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 ECONOMICO 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 Leon 64410
Mexico
(Address of principal executive offices)
Indicate by check mark whether the registrant filesor 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 submittingthe Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
..
Indicate by check mark if the registrant is submittingthe Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
..
Indicate by check mark whether by furnishing theinformation contained in this
Form, the registrant is also thereby furnishingthe information to the
Commission pursuant to Rule 12g3-2(b) under theSecurities Exchange Act of 1934.
Yes
..
No
x
If "Yes" is marked, indicate below thefile number assigned to the registrant in
connectionwith Rule 12g3-2(b): 82- _____________
SIGNATURES
Pursuant to the requirements of the SecuritiesExchange Act of 1934, the
registrant has duly caused this report to be signedon its behalf of the
undersigned, thereunto duly authorized.
FOMENTO ECONOMICO 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
Exhibit99.1
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 Economico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX; BMV:
FEMSAUBD, FEMSAUB) announced today its operationaland financial results for
the first quarter of 2023.
. FEMSA: Total Consolidated Revenues grew 21.9%
against 1Q22.
. FEMSA Retail
1
: Proximity Americas total Revenues increased 21.9%
against 1Q22.
. DIGITAL: Spin by OXXO had 4.2 million active users
2
while
Spin Premia had 12.7 million active loyalty users
3
and an average tender
3
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 Same-Store Sales
Operations
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 Rodriguez Cofre, FEMSA'sChief Executive Officer, commented:
"During the first quarter, wewere able to carry the momentum created by our
FEMSA Forward announcement and follow up with a very compelling set of
results, particularlydriven by strong organic top-line growth at most of our
operations. Within Retail, Proximity Americas increased revenues by almost
22percent, driven by excellent same-store sales trends at OXXO reflecting
strong traffic significantly outperforming the market. This strongdouble-digit
revenue growth performance extended across formats and across markets,
including Proximity Europe. Health revenues werestable, reflecting a
challenging comparison base in Chile as well as currency headwinds. Of note,
Fuel had another robust quarter ofdouble-digit revenue growth. For its part,
Coca-Cola FEMSA again had remarkable increases across its income statement,
while Envoy Solutionsdelivered strong revenue growth driven by recent
acquisitions. On the Digital side, we continued to add users at a rapid pace,
with activeusers growing well above 200 percent year-over-year. Importantly,
we just launched the transition of OXXO Premia into Spin Premia, ourcoalition
loyalty program, as we make progress toward our ambition of an integrated
ecosystem under the Spin brand umbrella.
On the balance sheet front, our leverageratio is now within our stated target
levels, putting us in a good position to allocate incremental capital
according to the prioritiesstated in FEMSA Forward. We will keep you posted of
any new developments.
I want to extend my heartfelt thanksto our hardworking team who contributed to
these strong results. I am excited about the future of our Company, and we are
certainly startingthis 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 transactedat least once with OXXO
Premia within the last 90 days.
3
Tender: MXN sales withSpin 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 ofprevious year
FEMSA CONSOLIDATED
1Q23Financial Summary
Amountsexpressed 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
EBITDA 22,157 19,694 13.3 % 5.1 %
5
EBITDA Margin (%) 12.3 13.3 (110 )bps
Net Income 50,329 5,848 N.S.
NetDebt ex-KOF
6
Amountsexpressed 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 1.77 x -
Total revenues
increased 21.9% in 1Q23compared to 1Q22, driven by growth across our business
units. On an organic
1
basis, total revenues increased 12.4%.
Gross profit
increased 23.0%. Gross marginexpanded 30 basis points, reflecting the
consolidation of Proximity Europe, as well as margin expansions at Coca-Cola
FEMSA and FEMSAHealth. 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
totalrevenues, reflecting margin expansion at Coca-Cola FEMSA and Fuel, offset
by margin contractions at Proximity Americas, Health, and EnvoySolutions, 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 relatedto FEMSA's
partial divestment of its Heineken investment.
Net consolidatedincome
was Ps. 50,329 million, mainly driven by a Ps. 40,606 million gain from the
accounting re-measurement from historical costto 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 presentedas
discontinued operations in our income statement. In addition, net consolidated
income also reflects a Ps. 8,523 million non-cash financialproduct that mostly
reflects the repurchase of US$ 1.7 billion
2
ofFEMSA's outstanding debt at favorable price levels, also in connection with
FEMSA
Forward
.
Net majority income
was Ps. 13.44 perFEMSA Unit
3
and US$7.44 per FEMSA ADS.
Capital expenditures
amounted to Ps. 5,080million, 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 SeriesD-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 asof 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 theFederal 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 reportedinformation - Coca-Cola FEMSA Consolidated
reported information.
EBITDA ex-KOF: FEMSA Consolidated EBITDA as describedabove - 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-KOFbasis. For a detailed
reconciliation of this metric please see table on page 16 of this document.
4
OXXO Latam: OXXO Colombia, Chileand Peru.
April 28, 2023// | Page
3
PROXIMITY AMERICAS
OXXO (Mexico & Latam
4
)
1Q23 Financial Summary
Amounts expressed in millionsof 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 Store Base Same-Store Sales EBITDA
Vs. comparable quarter As of 1Q23 In thousands of Ps. In millions of Ps.
Total revenues
increased 21.9% in 1Q23compared to 1Q22. On an organic
1
basis, total revenues increased21.2%, 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 performanceof 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 thelast twelve months. This includes 120 stores from our
acquisition of OK Market in Chile. As of March 31, 2023, Proximity Americas
hada 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-growingloyalty 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
morethan offset an increase in labor expenses in Mexico, and an increase in
performance-based compensation schemes for OXXO's in-storepersonnel.
1
Excludes the effects of significantmergers and acquisitions in the last twelve
months.
2
Bara store count and results arenot consolidated within the Proximity Americas
reported figures.
April 28, 2023// | Page
4
PROXIMITY AMERICAS
Other formats
Bara
2
Total revenues increased 45.3% in 1Q23 comparedto 1Q22, driven by a 25.1%
average same-store sales increase, reflecting the strong performance of the
groceries, home hygiene and conveniencecategories, particularly supported by
soft drinks. During the quarter, the Bara store base expanded by 12 units to
reach 283 total Barastores as of March 31, 2023.
Grupo Nos
1
Total revenues for the period grew 259.1% year-over-year,reaching R$137.0
million
2
. This figure reflects the successfulevolution 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 Nosexpanded by 135 units,
including 97 net new OXXO stores. As of March 31, 2023, Grupo Nos had a total
of 1,603 stores, which include314 company owned and operated OXXO stores.
1
OXXO's non-consolidated joint-venturewith Raizen in Brazil.
2
The exchange rate published by theFederal Reserve Bank of New York for March
31, 2023 was 5.0702 BRL per USD.
3
Local currency, BRL.
4
The Proximity Europe segment iscomprised of Valora. The acquisition of Valora
was concluded in October 2022.
April 28, 2023// | Page
5
PROXIMITY EUROPE
4
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 duringthe 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,
ProximityEurope 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
1Q23Financial Summary
Amountsexpressed 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 20 bps
Net Additions Locations Same-Store Sales EBITDA
Vs. comparable quarter As of 1Q23 In thousands of Ps. In millions of Ps.
Total revenues
decreased 0.4% in 1Q23compared 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 Mexicanpeso.
During the quarter, Health's store base expanded by 80 units reaching a total
of 4,186 locations across its territories asof March 31, 2023. This figure
reflects the addition of 453 net new locations for the last twelve months.
Same-store sales decreasedan average of -5.5%, reflecting the trends described
above. On a currency-neutral
1
basis, total revenues grew 14.1% whilesame-store sales increased by 5.8%.
Gross profit
represented 30.8% of totalrevenues, reflecting improved efficiency and more
effective collaboration and execution with key supplier partners, as well as
an undemandingbase 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 offsetby
tight expense control across our operations.
1
Calculated by translating comparable period figures atthe 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 50 bps
EBITDA 819 649 26.2 %
EBITDA Margin (%) 6.2 6.0 20 bps
Net Additions Service Station Base Same-Station Sales EBITDA
Vs. comparable quarter As of 1Q23 In thousands of Ps. In millions of Ps.
Total revenues
increased 20.6% in 1Q23compared to 1Q22, reflecting a 17.4% average
same-station sales increase, driven by 11.6% growth in average volume and 5.2%
increasein the average price per liter, as well as volume growth in our
institutional and wholesale customer network. The OXXO Gas retail networkhad
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
positiveoperating leverage.
April 28, 2023// | Page
8
FEMSA Retail Operations Summary
Currency-neutral terms where applicable
TotalRevenue Growth (% vs year ago)
1Q23
Proximity Americas
OXXO 21.9 %
1
Mexico 21.3 %
OXXO Latam 85.2 %
1
Other Proximity Americas formats
Bara 45.3 %
OXXO Brazil 259.1 %
2
Proximity Europe 14.0 %
4
OXXO Gas 20.6 %
FEMSA Health 14.1 %
5
Chile 8.5 %
Colombia 31.0 %
Ecuador 8.3 %
Mexico 7.6 %
1 OXXO Consolidated figures shown in MXN including currency effects.
2 Includes OXXO Colombia, Chile and Peru.
3 Operated through Grupo Nos, our joint-venture with Raizen.
4 Local currency (CHF).
5 FEMSA Health Include franchised stores in Ecuador.
TotalUnit Growth (% vs year ago)
1Q23
Proximity Americas
OXXO 5.4 %
Mexico 4.1 %
OXXO Latam 85.4 %
1
Other Proximity Americas formats
Bara 27.5 %
OXXO Brazil 193.5 %
2
Proximity Europe 1.0 %
3
OXXO Gas 0.2 %
FEMSA Health 12.1 %
Chile 1.2 %
Colombia 37.4 %
Ecuador 9.3 %
Mexico 11.3 %
1 Includes OXXO Colombia, Chile and Peru.
2 Operated through Grupo Nos, our joint-venture with Raizen.
3 Includes company owned and franchised units.
Same-StoreSales
1Q23
Proximity Americas
OXXO 18.3 %
1
Mexico 18.5 %
OXXO Latam 25.0 %
1
Other Proximity Americas formats
Bara 25.1 %
OXXO Brazil 43.7 %
2
Proximity Europe N.A.
3
OXXO Gas 17.4 %
4
FEMSA Health 5.8 %
5
Chile 1.9 %
Colombia 16.6 %
Ecuador 8.5 %
Mexico (7.1 )%
1 OXXO Consolidated figures shown in MXN including currency effects.
2 Includes OXXO Colombia, Chile and Peru.
3 Operated through Grupo Nos, our joint-venture with Raizen.
4 Local currency (CHF).
5 Only includes retail sales. FEMSA Health Include franchised stores in Ecuador.
April 28, 2023// | Page
9
DIGITAL@FEMSA
1
Spin by OXXO
Spin by OXXO acquired 1.1 million users duringthe 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% YoYand a 10.2% compound monthly growth rate. Active users
2
represented65.3% of the total acquired user base. Total transactions per month
increased 22.0% during the quarter to reach an average of 29.9 millionper
month in 1Q23, reflecting an increase in user engagement.
Spin Premia
Spin Premia acquired 2.6 million users duringthe 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% YoYand a 10.3% compound monthly growth rate. Active users
3
represented 43.9% of the total acquired user base. The average tender4during
the quarter was 20.5%.
COCA-COLA FEMSA
Coca-Cola FEMSA's financial results anddiscussion thereof are incorporated by
reference from Coca-Cola FEMSA's press release, which is attached to this
press releaseor may be accessed by visiting coca-colafemsa.com.
1
Digital@FEMSA's results areincluded within the Other business segment
2
Active User for Spin by OXXO: Anyuser with a balance or that has transacted
within the last 56 days.
3
Active User for Spin Premia: Userthat has transacted at least once with OXXO
Premia within the last 90 days.
4
Tender: MXN sales with Spin Premiaredemption or accrual / Total OXXO MXN
Sales, during the period.
April 28, 2023// | Page
10
ENVOY SOLUTIONS
1
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 EBITDA
In millions of Ps. In millions of Ps.
Total revenues
increased 23.7% in 1Q23compared 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 totalrevenues, 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,
increasedtransportation, and labor costs, as well as the appreciation of the
Mexican Peso compared to the US Dollar. On a comparable basis
2
,income from operations increased 1.2% compared to 1Q22.
1
During 2021 and 2022, Envoy Solutionsresults were included within the
Logistics & Distribution business segment.
2
Comparable basis: Excluding non-recurrentM&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 announcedthe final tender results and acceptance for
its previously announced offers to purchase for cash FEMSA's notes for an
aggregatepurchase price, excluding accrued and unpaid interest and additional
amounts, if any of up to US$2.0 billion, from registered holdersof the notes.
The offers were made pursuant to the terms and subject to the conditions set
forth in the amended and restated offer topurchase dated February 17, 2023. As
of the end of the offer, FEMSA retired US$1.7 billion of outstanding debt. For
more informationon 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' Meetingelected the members of the board of directors
and the members of each of the Audit Committee, the Corporate Practices and
NominationCommittee, and the Operations and Strategy Committee of the Board
for 2023.
The list of elected directors canbe found in the following link:
https://femsa.gcs-web.com/corporate-governance/board-of-directors
.
The Annual Shareholders' Meetingalso 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
appointedby the Series "B" shareholders from 11 directors to 9 directors.
For additional information, pleaserefer 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 Comision 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
CONFERENCECALL INFORMATION
Our First Quarter 2023 Conference Call willbe held on: Friday, April 28, 2023,
11:00 AM Eastern Time (9:00 AM Mexico City Time). The conference call will be
webcast live throughstreaming 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
Ifyou 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 andsocial 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 relatedretail 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 participatesthrough Coca-Cola FEMSA,
the largest franchise bottler of Coca-Cola products in the world by volume;
and in the beer industry, as a shareholderof Heineken, one of the world's
leading brewers with operations in over 70 countries. FEMSA also participates
in the logisticsand distribution industry through its Strategic Business Unit,
which additionally provides point-of-sale refrigeration and plastic
solutionsto its business units and third-party clients. Across its business
units, FEMSA has more than 350,000 employees in 18 countries. FEMSAis a member
of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging
Index and the Mexican Stock Exchange SustainabilityIndex: S&P/BMV Total Mexico
ESG, among other indexes that evaluate its sustainability performance.
The translations of Mexican pesos into US dollarsare included solely for the
convenience of the reader, using the noon buying rate for Mexican pesos as
published by the Federal ReserveBank 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-lookingstatements concerning our
future performance that should be considered as good faith estimates made by
us. These forward-looking statementsreflect management's expectations and are
based upon currently available data. Actual results are subject to future
events anduncertainties, which could materially impact our actual performance.
Nine pages of tables and Coca-Cola FEMSA'spress 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 % 2022 % % Var. % Org.
of rev. of rev. (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 (256 ) (0.1 ) 11 - N.S.
(1)
Income from operations 12,543 7.0 11,892 8.1 5.5 3.3
(2)
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 (196 ) (48 ) N.S.
(3)
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 % 2021 % % Inc. % Org.
of rev. of rev. (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 5,080 6,092 (16.6 )
(4)
(A)
Organic basis (% Org.) excludes the effects of significantmergers and
acquisitions in the last twelve months.
(1)
Other operating expenses (income), net = other operatingexpenses (income) +(-)
equity method from operated associates.
(2)
Income from operations = gross profit - administrativeand selling expenses -
other operating expenses (income), net.
(3)
Mainly represents the results of our joint-venturewith Raizen, Grupo Nos, net
of taxes.
(4)
At the end of March, the CAPEX effectively paid isequivalent to Ps. 5,072
million.
April 28, 2023// | Page
14
FEMSA - Consolidated Balance Sheet
Amounts expressedin 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 83,730 190,772 (56.1 )
(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 138,485 170,989 (19.0 )
(2)
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 % of Total Average Rate
(2)
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 83.6 %
(2)
Variable rate 16.4 %
(2)
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
Amountsexpressed in millions of US Dollars (US.)
Twelve months ended March 31, 2023
Reported EBITDA Adjustments EBITDA Ex-KOF
4
Proximity Americas & Europe 2,013 - 2,013
1
Fuel 182 - 182
Health Division 395 - 395
Envoy Solutions 192 - 192
Coca-Cola FEMSA 2,252 (2,252 ) -
2
Other (135 ) - (135 )
3
FEMSA Consolidated 4,899 (2,162 ) 2,654
Dividends Received - 484 484
4
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 Debt 4,403 - 4,403
5
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
Convertedto USD for readers' convenience using the exchange rate published by
the Federal Reserve Bank of New York as of the end of eachreporting period.
1Includes Proximity Europe only for the consolidated period.
2Coca-Cola FEMSA adjustment represents 100% of its LTM EBITDA.
3Includes FEMSA Other Businesses (including Solistica and Digital@FEMSA),
FEMSA corporate expenses and the effects of consolidation adjustments
4Reflects cash dividends received from Coca-Cola FEMSA for approximately
US$276 mm and US$79 mm from JRD, and Heineken US$129 mm fromHeineken 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
ProximityAmericas - Results of Operations
Amounts expressedin millions of Mexican Pesos (Ps.)
For the first quarter of:
2023 % 2022 % % Var. %
of rev. of rev. 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 servicesare included.
April 28, 2023 | Page
17
Health - Results of Operations
Amounts expressedin millions of Mexican Pesos (Ps.)
For the first quarter of:
2023 % 2022 % % Var.
of rev. of rev.
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 theHealth Division.
April 28, 2023 | Page
18
Fuel -Results of Operations
Amounts expressedin millions of Mexican Pesos (Ps.)
For the first quarter of:
2023 % 2022 % % Var.
of rev. of rev.
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-ColaFEMSA - Results of Operations
Amounts expressedin millions of Mexican Pesos (Ps.)
For the first quarter of:
2023 % 2022 % % Var.
of rev. of rev.
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
EnvoySolutions - Results of Operations
Amounts expressedin millions of Mexican Pesos (Ps.)
For the first quarter of:
2023 % 2022 % % Var.
of rev. of rev.
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
FEMSAMacroeconomic Information
Inflation End-of-period Exchange Rates
1Q 2023 LTM Mar-23 Mar-22
(1)
Mar-23
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
franchisebottler in the world by sales volume, announces results for the first
quarter of 2023.
FIRSTQUARTER HIGHLIGHTS
. Volume growth 6.6%
. Revenue growth 12.0%
. Operating income growth 12.9%
. Majority net income growth 35.3%
. Earnings per share
1
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
FINANCIALSUMMARY FOR THE FIRST QUARTER RESULTS
Changevs. 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 Consolidated 21.7 % 21.8 % 20.3 %
(2)
Mexico & Central America 17.9 % 15.2 % 2.5 %
South America 27.5 % 34.8 % 77.7 %
IanCraig, Coca-Cola FEMSA's CEO, commented:
"Ourfirst quarter results reflected our positive momentum and strong
execution. We achieved double-digit revenue, operating income, and netincome
growth in the face of unfavorable currency translation effects from most of
our operating currencies. Notably, these results weresupported 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 increasecapacity and support our growth.
Lookingahead, 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 Results Page
24
of 36
April 26, 2023
RECENTDEVELOPMENTS
. 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 (Comision 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.
CONFERENCECALL INFORMATION
Coca-Cola FEMSA Reports 1Q23 Results Page
25
of 36
April 26, 2023
CONSOLIDATEDFIRST QUARTER RESULTS
CONSOLIDATEDFIRST 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 10,522 9,827 7.1 % 15.2 %
(2)
Volume
increased6.6% 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 mixeffects. These factors
were partially offset by unfavorable currency translation into Mexican Pesos.
On a comparable basis, total revenueswould 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 drivenmainly 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 bya solid top-line
performance and an operating foreign exchange gain in Mexico as a result of
the appreciation of the Mexican Peso. Theseeffects were partially offset by an
increase in raw material costs, mainly sweeteners and PET, coupled with an
increase in operatingexpenses 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 Results Page
26
of 36
April 26, 2023
Comprehensivefinancing result
recorded an expense of Ps. 1,399 million, compared to an expense of Ps. 2,194
million in the previous year. Thisdecrease was driven mainly by a gain of Ps.
56 million in financial instruments as compared to a loss of Ps. 936 million
that was drivenmainly 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 comparedto a
gain of Ps. 405 million that was driven by an increase in interest rates.
Theseeffects were partially offset by a foreign exchange loss of Ps. 640
million as compared to a gain of Ps. 165 million, as our net cashexposure in
U.S. dollars was negatively impacted by the appreciation of the Mexican Peso
and the Brazilian Real. Moreover, we recognizeda lower gain in monetary
position in inflationary subsidiaries during the first quarter of 2023 as
compared to the same period of theprevious year.
Income tax
asa percentage of income before taxes was 32.4% as compared to 29.5%. This
increase was driven mainly by inflationary effects across ourterritories,
effects of non-recoverable withholdings, and deferred taxes.
Net income attributableto 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
financialresult during the same period of 2022. Earnings per share
1
were Ps. 0.23 (Earnings per unit were Ps. 1.86 and per ADS werePs. 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 Results Page
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 6,706 6,722 (0.2 %) 1.1 %
(2)
Volume
increased 8.8% driven by growth across all territories in the division. These
volumes include the integration of
Cristal
bulkwater business. Excluding these volumes, volume would have increased 5.7%
in the division and 4.8% in Mexico.
Totalrevenues
increased 16.2% to Ps. 33,617 million, driven by volume growth and revenue
management initiatives. These effects were partiallyoffset by unfavorable
currency translation effects from most of our operating currencies in Central
America. On a comparable basis, excludingcurrency translation effects, total
revenues would have increased 17.9%.
Grossprofit
increased 13.6% to Ps. 15,919 million, and gross margin contracted 100 basis
points to 47.4%. This margin decrease was drivenmainly by an increase in raw
material costs such as sweeteners and concentrate in Mexico. These effects
were partially offset by ourtop-line growth, favorable raw material hedging
initiatives and the appreciation of the Mexican Peso as applied to our
dollar-denominatedraw material costs. On a comparable basis, gross profit
would have increased 15.2%.
Operatingincome
increased 1.2% to Ps. 5,011 million and operating margin contracted 220 basis
points to 14.9%, driven mainly by an increasein 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 Results Page
28
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April 26, 2023
SOUTHAMERICA 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 3,816 3,105 22.9 % 52.7 %
(2)
Volume
increased 3.8%, driven mainly by a solid performance in Brazil, Argentina, and
Uruguay, partially offset by a flat performance inColombia. On a comparable
basis, excluding volumes from the acquisition of CVI in Brazil, volume would
have increased 2.8%.
Totalrevenues
increased 6.6% to Ps. 23,740 million, driven by our volume growth, revenue
management and favorable mix effects. This increasewas 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%.
Grossprofit
increased 11.0% to Ps. 9,539 million, and gross margin expanded 160 basis
points to 40.2%. This increase was driven mainlyby our top-line growth,
favorable mix effects, and raw material hedging strategies. This increase was
partially offset by increases inraw material costs such as sweeteners and PET.
On a comparable basis, gross profit would have increased 34.8%.
Operatingincome
increased 43.3% to Ps. 2,713 million in the first quarter of 2023, resulting
in an operating margin expansion of 290 basispoints to 11.4%. This increase
was driven mainly by higher gross profit and an increase in operating leverage
resulting from volume growthand 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 Results Page
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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 appliedto soda fountains,
refers to the volume of syrup, powders, and concentrate that is required to
produce 192 ounces of finished beverageproduct.
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 soldindividually or in
multipacks, except for soda fountains, which represent multiple transactions
based on a standard 12 oz. serving.
Operatingincome
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-cashcharges."
Earningsper share
are equal to "quarterly earnings / outstanding shares." Earnings per share
(EPS) for all periods are adjustedto give effect to the stock split resulting
in 16,806,658,096 shares outstanding. For the convenience of the reader, as a
KOFUBL Unitis 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 represents10
KOFUBL Units.
COMPARABILITY
Our "comparable" term means, with respect to a year-over-year comparison, the
change of a given measure excluding the effectsof: (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 Results Page
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April 26, 2023
ABOUTTHE COMPANY
Stocklisting information: Mexican Stock Exchange, Ticker: KOFUBL | NYSE (ADS),
Ticker: KOF | Ratio of KOFUBL to KOF = 10:1
Coca-ColaFEMSA 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
thepublic on the Internet at the SEC's website at
www.sec.gov
, the BMV's website at
www.bmv.com.mx
, and our websiteat
www.coca-colafemsa.com
.
Coca-ColaFEMSA, S.A.B. de C.V. is the largest Coca-Cola franchise bottler in
the world by sales volume. The Company produces and distributes trademarkbeverag
es of The Coca-Cola Company, offering a wide portfolio of 131 brands to a
population of more than 266 million. With over 80 thousandemployees, the
Company markets and sells approximately 3.5 billion unit cases through 2
million points of sale a year. Operating 49 manufacturingplants and 260
distribution centers, Coca-Cola FEMSA is committed to generating economic,
social, and environmental value for all ofits stakeholders across the value
chain. The Company is a member of the Dow Jones Sustainability Emerging
Markets Index, Dow Jones SustainabilityMILA Pacific Alliance Index, FTSE4Good
Emerging Index, and the Mexican Stock Exchange's IPC and Social Responsibility
and SustainabilityIndices, 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
.
ADDITIONALINFORMATION
Allof the financial information presented in this report was prepared under
International Financial Reporting Standards (IFRS).
Thisnews release may contain forward-looking statements concerning Coca-Cola
FEMSA's future performance, which should be consideredas good faith estimates
by Coca-Cola FEMSA. These forward-looking statements reflect management's
expectations and are based uponcurrently available data. Actual results are
subject to future events and uncertainties, many of which are outside
Coca-Cola FEMSA'scontrol, which could materially impact the Company's actual
performance. References herein to "US$" are to United Statesdollars. 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 orcould be converted into U.S. dollars at the rate
indicated.
(5 pages of tables to follow)
Coca-Cola FEMSA Reports 1Q23 Results Page
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April 26, 2023
COCA-COLAFEMSA
CONSOLIDATEDINCOME STATEMENT
Millionsof Pesos
(1)
For the First Quarter of:
2023 % of 2022 % of Δ% Δ%
Rev. Rev. Reported Comparable
(7)
Transactions (million 5,567.3 5,205.3 7.0 % 6.6 %
transactions)
Volume (million 939.6 881.6 6.6 % 6.2 %
unit cases)
Average price 59.28 56.62 4.7 %
per unit case
Net 57,145 51,078 11.9 %
revenues
Other operating 212 118 80.3 %
revenues
Total 57,357 100.0 % 51,195 100.0 % 12.0 % 21.7 %
revenues
(2)
Cost of 31,899 55.6 % 28,593 55.9 % 11.6 %
goods sold
Gross 25,458 44.4 % 22,602 44.1 % 12.6 % 21.8 %
profit
Operating 17,825 31.1 % 15,757 30.8 % 13.1 %
expenses
Other operative (30 ) -0.1 % 22 0.0 % NA
expenses, net
Operative equity method (61 ) -0.1 % (21 ) 0.0 % 195.6 %
(gain) loss in associates
(3)
Operating 7,724 13.5 % 6,844 13.4 % 12.9 % 20.3 %
income
(5)
Other non operative 124 0.2 % 180 0.4 % -31.0 %
expenses, net
Non Operative equity method 134 0.2 % (3 ) 0.0 % NA
(gain) loss in associates
(4)
Interest 1,913 1,645 16.3 %
expense
Interest 1,042 405 157.3 %
income
Interest 871 1,240 -29.7 %
expense, net
Foreign exchange 640 165 289.1 %
loss (gain)
Loss (gain) on monetary position (60 ) (147 ) -59.4 %
in inflationary subsidiaries
Market value (gain) loss (53 ) 936 NA
on financial instruments
Comprehensive 1,399 2,194 -36.2 %
financing result
Income 6,067 4,474 35.6 %
before taxes
Income 1,989 1,321 50.6 %
taxes
Result of discontinued - - NA
operations
Consolidated 4,078 3,153 29.4 %
net income
Net income attributable to 3,916 6.8 % 2,894 5.7 % 35.3 %
equity holders of the company
Non-controlling 162 0.3 % 259 0.5 % -37.3 %
interest
EBITDA & 2023 % of 2022 % of Δ% Δ%
CAPEX Rev. Rev. Reported Comparable
(7)
Operating 7,724 13.5 % 6,844 13.4 % 12.9 %
income
(5)
Depreciation 2,326 2,349 -1.0 %
Amortization and other 471 635 -25.8 %
operative non-cash charges
EBITDA 10,522 18.3 % 9,827 19.2 % 7.1 % 15.2 %
(5)(6)
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 LeaoAlimentos, 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-GAAPmeasures 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 paidwas Ps. 2,506 million.
Coca-Cola FEMSA Reports 1Q23 Results Page
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April 26, 2023
MEXICO & CENTRAL AMERICA DIVISION
RESULTSOF OPERATIONS
Millionsof Pesos
(1)
For the First Quarter of:
2023 % of 2022 % of Δ% Δ%
Rev. Rev. Reported Comparable
(6)
Transactions (million 2,826.8 2,648.3 6.7 % 6.7 %
transactions)
Volume (million 537.4 494.0 8.8 % 8.8 %
unit cases)
Average price 62.55 58.55 6.8 %
per unit case
Net 33,612 28,927
revenues
Other operating 5 8
revenues
Total 33,617 100.0 % 28,935 100.0 % 16.2 % 17.9 %
Revenues
(2)
Cost of 17,699 52.6 % 14,928 51.6 %
goods sold
Gross 15,918.7 47.4 % 14,006.8 48.4 % 13.6 % 15.2 %
profit
Operating 11,058.6 0.3 9,105.5 0.3
expenses
Other operative (111 ) -0.3 % (2 ) 0.0 %
expenses, net
Operative equity method (40 ) -0.1 % (46 ) -0.2 %
(gain) loss in associates
(3)
Operating 5,011 14.9 % 4,950 17.1 % 1.2 % 2.5 %
income
(4)
Depreciation, amortization & 1,695 5.0 % 1,773 6.1 %
other operating non-cash charges
EBITDA 6,706 19.9 % 6,722 23.2 % -0.2 % 1.1 %
(4)(5)
(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-GAAPmeasures 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.
SOUTHAMERICA DIVISION
RESULTSOF OPERATIONS
Millionsof Pesos
(1)
For the First Quarter of:
2023 % of 2022 % of Δ% Δ%
Rev. Rev. Reported Comparable
(6)
Transactions (million 2,740.5 2,556.9 7.2 % 6.4 %
transactions)
Volume (million 402.2 387.6 3.8 % 2.8 %
unit cases)
Average price 54.90 53.92 1.8 %
per unit case
Net 23,533 22,151
revenues
Other operating 207 110
revenues
Total 23,740 100.0 % 22,261 100.0 % 6.6 % 27.5 %
Revenues
(2)
Cost of 14,200 59.8 % 13,665 61.4 %
goods sold
Gross 9,539 40.2 % 8,595 38.6 % 11.0 % 34.8 %
profit
Operating 6,766 28.5 % 6,652 29.9 %
expenses
Other operative 81 0.3 % 24 0.1 %
expenses, net
Operative equity method (21 ) -0.1 % 26 0.1 %
(gain) loss in associates
(3)
Operating 2,713.2 11.4 % 1,893.8 8.5 % 43.3 % 77.7 %
income
(4)
Depreciation, amortization & 1,102 4.6 % 1,211 5.4 %
other operating non-cash charges
EBITDA 3,816 16.1 % 3,105 13.9 % 22.9 % 52.7 %
(4)(5)
(1) Exceptvolume and average price per unit case figures.
(2) Pleaserefer to page 13 for revenue breakdown.
(3) Includesequity method in Leao Alimentos and Verde Campo, among others.
(4) Theoperating 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) Pleaserefer to page 8 for our definition of "comparable" and a description of the
factors affecting the comparability of our financialand operating performance.
Coca-Cola FEMSA Reports 1Q23 Results Page
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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 % Interest Rate Average Rate
(1) Floating
(1) (2)
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.
DebtMaturity Profile
Financial Ratios 1Q 2023 FY 2022 Δ%
Net debt including effect of hedges 35,246 38,104 -7.5 %
(1)(3)
Net debt including effect of hedges / EBITDA 0.81 0.89
(1)(3)
EBITDA/ Interest expense, net 12.08 10.34
(1)
Capitalization 40.1 % 38.9 %
(2)
(1)
Net debt = total debt - cash
(2)
Total debt / (total debt + shareholders' equity)
(3)
Aftergiving effect to cross-currency swaps.
Coca-Cola FEMSA Reports 1Q23 Results Page
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April 26, 2023
COCA-COLA FEMSA
QUARTERLY- VOLUME,TRANSACTIONS & REVENUES
Volume
1Q 2023 1Q 2022 YoY
Sparkling Water Bulk Stills Total Sparkling Water Bulk Stills Total Δ
(1) (2) (1) (2) %
Mexico 309.5 26.4 87.6 35.2 458.8 301.9 21.3 67.5 32.7 423.5 8.3 %
(3)
Guatemala 35.6 1.4 - 2.3 39.2 30.6 1.1 - 1.9 33.7 16.3 %
CAM 31.4 2.0 0.4 5.6 39.4 29.8 1.9 0.2 4.9 36.9 6.9 %
South
Mexico and 376.4 29.8 88.0 43.1 537.4 362.4 24.4 67.7 39.5 494.0 8.8 %
Central America
Colombia 61.4 8.8 3.3 7.1 80.5 62.1 7.7 3.1 7.4 80.4 0.1 %
Brazil 218.3 19.4 2.7 20.5 260.9 212.2 17.1 2.4 19.1 250.9 4.0 %
(4)
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 325.9 35.8 7.4 33.1 402.2 319.6 30.6 6.7 30.8 387.6 3.8 %
America
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 1,765.2 191.3 254.7 2,211.2 1,698.6 154.3 237.6 2,090.4 5.8 %
(3)
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 1,403.1 170.2 226.4 1,799.6 1,303.8 146.8 222.8 1,673.4 7.5 %
(4)
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 15,969 14,388 11.0 %
(5)
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 theprevious 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 Results Page
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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 %
Mexico 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 Closing Exchange Rate
(Local Currency per USD) (Local Currency per USD)
Mar-23 Mar-22 Δ % Ene-23 Ene-22 Δ %
Mexico 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 Results Page
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April 26, 2023
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