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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

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

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of April 2023

 

FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.

(Exact name of Registrant as specified in its charter)

 

Mexican Economic Development, Inc.

(Translation of Registrant’s name into English)

 

United Mexican States

(Jurisdiction of incorporation or organization)

 

General Anaya No. 601 Pte.
Colonia Bella Vista
Monterrey, Nuevo León 64410
México

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports

under cover of Form 20-F or Form 40-F:

 

Form 20-F x Form 40-F ¨ 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(7): ¨

 

Indicate by check mark whether by furnishing the information contained in this

Form, the registrant is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ¨ No x

 

If "Yes" is marked, indicate below the file number assigned to the registrant in

connection with Rule 12g3-2(b): 82- _____________

 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the

registrant has duly caused this report to be signed on its behalf of the

undersigned, thereunto duly authorized.

 

  FOMENTO ECONÓMICO MEXICANO, S.A. DE C.V.
   
  By: /s/ Eugenio Garza y Garza
  Eugenio Garza y Garza
  Director of Finance and Corporate Development

 

Date: April 28, 2023

 

 

 

 Exhibit 99.1

 

 

1Q 2023

Results

April 28, 2023

 

 

Investor Contact

(52) 818-328-6167

investor@femsa.com.mx

femsa.gcs-web.com

 

Media Contact

(52) 555-249-6843

comunicacion@femsa.com.mx

femsa.com

 

 

 

 

 

HIGHLIGHTS

 

Monterrey, Mexico, April 28, 2023 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today its operational and financial results for the first quarter of 2023.

 

·FEMSA: Total Consolidated Revenues grew 21.9% against 1Q22.

 

·FEMSA Retail1: Proximity Americas total Revenues increased 21.9% against 1Q22.

 

·DIGITAL: Spin by OXXO had 4.2 million active users2 while Spin Premia had 12.7 million active loyalty users3 and an average tender3 of 20.5%.

 

·COCA-COLA FEMSA: Total volume grew 6.6% against 1Q22, driven by growth across all its geographies.

 

Financial Summary for the First Quarter 2023

Change vs. comparable period

 

   Revenues   Gross Profit   Income from
Operations		   Same-Store Sales 
   1Q23   1Q23   1Q23   1Q23 
FEMSA Consolidated   21.9%   23.0%   5.5%     
Proximity Americas   21.9%   19.8%   19.7%   18.3%
Health   (0.4)%   4.9%   (6.1)%   (5.5)%
Fuel   20.6%   21.9%   38.7%   17.4%
Coca-Cola FEMSA   12.0%   12.6%   12.9%     
Envoy Solutions   23.7%   23.2%   (10.0)%     

 

Daniel Rodríguez Cofré, FEMSA’s Chief Executive Officer, commented:

 

“During the first quarter, we were able to carry the momentum created by our FEMSA Forward announcement and follow up with a very compelling set of results, particularly driven by strong organic top-line growth at most of our operations. Within Retail, Proximity Americas increased revenues by almost 22 percent, driven by excellent same-store sales trends at OXXO reflecting strong traffic significantly outperforming the market. This strong double-digit revenue growth performance extended across formats and across markets, including Proximity Europe. Health revenues were stable, reflecting a challenging comparison base in Chile as well as currency headwinds. Of note, Fuel had another robust quarter of double-digit revenue growth. For its part, Coca-Cola FEMSA again had remarkable increases across its income statement, while Envoy Solutions delivered strong revenue growth driven by recent acquisitions. On the Digital side, we continued to add users at a rapid pace, with active users growing well above 200 percent year-over-year. Importantly, we just launched the transition of OXXO Premia into Spin Premia, our coalition loyalty program, as we make progress toward our ambition of an integrated ecosystem under the Spin brand umbrella.

 

On the balance sheet front, our leverage ratio is now within our stated target levels, putting us in a good position to allocate incremental capital according to the priorities stated in FEMSA Forward. We will keep you posted of any new developments.

 

I want to extend my heartfelt thanks to our hardworking team who contributed to these strong results. I am excited about the future of our Company, and we are certainly starting this year on a very positive note.”

 

 

1 FEMSA Retail: Proximity Americas & Europe, Fuel and FEMSA Health.

2 Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days.

  Active User for Spin Premia: User that has transacted at least once with OXXO Premia within the last 90 days.

3 Tender: MXN sales with Spin Premia redemption or accrual / Total OXXO MXN Sales, during the period.

 

April 28, 2023   |   Page 2

 

 

QUARTERLY RESULTS

Results are compared to the same period of previous year

 

FEMSA CONSOLIDATED  

 

1Q23 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.)

 

    1Q23    1Q22    Var.    Org. 
Revenues   180,011    147,636    21.9%   12.4%
Income from Operations   12,543    11,892    5.5%   3.3%
Operating Margin (%)   7.0    8.1    (110)bps     
EBITDA5   22,157    19,694    13.3%   5.1%
EBITDA Margin (%)   12.3    13.3    (110)bps     
Net Income   50,329    5,848    N.S.      

 

Net Debt ex-KOF6

Amounts expressed in millions of Mexican Pesos (Ps.)

 

As of March 31, 2023  Ps.   US$4 
Cash   70,479    3,910 
Long-Term Debt   79,364    4,403 
Lease Liabilities   91,492    5,076 
Net debt   100,378    5,569 
ND / EBITDA   1.77x   - 

 

Total revenues increased 21.9% in 1Q23 compared to 1Q22, driven by growth across our business units. On an organic1 basis, total revenues increased 12.4%.

 

Gross profit increased 23.0%. Gross margin expanded 30 basis points, reflecting the consolidation of Proximity Europe, as well as margin expansions at Coca-Cola FEMSA and FEMSA Health. This was partially offset by margin contractions at Proximity Americas and Envoy Solutions.

 

Income from operations increased 5.5%. On an organic basis, income from operations increased 3.3%. Consolidated operating margin decreased 110 basis points to 7.0% of total revenues, reflecting margin expansion at Coca-Cola FEMSA and Fuel, offset by margin contractions at Proximity Americas, Health, and Envoy Solutions, as well as the consolidation of Proximity Europe.

 

Our effective income tax rate was 30.4% in 1Q23 compared to 31.2% in 1Q22. Our income tax provision was Ps. 4,328 million in 1Q23. This does not include taxes related to FEMSA’s partial divestment of its Heineken investment.

 

Net consolidated income was Ps. 50,329 million, mainly driven by a Ps. 40,606 million gain from the accounting re-measurement from historical cost to fair value of FEMSA’s investment in Heineken, as well as the partial divestiture of this investment as part of the FEMSA Forward strategy announced on February 15, 2023, net of a Ps. 7,634 million tax payment linked to this transaction. Both gains are now presented as discontinued operations in our income statement. In addition, net consolidated income also reflects a Ps. 8,523 million non-cash financial product that mostly reflects the repurchase of US$ 1.7 billion2 of FEMSA’s outstanding debt at favorable price levels, also in connection with FEMSA Forward.

 

Net majority income was Ps. 13.44 per FEMSA Unit3 and US$7.44 per FEMSA ADS.

 

Capital expenditures amounted to Ps. 5,080 million, driven by ongoing investment activities across our business units.

 

 

1 Excludes the effects of significant mergers and acquisitions in the last twelve months, including the acquisition of Valora.

2 Face value

3 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of March 31, 2023 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

4 The exchange rate published by the Federal Reserve Bank of New York for March 31, 2023 was 18.0250 MXN per USD.

5 EBITDA: Operating Income + Depreciation + Amortizations.

6 ex-KOF: FEMSA Consolidated reported information – Coca-Cola FEMSA Consolidated reported information.

EBITDA ex-KOF: FEMSA Consolidated EBITDA as described above – Coca-Cola FEMSA’s Consolidated EBITDA + Dividends received by FEMSA from Coca-Cola FEMSA and other investments.

All Net Debt calculations are shown on an Ex-KOF basis. For a detailed reconciliation of this metric please see table on page 16 of this document.

4 OXXO Latam: OXXO Colombia, Chile and Peru.

 

April 28, 2023   |   Page 3

 

 

PROXIMITY AMERICAS

OXXO (Mexico & Latam4)

 

1Q23 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales

 

    1Q23    1Q22    Var.    Org. 
Same-store sales (thousands of Ps.)   895.9    757.5    18.3%     
Revenues   60,871    49,918    21.9%   21.2%
Income from Operations   4,463    3,727    19.7%   21.3%
Income from Operations Margin (%)   7.3    7.5    (20)bps     
EBITDA   7,660    6,630    15.5%   16.3%
EBITDA Margin (%)   12.6    13.3    (70)bps     

 

Net Additions

Vs. comparable quarter

Store Base

As of 1Q23

Same-Store Sales

In thousands of Ps.

EBITDA

In millions of Ps.

     

 

Total revenues increased 21.9% in 1Q23 compared to 1Q22. On an organic1 basis, total revenues increased 21.2%, reflecting a 18.3% average same-store sales increase, driven by 11.9% growth in average customer ticket and an increase of 5.7% in store traffic. These figures reflect a strong performance across most of OXXO’s categories supported by the strong performance of the gathering occasions, such as beer, snacks, and other beverages, as well as the continued recovery of mobility-driven occasions. During the quarter, the OXXO store base in Mexico & Latam expanded by 157 units to reach 1,115 total net store additions for the last twelve months. This includes 120 stores from our acquisition of OK Market in Chile. As of March 31, 2023, Proximity Americas had a total of 21,615 OXXO stores.

 

Gross profit reached 40.3% of total revenues, reflecting strong commercial activity and promotional programs from key suppliers, offset by the impact from OXXO’s fast-growing loyalty program, and a decrease in the contribution of financial services relative to 1Q22.

 

Income from operations amounted to 7.3% of total revenues. Operating expenses increased 19.8% to Ps. 20,083 million, below revenues, as operating leverage and efficiencies more than offset an increase in labor expenses in Mexico, and an increase in performance-based compensation schemes for OXXO’s in-store personnel.

 

 

1 Excludes the effects of significant mergers and acquisitions in the last twelve months.

2 Bara store count and results are not consolidated within the Proximity Americas reported figures.

 

April 28, 2023   |   Page 4

 

 

PROXIMITY AMERICAS

Other formats

 

Bara2

Total revenues increased 45.3% in 1Q23 compared to 1Q22, driven by a 25.1% average same-store sales increase, reflecting the strong performance of the groceries, home hygiene and convenience categories, particularly supported by soft drinks. During the quarter, the Bara store base expanded by 12 units to reach 283 total Bara stores as of March 31, 2023.

 

Grupo Nós1

Total revenues for the period grew 259.1% year-over-year, reaching R$137.0 million2. This figure reflects the successful evolution and expansion of the OXXO value proposition which resulted in same-store sales growth at OXXO of 43.7%3, as well as the addition of 207 net new OXXO stores for the last twelve months. During the quarter, the store base of Grupo Nós expanded by 135 units, including 97 net new OXXO stores. As of March 31, 2023, Grupo Nós had a total of 1,603 stores, which include 314 company owned and operated OXXO stores.

 

 

1 OXXO’s non-consolidated joint-venture with Raízen in Brazil.

2 The exchange rate published by the Federal Reserve Bank of New York for March 31, 2023 was 5.0702 BRL per USD.

3 Local currency, BRL.

4 The Proximity Europe segment is comprised of Valora. The acquisition of Valora was concluded in October 2022.

 

April 28, 2023   |   Page 5

 

 

PROXIMITY EUROPE4

Valora

 

1Q23 Financial Summary
Amounts expressed in millions of Mexican Pesos (Ps.)
 

 

    1Q23 
Revenues   10,079 
Income from Operations   141 
Income from Operations Margin (%)   1.4 
EBITDA   1,329 
EBITDA Margin (%)   13.2 

 

Total revenues for Proximity Europe during the period increased 14.0%1 in 1Q23 compared to 1Q22 to Ps. 10,079 million, reflecting a partial traffic recovery as well as positive pricing initiatives. As of the end of the period, Proximity Europe had 2,772 points of sale.

 

Gross profit reached 46.3% of total revenues, reflecting the continued recovery of the foodservice category, which has a structurally higher margin.

 

Income from operations amounted to 1.4% of total revenues, reflecting the contribution of foodservice as well as the integration of recent acquisitions.

 

 

1 Local currency, CHF.

 

April 28, 2023   |   Page 6

 

 

HEALTH

 

1Q23 Financial Summary

Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales

 

    1Q23    1Q22    Var. 
Same-store sales (thousands of Ps.)   1,220.0    1,290.7    (5.5)%
Revenues   18,574    18,657    (0.4)%
Income from Operations   1,002    1,067    (6.1)%
Income from Operations Margin (%)   5.4    5.7    (30)bps
EBITDA   2,028    2,000    1.4%
EBITDA Margin (%)   10.9    10.7    20bps

 

Net Additions

Vs. comparable quarter

Locations

As of 1Q23

Same-Store Sales

In thousands of Ps.

EBITDA

In millions of Ps.

 

Total revenues decreased 0.4% in 1Q23 compared to 1Q22, mainly reflecting positive trends in Colombia and Ecuador, offset by a demanding comparison base in Chile and Mexico, and by a negative currency translation effect related to the depreciation of the Chilean and Colombian pesos relative to the Mexican peso. During the quarter, Health’s store base expanded by 80 units reaching a total of 4,186 locations across its territories as of March 31, 2023. This figure reflects the addition of 453 net new locations for the last twelve months. Same-store sales decreased an average of -5.5%, reflecting the trends described above. On a currency-neutral1 basis, total revenues grew 14.1% while same-store sales increased by 5.8%.

 

Gross profit represented 30.8% of total revenues, reflecting improved efficiency and more effective collaboration and execution with key supplier partners, as well as an undemanding base that reflected a negative mix effect.

 

Income from operations amounted to 5.4% of total revenues. Operating expenses increased 7.6% to Ps. 4,716 million, reflecting an increase in labor expenses partially offset by tight expense control across our operations.

 

 

1 Calculated by translating comparable period figures at the foreign currency exchange rates used in the current period.

 

April 28, 2023   |   Page 7

 

 

FUEL

 

1Q23 Financial Summary
Amounts expressed in millions of Mexican Pesos (Ps.) except same-station sales

 

    1Q23    1Q22    Var. 
Same-station sales (thousands of Ps.)   7,109.5    6,056.2    17.4%
Revenues   13,141    10,894    20.6%
Income from Operations   523    377    38.7%
Income from Operations Margin (%)   4.0    3.5    50bps
EBITDA   819    649    26.2%
EBITDA Margin (%)   6.2    6.0    20bps

 

Net Additions

Vs. comparable quarter

Service Station Base

As of 1Q23

Same-Station Sales

In thousands of Ps.

EBITDA

In millions of Ps.

 

 

Total revenues increased 20.6% in 1Q23 compared to 1Q22, reflecting a 17.4% average same-station sales increase, driven by 11.6% growth in average volume and 5.2% increase in the average price per liter, as well as volume growth in our institutional and wholesale customer network. The OXXO Gas retail network had 570 points of sale as of March 31, 2023. This figure reflects the net addition of two net stations for the last twelve months.

 

Gross profit was 12.4% of total revenues.

 

Income from operations amounted to 4.0% of total revenues. Operating expenses increased 15.4% to Ps. 1,112 million, below revenues, reflecting tight expense control and positive operating leverage.

 

April 28, 2023   |   Page 8

 

 

FEMSA Retail Operations Summary

 

Currency-neutral terms where applicable

 

Total Revenue Growth (% vs year ago)

 

    1Q23 
Proximity Americas     
OXXO1   21.9%
México   21.3%
OXXO Latam1   85.2%
      
Other Proximity Americas formats     
Bara   45.3%
OXXO Brazil2   259.1%
      
Proximity Europe4   14.0%
OXXO Gas   20.6%
      
FEMSA Health5   14.1%
Chile   8.5%
Colombia   31.0%
Ecuador   8.3%
México   7.6%

 

1 OXXO Consolidated figures shown in MXN including currency effects.
2 Includes OXXO Colombia, Chile and Peru.
3 Operated through Grupo Nós, our joint-venture with Raízen.
4 Local currency (CHF).
5 FEMSA Health Include franchised stores in Ecuador.

 

Total Unit Growth (% vs year ago)

 

    1Q23 
Proximity Americas     
OXXO   5.4%
México   4.1%
OXXO Latam1   85.4%
      
Other Proximity Americas formats     
Bara   27.5%
OXXO Brazil2   193.5%
      
Proximity Europe3   1.0%
OXXO Gas   0.2%
      
FEMSA Health   12.1%
Chile   1.2%
Colombia   37.4%
Ecuador   9.3%
México   11.3%

 

1 Includes OXXO Colombia, Chile and Perú.
2 Operated through Grupo Nós, our joint-venture with Raízen.
3 Includes company owned and franchised units.

 

Same-Store Sales

 

    1Q23 
Proximity Americas     
OXXO1   18.3%
México   18.5%
OXXO Latam1   25.0%
      
Other Proximity Americas formats     
Bara   25.1%
OXXO Brazil2   43.7%
      
Proximity Europe3   N.A. 
OXXO Gas4   17.4%
      
FEMSA Health5   5.8%
Chile   1.9%
Colombia   16.6%
Ecuador   8.5%
México   (7.1)%

 

1 OXXO Consolidated figures shown in MXN including currency effects.
2 Includes OXXO Colombia, Chile and Peru.
3 Operated through Grupo Nós, our joint-venture with Raízen.
4 Local currency (CHF).
5 Only includes retail sales. FEMSA Health Include franchised stores in Ecuador.

 

April 28, 2023   |   Page 9

 

 

DIGITAL@FEMSA1

 

Spin by OXXO

Spin by OXXO acquired 1.1 million users during the quarter to reach 6.4 million total users in 1Q23, compared to 2.0 million users in 1Q22. This represents an increase of 216.3% YoY and a 10.2% compound monthly growth rate. Active users2 represented 65.3% of the total acquired user base. Total transactions per month increased 22.0% during the quarter to reach an average of 29.9 million per month in 1Q23, reflecting an increase in user engagement.

 

Spin Premia

Spin Premia acquired 2.6 million users during the quarter to reach 28.9 million total users in 1Q23, compared to 8.9 million users in 1Q22. This represents an increase of 225.1% YoY and a 10.3% compound monthly growth rate. Active users3 represented 43.9% of the total acquired user base. The average tender4 during the quarter was 20.5%.

 

COCA-COLA FEMSA

 

Coca-Cola FEMSA’s financial results and discussion thereof are incorporated by reference from Coca-Cola FEMSA’s press release, which is attached to this press release or may be accessed by visiting coca-colafemsa.com.

 

 

1 Digital@FEMSA’s results are included within the Other business segment

2 Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days.

3 Active User for Spin Premia: User that has transacted at least once with OXXO Premia within the last 90 days.

4 Tender: MXN sales with Spin Premia redemption or accrual / Total OXXO MXN Sales, during the period.

 

April 28, 2023   |   Page 10

 

 

ENVOY SOLUTIONS1

 

1Q23 Financial Summary
Amounts expressed in millions of Mexican Pesos (Ps.) except same-store sales

 

    1Q23    1Q22    Var. 
Revenues   13,467    10,887    23.7%
Income from Operations   488    542    (10.0)%
     Income from Operations Margin (%)   3.6    5.0    (140)bps
EBITDA   931    823    13.1%
     EBITDA Margin (%)   6.9    7.6    (70)bps

 

 

Revenues

In millions of Ps.

EBITDA

In millions of Ps.

 

Total revenues increased 23.7% in 1Q23 compared to 1Q22, reflecting better trends in several categories in the United States, including effective cross-selling initiatives, as well as recent acquisitions.

 

Gross profit represented 27.9% of total revenues, reflecting cost increases in-line with inflation.

 

Income from operations represented 3.6% of total revenues. Operating expenses increased 30.3% to Ps. 3,267 million, reflecting the inorganic expansion of our platform, increased transportation, and labor costs, as well as the appreciation of the Mexican Peso compared to the US Dollar. On a comparable basis2, income from operations increased 1.2% compared to 1Q22.

 

 

1 During 2021 and 2022, Envoy Solutions results were included within the Logistics & Distribution business segment.

2 Comparable basis: Excluding non-recurrent M&A expenses and on a currency-neutral basis.

 

April 28, 2023   |   Page 11

 

 

RECENT DEVELOPMENTS

 

·On February 17, 2023, FEMSA announced the pricing of the sale by its wholly-owned subsidiary CB Equity LLP of existing issued ordinary shares (the “Shares”) of both Heineken N.V. and Heineken Holding N.V. (together, the “Heineken Group”) in the total amount of EUR 3.2 billion (approximately 7% of the combined interest in the Heineken Group) (the “Equity Offering”). The Company also announced the pricing of an offering of senior unsecured exchangeable bonds in the aggregate principal amount of EUR 500 million (the “Bonds”), exchangeable into Shares of Heineken Holding N.V. (the “Exchangeable Offering” and together with the Equity Offering, the “Offering”).

 

·Also on February 17,2023, FEMSA announced that it had commenced offers to purchase for cash FEMSA’s outstanding debt issuances for an aggregate purchase price, excluding Accrued Interest and Additional Amounts, if any, of up to US$2.0 billion. For more information, please see here.

 

On March 17, 2023, FEMSA announced the final tender results and acceptance for its previously announced offers to purchase for cash FEMSA’s notes for an aggregate purchase price, excluding accrued and unpaid interest and additional amounts, if any of up to US$2.0 billion, from registered holders of the notes. The offers were made pursuant to the terms and subject to the conditions set forth in the amended and restated offer to purchase dated February 17, 2023. As of the end of the offer, FEMSA retired US$1.7 billion of outstanding debt. For more information on this, please see here.

 

·On March 31, 2023, FEMSA announced that it held its Annual Shareholders’ and Extraordinary Shareholders’ Meetings (the “Shareholders’ Meetings”), during which the shareholders approved the consolidated financial statements for the year ended December 31, 2022, the 2022 CEO’s annual report and the opinion of the Board of Directors for the fiscal year 2022.

 

The Annual Shareholders’ Meeting elected the members of the board of directors and the members of each of the Audit Committee, the Corporate Practices and Nomination Committee, and the Operations and Strategy Committee of the Board for 2023.

 

The list of elected directors can be found in the following link: https://femsa.gcs-web.com/corporate-governance/board-of-directors.

 

The Annual Shareholders’ Meeting also declared and approved the payment of a cash dividend of Ps. 0.7634 per each Series "D" share and Ps. 0.6107 per each Series "B" share, which amounts to Ps. 3.6644 per "BD" Unit (BMV: FEMSAUBD) or Ps. 36.6440 per ADS (NYSE: FMX), and Ps. 3.0536 per "B" Unit (BMV: FEMSAUB), to be paid in two equal installments, payable on May 8, 2023 and November 7, 2023.

 

The Extraordinary Shareholders’ Meeting approved an amendment to Article 25 of the Company’s Bylaws, to reduce the minimum number of directors to be appointed by the Series “B” shareholders from 11 directors to 9 directors.

 

For additional information, please refer to the Summary of Resolutions in the Shareholders Meeting section of our corporate website at: https://femsa.gcsweb.com/shareholder-meeting-information.

 

·On April 3, 2023, FEMSA announced that it had successfully closed the acquisition of the remaining 85.18% shares of NET PAY S.A.P.I DE C.V. (“Net Pay”), a merchant aggregator that offers several payment services and solutions to micro, small and medium-sized businesses in Mexico, as previously announced on November 7, 2022, after receiving the necessary regulatory approvals.

 

·On April 20, 2023, Digital@FEMSA announced the launch of Spin Premia, a loyalty coalition program which allows its users to accrue and redeem rewards across a variety of partners. The current partners of this program are OXXO, OXXO GAS, other FEMSA formats and external partners.

 

·On April 24, 2023, FEMSA announced that it had filed its annual report on Form 20-F for the fiscal year ended December 31, 2022, with the U.S. Securities and Exchange Commission (SEC) and its annual report, for the same period, with the Comisión Nacional Bancaria y de Valores (Mexican Banking and Securities Commission) and the Bolsa Mexicana de Valores (Mexican Stock Exchange). These reports are available on FEMSA's investor relations website at http://ir.femsa.com.

 

April 28, 2023   |   Page 12

 

 

CONFERENCE CALL INFORMATION

 

Our First Quarter 2023 Conference Call will be held on: Friday, April 28, 2023, 11:00 AM Eastern Time (9:00 AM Mexico City Time). The conference call will be webcast live through streaming audio.

 

Telephone:             Toll Free US:      (866) 580 3963
                                 International:     +1 (786) 697 3501
 
Webcast:               https://edge.media-server.com/mmc/p/r9wkia49
 
Conference ID:     FEMSA

 

If you are unable to participate live, the conference call audio will be available on https://femsa.gcs-web.com/financial-reports/quarterly-results

 

 

ABOUT FEMSA

 

FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Americas Division operating OXXO, a small-format store chain, and other related retail formats, and Proximity Europe which includes Valora, our European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates though a Health Division, which includes drugstores and related activities and Digital@FEMSA, which includes Spin by OXXO and Spin Premia, among other digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume; and in the beer industry, as a shareholder of Heineken, one of the world’s leading brewers with operations in over 70 countries. FEMSA also participates in the logistics and distribution industry through its Strategic Business Unit, which additionally provides point-of-sale refrigeration and plastic solutions to its business units and third-party clients. Across its business units, FEMSA has more than 350,000 employees in 18 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index: S&P/BMV Total México ESG, among other indexes that evaluate its sustainability performance.

 

 

The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the noon buying rate for Mexican pesos as published by the Federal Reserve Bank of New York on March 31, 2023, which was 18.0250 Mexican pesos per US dollar.

 

 

FORWARD-LOOKING STATEMENTS

 

This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

 

Nine pages of tables and Coca-Cola FEMSA’s press release to follow

 

April 28, 2023   |   Page 13

 

 

FEMSA – Consolidated Income Statement

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the first quarter of: 
   2023  

%

of rev.

   2022  

%

of rev.

   % Var.   % Org.(A) 
Total revenues   180,011    100.0    147,636    100.0    21.9    12.4 
Cost of sales   112,998    62.8    93,167    63.1    21.3      
Gross profit   67,013    37.2    54,469    36.9    23.0      
Administrative expenses   8,628    4.8    7,294    4.9    18.3      
Selling expenses   46,098    25.5    35,272    23.9    30.7      
Other operating expenses (income), net (1)   (256)   (0.1)   11    -     N.S.       
Income from operations (2)   12,543    7.0    11,892    8.1    5.5    3.3 
Other non-operating expenses (income)   251         (129)         N.S.       
Interest expense   3,701         3,940         (6.1)     
Interest income   8,523         737          N.S.       
Interest expense, net   (4,822)        3,203          N.S.       
Foreign exchange loss (gain)   2,553         1,533         66.5      
Other financial expenses (income), net   314         801         (60.8)     
Financing expenses, net   (1,955)        5,537         (135.3)     
Income before income tax and participation in associates results   14,247         6,484         119.7      
Income tax   4,328         2,022         114.0      
Participation in associates results (3)   (196)        (48)         N.S.       
Continued Operations net income (Loss)   9,723         4,414         120.3      
Discontinued Operations net income (Loss)   40,606         1,434          N.S.       
Consolidated net income (Loss)   50,329         5,848          N.S.       
Net majority income   48,078         3,987          N.S.       
Net minority income   2,251         1,861         21.0      

 

Operative Cash Flow & CAPEX   2022    

%

of rev.

    2021    

%

of rev.

    % Inc.    % Org.(A) 
Income from operations   12,543    7.0    11,892    8.1    5.5    3.5 
Depreciation   8,272    4.6    6,470    4.4    27.9      
Amortization & other non-cash charges   1,342    0.7    1,332    0.8    0.8      
EBITDA   22,157    12.3    19,694    13.3    12.5    5.2 
CAPEX (4)   5,080         6,092         (16.6)     

 

 

(A) Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.

(1) Other operating expenses (income), net = other operating expenses (income) +(-) equity method from operated associates.

(2) Income from operations = gross profit – administrative and selling expenses – other operating expenses (income), net.

(3) Mainly represents the results of our joint-venture with Raízen, Grupo Nós, net of taxes.

(4) At the end of March, the CAPEX effectively paid is equivalent to Ps. 5,072 million.

 

April 28, 2023   |   Page 14

 

 

 

 

FEMSA – Consolidated Balance Sheet

Amounts expressed in millions of Mexican Pesos (Ps.)

 

ASSETS  Mar-23   Dec-22   % Inc. 
Cash and cash equivalents   99,927    83,439    19.8 
Investments   11,699    51     N.S.  
Accounts receivable   40,976    45,527    (10.0)
Inventories   61,312    62,224    (1.5)
Assets Available for sale   86,167    -     N.S.  
Other current assets   34,034    35,208    (3.3)
Total current assets   334,115    226,449    47.5 
Investments in shares   14,339    103,669    (86.2)
Property, plant and equipment, net   131,501    134,001    (1.9)
Right of use   186,665    83,966    122.3 
Intangible assets (1)   83,730    190,772    (56.1)
Other assets   60,342    59,958    0.6 
TOTAL ASSETS   810,692    798,815    1.5 

 

LIABILITIES & STOCKHOLDERS’ EQUITY  Mar-23   Dec-22   % Inc. 
Bank loans   2,073    1,862    11.3 
Current maturities of long-term debt   14,558    14,471    0.6 
Interest payable   2,141    2,075    3.2 
Current maturities of long-term leases   12,165    12,095    0.6 
Operating liabilities   157,693    144,411    9.2 
Total current liabilities   188,630    174,914    7.8 
Long-term debt (2)   138,485    170,989    (19.0)
Long-term leases   81,026    81,222    (0.2)
Laboral obligations   7,197    7,048    2.1 
Other liabilities   34,214    26,841    27.5 
Total liabilities   449,552    461,014    (2.5)
Total stockholders’ equity   361,140    337,801    6.9 
TOTAL LIABILITIES AND STOCKHOLERS’ EQUITY   810,692    798,815    1.5 

 

   March 31, 2023 
DEBT MIX (2)  % of Total   Average Rate 
Denominated in:          
       Mexican pesos   56.2%   7.8%
       U.S. Dollars   11.8%   4.6%
       Euros   20.1%   1.5%
       Swiss Francs   0.7%   0.9%
       Colombian pesos   0.6%   6.6%
       Argentine pesos   0.0%   0.0%
       Brazilian reais   9.3%   12.5%
       Chilean pesos   1.1%   10.0%
       Uruguayan Pesos   0.2%   6.3%
       Guatemalan Quetzal   0.0%   0.0%
Total debt   100.0%   6.6%
           
Fixed rate (2)   83.6%     
Variable rate (2)   16.4%     

 

DEBT MATURITY PROFILE  2024   2025   2026   2027   2028   2029+ 
% of Total Debt   10.1%   0.2%   8.3%   9.3%   10.3%   61.8%

 

(1) Includes mainly the intangible assets generated by acquisitions.

(2) Includes the effect of derivative financial instruments on long-term debt.

 

April 28, 2023 | Page 15

 

 

Net Debt & EBITDA ex-KOF

Amounts expressed in millions of US Dollars (US.)

 

   Twelve months ended March 31, 2023 
   Reported EBITDA   Adjustments   EBITDA Ex-KOF4 
Proximity Americas & Europe1   2,013    -    2,013 
Fuel   182    -    182 
Health Division   395    -    395 
Envoy Solutions   192    -    192 
Coca-Cola FEMSA2   2,252    (2,252)   - 
Other3   (135)   -    (135)
FEMSA Consolidated   4,899    (2,162)   2,654 
                
Dividends Received4   -    484    484 
                
FEMSA Consolidated ex-KOF   4,899    (1,679)   3,138 

 

   As of March 31, 2023 
   Reported   Adjustments   Ex-KOF 
Cash & Equivalents   3,910    -    3,910 
Coca-Cola FEMSA Cash & Equivalents   2,283    (2,283)   - 
Cash & Equivalents   6,193    (2,283)   3,910 
                
Financial Debt5   4,403    -    4,403 
Coca-Cola FEMSA Financial Debt   4,203    (4,203)   - 
Lease Liabilities   5,076    -    5,076 
Coca-Cola FEMSA Lease Liabilities   94    (94)   - 
Debt   13,776    (4,297)   9,479 
                
FEMSA Net Debt   7,583    (2,014)   5,569 

 

Converted to USD for readers’ convenience using the exchange rate published by the Federal Reserve Bank of New York as of the end of each reporting period.

1 Includes Proximity Europe only for the consolidated period.

2 Coca-Cola FEMSA adjustment represents 100% of its LTM EBITDA.

3 Includes FEMSA Other Businesses (including Solistica and Digital@FEMSA), FEMSA corporate expenses and the effects of consolidation adjustments

4 Reflects cash dividends received from Coca-Cola FEMSA for approximately US$276 mm and US$79 mm from JRD, and Heineken US$129 mm from Heineken during the last twelve months.

5 Includes EUR€ 500.0 mm in notes convertible to Heineken Holding N.V. shares.

 

April 28, 2023 | Page 16

 

 

Proximity Americas – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the first quarter of: 
   2023  

%

of rev.

   2022  

%

of rev.

   % Var.   %
Org.(A)		 
Total revenues   60,871    100.0    49,918    100.0    21.9    21.2 
Cost of sales   36,325    59.7    29,426    58.9    23.4      
Gross profit   24,546    40.3    20,492    41.1    19.8      
Administrative expenses   1,120    1.8    1,306    2.6    (14.2)     
Selling expenses   18,945    31.2    15,413    30.9    22.9      
Other operating expenses (income), net   18    -    46    0.1    (60.9)     
Income from operations   4,463    7.3    3,727    7.5    19.7    21.3 
Depreciation   2,984    4.9    2,666    5.3    11.9      
Amortization & other non-cash charges   213    0.4    237    0.5    (10.1)     
EBITDA   7,660    12.6    6,630    13.3    15.5    16.3 
CAPEX   2,349         1,752         34.0      
                               
Information of OXXO Stores                              
Total stores   21,615         20,500         5.4      
Stores Mexico   21,007         20,172         4.1      
Stores South America   608         328         85.4      
                               
Net new convenience stores:                              
       vs. Last quarter   157         69         127.5      
       Year-to-date   157         69         127.5      
       Last-twelve-months   1,115         794         40.4      
                               
Same-store data: (1)                              
       Sales (thousands of pesos)   895.9         757.5         18.3      
       Traffic (thousands of transactions)   17.2         16.3         5.7      
       Ticket (pesos)   52.1         46.6         11.9      

 

(A) Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.

(1) Monthly average information per store, considering same stores with more than twelve months of operations, income from services are included.

 

April 28, 2023 | Page 17

 

 

Health – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the first quarter of: 
   2023  

%

of rev.

   2022  

%

of rev.

   % Var. 
Total revenues   18,574    100.0    18,657    100.0    (0.4)
Cost of sales   12,856    69.2    13,207    70.8    (2.7)
Gross profit   5,718    30.8    5,450    29.2    4.9 
Administrative expenses   705    3.8    762    4.1    (7.5)
Selling expenses   4,020    21.6    3,615    19.4    11.2 
Other operating expenses (income), net   (9)   -    6    -     N.S.  
Income from operations   1,002    5.4    1,067    5.7    (6.1)
Depreciation   782    4.2    729    3.9    7.3 
Amortization & other non-cash charges   244    1.3    204    1.1    19.6 
EBITDA   2,028    10.9    2,000    10.7    1.4 
CAPEX   233         245         (4.9)
                          
Information of Stores                         
Total Locations   4,186         3,733         12.1 
Locations in Mexico   1,610         1,447         11.3 
Locations in South America   2,576         2,286         12.7 
                          
Net new locations:                         
       vs. Last quarter   80         112         (28.6)
       Year-to-date   80         284         (71.8)
       Last-twelve-months   453         284         59.5 
                          
Same-store data: (1)                         
       Sales (thousands of pesos)   1,220.0         1,290.7         (5.5)

 

(1) Monthly average information per location, considering same locations with more than twelve months of all the operations of the Health Division.

 

April 28, 2023 | Page 18

 

 

Fuel – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the first quarter of: 
   2023  

%

of rev.

   2022  

%

of rev.

   % Var. 
Total revenues   13,141    100.0    10,894    100.0    20.6 
Cost of sales   11,506    87.6    9,553    87.7    20.4 
Gross profit   1,635    12.4    1,341    12.3    21.9 
Administrative expenses   61    0.5    33    0.3    84.8 
Selling expenses   1,051    7.9    933    8.5    12.6 
Other operating expenses (income), net   -    -    (2)   -    (100.0)
Income from operations   523    4.0    377    3.5    38.7 
Depreciation   277    2.1    262    2.4    5.7 
Amortization & other non-cash charges   19    0.1    10    0.1    90.0 
EBITDA   819    6.2    649    6.0    26.2 
CAPEX   24         36         (33.8)
                          
Information of OXXO GAS Service Stations                         
Total service stations   570         569         0.2 
Net new service stores:                         
       vs. Last quarter   2         3         (33.3)
       Year-to-date   2         3         (33.3)
       Last-twelve-months   8         11         (27.3)
                          
Volume (millions of liters) total stations   574         517         11.1 
                          
Same-stations data: (1)                         
       Sales (thousands of pesos)   7,109.5         6,056.2         17.4 
       Volume (thousands of liters)   346.9         310.8         11.6 
       Average price per liter   20.5         19.5         5.2 

 

(1) Monthly average information per station, considering same stations with more than twelve months of operations.

 

April 28, 2023 | Page 19

 

 

Coca-Cola FEMSA – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the first quarter of: 
   2023  

%

of rev.

   2022  

%

of rev.

   % Var. 
Total revenues   57,357    100.0    51,195    100.0    12.0 
Cost of sales   31,900    55.6    28,593    55.9    11.6 
Gross profit   25,458    44.4    22,602    44.1    12.6 
Administrative expenses   3,078    5.4    2,458    4.8    25.2 
Selling expenses   14,746    25.7    13,299    25.9    10.9 
Other operating expenses (income), net   (90)   (0.2)   1    -     N.S.  
Income from operations   7,724    13.5    6,844    13.4    12.9 
Depreciation   2,326    4.1    2,349    4.6    (1.0)
Amortization & other non-cash charges   472    0.7    635    1.2    (25.6)
EBITDA   10,522    18.3    9,827    19.2    7.1 
CAPEX   2,506         3,102         (19.2)
                          
Sales Volumes                         
(Millions of unit cases)                         
Mexico and Central America   537.4    57.2    494.0    56.0    8.8 
South America   141.3    15.0    136.7    15.5    3.3 
Brazil   260.9    27.8    250.9    28.5    4.0 
Total   939.6    100.0    881.6    100.0    6.6 

 

(1) Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.

 

April 28, 2023 | Page 20

 

 

Envoy Solutions – Results of Operations

Amounts expressed in millions of Mexican Pesos (Ps.)

 

   For the first quarter of: 
   2023  

%

of rev.

   2022  

%

of rev.

   % Var. 
Total revenues   13,467    100.0    10,887    100.0    23.7 
Cost of sales   9,712    72.1    7,838    72.0    23.9 
Gross profit   3,755    27.9    3,049    28.0    23.2 
Administrative expenses   1,507    11.2    947    8.7    59.1 
Selling expenses   1,752    13.0    1,558    14.3    12.5 
Other operating expenses (income), net   8    0.1    2    0.0    N.S.  
Income from operations   488    3.6    542    5.0    (10.0)
Depreciation   246    1.8    131    1.2    87.8 
Amortization & other non-cash charges   197    1.5    150    1.4    31.3 
EBITDA   931    6.9    823    7.6    13.1 
CAPEX   57         134         (57.4)

 

April 28, 2023 | Page 21

 

 

FEMSA Macroeconomic Information

 

   Inflation   End-of-period Exchange Rates 
   1Q 2023   LTM (1) Mar-23   Mar-23   Mar-22 
           Per USD   Per MXN   Per USD   Per MXN 
Mexico   0.62%   7.12%   18.11    1.0000    19.99    1.0000 
Colombia   3.55%   13.64%   4,627.27    0.0039    3,748.15    0.0053 
Brazil   0.54%   5.56%   5.08    3.5637    4.74    4.2201 
Argentina   14.34%   108.32%   209.01    0.0866    111.01    0.1801 
Chile   0.73%   11.83%   790.41    0.0229    787.16    0.0254 
Euro Zone   1.93%   8.67%   0.92    19.6863    0.90    22.1028 

 

(1) LTM = Last twelve months.

 

April 28, 2023 | Page 22

 

 

 

 

 

 

 

  

 

Mexico City, April 26, 2023, 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 2023.

 

FIRST QUARTER HIGHLIGHTS 

 

·Volume growth 6.6%

 

·Revenue growth 12.0%

 

·Operating income growth 12.9%

 

·Majority net income growth 35.3%

 

·Earnings per share1 were Ps. 0.23 (Earnings per unit were Ps. 1.86 and per ADS were Ps. 18.65)

 

·Achieved more than 900 thousand monthly active buyers on Juntos+, our omnichannel B2B platform

  

FINANCIAL SUMMARY FOR THE FIRST QUARTER RESULTS

 

Change vs. same period of last year

 

      Total Revenues   Gross Profit   Operating Income   Majority Net Income 
      1Q23   1Q23   1Q23   1Q23 
As Reported  Consolidated   12.0%   12.6%   12.9%   35.3%
   Mexico & Central America   16.2%   13.6%   1.2%     
   South America   6.6%   11.0%   43.3%     
                        
Comparable (2)  Consolidated   21.7%   21.8%   20.3%     
   Mexico & Central America   17.9%   15.2%   2.5%     
   South America   27.5%   34.8%   77.7%     

 

Ian Craig, Coca-Cola FEMSA’s CEO, commented:

 

"Our first quarter results reflected our positive momentum and strong execution. We achieved double-digit revenue, operating income, and net income growth in the face of unfavorable currency translation effects from most of our operating currencies. Notably, these results were supported by positive volume performance across most of our territories, including strong growth in Mexico, Brazil, Guatemala, and Uruguay. On the profitability front, we remain focused on implementing cost and expense efficiencies, as we invest across our operations to increase capacity and support our growth.

 

Looking ahead, we will continue to focus on the strategic priorities and promoting sustainability and social responsibility across our markets. We are confident that we can execute against these priorities and deliver long-term value for all of our stakeholders.”

  

 

(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 1Q23 ResultsPage 24 of 36
April 26, 2023 

 

 

RECENT DEVELOPMENTS

 

·On March 27, 2023, 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, 2022, the annual report presented by the Board of Directors, the declaration and payment of dividends corresponding to the fiscal year 2022, and the appointment or reelection of the members of the Board of Directors, the Planning and Finance, Audit and Corporate Practices Committees for 2023. The shareholders’ meeting approved the payment of a cash dividend of Ps. 0.725 per share (equivalent to Ps. 5.80 per unit) to be paid in two installments: the first installment for the amount of Ps. 0.3625 as of May 3, 2023, and the second installment for the amount of Ps. 0.3625 as of November 3, 2023, for all outstanding shares on the payment date.

 

·Coca-Cola FEMSA released its 2022 integrated report entitled “Future-Ready,” 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

 

·At the end of last year, Coca-Cola FEMSA acquired Cristal bulk water business from Embotelladoras Bepensa in the southeast region of Mexico. The results from this acquisition for the first quarter of 2023 include 15.1 million unit cases. As a result, excluding these volumes, consolidated volumes would have increased 4.9%.

 

·The company continues progressing in the rollout of its Juntos+, its business-to-business (B2B) omnichannel commercial platform. During the quarter the company reached over 900 thousand digital active buyers on a consolidated level, driven mainly by an increase in Mexico, who reached 460 thousand active buyers and Brazil, with 230 thousand.

 

·On April 26, the Company announced that it experienced a cybersecurity incident in recent days and has implemented its cybersecurity protection and response protocols. The Company is currently working with experts on measures to prevent an adverse impact on its information technology applications. While such measures are implemented, the Company expects to continue its business operations through backup procedures, and will prioritize its protection of the integrity, confidentiality, and availability of its information. A forensic assessment to determine the extent of the cybersecurity incident is currently ongoing.

  

CONFERENCE CALL INFORMATION

 

 

Coca-Cola FEMSA Reports 1Q23 ResultsPage 25 of 36
April 26, 2023 

 

  

CONSOLIDATED FIRST QUARTER RESULTS

 

 

  

CONSOLIDATED FIRST QUARTER RESULTS

 

   As Reported   Comparable (1) 
Expressed in millions of Mexican pesos  1Q 2023   1Q 2022   Δ%   Δ% 
Total revenues   57,357    51,195    12.0%   21.7%
Gross profit   25,458    22,602    12.6%   21.8%
Operating income   7,724    6,844    12.9%   20.3%
EBITDA (2)   10,522    9,827    7.1%   15.2%

 

Volume increased 6.6% to 939.6 million unit cases, driven by volume growth in most of our territories, including strong performance in Mexico, Brazil, and Guatemala. On a comparable basis, excluding the acquisition of CVI in Brazil, total volume would have increased 6.2%.

 

Total revenues increased 12.0% to Ps. 57,357 million. This increase was driven by volume growth, revenue management initiatives and favorable mix effects. These factors were partially offset by unfavorable currency translation into Mexican Pesos. On a comparable basis, total revenues would have increased 21.7%.

  

Gross profit increased 12.6% to Ps. 25,458 million, and gross margin increased 30 basis points to 44.4%. This gross profit increase was driven mainly by our top-line growth and was partially offset by higher raw material costs, mainly sweeteners and PET across our territories. On a comparable basis, gross profit would have increased 21.8%.

  

Operating income increased 12.9% to Ps. 7,724 million, and operating margin increased 10 basis points to 13.5%. This expansion was driven mainly by a solid top-line performance and an operating foreign exchange gain in Mexico as a result of the appreciation of the Mexican Peso. These effects were partially offset by an increase in raw material costs, mainly sweeteners and PET, coupled with an increase in operating expenses such as labor, marketing, and maintenance. On a comparable basis, operating income would have increased 20.3%.

  

 

(1)Please refer to page 8 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
(2)EBITDA = operating income + depreciation + amortization & other operating non-cash charges.

 

 

Coca-Cola FEMSA Reports 1Q23 ResultsPage 26 of 36
April 26, 2023 

 

 

Comprehensive financing result recorded an expense of Ps. 1,399 million, compared to an expense of Ps. 2,194 million in the previous year. This decrease was driven mainly by a gain of Ps. 56 million in financial instruments as compared to a loss of Ps. 936 million that was driven mainly by a one-off market value loss that was recognized during the same period of 2022.

 

In addition, we recognized a decrease in our interest expense, net, mainly as a result of a gain in our interest income of Ps. 1,042 million as compared to a gain of Ps. 405 million that was driven by an increase in interest rates.

 

These effects were partially offset by a foreign exchange loss of Ps. 640 million as compared to a gain of Ps. 165 million, as our net cash exposure in U.S. dollars was negatively impacted by the appreciation of the Mexican Peso and the Brazilian Real. Moreover, we recognized a lower gain in monetary position in inflationary subsidiaries during the first quarter of 2023 as compared to the same period of the previous year.

  

Income tax as a percentage of income before taxes was 32.4% as compared to 29.5%. This increase was driven mainly by inflationary effects across our territories, effects of non-recoverable withholdings, and deferred taxes.

 

Net income attributable to equity holders of the company was Ps. 3,916 million as compared to Ps. 2,894 million during the same period of the previous year. This increase was driven mainly by operating income growth, coupled with a one-off non-cash effect that affected our comprehensive financial result during the same period of 2022. Earnings per share1 were Ps. 0.23 (Earnings per unit were Ps. 1.86 and per ADS were Ps. 18.85.).

 

 

(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 1Q23 ResultsPage 27 of 36
April 26, 2023 

 

 

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 2023   1Q 2022   Δ%   Δ% 
Total revenues   33,617    28,935    16.2%   17.9%
Gross profit   15,919    14,007    13.6%   15.2%
Operating income   5,011    4,950    1.2%   2.5%
EBITDA (2)   6,706    6,722    (0.2%)   1.1%

  

Volume increased 8.8% driven by growth across all territories in the division. These volumes include the integration of Cristal bulk water business. Excluding these volumes, volume would have increased 5.7% in the division and 4.8% in Mexico.

 

Total revenues increased 16.2% to Ps. 33,617 million, driven by volume growth and revenue management initiatives. These effects were partially offset by unfavorable currency translation effects from most of our operating currencies in Central America. On a comparable basis, excluding currency translation effects, total revenues would have increased 17.9%.

  

Gross profit increased 13.6% to Ps. 15,919 million, and gross margin contracted 100 basis points to 47.4%. This margin decrease was driven mainly by an increase in raw material costs such as sweeteners and concentrate in Mexico. These effects were partially offset by our top-line growth, favorable raw material hedging initiatives and the appreciation of the Mexican Peso as applied to our dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 15.2%.

  

Operating income increased 1.2% to Ps. 5,011 million and operating margin contracted 220 basis points to 14.9%, driven mainly by an increase in operating expenses such as labor, marketing, and maintenance that were partially offset by an operating foreign exchange gain in Mexico. On a comparable basis, operating income would have increased 2.5%.

   

 

(1)Please refer to page 8 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
(2)EBITDA = operating income + depreciation + amortization & other operating non-cash charges.

 

Coca-Cola FEMSA Reports 1Q23 ResultsPage 28 of 36
April 26, 2023 

 

  

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 2023   1Q 2022   Δ%   Δ% 
Total revenues   23,740    22,261    6.6%   27.5%
Gross profit   9,539    8,595    11.0%   34.8%
Operating income   2,713    1,894    43.3%   77.7%
EBITDA (2)   3,816    3,105    22.9%   52.7%

  

Volume increased 3.8%, driven mainly by a solid performance in Brazil, Argentina, and Uruguay, partially offset by a flat performance in Colombia. On a comparable basis, excluding volumes from the acquisition of CVI in Brazil, volume would have increased 2.8%.

  

Total revenues increased 6.6% to Ps. 23,740 million, driven by our volume growth, revenue management and favorable mix effects. This increase was partially offset by unfavorable currency translation effects of most of our operating currencies in the division into Mexican Pesos. On a comparable basis, total revenues would have increased 27.5%.

 

Gross profit increased 11.0% to Ps. 9,539 million, and gross margin expanded 160 basis points to 40.2%. This increase was driven mainly by our top-line growth, favorable mix effects, and raw material hedging strategies. This increase was partially offset by increases in raw material costs such as sweeteners and PET. On a comparable basis, gross profit would have increased 34.8%.

  

Operating income increased 43.3% to Ps. 2,713 million in the first quarter of 2023, resulting in an operating margin expansion of 290 basis points to 11.4%. This increase was driven mainly by higher gross profit and an increase in operating leverage resulting from volume growth and operating expense efficiencies. On a comparable basis, operating income would have increased 77.7%.

  

 

(1)Please refer to page 8 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
(2)EBITDA = operating income + depreciation + amortization & other operating non-cash charges.

 

Coca-Cola FEMSA Reports 1Q23 ResultsPage 29 of 36
April 26, 2023 

 

 

 

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.”

 

EBITDA 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

 

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, in this case the acquisition of CVI in Brazil, integrated as of February 2022; 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 1Q23 ResultsPage 30 of 36
April 26, 2023 

 

 

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 1Q23 ResultsPage 31 of 36
April 26, 2023 

 

 

COCA-COLA FEMSA

CONSOLIDATED INCOME STATEMENT

Millions of Pesos (1)

 

   For the First Quarter of: 
   2023   % of Rev.   2022   % of Rev.   Δ% Reported   Δ% Comparable (7) 
Transactions (million transactions)   5,567.3         5,205.3         7.0%   6.6%
Volume (million unit cases)   939.6         881.6         6.6%   6.2%
Average price per unit case   59.28         56.62         4.7%     
Net revenues   57,145         51,078         11.9%     
Other operating revenues   212         118         80.3%     
Total revenues (2)   57,357    100.0%   51,195    100.0%   12.0%   21.7%
Cost of goods sold   31,899    55.6%   28,593    55.9%   11.6%     
Gross profit   25,458    44.4%   22,602    44.1%   12.6%   21.8%
Operating expenses   17,825    31.1%   15,757    30.8%   13.1%     
Other operative expenses, net   (30)   -0.1%   22    0.0%   NA      
Operative equity method (gain) loss in associates(3)   (61)   -0.1%   (21)   0.0%   195.6%     
Operating income (5)   7,724    13.5%   6,844    13.4%   12.9%   20.3%
Other non operative expenses, net   124    0.2%   180    0.4%   -31.0%     
Non Operative equity method (gain) loss in associates (4)   134    0.2%   (3)   0.0%   NA      
Interest expense   1,913         1,645         16.3%     
Interest income   1,042         405         157.3%     
Interest expense, net   871         1,240         -29.7%     
Foreign exchange loss (gain)   640         165         289.1%     
Loss (gain) on monetary position in inflationary subsidiaries   (60)        (147)        -59.4%     
Market value (gain) loss on financial instruments   (53)        936         NA      
Comprehensive financing result   1,399         2,194         -36.2%     
Income before taxes   6,067         4,474         35.6%     
Income taxes   1,989         1,321         50.6%     
Result of discontinued operations   -         -         NA      
Consolidated net income   4,078         3,153         29.4%     
Net income attributable to equity holders of the company   3,916    6.8%   2,894    5.7%   35.3%     
Non-controlling interest   162    0.3%   259    0.5%   -37.3%     

 

EBITDA & CAPEX  2023   % of Rev.   2022   % of Rev.   Δ% Reported   Δ% Comparable (7) 
Operating income (5)   7,724    13.5%   6,844    13.4%   12.9%     
Depreciation   2,326         2,349         -1.0%     
Amortization and other operative non-cash charges   471         635         -25.8%     
EBITDA (5)(6)   10,522    18.3%   9,827    19.2%   7.1%   15.2%
CAPEX   2,506         3,102         -19.2%     

 

(1)Except volume and average price per unit case figures.
(2)Please refer to page 13 for revenue breakdown.
(3)Includes equity method in Jugos del Valle and Leão Alimentos, among others.
(4)Includes equity method in PIASA, IEQSA, Beta San Miguel, IMER, and KSP Participacoes, among others.
(5)The operating income and EBITDA lines are presented as non-GAAP measures for the convenience of the reader.
(6)EBITDA = operating income + depreciation, amortization & other operating non-cash charges.
(7)Please refer to page 8 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 2023, total CAPEX effectively paid was Ps. 2,506 million.

 

Coca-Cola FEMSA Reports 1Q23 ResultsPage 32 of 36
April 26, 2023 

 

 

MEXICO & CENTRAL AMERICA DIVISION

RESULTS OF OPERATIONS

Millions of Pesos (1)

 

   For the First Quarter of: 
   2023   % of Rev.   2022   % of Rev.   Δ% Reported   Δ% Comparable (6) 
Transactions (million transactions)   2,826.8         2,648.3         6.7%   6.7%
Volume (million unit cases)   537.4         494.0         8.8%   8.8%
Average price per unit case   62.55         58.55         6.8%     
Net revenues   33,612         28,927                
Other operating revenues   5         8                
Total Revenues (2)   33,617    100.0%   28,935    100.0%   16.2%   17.9%
Cost of goods sold   17,699    52.6%   14,928    51.6%          
Gross profit   15,918.7    47.4%   14,006.8    48.4%   13.6%   15.2%
Operating expenses   11,058.6    0.3    9,105.5    0.3           
Other operative expenses, net   (111)   -0.3%   (2)   0.0%          
Operative equity method (gain) loss in associates (3)   (40)   -0.1%   (46)   -0.2%          
Operating income (4)   5,011    14.9%   4,950    17.1%   1.2%   2.5%
Depreciation, amortization & other operating non-cash charges   1,695    5.0%   1,773    6.1%          
EBITDA (4)(5)   6,706    19.9%   6,722    23.2%   -0.2%   1.1%

 

(1)Except volume and average price per unit case figures.
(2)Please refer to page 13 for revenue breakdown.
(3)Includes equity method in Jugos del Valle, among others.
(4)The operating income and EBITDA lines are presented as non-GAAP measures for the convenience of the reader.
(5)EBITDA = operating income + depreciation, amortization & other operating non-cash charges.
(6)Please refer to page 8 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: 
   2023   % of Rev.   2022   % of Rev.   Δ% Reported   Δ% Comparable (6) 
Transactions (million transactions)   2,740.5         2,556.9         7.2%   6.4%
Volume (million unit cases)   402.2         387.6         3.8%   2.8%
Average price per unit case   54.90         53.92         1.8%     
Net revenues   23,533         22,151                
Other operating revenues   207         110                
Total Revenues (2)   23,740    100.0%   22,261    100.0%   6.6%   27.5%
Cost of goods sold   14,200    59.8%   13,665    61.4%          
Gross profit   9,539    40.2%   8,595    38.6%   11.0%   34.8%
Operating expenses   6,766    28.5%   6,652    29.9%          
Other operative expenses, net   81    0.3%   24    0.1%          
Operative equity method (gain) loss in associates (3)   (21)   -0.1%   26    0.1%          
Operating income (4)   2,713.2    11.4%   1,893.8    8.5%   43.3%   77.7%
Depreciation, amortization & other operating non-cash charges   1,102    4.6%   1,211    5.4%          
EBITDA (4)(5)   3,816    16.1%   3,105    13.9%   22.9%   52.7%

 

(1)Except volume and average price per unit case figures.
(2)Please refer to page 13 for revenue breakdown.
(3)Includes equity method in Leão Alimentos and Verde Campo, among others.
(4)The operating income and EBITDA lines are presented as non-GAAP measures for the convenience of the reader.
(5)EBITDA = operating income + depreciation, amortization & other operating non-cash charges.
(6)Please refer to page 8 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

 

Coca-Cola FEMSA Reports 1Q23 ResultsPage 33 of 36
April 26, 2023 

 

 

 

 

COCA-COLA FEMSA
CONSOLIDATED BALANCE SHEET
Millions of Pesos

  

Assets  Mar-23   Dec-22   % Var. 
Current Assets               
Cash, cash equivalents and marketable securities    41,147     40,277     2%
Total accounts receivable   14,024    16,318    -14%
Inventories   13,842    11,888    16%
Other current assets   9,811    10,729    -9%
Total current assets   78,825    79,211    0%
Non-Current Assets   -    -      
Property, plant and equipment   124,014    125,293    -1%
Accumulated depreciation   (54,093)   (54,088)   0%
Total property, plant and equipment, net   69,921    71,205    -2%
Right of use assets   2,126    2,069    3%
Investment in shares   8,545    8,452    1%
Intangible assets and other assets   101,360    103,122    -2%
Other non-current assets   14,436    13,936    4%
Total Assets   275,213    277,995    -1%

 

Liabilities & Equity  Mar-23   Dec-22   % Var. 
Current Liabilities            
Short-term bank loans and notes payable   7,901    8,524    -7%
Suppliers   24,759    26,834    -8%
Short-term leasing Liabilities   520    472    10%
Other current liabilities   35,667    22,129    61%
Total current liabilities   68,848    57,959    19%
Non-Current Liabilities   -    -      
Long-term bank loans and notes payable   67,851    70,146    -3%
Long Term Leasing Liabilities   1,699    1,663    2%
Other long-term liabilities   15,917    16,351    -3%
Total liabilities   154,314    146,119    6%
Equity   -    -      
Non-controlling interest   6,426    6,491    -1%
Total controlling interest   114,473    125,384    -9%
Total equity   120,899    131,876    -8%
Total Liabilities and Equity   275,213    277,995    -1%

 

   March 31, 2023 
Debt Mix  % Total Debt (1)    % Interest Rate
Floating (1) (2)		   Average Rate 
Currency               
Mexican Pesos   63.6%   7.3%   8.4%
U.S. Dollars   17.2%   35.6%   4.4%
Colombian Pesos   1.1%   0.0%   6.3%
Brazilian Reals   17.7%   67.3%   12.5%
Uruguayan Pesos   0.5%   0.0%   6.3%
Total Debt   100%   25.0%   8.4%

 

(1) After giving effect to cross- currency swaps.

(2) Calculated by weighting each year´s outstanding debt balance mix.

 

Debt Maturity Profile

 

 

Financial Ratios  1Q 2023   FY 2022   Δ% 
Net debt including effect of hedges (1)(3)   35,246    38,104    -7.5%
Net debt including effect of hedges / EBITDA (1)(3)   0.81    0.89      
EBITDA/ Interest expense, net (1)   12.08    10.34      
Capitalization (2)   40.1%   38.9%     

 

(1) Net debt = total debt - cash

(2) Total debt / (total debt + shareholders' equity)

(3)  After giving effect to cross-currency swaps.  

  

Coca-Cola FEMSA Reports 1Q23 ResultsPage 34 of 36
April 26, 2023 

 

  

COCA-COLA FEMSA

QUARTERLY- VOLUME, TRANSACTIONS & REVENUES

 

Volume
   1Q 2023   1Q 2022   YoY 
   Sparkling   Water (1)   Bulk (2)   Stills   Total   Sparkling   Water (1)   Bulk (2)   Stills   Total   Δ % 
Mexico (3)   309.5    26.4    87.6    35.2    458.8    301.9    21.3    67.5    32.7    423.5    8.3%
Guatemala   35.6    1.4    -    2.3    39.2    30.6    1.1    -    1.9    33.7    16.3%
CAM South   31.4    2.0    0.4    5.6    39.4    29.8    1.9    0.2    4.9    36.9    6.9%
Mexico and Central America   376.4    29.8    88.0    43.1    537.4    362.4    24.4    67.7    39.5    494.0    8.8%
Colombia   61.4    8.8    3.3    7.1    80.5    62.1    7.7    3.1    7.4    80.4    0.1%
Brazil (4)   218.3    19.4    2.7    20.5    260.9    212.2    17.1    2.4    19.1    250.9    4.0%
Argentina   35.9    5.5    1.4    4.9    47.7    35.8    4.1    1.2    3.9    44.9    6.2%
Uruguay   10.4    2.1    -    0.7    13.1    9.4    1.7    -    0.3    11.4    14.8%
South America   325.9    35.8    7.4    33.1    402.2    319.6    30.6    6.7    30.8    387.6    3.8%
TOTAL   702.4    65.6    95.4    76.2    939.6    681.9    55.0    74.4    70.3    881.6    6.6%

 

(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

(3) Includes 15.1 million unit cases corresponding to the acquisition of Cristal from Embotelladoras Bepensa                            

 

Transactions                                    
                                     
   1Q 2023   1Q 2022   YoY 
   Sparkling   Water   Stills   Total   Sparkling   Water   Stills   Total   Δ % 
Mexico (3)   1,765.2    191.3    254.7    2,211.2    1,698.6    154.3    237.6    2,090.4    5.8%
Guatemala   267.3    13.3    22.6    303.2    238.5    11.7    19.5    269.7    12.4%
CAM South   235.6    13.3    63.5    312.4    220.4    12.7    55.1    288.2    8.4%
Mexico and Central America   2,268.1    217.9    340.8    2,826.8    2,157.5    178.6    312.2    2,648.3    6.7%
Colombia   448.1    91.6    77.6    617.3    429.7    82.6    81.5    593.9    3.9%
Brazil (4)   1,403.1    170.2    226.4    1,799.6    1,303.8    146.8    222.8    1,673.4    7.5%
Argentina   183.4    34.8    41.4    259.6    178.7    25.1    29.8    233.5    11.2%
Uruguay   50.3    8.0    5.7    63.9    47.1    6.3    2.8    56.2    13.8%
South America   2,084.8    304.6    351.1    2,740.5    1,959.3    260.8    336.9    2,556.9    7.2%
TOTAL   4,352.9    522.5    691.9    5,567.3    4,116.8    439.4    649.1    5,205.3    7.0%

 

Revenues            
             
Expressed in million Mexican Pesos  1Q 2023   1Q 202   Δ % 
Mexico   27,229    23,222    17.3%
Guatemala   3,017    2,775    8.7%
CAM South   3,371    2,938    14.7%
Mexico and Central America   33,617    28,935    16.2%
Colombia   3,744    4,276    -12.5%
Brazil (5)   15,969    14,388    11.0%
Argentina   2,900    2,672    8.5%
Uruguay   1,127    925    21.9%
South America   23,740    22,261    6.6%
TOTAL   57,357    51,195    12.0%

 

(4) Volume and transactions in Brazil do not include beer

(5) Brazil includes beer revenues of Ps.1,450 million for the first quarter of 2023 and Ps.1,742 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 soda fountains, which represent multiple transactions based on a standard 12 oz. serving.

 

Coca-Cola FEMSA Reports 1Q23 ResultsPage 35 of 36
April 26, 2023 

 

  

COCA-COLA FEMSA

MACROECONOMIC INFORMATION

 

Inflation (1)
 
    LTM    1Q23
Mexico   7.12%   0.96%
Colombia   13.64%   4.22%
Brasil   5.56%   1.63%
Argentina   108.32%   21.28%
Costa Rica   5.70%   -0.35%
Panama   1.91%   1.11%
Guatemala   10.26%   1.95%
Nicaragua   10.92%   1.50%
Uruguay   7.58%   3.09%

 

(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)		 
   1Q23   1Q22   Δ % 
México   18.70    20.52    -8.9%
Colombia   4758.63    3914.87    21.6%
Brasil   5.19    5.23    -0.7%
Argentina   192.41    106.58    80.5%
Costa Rica   567.30    647.10    -12.3%
Panama   1.00    1.00    0.0%
Guatemala   7.83    7.70    1.7%
Nicaragua   36.30    35.61    1.9%
Uruguay   39.18    43.31    -9.6%

  

End-of-period Exchange Rates
 
   Closing Exchange Rate
(Local Currency per USD)		   Closing Exchange Rate 
(Local Currency per USD)		 
   Mar-23   Mar-22   Δ %   Ene-23   Ene-22   Δ % 
México   18.11    19.99    -9.4%   18.79    20.74    -9.4%
Colombia   4,627.27    3,748.15    23.5%   4,632.20    3,982.60    16.3%
Brasil   5.08    4.74    7.2%   5.10    5.36    -4.8%
Argentina   209.01    111.01    88.3%   187.00    105.02    78.1%
Costa Rica   545.95    667.10    -18.2%   557.40    646.20    -13.7%
Panama   1.00    1.00    0.0%   1.00    1.00    0.0%
Guatemala   7.80    7.68    1.6%   7.85    7.69    2.1%
Nicaragua   36.35    35.69    1.8%   36.29    35.58    2.0%
Uruguay   38.65    41.12    -6.0%   38.68    44.15    -12.4%

 

(2) Average exchange rate for each period computed with the average exchange rate of each month.  

 

 

Coca-Cola FEMSA Reports 1Q23 ResultsPage 36 of 36
April 26, 2023