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 2021
Commission File Number 1-12260
COCA-COLA FEMSA, S.A.B.
de C.V.
(Translation
of registrant’s name into English)
United Mexican States
(Jurisdiction
of incorporation or organization)
Calle Mario Pani No. 100,
Santa Fe Cuajimalpa,
Cuajimalpa de Morelos,
05348, Ciudad de México,
México
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form
20-F X Form 40-F
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)
Yes No
X
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)
Yes No
X
Indicate
by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No
X
If
"Yes" is marked, indicate below the file number assigned to the registrant in connection with
Rule
12g3-2(b): 82-__.
Coca-Cola FEMSA Announces
First Quarter 2021 Results
Mexico City, April 26, 2021, 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 2021.
FIRST QUARTER OPERATIONAL
AND FINANCIAL HIGHLIGHTS
|
·
|
Consolidated volumes increased 0.9%, driven mainly by volume increases in
Brazil, Guatemala, Nicaragua, Costa Rica, Colombia, and Argentina, which were partially offset by volume declines in Mexico and Uruguay.
|
|
·
|
Total revenues decreased 1.5%, while comparable revenues grew 5.4%. Our
pricing initiatives were offset by unfavorable currency translation effects from our operating currencies in South America, driven mainly
by a 16.6% translation effect from the Brazilian Real, coupled with unfavorable price-mix effects.
|
|
·
|
Operating income increased 3.0%, while comparable operating income increased
10.6%. Our favorable raw material hedging strategies, coupled with operating expense efficiencies, were partially offset by higher concentrate
costs in Mexico, and the depreciation of our operating currencies as applied to our U.S. dollar-denominated raw material costs.
|
|
·
|
Majority net income increased 23.7%, driven mainly by the decrease in interest
expenses during the quarter as compared to a one-time interest expense related to debt prepayment performed during the first quarter of
2020.
|
|
·
|
Earnings per share1 were Ps. 0.19 (Earnings per unit were Ps.
1.50 and per ADS were Ps. 15.02.).
|
FINANCIAL SUMMARY FOR THE FIRST QUARTER RESULTS
|
Change vs. same period of last year
|
|
|
Total Revenues
|
|
Gross Profit
|
|
Operating Income
|
|
Majority Net Income
|
|
|
1Q21
|
|
1Q21
|
|
1Q21
|
|
1Q21
|
As Reported
|
Consolidated
|
(1.5%)
|
|
(3.8%)
|
|
3.0%
|
|
23.7%
|
Mexico & Central America
|
1.8%
|
|
5.0%
|
|
27.0%
|
|
|
South America
|
(5.6%)
|
|
(17.1%)
|
|
(33.0%)
|
|
|
|
|
|
|
|
|
|
|
|
Comparable (2)
|
Consolidated
|
5.4%
|
|
2.2%
|
|
10.6%
|
|
|
Mexico & Central America
|
1.8%
|
|
4.9%
|
|
27.1%
|
|
|
South America
|
11.0%
|
|
(2.7%)
|
|
(19.2%)
|
|
|
John Santa Maria, Coca-Cola FEMSA’s
CEO, commented:
“For the first quarter of 2021,
we were able to deliver volume and operating income growth despite navigating what is still a very dynamic environment. Notably, our ability
to generate savings and efficiencies enabled us to expand our operating income margin by 60 basis points while increasing our majority
net income by 23.7%.
In Mexico and Central America, we delivered
top-line growth thanks to our revenue management initiatives, coupled with solid volumes from Guatemala and a volume recovery in Costa
Rica and Nicaragua. Importantly, our savings and efficiency initiatives drove double-digit operating income growth for the division. In
South America, we continued to face significant currency headwinds; however, we are encouraged by the volume growth achieved in Brazil,
despite substantial mobility restrictions during the quarter, as key Colombia and Argentina markets accelerated.
For 2021, we expect a year of recovery
and important advances across all of our strategic fronts. Our COVID-19 mitigation actions will continue to be guided by the successful
framework we implemented during 2020; all while we redouble our effort to become a sustainable, agile, and digital interconnected commercial
beverage platform that continues to create value for all of our stakeholders for many years to come.”
|
(1)
|
Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 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.
|
RECENT DEVELOPMENTS
|
·
|
On March 19, 2021, Coca-Cola FEMSA held its Annual Ordinary General Shareholders’
Meeting, during which its shareholders approved the Company’s consolidated financial statements for the year ended December 31,
2020, the annual report presented by the Board of Directors, the declaration and payment of dividends corresponding to the fiscal year
2020, and the appointment or reelection of the members of the Board of Directors and the Planning and Finance, Audit, and Corporate Practices
Committees for 2021. Shareholders approved the payment of a cash dividend of Ps. 0.63 per share (equivalent to Ps. 5.04 per unit) to be
paid in two equal installments as of May 4, 2021, and November 3, 2021. This dividend payment represents a 3.7% increase compared to the
previous year’s dividend.
|
|
·
|
Coca-Cola FEMSA released its 2020 integrated report entitled,
“Refreshing Anytime, Anywhere,” 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
|
|
·
|
As of January 1, 2021, Mr. Ignacio Echevarria assumed the position of Chief
Information Officer, reporting directly to our CEO. As part of his role, Mr. Echevarria oversees the IT responsibilities ensuring the
correct implementation of technology towards our ongoing digital transformation.
|
CONFERENCE CALL INFORMATION
Coca-Cola FEMSA Reports 1Q21 Results
April 26, 2021
|
Page2 of 13
CONSOLIDATED FIRST
QUARTER RESULTS
CONSOLIDATED FIRST QUARTER RESULTS
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
Comparable (1)
|
Expressed in millions of Mexican pesos
|
|
1Q 2021
|
1Q 2020
|
Δ%
|
|
Δ%
|
Total revenues
|
|
44,690
|
45,348
|
(1.5%)
|
|
5.4%
|
Gross profit
|
|
19,922
|
20,714
|
(3.8%)
|
|
2.2%
|
Operating income
|
|
5,899
|
5,729
|
3.0%
|
|
10.6%
|
Operating cash flow (2)
|
|
8,807
|
9,086
|
(3.1%)
|
|
3.2%
|
Volume
increased 0.9% to 800.7 million unit cases, driven mainly by volume increases in Brazil, Guatemala, Costa Rica, Nicaragua,
Colombia, and Argentina, which were partially offset by volume declines in Mexico and Uruguay. This volume represents a 0.6% increase
versus our 2019 baseline.
Total
revenues decreased 1.5% to Ps. 44,690 million. This decline was driven mainly by the negative translation effect resulting
from the depreciation of the Brazilian Real, Argentine Peso, and Uruguayan Peso as compared to the Mexican Peso, an effect that was partially
offset by pricing initiatives in key markets. On a comparable basis, excluding currency translation effects, total revenues would have
increased 5.4%. These revenues represent a 3.4% decline versus the same period of 2019.
Gross
profit decreased 3.8% to Ps. 19,922 million, and gross margin decreased 110 basis points to 44.6%. This contraction was impacted
mainly by the depreciation in the average exchange rate of our operating currencies as applied to our U.S. dollar-denominated raw material
costs, coupled with unfavorable price-mix effects and higher concentrate costs in Mexico. These effects were partially offset by our favorable
raw material hedging strategies and cost efficiencies. On a comparable basis, gross profit would have increased 2.2%. Gross profit represents
a 4.6% decline versus the first quarter of 2019.
Operating
income increased 3.0% to Ps. 5,899 million, and operating margin increased 60 basis points to 13.2%. This expansion was driven
mainly by freight and marketing expense efficiencies across our operations, partially offset by
a decrease in gross profit. On a comparable basis, operating income would have increased 10.6%. Our operating income represents
a 3.2% increase versus our 2019 baseline.
|
(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 1Q21 Results
April 26, 2021
|
Page3 of 13
Comprehensive
financing result recorded an expense of Ps. 1,131 million, compared to an expense of Ps. 2,196 million in the same period of
2020. This reduction was driven mainly by the recognition of a one-time interest expense related to the debt prepayment of our U.S. dollar-denominated
bond performed during the first quarter of 2020. In addition, we recognized a larger gain in monetary position in inflationary subsidiaries
during the first quarter of 2021.
These effects were partially offset
by a reduction in the foreign exchange gain. During the first quarter of 2020, we recorded a foreign exchange gain of Ps. 486 million
as compared to a gain of Ps. 14 million in the same period of 2021, as our net debt exposure in U.S. dollars significantly benefited from
the depreciation of the Mexican Peso during the first quarter of 2020. Finally, we recorded a reduction in our interest income related
to a lower gain in our financial instruments.
Income
tax as a percentage of income before taxes was 34.7% as compared to 30.6% during the same period of the previous year. This
increase was driven mainly by tax impacts of a higher inflation level in this quarter; adjustments of deferred tax assets of prior periods;
and effects of certain changes on tax legislation where we operate.
Net
income attributable to equity holders of the company was Ps. 3,156 million as compared to Ps. 2,552 million during the same
period of the previous year. This 23.7% increase was driven mainly by a one-time expense of Ps. 1,475 million, which impacted our interest
expense in the first quarter of 2020 due to debt prepayment. Earnings per share1 were Ps. 0.19 (Earnings per unit were Ps.
1.50 and per ADS were Ps. 15.02.). Our majority net income represents a 21.8% increase versus the net income of the first quarter 2019.
|
(1)
|
Quarterly earnings / outstanding shares. Earnings per share (EPS) were calculated using 16,806.7 million
shares outstanding. For the convenience of the reader, as a KOFUBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares),
earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOFUBL Units.
|
Coca-Cola FEMSA Reports 1Q21 Results
April 26, 2021
|
Page4 of 13
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 2021
|
1Q 2020
|
Δ%
|
|
Δ%
|
Total revenues
|
|
25,980
|
25,524
|
1.8%
|
|
1.8%
|
Gross profit
|
|
13,072
|
12,453
|
5.0%
|
|
4.9%
|
Operating income
|
|
4,362
|
3,435
|
27.0%
|
|
27.1%
|
Operating cash flow (2)
|
|
6,163
|
5,604
|
10.0%
|
|
10.0%
|
Volume
decreased 1.1%, as double-digit volume growth in Guatemala and growth in our southern Central America territories was offset by a 2.7%
decline in Mexico. Volume for the first quarter 2021 declined 1.4% versus our 2019 baseline.
Total
revenues increased 1.8% to Ps. 25,980 million, driven mainly by pricing initiatives across the division and volume growth in
Central America, partially offset by a volume decline in Mexico and an unfavorable price-mix effect. On a comparable basis, total revenues
would have increased 1.8%. Total revenues grew 4.7% versus our 2019 first quarter results.
Gross
profit increased 5.0% to Ps. 13,072 million, and gross margin expanded 150 basis points to 50.3%, driven mainly by our pricing
initiatives, cost efficiencies and favorable raw material hedging strategies. These factors were partially offset by higher concentrate
costs in Mexico and unfavorable price-mix effects. On a comparable basis, gross profit would have increased 4.9%. Our gross profit increased
11.0% as compared with the first quarter 2019.
Operating
income increased 27.0% to Ps. 4,362 million in the first quarter of 2021, and operating margin expanded 330 basis points to
16.8% during the period, driven mainly by our focus on driving savings and operating expense efficiencies. These savings were achieved
primarily through labor, maintenance, and marketing expense efficiencies in Mexico. On a comparable basis, operating income would have
increased 27.1%. Our operating income for the division increased 41.8% as compared with the first quarter of 2019.
|
(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 1Q21 Results
April 26, 2021
|
Page5 of 13
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 2021
|
1Q 2020
|
Δ%
|
|
Δ%
|
Total revenues
|
|
18,710
|
19,824
|
(5.6%)
|
|
11.0%
|
Gross profit
|
|
6,850
|
8,261
|
(17.1%)
|
|
(2.7%)
|
Operating income
|
|
1,537
|
2,294
|
(33.0%)
|
|
(19.2%)
|
Operating cash flow (2)
|
|
2,645
|
3,483
|
(24.1%)
|
|
(9.7%)
|
Volume
increased 3.8%, driven by volume growth in Brazil, Colombia, and Argentina, partially offset by volume declines in Uruguay. This volume
is 3.5% higher as compared with the first quarter 2019.
Total
revenues declined 5.6% to Ps. 18,710 million, impacted mainly by an unfavorable currency translation effect resulting from
the depreciation of most of our operating currencies as compared to the Mexican Peso. These effects were partially offset by our revenue
management initiatives, and volume growth in Brazil, Argentina and Colombia. On a comparable basis, excluding currency translation effects,
total revenues would have increased by 11.0%. Total revenues declined 12.7% as compared with the same period of 2019.
Gross
profit decreased 17.1% to Ps. 6,850 million, and gross margin contracted 510 basis points to 36.6%. This decrease was driven
mainly by the depreciation of the average exchange rate of all of our operating currencies as applied to our U.S. dollar-denominated raw
material costs, coupled with unfavorable price-mix effects. These factors were partially offset by favorable raw material hedging strategies
and revenue management initiatives. On a comparable basis, gross profit would have decreased 2.7%. Gross profit in the division declined
24.8% as compared with the first quarter of 2019.
Operating
income decreased 33.0% to Ps. 1,537 million in the first quarter of 2021, resulting in a margin contraction of 340 basis points
to 8.2%. This decrease was driven mainly by a gross profit decline, coupled with an operating foreign exchange loss. These factors were
partially offset by operating efficiencies, mainly marketing expense efficiencies in Brazil, Colombia, and Uruguay. On a comparable basis,
operating income would have decreased 19.2%. Operating income declined 41.7% as compared with the first quarter of 2019.
|
(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 1Q21 Results
April 26, 2021
|
Page6 of 13
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 1Q21 Results
April 26, 2021
|
Page7 of 13
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 129 brands to a population of more than 265 million. With over 80 thousand
employees, the Company markets and sells approximately 3.3 billion unit cases through close to 2 million points of sale a year. Operating
49 manufacturing plants and 268 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value
for all of its stakeholders across the value chain. The Company is a member of the Dow Jones Sustainability Emerging Markets Index, Dow
Jones Sustainability MILA Pacific Alliance Index, FTSE4Good Emerging Index, and the Mexican Stock Exchange’s IPC and Social Responsibility
and Sustainability Indices, among others. Its operations encompass franchise territories in Mexico, Brazil, Guatemala, Colombia, and Argentina,
and, nationwide, in Costa Rica, Nicaragua, Panama, Uruguay, and Venezuela through its investment in KOF Venezuela. For further information,
please visit www.coca-colafemsa.com.
ADDITIONAL
INFORMATION
All of the financial information
presented in this report was prepared under International Financial Reporting Standards (IFRS).
This news release may contain
forward-looking statements concerning Coca-Cola FEMSA’s future performance, which should be considered as good faith estimates by
Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data.
Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA’s control, which could
materially impact the Company’s actual performance. References herein to “US$” are to United States dollars. This news
release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations
should not be construed as representations that Mexican peso amounts actually represent such U.S. dollar amounts or could be converted
into U.S. dollars at the rate indicated.
(5 pages of tables to follow)
Coca-Cola FEMSA Reports 1Q21 Results
April 26, 2021
|
Page8 of 13
COCA-COLA FEMSA
|
CONSOLIDATED INCOME STATEMENT
|
Millions of Pesos (1)
|
|
|
|
|
|
|
|
|
|
|
For the First Quarter of:
|
|
|
2021
|
% of Rev.
|
2020
|
% of Rev.
|
Δ% Reported
|
Δ% Comparable (7)
|
Transactions (million transactions)
|
|
4,375.0
|
|
4,652.4
|
|
-6.0%
|
-6.0%
|
Volume (million unit cases)
|
|
800.7
|
|
793.5
|
|
0.9%
|
0.9%
|
Average price per unit case
|
|
50.84
|
|
51.88
|
|
-2.0%
|
|
Net revenues
|
|
44,518
|
|
44,958
|
|
-1.0%
|
|
Other operating revenues
|
|
173
|
|
390
|
|
-55.8%
|
|
Total revenues (2)
|
|
44,690
|
100.0%
|
45,348
|
100.0%
|
-1.5%
|
5.4%
|
Cost of goods sold
|
|
24,768
|
55.4%
|
24,634
|
54.3%
|
0.5%
|
|
Gross profit
|
|
19,922
|
44.6%
|
20,714
|
45.7%
|
-3.8%
|
2.2%
|
Operating expenses
|
|
13,793
|
30.9%
|
14,536
|
32.1%
|
-5.1%
|
|
Other operative expenses, net
|
|
212
|
0.5%
|
317
|
0.7%
|
-33.0%
|
|
Operative equity method (gain) loss in associates(3)
|
|
18
|
0.0%
|
133
|
0.3%
|
-86.6%
|
|
Operating income (5)
|
|
5,899
|
13.2%
|
5,729
|
12.6%
|
3.0%
|
10.6%
|
Other non operative expenses, net
|
|
4
|
0.0%
|
(7)
|
0.0%
|
NA
|
|
Non Operative equity method (gain) loss in associates (4)
|
|
(2)
|
0.0%
|
(73)
|
-0.2%
|
-97.7%
|
|
Interest expense
|
|
1,471
|
|
3,070
|
|
-52.1%
|
|
Interest income
|
|
163
|
|
288
|
|
-43.5%
|
|
Interest expense, net
|
|
1,308
|
|
2,782
|
|
-53.0%
|
|
Foreign exchange loss (gain)
|
|
(14)
|
|
(486)
|
|
-97.0%
|
|
Loss (gain) on monetary position in inflationary subsidiaries
|
|
(171)
|
|
(98)
|
|
74.1%
|
|
Market value (gain) loss on financial instruments
|
|
8
|
|
(2)
|
|
NA
|
|
Comprehensive financing result
|
|
1,131
|
|
2,196
|
|
-48.5%
|
|
Income before taxes
|
|
4,766
|
|
3,613
|
|
31.9%
|
|
Income taxes
|
|
1,660
|
|
1,122
|
|
47.9%
|
|
Result of discontinued operations
|
|
-
|
|
-
|
|
NA
|
|
Consolidated net income
|
|
3,106
|
|
2,491
|
|
24.7%
|
|
Net income attributable to equity holders of the company
|
|
3,156
|
7.1%
|
2,552
|
5.6%
|
23.7%
|
|
Non-controlling interest
|
|
(49)
|
-0.1%
|
(61)
|
-0.1%
|
-19.2%
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow & CAPEX
|
|
2021
|
% of Rev.
|
2020
|
% of Rev.
|
Δ% Reported
|
Δ% Comparable (7)
|
Operating income (5)
|
|
5,899
|
13.2%
|
5,729
|
12.6%
|
3.0%
|
|
Depreciation
|
|
2,236
|
|
2,259
|
|
-1.0%
|
|
Amortization and other operative non-cash charges
|
|
672
|
|
1,099
|
|
-38.9%
|
|
Operating cash flow (5)(6)
|
|
8,807
|
19.7%
|
9,086
|
20.0%
|
-3.1%
|
3.2%
|
CAPEX
|
|
1,459
|
|
2,082
|
|
-29.9%
|
|
(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.
Coca-Cola FEMSA Reports 1Q21 Results
April 26, 2021
|
Page9 of 13
MEXICO & CENTRAL AMERICA DIVISION
|
RESULTS OF OPERATIONS
|
Millions of Pesos (1)
|
|
|
|
|
|
|
|
|
|
|
For the First Quarter of:
|
|
|
2021
|
% of Rev.
|
2020
|
% of Rev.
|
Δ% Reported
|
Δ% Comparable (6)
|
Transactions (million transactions)
|
|
2,383.9
|
|
2,597.5
|
|
-8.2%
|
-8.2%
|
Volume (million unit cases)
|
|
471.3
|
|
476.4
|
|
-1.1%
|
-1.1%
|
Average price per unit case
|
|
55.11
|
|
53.55
|
|
2.9%
|
|
Net revenues
|
|
25,973
|
|
25,512
|
|
|
|
Other operating revenues
|
|
7
|
|
12
|
|
|
|
Total Revenues (2)
|
|
25,980
|
100.0%
|
25,524
|
100.0%
|
1.8%
|
1.8%
|
Cost of goods sold
|
|
12,908
|
49.7%
|
13,071
|
51.2%
|
|
|
Gross profit
|
|
13,072
|
50.3%
|
12,453
|
48.8%
|
5.0%
|
4.9%
|
Operating expenses
|
|
8,572
|
33.0%
|
8,571
|
33.6%
|
|
|
Other operative expenses, net
|
|
189
|
0.7%
|
386
|
1.5%
|
|
|
Operative equity method (gain) loss in associates (3)
|
|
(51)
|
-0.2%
|
61
|
0.2%
|
|
|
Operating income (4)
|
|
4,362
|
16.8%
|
3,435
|
13.5%
|
27.0%
|
27.1%
|
Depreciation, amortization & other operating non-cash charges
|
|
1,801
|
6.9%
|
2,169
|
8.5%
|
|
|
Operating cash flow (4)(5)
|
|
6,163
|
23.7%
|
5,604
|
22.0%
|
10.0%
|
10.0%
|
(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 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:
|
|
|
2021
|
% of Rev.
|
2020
|
% of Rev.
|
Δ% Reported
|
Δ% Comparable (6)
|
Transactions (million transactions)
|
|
1,991.1
|
|
2,054.9
|
|
-3.1%
|
-3.1%
|
Volume (million unit cases)
|
|
329.4
|
|
317.1
|
|
3.8%
|
3.8%
|
Average price per unit case
|
|
44.72
|
|
49.38
|
|
-9.4%
|
|
Net revenues
|
|
18,544
|
|
19,446
|
|
|
|
Other operating revenues
|
|
166
|
|
378
|
|
|
|
Total Revenues (2)
|
|
18,710
|
100.0%
|
19,824
|
100.0%
|
-5.6%
|
11.0%
|
Cost of goods sold
|
|
11,861
|
63.4%
|
11,563
|
58.3%
|
|
|
Gross profit
|
|
6,850
|
36.6%
|
8,261
|
41.7%
|
-17.1%
|
-2.7%
|
Operating expenses
|
|
5,221
|
27.9%
|
5,964
|
30.1%
|
|
|
Other operative expenses, net
|
|
23
|
0.1%
|
(69)
|
-0.4%
|
|
|
Operative equity method (gain) loss in associates (3)
|
|
68
|
0.4%
|
72
|
0.4%
|
|
|
Operating income (4)
|
|
1,537
|
8.2%
|
2,294
|
11.6%
|
-33.0%
|
-19.2%
|
Depreciation, amortization & other operating non-cash charges
|
|
1,107
|
5.9%
|
1,189
|
6.0%
|
|
|
Operating cash flow (4)(5)
|
|
2,645
|
14.1%
|
3,483
|
17.6%
|
-24.1%
|
-9.7%
|
|
(1)
|
Except volume and average price per unit case figures.
|
|
(2)
|
Please refer to page 12 for revenue breakdown.
|
|
(3)
|
Includes equity method in 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.
|
Coca-Cola FEMSA Reports 1Q21 Results
April 26, 2021
|
Page10 of 13
COCA-COLA FEMSA
|
CONSOLIDATED BALANCE SHEET
|
Millions of Pesos
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
Mar-21
|
Dec-20
|
%
Var.
|
|
Liabilities & Equity
|
|
Mar-21
|
Dec-20
|
%
Var.
|
Current Assets
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
Cash, cash equivalents and marketable
securities
|
|
|
|
|
|
Short-term bank loans
and notes payable
|
|
4,056
|
5,017
|
-19%
|
|
48,425
|
43,497
|
11%
|
|
Suppliers
|
|
16,096
|
17,195
|
-6%
|
Total accounts receivable
|
|
8,737
|
11,523
|
-24%
|
|
Short-term leasing Liabilities
|
|
550
|
560
|
-2%
|
Inventories
|
|
10,160
|
9,727
|
4%
|
|
Other current liabilities
|
|
28,208
|
20,073
|
41%
|
Other current assets
|
|
6,642
|
7,693
|
-14%
|
|
Total
current liabilities
|
|
48,910
|
42,845
|
14%
|
Total
current assets
|
|
73,964
|
72,440
|
2%
|
|
Non-Current Liabilities
|
|
|
|
|
Non-Current
Assets
|
|
|
|
|
|
Long-term bank loans
and notes payable
|
|
84,705
|
82,461
|
3%
|
Property, plant and equipment
|
|
107,903
|
109,551
|
-2%
|
|
Long Term Leasing Liabilities
|
|
867
|
746
|
16%
|
Accumulated depreciation
|
|
(49,911)
|
(50,091)
|
0%
|
|
Other long-term liabilities
|
|
13,595
|
14,557
|
-7%
|
Total
property, plant and equipment, net
|
|
57,992
|
59,460
|
-2%
|
|
Total
liabilities
|
|
148,078
|
140,609
|
5%
|
Right of use assets
|
|
1,390
|
1,278
|
9%
|
|
Equity
|
|
|
|
|
Investment in shares
|
|
7,531
|
7,623
|
-1%
|
|
Non-controlling interest
|
|
5,258
|
5,583
|
-6%
|
Intangible assets and
other assets
|
|
101,930
|
103,971
|
-2%
|
|
Total controlling interest
|
|
108,431
|
116,874
|
-7%
|
Other non-current assets
|
|
18,959
|
18,294
|
4%
|
|
Total
equity
|
|
113,689
|
122,457
|
-7%
|
Total
Assets
|
|
261,766
|
263,066
|
0%
|
|
Total
Liabilities and Equity
|
|
261,766
|
263,066
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, 2021
|
|
|
|
|
|
|
Debt
Mix
|
|
%
Total Debt (1)
|
%
Interest Rate Floating (1) (2)
|
Average
Rate
|
|
Debt
Maturity Profile
|
Currency
|
|
|
|
|
|
|
Mexican Pesos
|
|
54.4%
|
23.8%
|
7.1%
|
|
U.S. Dollars
|
|
33.1%
|
0.0%
|
2.7%
|
|
Colombian Pesos
|
|
2.1%
|
51.7%
|
3.7%
|
|
Brazilian Reals
|
|
8.3%
|
0.2%
|
7.9%
|
|
Uruguayan Pesos
|
|
1.6%
|
0.0%
|
7.4%
|
|
Argentine Pesos
|
|
0.7%
|
0.0%
|
47.7%
|
|
Total
Debt
|
|
100%
|
7.3%
|
5.9%
|
|
(1)
After giving effect to cross- currency swaps.
|
|
|
|
|
|
|
(2)
Calculated by weighting each year´s outstanding debt balance mix.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios
|
|
1Q 2021
|
FY 2020
|
Δ%
|
|
|
|
|
|
|
Net debt including effect
of hedges (1)(3)
|
|
37,309
|
42,194
|
-11.6%
|
|
|
|
|
|
|
Net debt including effect
of hedges / Operating cash flow (1)(3)
|
|
1.01
|
1.13
|
|
|
|
|
|
|
|
Operating cash flow/
Interest expense, net (1)
|
|
6.73
|
5.46
|
|
|
|
|
|
|
|
Capitalization (2)
|
|
44.7%
|
42.7%
|
|
|
|
|
|
|
|
(1)
Net debt = total debt - cash
|
|
|
|
|
|
|
(2)
Total debt / (long-term debt + shareholders' equity)
|
|
|
|
|
|
|
(3) After
giving effect to cross-currency swaps.
|
|
|
|
|
|
|
Coca-Cola FEMSA Reports 1Q21 Results
April 26, 2021
|
Page11 of 13
COCA-COLA FEMSA
|
QUARTERLY- VOLUME, TRANSACTIONS
& REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
1Q
2021
|
|
1Q
2020
|
|
YoY
|
|
|
Sparkling
|
Water (1)
|
Bulk (2)
|
Stills
|
Total
|
|
Sparkling
|
Water (1)
|
Bulk (2)
|
Stills
|
Total
|
|
Δ %
|
Mexico
|
|
296.1
|
17.9
|
65.9
|
28.3
|
408.2
|
|
301.3
|
21.3
|
68.1
|
28.5
|
419.3
|
|
-2.7%
|
Guatemala
|
|
28.7
|
0.9
|
-
|
1.4
|
30.9
|
|
24.2
|
0.8
|
-
|
1.0
|
26.0
|
|
19.0%
|
CAM South
|
|
26.9
|
1.5
|
0.1
|
3.7
|
32.2
|
|
25.0
|
2.1
|
0.2
|
3.8
|
31.1
|
|
3.6%
|
Mexico and Central America
|
|
351.6
|
20.3
|
66.0
|
33.3
|
471.3
|
|
350.5
|
24.2
|
68.4
|
33.3
|
476.4
|
|
-1.1%
|
Colombia
|
|
54.2
|
5.3
|
3.9
|
4.2
|
67.7
|
|
50.2
|
6.4
|
5.1
|
3.8
|
65.4
|
|
3.5%
|
Brazil (3)
|
|
181.2
|
11.4
|
2.2
|
13.9
|
208.7
|
|
174.5
|
15.5
|
2.9
|
13.1
|
206.0
|
|
1.3%
|
Argentina
|
|
34.2
|
3.0
|
1.8
|
3.6
|
42.6
|
|
27.4
|
3.8
|
1.4
|
2.7
|
35.2
|
|
20.9%
|
Uruguay
|
|
8.9
|
1.3
|
-
|
0.2
|
10.3
|
|
9.1
|
1.2
|
-
|
0.1
|
10.5
|
|
-1.3%
|
South America
|
|
278.4
|
21.0
|
7.9
|
22.0
|
329.4
|
|
261.1
|
26.9
|
9.4
|
19.7
|
317.1
|
|
3.8%
|
TOTAL
|
|
630.0
|
41.3
|
74.0
|
55.3
|
800.7
|
|
611.7
|
51.1
|
77.7
|
53.1
|
793.5
|
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Excludes water presentations larger than 5.0 Lt ; includes flavored water.
|
(2)
Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q
2021
|
|
1Q
2020
|
|
YoY
|
|
|
Sparkling
|
Water
|
Stills
|
Total
|
|
Sparkling
|
Water
|
Stills
|
Total
|
|
Δ %
|
Mexico
|
|
1,590.3
|
131.5
|
193.6
|
1,915.4
|
|
1,775.0
|
158.6
|
214.0
|
2,147.7
|
|
-10.8%
|
Guatemala
|
|
216.3
|
9.2
|
13.6
|
239.2
|
|
186.9
|
8.6
|
9.3
|
204.7
|
|
16.8%
|
CAM South
|
|
183.5
|
9.9
|
36.0
|
229.4
|
|
188.5
|
13.6
|
41.8
|
245.1
|
|
-6.4%
|
Mexico and Central America
|
|
1,990.1
|
150.6
|
243.2
|
2,383.9
|
|
2,150.4
|
180.8
|
265.0
|
2,597.5
|
|
-8.2%
|
Colombia
|
|
348.8
|
57.8
|
36.5
|
443.1
|
|
348.3
|
79.7
|
37.1
|
465.1
|
|
-4.7%
|
Brazil (3)
|
|
1,064.0
|
96.2
|
141.8
|
1,301.9
|
|
1,091.9
|
131.3
|
131.5
|
1,354.7
|
|
-3.9%
|
Argentina
|
|
155.5
|
17.7
|
25.0
|
198.1
|
|
142.1
|
22.1
|
18.4
|
182.6
|
|
8.5%
|
Uruguay
|
|
41.2
|
4.8
|
1.9
|
47.9
|
|
46.2
|
5.2
|
1.2
|
52.6
|
|
-8.9%
|
South America
|
|
1,609.4
|
176.4
|
205.2
|
1,991.1
|
|
1,628.5
|
238.2
|
188.2
|
2,054.9
|
|
-3.1%
|
TOTAL
|
|
3,599.6
|
327.0
|
448.4
|
4,375.0
|
|
3,778.9
|
419.0
|
453.2
|
4,652.4
|
|
-6.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expressed in million Mexican
Pesos
|
|
1Q
2021
|
1Q
2020
|
Δ
%
|
|
|
|
|
|
|
|
|
|
|
Mexico
|
|
21,047
|
21,067
|
-0.1%
|
|
|
|
|
|
|
|
|
|
|
Guatemala
|
|
2,449
|
1,988
|
23.2%
|
|
|
|
|
|
|
|
|
|
|
CAM South
|
|
2,484
|
2,469
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
Mexico and Central America
|
|
25,980
|
25,524
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
Colombia
|
|
3,285
|
3,174
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
Brazil (4)
|
|
12,802
|
13,968
|
-8.3%
|
|
|
|
|
|
|
|
|
|
|
Argentina
|
|
1,854
|
1,905
|
-2.7%
|
|
|
|
|
|
|
|
|
|
|
Uruguay
|
|
770
|
777
|
-1.0%
|
|
|
|
|
|
|
|
|
|
|
South America
|
|
18,710
|
19,824
|
-5.6%
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
44,690
|
45,348
|
-1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
Volume and transactions in Brazil do not include beer
|
(4)
Brazil includes beer revenues of Ps.3,814.1 million for the first quarter of 2021 and Ps.3,786.1 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 1Q21 Results
April 26, 2021
|
Page12 of 13
COCA-COLA FEMSA
|
MACROECONOMIC INFORMATION
|
|
|
|
|
|
|
|
|
|
Inflation (1)
|
|
|
|
|
|
|
|
LTM
|
1Q21
|
|
|
|
|
|
México
|
|
3.51%
|
1.68%
|
|
|
|
|
|
Colombia
|
|
1.56%
|
1.45%
|
|
|
|
|
|
Brasil
|
|
5.03%
|
1.36%
|
|
|
|
|
|
Argentina
|
|
43.73%
|
13.59%
|
|
|
|
|
|
Costa Rica
|
|
0.89%
|
0.64%
|
|
|
|
|
|
Panama
|
|
-1.19%
|
0.35%
|
|
|
|
|
|
Guatemala
|
|
6.54%
|
0.95%
|
|
|
|
|
|
Nicaragua
|
|
3.38%
|
1.47%
|
|
|
|
|
|
Uruguay
|
|
9.04%
|
2.99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
1Q21
|
1Q20
|
Δ %
|
|
|
|
|
México
|
|
20.32
|
19.86
|
2.3%
|
|
|
|
|
Colombia
|
|
3,555.17
|
3,537.32
|
0.5%
|
|
|
|
|
Brasil
|
|
5.47
|
4.46
|
22.8%
|
|
|
|
|
Argentina
|
|
88.57
|
61.50
|
44.0%
|
|
|
|
|
Costa Rica
|
|
614.65
|
574.26
|
7.0%
|
|
|
|
|
Panamá
|
|
1.00
|
1.00
|
0.0%
|
|
|
|
|
Guatemala
|
|
7.75
|
7.68
|
1.0%
|
|
|
|
|
Nicaragua
|
|
34.91
|
33.96
|
2.8%
|
|
|
|
|
Uruguay
|
|
43.09
|
39.58
|
8.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End-of-period Exchange Rates
|
|
|
Closing Exchange Rate (Local Currency per USD)
|
|
Closing Exchange Rate (Local Currency per USD)
|
|
|
Mar-21
|
Mar-20
|
Δ %
|
|
Ene-21
|
Ene-20
|
Δ %
|
México
|
|
20.60
|
23.51
|
-12.4%
|
|
20.27
|
18.71
|
8.4%
|
Colombia
|
|
3,736.91
|
4,064.81
|
-8.1%
|
|
3,559.46
|
3,411.45
|
4.3%
|
Brasil
|
|
5.70
|
5.20
|
9.6%
|
|
5.48
|
4.27
|
28.3%
|
Argentina
|
|
92.00
|
64.47
|
42.7%
|
|
87.33
|
60.35
|
44.7%
|
Costa Rica
|
|
615.81
|
587.37
|
4.8%
|
|
616.16
|
573.36
|
7.5%
|
Panamá
|
|
1.00
|
1.00
|
0.0%
|
|
1.00
|
1.00
|
0.0%
|
Guatemala
|
|
7.71
|
7.68
|
0.4%
|
|
7.79
|
7.66
|
1.6%
|
Nicaragua
|
|
34.99
|
34.09
|
2.7%
|
|
34.88
|
33.92
|
2.8%
|
Uruguay
|
|
44.19
|
43.01
|
2.7%
|
|
37.31
|
32.39
|
15.2%
|
|
|
|
|
|
|
|
|
|
(2) Average exchange rate for each period computed with the average exchange rate of each month.
|
Coca-Cola FEMSA Reports 1Q21 Results
April 26, 2021
|
Page13 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 26, 2021
|
|
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