UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2022
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 First Quarter 2022 Results

 

Mexico City, April 28, 2022, Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFUBL, NYSE: KOF) (“Coca-Cola FEMSA”, “KOF” or the “Company”), the largest Coca-Cola franchise bottler in the world by sales volume, announces results for the first quarter of 2022.

 

FIRST QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS

 

·Consolidated volumes increased 10.1% as compared to the first quarter of 2021. This increase was driven mainly by double-digit volume increases in Brazil, Uruguay, Colombia and Central America, coupled with volume growth in the rest of our territories. Volumes of the recently acquired territory in Brazil were consolidated as of February 1, 2022. On a comparable basis, our volume increased 9.3%.
·Total revenues increased 14.6%, while comparable revenues increased 13.4%, driven mainly by volume growth, pricing initiatives, favorable price-mix effects, and favorable currency translation effects. These factors were partially offset by a decline in beer revenues related to the transition of the beer portfolio in Brazil.
·Operating income increased 16.0%, while comparable operating income increased 13.9%. Our solid top-line, favorable raw material hedging strategies, coupled with operating expense efficiencies, were partially offset by higher PET and sweetener costs.
·Majority net income decreased 8.3%, driven mainly by non-cash effects, a loss in the market value of financial instruments and a foreign exchange loss.
·Earnings per share1 were Ps. 0.17 (Earnings per unit were Ps. 1.38 and per ADS were Ps. 13.77).

 

FINANCIAL SUMMARY FOR THE FIRST QUARTER RESULTS
Change vs. same period of last year
    Total Revenues   Gross Profit    Operating Income   Majority Net Income
    1Q22   1Q22   1Q22   1Q22
As Reported Consolidated 14.6%   13.5%   16.0%   (8.3%)
Mexico & Central America 11.4%   7.1%   13.5%    
South America 19.0%   25.5%   23.2%    
                 
Comparable (2) Consolidated 13.4%   12.8%   13.9%    
Mexico & Central America 11.4%   7.2%   13.6%    
South America 16.1%   23.5%   14.9%    

 

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

“Against the backdrop of what is still a volatile environment, we are building on last year’s positive momentum to deliver a solid start of the year. For the quarter, our consolidated revenues increased 14.6% while our operating income increased by 16.0%. In Mexico and Central America, our top-line grew double digits while we managed to mitigate margin pressures by generating savings and operating expense efficiencies. In South America, a very solid performance across our territories was especially evident by the strong volume growth achieved in Brazil and Colombia, where volumes increased 20.2% and 18.8%, respectively. On the profitability front, despite increases in raw material costs and the challenging supply chain environment affecting industries worldwide, we were able to mitigate pressures.

 

As we continue progressing, our positive momentum shows that we are executing and delivering against our strategic agenda. Looking forward, we will continue working in building a consumer-centric multi-category portfolio, accelerate the rollout of our omnichannel platforms, fostering an agile, people-centric culture and continue to place sustainability at the center of everything we do.”

 

 

(1)Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 million shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units.
(2)Please refer to page 7 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

 

Coca-Cola FEMSA Reports 1Q22 Results

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RECENT DEVELOPMENTS

 

·On March 28, 2022, Coca-Cola FEMSA held its Annual Ordinary General Shareholders’ Meeting, during which its shareholders approved among other things, the Company’s consolidated financial statements for the year ended December 31, 2021, the annual report presented by the Board of Directors, the declaration and payment of dividends corresponding to the fiscal year 2021 and the appointment or reelection of the members of the Board of Directors, the Planning and Finance, Audit and Corporate Practices Committees for 2022. The shareholders’ meeting approved the payment of a cash dividend of Ps. 0.67875 per share, (equivalent to Ps. 5.43 per unit) to be paid in two installments; the first installment for the amount of Ps. 0.339375 as of May 3, 2022 and the second installment for the amount of Ps. 0.339375 as of November 3, 2022 for all outstanding shares on the payment date.

 

·Coca-Cola FEMSA released its 2021 integrated report entitled, “Re-Evolution” the annual report on Form 20-F filing to the U.S. Securities and Exchange Commission, and the annual report filing to the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores). These three reports are available on the Investor Relations section of Coca-Cola FEMSA´s website at www.coca-colafemsa.com

 

·On April 19, 2022, Coca-Cola FEMSA announced that its subsidiary Spal Indústria Brasileira de Bebidas S.A. and the Coca Cola System in Brazil, have signed an agreement to distribute Campari Group’s products in the country. This distribution will provide for strategically defined actions for each state or region, especially with respect to portfolio

 

CONFERENCE CALL INFORMATION

 

 

 

 

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CONSOLIDATED FIRST QUARTER RESULTS

CONSOLIDATED FIRST QUARTER RESULTS 
             
    As Reported   Comparable (1)
Expressed in millions of Mexican pesos   1Q 2022 1Q 2021 Δ%   Δ%
Total revenues   51,195 44,690 14.6%   13.4%
Gross profit   22,602 19,922 13.5%   12.8%
Operating income   6,844 5,899 16.0%   13.9%
Operating cash flow (2)    9,827  8,807 11.6%   10.4%

 

Volume increased 10.1% to 881.6 million unit cases, driven mainly by double-digit volume increases in Brazil, Uruguay, Colombia, and Central America, coupled with volume growth in the rest of our territories. Volumes of the recently acquired territory in Brazil were consolidated as of February 1, 2022. On a comparable basis, our volume would have increased 9.3%.

 

Total revenues increased 14.6% to Ps. 51,195 million. This increase was driven mainly by volume growth, our pricing initiatives, favorable currency translation effects, and favorable price-mix effects. These factors were partially offset by a decline in beer revenues related to the transition of the beer portfolio in Brazil. On a comparable basis, excluding M&A and currency translation effects, total revenues would have increased 13.4%.

 

Gross profit increased 13.5% to Ps. 22,602 million, and gross margin decreased 50 basis points to 44.1%. This gross profit increase was driven mainly by our top-line growth and favorable hedging initiatives, coupled with the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone in Brazil. These effects were offset by higher raw material costs, mainly PET and sweeteners, across our territories. On a comparable basis, gross profit would have increased 12.8%.

 

Operating income increased 16.0% to Ps. 6,844 million, and operating margin increased 20 basis points to 13.4%. This expansion was driven mainly by a solid top-line performance, coupled with operating expense efficiencies and an operating foreign exchange gain. These effects were partially offset by the increase raw material prices, mainly PET and sweeteners. On a comparable basis, operating income would have increased 13.9%.

 

 

 

(1)Please refer to page 7 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

(2)              Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

 

 

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Comprehensive financing result recorded an expense of Ps. 2,194 million, compared to an expense of Ps. 1,131 million in the same period of 2021. This increase was driven mainly by a loss in financial instruments of Ps. 936 million, driven mainly by a market value loss recognized during this quarter as compared to a loss of Ps. 8 million recorded during the same period of 2021.

In addition, we recognized a foreign exchange loss of Ps. 165 million as compared to a gain of Ps. 14 million in the same period of 2021, as our net cash exposure in U.S. dollars was negatively impacted by the appreciation of the Mexican Peso and the Brazilian Real during the quarter. Moreover, we recognized a lower gain in monetary position in inflationary subsidiaries during the first quarter of 2022 as compared to the same period of the previous year.

These effects were partially offset by a reduction in interest expense, net, as compared to the same period of 2021, as we recognized an increase in our interest income related to an increase in interest rates in Mexico and Brazil.

 

Income tax as a percentage of income before taxes was 29.5% as compared to 34.7% during the same period of the previous year. This decrease was driven mainly by adjustments to deferred taxes that were recognized during 2021.

 

Net income attributable to equity holders of the company was Ps. 2,894 million as compared to Ps. 3,156 million during the same period of the previous year. This decrease was driven mainly by non-cash effects that affected our comprehensive financial result. Earnings per share1 were Ps. 0.17 (Earnings per unit were Ps. 1.38, and per ADS were Ps. 13.77).

 

 

 

 

 

(1)Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 million shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units.

 

 

 

 

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MEXICO & CENTRAL AMERICA DIVISION FIRST QUARTER RESULTS

(Mexico, Guatemala, Costa Rica, Panama, and Nicaragua)

 

 

MEXICO & CENTRAL AMERICA DIVISION RESULTS 
             
    As Reported   Comparable (1)
Expressed in millions of Mexican pesos   1Q 2022 1Q 2021 Δ%   Δ%
Total revenues   28,935 25,980 11.4%   11.4%
Gross profit   14,007 13,072 7.1%   7.2%
Operating income   4,950 4,362 13.5%   13.6%
Operating cash flow (2)    6,722  6,163 9.1%   9.1%

 

 

Volume increased 4.8%, driven by a double-digit volume increase in Panama, Costa Rica, and Nicaragua, coupled with a solid volume performance in Guatemala and Mexico.

 

Total revenues increased 11.4% to Ps. 28,935 million, driven mainly by our pricing initiatives across the division, favorable price-mix effects, and volume growth in all of our territories. On a comparable basis, total revenues would have also increased 11.4%.

 

Gross profit increased 7.1% to Ps. 14,007 million, and gross margin contracted 190 basis points to 48.4%. This margin decrease was driven mainly by an increase in raw material costs such as PET and sweeteners, which was partially offset by our raw material hedging strategies. On a comparable basis, gross profit would have increased 7.2%.

 

Operating income increased 13.5% to Ps. 4,950 million in the first quarter of 2022, and operating margin expanded 30 basis points to 17.1% during the period, driven mainly by operating expense efficiencies and an operating foreign exchange gain. These effects were partially offset by an increase in raw material prices. On a comparable basis, operating income would have increased 13.6%.

 

 

 

 

 

 

 

 

 

(1)Please refer to page 7 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

(2)              Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

 

Coca-Cola FEMSA Reports 1Q22 Results

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SOUTH AMERICA DIVISION FIRST QUARTER RESULTS

(Brazil, Argentina, Colombia, and Uruguay)

 

 

 

SOUTH AMERICA DIVISION RESULTS 
             
    As Reported   Comparable (1)
Expressed in millions of Mexican pesos   1Q 2022 1Q 2021 Δ%   Δ%
Total revenues   22,261 18,710 19.0%   16.1%
Gross profit   8,595 6,850 25.5%   23.5%
Operating income   1,894 1,537 23.2%   14.9%
Operating cash flow (2)    3,105  2,645 17.4%   13.3%

 

 

 

Volume increased 17.7%, driven mainly by a 20.2% volume increase in Brazil and an 18.8% increase in Colombia, coupled with a solid volume performance in Uruguay and Argentina. Volumes of the recently acquired territory in Brazil were consolidated as of February 1, 2022. On a comparable basis, our volume for the division would have increased 15.7%.

 

Total revenues increased 19.0% to Ps. 22,261 million, driven mainly by our pricing initiatives, volume growth, favorable price-mix effects, and favorable currency translation effects. This increase was partially offset by a reduction in beer revenues as a result of the transition of our beer portfolio in Brazil. On a comparable basis, total revenues would have increased 16.1%.

 

Gross profit increased 25.5% to Ps. 8,595 million, and gross margin expanded 200 basis points to 38.6%. This increase was driven mainly by favorable price-mix effects, our raw material hedging strategies, and lower concentrate costs in Brazil related to the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone. This increase was partially offset by increases in raw material costs such as PET and sweeteners. On a comparable basis, gross profit would have increased 23.5%.

 

Operating income increased 23.2% to Ps. 1,894 million in the first quarter of 2022, resulting in a margin expansion of 30 basis points to 8.5%. This increase was driven mainly by higher gross profit and an increase in operating leverage resulting from volume growth and operating expense efficiencies. These effects were partially offset by the transition of our beer portfolio in Brazil, higher freight and labor costs and an unfavorable currency translation effect from most of our operating currencies in the division. On a comparable basis, operating income would have increased 14.9%.

 

 

(1)Please refer to page 7 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

(2)              Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

 

Coca-Cola FEMSA Reports 1Q22 Results

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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 a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units.

 

COMPARABILITY

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 1Q22 Results

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ABOUT THE COMPANY

Stock listing information: Mexican Stock Exchange, Ticker: KOFUBL | NYSE (ADS), Ticker: KOF | Ratio of KOFUBL to KOF = 10:1

Coca-Cola FEMSA files reports, including annual reports and other information with the U.S. Securities and Exchange Commission, or the “SEC,” and the Mexican Stock Exchange (Bolsa Mexicana de Valores, or the “BMV”) pursuant to the rules and regulations of the SEC (that apply to foreign private issuers) and of the BMV. Filings we make electronically with the SEC and the BMV are available to the public on the Internet at the SEC’s website at www.sec.gov, the BMV’s website at www.bmv.com.mx, and our website at www.coca-colafemsa.com.

Coca-Cola FEMSA, S.A.B. de C.V. is the largest Coca-Cola franchise bottler in the world by sales volume. The Company produces and distributes trademark beverages of The Coca-Cola Company, offering a wide portfolio of 131 brands to a population of more than 266 million. With over 80 thousand employees, the Company markets and sells approximately 3.5 billion unit cases through 2 million points of sale a year. Operating 49 manufacturing plants and 260 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value for all of its stakeholders across the value chain. The Company is a member of the Dow Jones Sustainability Emerging Markets Index, Dow Jones Sustainability MILA Pacific Alliance Index, FTSE4Good Emerging Index, and the Mexican Stock Exchange’s IPC and Social Responsibility and Sustainability Indices, among others. Its operations encompass franchise territories in Mexico, Brazil, Guatemala, Colombia, and Argentina, and, nationwide, in Costa Rica, Nicaragua, Panama, Uruguay, and Venezuela through its investment in KOF Venezuela. For further information, please visit www.coca-colafemsa.com.

 

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. dollar amounts or could be converted into U.S. dollars at the rate indicated.

 

(5 pages of tables to follow)

 

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COCA-COLA FEMSA
CONSOLIDATED INCOME STATEMENT
Millions of Pesos (1)
               
    For the First Quarter of:
    2022 % of Rev. 2021 % of Rev. Δ% Reported Δ% Comparable (7)
Transactions (million transactions)     5,205.3    4,375.0   19.0% 18.1%
Volume (million unit cases)     881.6    800.7   10.1% 9.3%
Average price per unit case     56.52    50.84   11.2%  
Net revenues    51,078    44,518   14.7%  
Other operating revenues    118    173   -31.8%  
Total revenues (2)    51,195 100.0%  44,690 100.0% 14.6% 13.4%
Cost of goods sold          28,593 55.9%        24,768 55.4% 15.4%  
Gross profit    22,602 44.1%  19,922 44.6% 13.5% 12.8%
Operating expenses    15,757 30.8%  13,793 30.9% 14.2%  
Other operative expenses, net    22 0.0%  212 0.5% -89.7%  
Operative equity method (gain) loss in associates(3)    (21) 0.0%  18 0.0% NA  
Operating income (5)    6,844 13.4%  5,899 13.2% 16.0% 13.9%
Other non operative expenses, net    180 0.4%  4 0.0% NA  
Non Operative equity method (gain) loss in associates (4)    (3) 0.0%  (2) 0.0% 101.6%  
Interest expense    1,645    1,471   11.8%  
Interest income    405    163   148.9%  
Interest expense, net    1,240    1,308   -5.2%  
Foreign exchange loss (gain)    165    (14)   NA  
Loss (gain) on monetary position in inflationary subsidiaries    (147)    (171)   -13.9%  
Market value (gain) loss on financial instruments    936    8   NA  
Comprehensive financing result    2,194    1,131   93.9%  
Income before taxes    4,474    4,766   -6.1%  
Income taxes    1,321    1,660   -20.4%  
Consolidated net income    3,153    3,106   1.5%  
Net income attributable to equity holders of the company    2,894 5.7%  3,156 7.1% -8.3%  
Non-controlling interest                259 0.5%              (49) -0.1% NA  
               
Operating Cash Flow & CAPEX   2022 % of Rev. 2021 % of Rev. Δ% Reported Δ% Comparable (7)
Operating income (5)    6,844 13.4%  5,899 13.2% 16.0%  
Depreciation    2,349    2,236   5.0%  
Amortization and other operative non-cash charges    635    672   -5.6%  
Operating cash flow (5)(6)    9,827 19.2%  8,807 19.7% 11.6% 10.4%
CAPEX(8)    3,102    1,459   112.7%  

(1)              Except volume and average price per unit case figures.

(2)              Please refer to page 12 for revenue breakdown.

(3)              Includes equity method in Jugos del Valle, Leao Alimentos, and Estrella Azul for 2020, 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 7 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

(8)              For the first quarter of 2022 total CAPEX effectively paid was Ps. 3,942 million pesos.

 

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MEXICO & CENTRAL AMERICA DIVISION 
RESULTS OF OPERATIONS
Millions of Pesos (1)
               
    For the First Quarter of:
    2022 % of Rev. 2021 % of Rev. Δ% Reported Δ% Comparable (6)
Transactions (million transactions)     2,648.3    2,383.9   11.1% 11.1%
Volume (million unit cases)     494.0    471.3   4.8% 4.8%
Average price per unit case     58.55    55.11   6.2%  
Net revenues    28,927    25,973      
Other operating revenues    8    7      
Total Revenues (2)    28,935 100.0%  25,980 100.0% 11.4% 11.4%
Cost of goods sold    14,928 51.6%  12,908 49.7%    
Gross profit    14,007 48.4%  13,072 50.3% 7.1% 7.2%
Operating expenses    9,105 31.5%  8,572 33.0%    
Other operative expenses, net    (2) 0.0%  189 0.7%    
Operative equity method (gain) loss in associates (3)    (46) -0.2%  (51) -0.2%    
Operating income (4)    4,950 17.1%  4,362 16.8% 13.5% 13.6%
Depreciation, amortization & other operating non-cash charges    1,773 6.1%  1,801 6.9%    
Operating cash flow (4)(5)    6,722 23.2%  6,163 23.7% 9.1% 9.1%

(1)              Except volume and average price per unite case figures.

(2)              Please refer to page 12 for revenue breakdown.

(3)              Includes equity method in Jugos del Valle and Estrella Azul for 2020, 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 7 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

SOUTH AMERICA DIVISION
RESULTS OF OPERATIONS
Millions of Pesos (1)
               
    For the First Quarter of:
    2022 % of Rev. 2021 % of Rev. Δ% Reported Δ% Comparable (6)
Transactions (million transactions)     2,556.9    1,991.1   28.4% 26.6%
Volume (million unit cases)     387.6    329.4   17.7% 15.7%
Average price per unit case     53.92    44.72   20.6%  
Net revenues    22,151    18,544      
Other operating revenues    110    166      
Total Revenues (2)    22,261 100.0%  18,710 100.0% 19.0% 16.1%
Cost of goods sold    13,665 61.4%  11,861 63.4%    
Gross profit    8,595 38.6%  6,850 36.6% 25.5% 23.5%
Operating expenses    6,652 29.9%  5,221 27.9%    
Other operative expenses, net    24 0.1%  23 0.1%    
Operative equity method (gain) loss in associates (3)    26 0.1%  68 0.4%    
Operating income (4)    1,894 8.5%  1,537 8.2% 23.2% 14.9%
Depreciation, amortization & other operating non-cash charges    1,211 5.4%  1,107 5.9%    
Operating cash flow (4)(5)    3,105 13.9%  2,645 14.1% 17.4% 13.3%
(1)Except volume and average price per unit case figures.
(2)Please refer to page 12 for revenue breakdown.
(3)Includes equity method in Leao Alimentos and Verde Campo, among others.
(4)The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
(5)Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
(6)Please refer to page 7 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

 

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COCA-COLA FEMSA
CONSOLIDATED BALANCE SHEET
Millions of Pesos
                     
Assets    Mar-22  Dec-21 % Var.   Liabilities & Equity    Mar-22  Dec-21 % Var.
Current Assets           Current Liabilities        
Cash, cash equivalents and marketable securities           Short-term bank loans and notes payable    3,101  2,453 26%
   49,443  47,248 5%   Suppliers    23,876  22,745 5%
Total accounts receivable    11,701  13,014 -10%   Short-term leasing Liabilities    645  614 5%
Inventories    13,546  11,960 13%   Other current liabilities    33,055  20,409 62%
Other current assets    9,294  8,142 14%   Total current liabilities    60,677  46,221 31%
Total current assets    83,984  80,364 5%   Non-Current Liabilities        
Non-Current Assets           Long-term bank loans and notes payable    81,389  83,329 -2%
Property, plant and equipment    119,594  113,827 5%   Long Term Leasing Liabilities    946  891 6%
Accumulated depreciation    (54,141)  (51,644) 5%   Other long-term liabilities    17,447  13,554 29%
Total property, plant and equipment, net    65,454  62,183 5%   Total liabilities    160,459  143,995 11%
Right of use assets    1,551  1,472 5%   Equity        
Investment in shares    7,681  7,494 3%   Non-controlling interest    7,035  6,022 17%
Intangible assets and other assets    108,189  102,174 6%   Total controlling interest    116,365  121,550 -4%
Other non-current assets    17,001  17,880 -5%   Total equity    123,400  127,572 -3%
Total Assets           283,859                271,567 5%   Total Liabilities and Equity        283,859      271,567 5%
                     
                     
            March 31, 2022            
Debt Mix   % Total Debt (1)  % Interest Rate Floating (1) (2) Average Rate   Debt Maturity Profile
Currency             
Mexican Pesos   52.7% 8.3% 7.6%  
U.S. Dollars   26.7% 21.8% 2.7%  
Colombian Pesos   1.8% 0.0% 7.0%  
Brazilian Reals   16.8% 72.5% 10.0%  
Uruguayan Pesos   1.6% 0.0% 6.6%  
Argentine Pesos   0.5% 0.0% 41.0%  
Total Debt   100% 20.0% 6.8%  
(1) After giving effect to cross- currency swaps.
(2) Calculated by weighting each year´s outstanding debt balance mix.
                     
                     
Financial Ratios   1Q 2022 FY 2021 Δ%            
Net debt including effect of hedges (1)(3)   34,246 35,243 -2.8%            
Net debt including effect of hedges / Operating cash flow (1)(3)   0.86 0.91              
Operating cash flow/ Interest expense, net (1)   7.93 7.39              
Capitalization (2)   41.2% 40.7%              
(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 1Q22 Results

April 28, 2022

Page 11 of 13

 

 

 

 

COCA-COLA FEMSA
QUARTERLY- VOLUME, TRANSACTIONS & REVENUES
                             
Volume 
    1Q 2022   1Q 2021   YoY
    Sparkling Water (1) Bulk (2) Stills Total   Sparkling Water (1) Bulk (2) Stills Total   Δ %
 Mexico     301.9  21.3  67.5  32.7  423.5    296.1  17.9  65.9  28.3  408.2   3.7%
 Guatemala     30.6  1.1  -     1.9  33.7    28.7  0.9  -     1.4  30.9   8.9%
 CAM South     29.8  1.9  0.2  4.9  36.9    26.9  1.5  0.1  3.7  32.2   14.5%
 Mexico and Central America     362.4  24.4  67.7  39.5  494.0    351.6  20.3  66.0  33.3  471.3   4.8%
 Colombia     62.1  7.7  3.1  7.4  80.4    54.2  5.3  3.9  4.2  67.7   18.8%
Brazil (3)    206.7  17.1  2.4  24.6  250.9    181.2  11.4  2.2  13.9  208.7   20.2%
 Argentina     35.8  4.1  1.2  3.9  44.9    34.2  3.0  1.8  3.6  42.6   5.4%
 Uruguay     9.4  1.7  -   0.3  11.4    8.9  1.3  -     0.2  10.3   10.7%
 South America     314.1  30.6  6.7  36.3  387.6    278.4  21.0  7.9  22.0  329.4   17.7%
 TOTAL     676.4  55.0  74.4  75.8  881.6    630.0  41.3  74.0  55.3  800.7   10.1%
                             
(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                              
    1Q 2022   1Q 2021   YoY
    Sparkling Water Stills Total   Sparkling Water  Stills Total   Δ %
 Mexico     1,698.6  154.3  237.6  2,090.4    1,590.3  131.5  193.6  1,915.4   9.1%
 Guatemala     238.5  11.7  19.5  269.7    216.3  9.2  13.6  239.2   12.8%
 CAM South     220.4  12.7  55.1  288.2    183.5  9.9  36.0  229.4   25.6%
 Mexico and Central America     2,157.5  178.6  312.2  2,648.3    1,990.1  150.6  243.2  2,383.9   11.1%
 Colombia     429.7  82.6  81.5  593.9    348.8  57.8  36.5  443.1   34.0%
Brazil (3)    1,303.8  146.8  222.8  1,673.4    1,064.0  96.2  141.8  1,301.9   28.5%
 Argentina     178.7  25.1  29.8  233.5    155.5  17.7  25.0  198.1   17.8%
 Uruguay     47.1  6.3  2.8  56.2    41.2  4.8  1.9  47.9   17.3%
 South America     1,959.3  260.8  336.9  2,556.9    1,609.4  176.4  205.2  1,991.1   28.4%
 TOTAL     4,116.8  439.4  649.1  5,205.3    3,599.6  327.0  448.4  4,375.0   19.0%
                           
Revenues                            
 Expressed in million Mexican Pesos    1Q 2022 1Q 2021 Δ %                    
Mexico       23,222        21,047 10.3%                    
Guatemala         2,775          2,449 13.3%                    
CAM South         2,938          2,484 18.3%                    
Mexico and Central America       28,935        25,980 11.4%                    
Colombia         4,276          3,285 30.2%                    
Brazil (4)       14,388        12,802 12.4%                    
Argentina         2,672          1,854 44.1%                    
Uruguay            925             770 20.2%                    
South America       22,261        18,710 19.0%                    
 TOTAL     51,195  44,690 14.6%                    
                             
(3) Volume and transactions in Brazil do not include beer
(4) Brazil includes beer revenues of Ps.1,250.2 million for the first quarter of 2022 and Ps.3,814.1 million for the same period of the previous year. 

(1)Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.
(2)Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for fountain which represents multiple transactions based on a standard 12 oz. serving.

 

Coca-Cola FEMSA Reports 1Q22 Results

April 28, 2022

Page 12 of 13

 

 

 

COCA-COLA FEMSA
MACROECONOMIC INFORMATION
                 
Inflation (1)          
    LTM 1Q22          
 México    7.29% 1.39%          
 Colombia    8.01% 3.32%          
 Brasil    10.60% 1.11%          
 Argentina    50.70% 9.73%          
 Costa Rica    4.38% 1.49%          
 Panama    3.54% 1.16%          
 Guatemala    3.13% 1.05%          
 Nicaragua    7.89% 1.91%          
 Uruguay    8.78% 1.89%          
                 
(1) Source: inflation estimated by the company based on historic publications from the Central Bank of each country.
                 
                 
Average Exchange Rates for each period (2)        
    Quarterly Exchange Rate                                             (Local Currency per USD)    
    1Q22 1Q21 Δ %        
 México     20.52  20.32 1.0%        
 Colombia     3,914.87  3,554.66 10.1%        
 Brasil     5.23  5.47 -4.4%        
 Argentina     106.58  88.57 20.3%        
 Costa Rica     647.10  614.65 5.3%        
 Panamá     1.00  1.00 0.0%        
 Guatemala     7.70  7.75 -0.7%        
 Nicaragua     35.61  34.91 2.0%        
 Uruguay     43.31  43.09 0.5%        
                 
                 
End-of-period Exchange Rates
    Closing Exchange Rate                                         (Local Currency per USD)   Closing Exchange Rate                                                   (Local Currency per USD)
    Mar-22 Mar-21 Δ %   Ene-22 Ene-21 Δ %
 México     19.99  20.60 -3.0%    20.74  20.27 2.3%
 Colombia     3,748.15  3,736.91 0.3%    3,982.60  3,559.46 11.9%
 Brasil     4.74  5.70 -16.8%    5.36  5.48 -2.2%
 Argentina     111.01  92.00 20.7%    105.02  87.33 20.3%
 Costa Rica     667.10  615.81 8.3%    646.20  616.16 4.9%
 Panamá     1.00  1.00 0.0%    1.00  1.00 0.0%
 Guatemala     7.68  7.71 -0.4%    7.69  7.79 -1.2%
 Nicaragua     35.69  34.99 2.0%    35.58  34.88 2.0%
 Uruguay     41.12  44.19 -7.0%    44.15  42.28 4.4%
                 
(2) Average exchange rate for each period computed with the average exchange rate of each month.

 

 

Coca-Cola FEMSA Reports 1Q22 Results

April 28, 2022

Page 13 of 13

 

 

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

Chief Financial Officer

   
 Date: April 28, 2022  

 

 

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