.5 |
77.6 |
28.5 |
494.3 |
Colombia |
54.1 |
6.3 |
7.1 |
7.8 |
75.3 |
|
48.9 |
5.6 |
7.7 |
5.8 |
68.0 |
Venezuela |
53.9 |
3.7 |
0.6 |
4.7 |
62.8 |
|
52.0 |
3.6 |
0.8 |
4.5 |
60.9 |
Brazil |
147.6 |
9.1 |
1.2 |
8.6 |
166.5 |
|
105.4 |
6.3 |
0.9 |
5.8 |
118.4 |
Argentina |
46.7 |
4.3 |
0.2 |
2.5 |
53.8 |
|
47.8 |
3.5 |
0.1 |
2.4 |
53.8 |
South America |
302.4 |
23.4 |
9.1 |
23.5 |
358.4 |
|
254.1 |
19.0 |
9.5 |
18.5 |
301.1 |
Total |
666.9 |
51.2 |
87.3 |
50.0 |
855.4 |
|
616.8 |
44.5 |
87.1 |
47.0 |
795.4 |
| (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 |
ORGANIC VOLUME (1)
Expressed in million unit cases
|
3Q
14 |
|
3Q
13 |
|
Sparkling |
Water
(2) |
Bulk
Water (3) |
Still |
Total |
|
Sparkling |
Water
(2) |
Bulk
Water (3) |
Still |
Total |
Brazil Organic |
98.4 |
6.7 |
0.9 |
5.9 |
111.8 |
|
105.4 |
6.3 |
0.9 |
5.8 |
118.4 |
South America Organic |
253.2 |
21.0 |
8.8 |
20.9 |
303.8 |
|
254.1 |
19.0 |
9.5 |
18.5 |
301.1 |
Total
Organic |
617.7 |
48.8 |
87.0 |
47.4 |
800.8 |
|
616.8 |
44.5 |
87.1 |
47.0 |
795.4 |
| (1) | Excludes
volume from Fluminense for the months of July, 2014 and August, 2014 and Spaipa for July,
2014 through September, 2014 |
| (2) | Excludes
water presentations larger than 5.0 Lt ; includes flavored water |
| (3) | Bulk
Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes
flavored water |
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For the nine months ended September 30, 2014 and 2013
Expressed in millions of Mexican pesos.
|
YTD 14 |
|
|
YTD 13 |
Capex |
|
|
|
6,993.6 |
|
Capex |
|
|
|
8,091.5 |
Depreciation |
4,836.0 |
|
Depreciation |
4,555.0 |
Amortization &
Other non-cash charges |
1,851.0 |
|
Amortization &
Other non-cash charges |
521.0 |
VOLUME
Expressed in million unit cases
|
YTD
14 |
|
|
YTD
13 |
|
|
Sparkling |
Water
(1) |
Bulk
Water (2) |
Still |
Total |
|
Sparkling |
Water
(1) |
Bulk
Water (2) |
Still |
Total |
Mexico |
949.3 |
77.8 |
229.4 |
67.6 |
1,324.1 |
|
957.5 |
72.4 |
237.1 |
72.8 |
1,339.8 |
Central America |
101.2 |
7.1 |
0.3 |
12.4 |
121.0 |
|
95.9 |
5.8 |
0.3 |
12.2 |
114.2 |
Mexico & Central America |
1,050.5 |
84.9 |
229.7 |
80.0 |
1,445.1 |
|
1,053.4 |
78.2 |
237.4 |
85.0 |
1,454.0 |
Colombia |
157.6 |
17.6 |
21.5 |
21.8 |
218.5 |
|
144.0 |
16.5 |
22.4 |
15.5 |
198.4 |
Venezuela |
154.6 |
10.0 |
1.6 |
14.1 |
180.4 |
|
146.2 |
8.9 |
2.1 |
11.7 |
168.9 |
Brazil |
456.9 |
29.7 |
3.8 |
27.2 |
517.7 |
|
303.2 |
17.8 |
2.4 |
17.5 |
340.9 |
Argentina |
139.0 |
12.3 |
0.4 |
7.1 |
158.8 |
|
142.2 |
11.0 |
0.4 |
6.9 |
160.5 |
South America |
908.1 |
69.6 |
27.4 |
70.3 |
1,075.4 |
|
735.6 |
54.2 |
27.3 |
51.6 |
868.7 |
Total |
1,958.6 |
154.5 |
257.1 |
150.3 |
2,520.5 |
|
1,789.0 |
132.4 |
264.7 |
136.6 |
2,322.7 |
| (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 |
ORGANIC VOLUME (1)
Expressed in million unit cases
|
YTD
14 |
|
YTD
13 |
|
Sparkling |
Water
(2) |
Bulk
Water (3) |
Still |
Total |
|
Sparkling |
Water
(2) |
Bulk
Water (3) |
Still |
Total |
Mexico Organic |
916.5 |
72.8 |
229.2 |
65.9 |
1,284.4 |
|
957.5 |
72.4 |
237.1 |
72.8 |
1,339.8 |
Mexico & Central America Organic |
1,017.7 |
79.9 |
229.5 |
78.3 |
1,405.4 |
|
1,053.4 |
78.2 |
237.4 |
85.0 |
1,454.0 |
Brazil Organic |
299.8 |
21.7 |
2.6 |
18.3 |
342.4 |
|
303.2 |
17.8 |
2.4 |
17.5 |
340.9 |
South America Organic |
751.0 |
61.6 |
26.1 |
61.4 |
900.1 |
|
735.6 |
54.2 |
27.3 |
51.6 |
868.7 |
Total
Organic |
1,768.7 |
141.5 |
255.6 |
139.7 |
2,305.5 |
|
1,789.0 |
132.4 |
264.7 |
136.6 |
2,322.7 |
| (1) | Excludes
volume from Yoli as of January, 2014 through May, 2014 and Fluminense and Spaipa as of
January, 2014 through June, 2014 |
| (2) | Excludes
water presentations larger than 5.0 Lt ; includes flavored water |
| (3) | Bulk
Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes
flavored water |
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September
2014 |
Macroeconomic
Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflation
(1) |
|
|
|
|
|
|
LTM |
3Q 2014 |
|
YTD |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
4.22% |
1.08% |
|
2.18% |
|
|
|
|
Colombia |
|
2.86% |
0.49% |
|
3.08% |
|
|
|
|
Venezuela
(2) |
|
62.02% |
10.88% |
|
43.87% |
|
|
|
|
Brazil |
|
6.75% |
0.83% |
|
4.61% |
|
|
|
|
Argentina |
|
23.76% |
4.20% |
|
19.84% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Source: inflation is published by
the Central Bank of each country. |
|
|
|
|
(2) Inflation based on unofficial publications
as of October 15th, 2014. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Exchange Rates for each Period |
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
Exchange Rate (local currency per USD) |
|
YTD
Exchange Rate (local currency per USD) |
|
|
3Q
14 |
|
3Q
13 |
Δ% |
|
2014 |
2013 |
Δ% |
|
|
|
|
|
|
|
|
|
|
Mexico |
|
13.1114 |
|
12.9141 |
1.5% |
|
13.1167 |
12.6806 |
3.4% |
Guatemala |
|
7.7674 |
|
7.8847 |
-1.5% |
|
7.7706 |
7.8422 |
-0.9% |
Nicaragua |
|
26.1153 |
|
24.8717 |
5.0% |
|
25.7995 |
24.5709 |
5.0% |
Costa
Rica |
|
544.7856 |
|
505.6211 |
7.7% |
|
545.1330 |
505.3980 |
7.9% |
Panama |
|
1.0000 |
|
1.0000 |
0.0% |
|
1.0000 |
1.0000 |
0.0% |
Colombia |
|
1,910.5851 |
|
1,907.6137 |
0.2% |
|
1,944.3202 |
1,853.7552 |
4.9% |
Venezuela |
|
11.2148 |
|
6.3000 |
78.0% |
|
9.7229 |
5.9825 |
62.5% |
Brazil |
|
2.2752 |
|
2.2883 |
-0.6% |
|
2.2896 |
2.1180 |
8.1% |
Argentina |
|
8.2982 |
|
5.5865 |
48.5% |
|
7.9937 |
5.2809 |
51.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End
of Period Exchange Rates |
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Rate (local currency per USD) |
|
Exchange
Rate (local currency per USD) |
|
|
Sep
14 |
|
Sep
13 |
Δ% |
|
Jun
14 |
Jun
13 |
Δ% |
|
|
|
|
|
|
|
|
|
|
Mexico |
|
13.4541 |
|
13.0119 |
3.4% |
|
13.0323 |
13.0235 |
0.1% |
Guatemala |
|
7.6712 |
|
7.9337 |
-3.3% |
|
7.7786 |
7.8330 |
-0.7% |
Nicaragua |
|
26.2733 |
|
25.0222 |
5.0% |
|
25.9521 |
24.7163 |
5.0% |
Costa
Rica |
|
545.5200 |
|
505.5700 |
7.9% |
|
548.6600 |
504.5300 |
8.7% |
Panama |
|
1.0000 |
|
1.0000 |
0.0% |
|
1.0000 |
1.0000 |
0.0% |
Colombia |
|
2,028.4800 |
|
1,914.6500 |
5.9% |
|
1,881.1900 |
1,929.0000 |
-2.5% |
Venezuela |
|
12.0000 |
|
6.3000 |
90.5% |
|
10.6000 |
6.3000 |
68.3% |
Brazil |
|
2.4510 |
|
2.2300 |
9.9% |
|
2.2025 |
2.2156 |
-0.6% |
Argentina |
|
8.4300 |
|
5.7930 |
45.5% |
|
8.1330 |
5.3880 |
50.9% |
![](trule.jpg)
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