Mexico City, February 23, 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 fourth quarter and full year of 2022.
FOURTH QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Consolidated volumes increased 4.6%, driven mainly by volume growth in Brazil, Mexico, Guatemala, Argentina, and Uruguay, partially offset by a slight volume decline in Colombia. On a comparable basis, volume increased 3.6%.
- Total revenues increased 14.9%, while comparable revenues increased 18.9%, driven mainly by favorable price-mix effects, coupled with volume growth. These effects were partially offset by unfavorable currency translation effects.
- Operating income increased 15.9%, while comparable operating income increased 18.0%. Our solid top-line growth, raw material hedging strategies, and operating expense efficiencies were partially offset by higher raw material costs.
- Majority net income increased 23.0%, resulting in earnings per share of Ps. 0.43 (Earnings per unit were Ps. 3.40, and per ADS were Ps. 34.00.).
FULL YEAR OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Consolidated volumes increased 8.6% driven by volume growth across all our territories, including double-digit increases in Brazil, Colombia, Argentina, and Guatemala coupled with a solid performance in Mexico and Uruguay. On a comparable basis, excluding M&A, our volume increased 7.5%.
- Total revenues increased 16.4%, while comparable revenues increased 17.8%, driven mainly by our pricing initiatives, favorable price-mix effects, and volume growth. These factors were partially offset by a decline in beer revenues related to the transition of the beer portfolio in Brazil and unfavorable currency translation effects.
- Operating income increased 12.5%, while comparable operating income increased 11.6% driven mainly by solid top-line and operating expense efficiencies. These effects were partially offset by higher raw material costs, coupled with a tough comparison base that includes the recognition of non-recurring tax effects in Brazil during 2021.
- Majority net income increased 21.2%, resulting in earnings per share of Ps. 1.13 (Earnings per unit were Ps. 9.06, and per ADS were Ps. 90.60.).
Ian Craig, Coca-Cola FEMSA’s CEO, commented:
“2022 was a positive year for Coca-Cola FEMSA. In the face of an inflationary environment, our company was able to deliver its highest ever top-line, operating income, and operating cash flow levels. Notably, we were able to deliver double-digit top-line growth across our territories, reflecting our company’s ability to execute the right strategies locally, our revenue growth management initiatives, and effective point-of-sale execution. Simultaneously, we leveraged our enhanced cooperation framework with The Coca-Cola Company to increase investments in the business, advanced the rollout of our B2B omnichannel platform, and expand our multi[1]category strategy to explore new revenue streams in key territories. Looking ahead, I am encouraged by the opportunities we see for our company. I am convinced that we have a talented team, clear rights-to-win, and positive momentum to enter a new chapter of growth and sustainable value creation for Coca-Cola FEMSA.” RECENT DEVELOPMENTS
- On November 3, 2022, Coca-Cola FEMSA paid the second installment of the ordinary dividend approved during 2022.
- On November 29, 2022, Coca-Cola FEMSA announced that the Board of Directors appointed Mr. Gerardo Cruz Celaya to succeed Mr. Constantino Spas Montesinos as Coca-Cola FEMSA´s Chief Financial Officer. Mr. Cruz´s appointment became effective January 1, 2023.
- On December 19, 2022, Coca-Cola FEMSA announced it had been included in the Dow Jones Sustainability MILA Pacific Alliance Index for the sixth year. Additionally, it announced it is the only company in the Latin America beverage industry included in the Dow Jones Sustainability Emerging Markets Index, for which it was included for the tenth consecutive year.
About Coca-Cola FEMSA
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.
