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 April 28, 2022 | Page 1 of 13 |
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
Coca-Cola FEMSA Reports 1Q22 Results April 28, 2022 | Page 2 of 13 |
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.
Coca-Cola FEMSA Reports 1Q22 Results April 28, 2022 | Page 3 of 13 |
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. |
Coca-Cola FEMSA Reports 1Q22 Results April 28, 2022 | Page 4 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 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 April 28, 2022 | Page 5 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 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 April 28, 2022 | Page 6 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 1Q22 Results April 28, 2022 | Page 7 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 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)
Coca-Cola FEMSA Reports 1Q22 Results April 28, 2022 | Page 8 of 13 |
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.
Coca-Cola FEMSA Reports 1Q22 Results April 28, 2022 | Page 9 of 13 |
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. |
Coca-Cola FEMSA Reports 1Q22 Results April 28, 2022 | Page 10 of 13 |
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 |