General Anaya No. 601 Pte.
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“There are a number of reasons
to be cautiously optimistic in our results for the first quarter. FEMSA Comercio’s Retail Division showed solid growth trends
across its income statement, although we must remember that some of that came from the Holy Week calendar shift and we will likely
give it back in the month of April. Nevertheless, profitability trends were structurally positive. The Health Division delivered
improved results from Mexico, which may be the first signs that we are turning a corner in this key market after much hard work,
while the Fuel Division faced an undemanding comparable base and thus delivered another quarter of gradual sequential recovery
in profitability. And at Coca-Cola FEMSA, we continued to see promising signs in our key Brazilian operations, as well as a resilient
environment in Mexico, while the team again navigated challenging consumer, cost and tax conditions across several of our markets.
It is also encouraging to see inflation
coming down fast in Mexico, bolstering real wage growth, although we continue to expect volatility in the exchange rate in the
coming months that could yet spill over and reverse those positive inflation trends. All told, FEMSA’s first quarter results
came in a little better than we expected in several of our operations, but the second quarter will be tougher based on the calendar
shift, and we continue to expect choppy waters ahead.”
Our First Quarter 2018 Conference Call will
be held on: Thursday, April 26, 2018, 10:00 AM Eastern Time (9:00 AM Mexico City Time). To participate in the conference call,
please dial: Domestic US: (888) 500 6975; International: (719) 325 2140; Conference Id: 4396866. The conference call will be webcast
live through streaming audio. For details please visit
www.femsa.com/investor
.
FEMSA is a leading company that participates
in the beverage industry through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume; and
in the beer industry, through its ownership of the second largest equity stake in Heineken, one of the world's leading brewers
with operations in over 70 countries. In the retail industry it participates through FEMSA Comercio, comprising a Retail Division
operating various small-format store chains including OXXO, a Fuel Division, operating the OXXO GAS chain of retail service stations,
and a Health Division, which includes drugstores and related operations. Additionally, through its Strategic Businesses unit, it
provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA's business units and third-party clients.
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 30, 2018, which was 18.1676 Mexican pesos per US dollar.
Total debt = short-term bank loans + current
maturities of long-term debt + long-term bank loans.
Mexico City, April 25, 2018, Coca-Cola FEMSA, S.A.B. de C.V. (BMV:
KOFL, NYSE: KOF) (“Coca-Cola FEMSA” or the “Company”), the largest Coca-Cola franchise bottler in the world
by sales volume, announces results for the first quarter of 2018.
The comparability of our financial and operating
performance in the first quarter of 2018, as compared to the same period of 2017, was affected by the following factors: (a) as
previously announced, due to a change in reporting method, the results from Coca-Cola FEMSA de Venezuela are no longer included
in our consolidated financial statements as of January 1, 2018; and (b) the consolidation of Coca-Cola FEMSA Philippines commencing
on February 1, 2017. In addition, the consolidation generated a one-time non-cash gain during the first quarter of 2017.
In order to better describe the performance
of our business, for certain information we present the comparable figures excluding the effects of: (i) mergers, acquisitions,
and divestitures, (ii) translation effects resulting from exchange rate movements, (iii) the results of Coca-Cola FEMSA de Venezuela
in 2017; and including the results of Coca-Cola FEMSA Philippines, Inc., as if its consolidation had taken place at the beginning
of first quarter 2017.
Furthermore, as of January 1, 2018, margin
comparability in the Philippines was impacted by the excise tax on soft drink production, accounted for in cost of goods sold.
|
First Quarter
|
|
as Reported
|
|
Comparable
(1)
|
Expressed in millions of Mexican pesos.
|
2018
|
D
%
|
|
D
%
|
Total revenues
|
49,713
|
(3.2%)
|
|
7.2%
|
Gross profit
|
21,917
|
(1.7%)
|
|
6.1%
|
Operating income
|
5,883
|
(3.4%)
|
|
(1.1%)
|
Operating cash flow
(2)
|
8,706
|
(8.9%)
|
|
4.0%
|
Net income attributable to equity holders of the company
|
2,414
|
(59.0%)
|
|
|
Earnings per share
(3)
|
1.15
|
|
|
|
(2)
Operating cash flow = operating income
+ depreciation + amortization & other operative non-cash charges.
(3)
Quarterly earnings / outstanding
shares as of the end of the period. Outstanding shares as of 1Q'18 were 2,100.8 million
Message from the Chief Executive Officer
|
“At the start of the year, we faced a
mixed macroeconomic environment across our operations, coupled with a new tax environment in the Philippines. However, our ability
to adapt to ever-changing market and consumer dynamics, combined with our transformational initiatives, enabled us to deliver comparable
revenue and operating cash flow growth of 7.2% and 4.0%, respectively. By leveraging our clear strategy, the encouraging recovery
of our South America division, a resilient Mexico, and an adaptable Philippines, we aim to continue Coca-Cola FEMSA’s growth,
while hitting new milestones in transforming our operating model, protecting our short-term results, and ensuring sustainable social
and economic value for all of our stakeholders,” said John Santa Maria Otazua, Chief Executive Officer of the Company.
Press Release 1Q 2018
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Page
15
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April 25, 2018
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|
Consolidated results for the first quarter
|
Comparable
figures:
(1)
Revenues:
Comparable total
revenues grew 7.2% in the first quarter of 2018 as compared to the same period of 2017, driven by average price per unit case growth
in Argentina and Mexico, coupled with volume growth in Brazil, Central America, and Colombia, partially offset by volume declines
in the rest of our operations.
Transactions:
Comparable
number of transactions increased 1.0%. Our sparkling beverage category grew 0.4%, driven by 1.3% growth in our colas portfolio,
partially offset by a 2.3% decline in flavors. Our positive performance in colas was driven by growth in Argentina, Brazil, Central
America and Colombia, partially offset by a decline in Mexico and the Philippines. Our decline in flavors was driven by Brazil,
Colombia, and Mexico, partially offset by growth in Argentina, Central America, and the Philippines. Our still beverage category
grew 0.8%, driven mainly by the positive performance of Brazil, Central America, and Mexico. Finally, our water category’s
transactions increased by 7.7%, driven by growth in almost all of our operations, partially offset by a decline in Argentina.
Volume:
Comparable sales
volume remained flat in the first quarter of 2018 as compared to the same period in 2017. Our sparkling beverage portfolio’s
volume remained flat, driven by 1.5% growth in our colas portfolio, partially offset by a 4.4% decline in flavors. Growth in our
colas portfolio was driven mainly by the performance of Brazil, Central America, and Colombia, while our decline in flavors was
driven mainly by declines in Brazil, Colombia, and the Philippines. Our still beverage category’s volume declined 6.6%, as
growth in most of our operations was offset by declines in Argentina, Colombia, and the Philippines. Our personal water portfolio’s
volume grew 10.6% due to positive performance in most of our operations. Finally, our bulk water portfolio’s volume declined
1.2%, driven by Mexico and Colombia, partially offset by growth in the rest of our operations.
Gross profit:
Comparable
gross profit grew 6.1%. Our pricing initiatives, coupled with lower sweetener prices in most of our operations, were offset by
an unfavorable currency hedging position, higher sweetener and concentrate prices in Mexico, higher sweetener and PET costs and
the inclusion of the excise tax on beverage production in the Philippines, which is applied as a cost, and the depreciation in
the average exchange rate of the Argentine Peso, the Brazilian Real, and the Philippine Peso as applied to our U.S. dollar-denominated
raw material costs.
Operating Income:
Comparable
operating income declined 1.1% for the first quarter of 2018 as compared to the same period of 2017.
Operating cash flow:
Comparable
operating cash flow increased 4.0% in the first quarter of 2018.
As reported figures:
Revenues:
Total revenues
declined 3.2% to Ps. 49,713 million in the first quarter of 2018, mainly due to the negative translation effect resulting from
the depreciation of all of our operating currencies as compared to the Mexican Peso, combined with the deconsolidation of Coca-Cola
FEMSA de Venezuela as of December 31, 2017, and an unfavorable price/mix in Brazil, Central America and Colombia. These effects
were partially offset by price increases aligned with or above inflation in key territories such as Argentina and Mexico, supported
by volume growth in Brazil, Central America and Colombia.
Transactions:
Reported total
number of transactions increased 6.9% to 6,137.6 million in the first quarter of 2018 as compared to the same period in 2017.
Volume:
Reported total sales
volume increased 3.0% to 907.8 million unit cases in the first quarter of 2018 as compared to the same period in 2017.
Gross profit:
Gross profit
declined 1.7% to Ps. 21,917 million, and gross margin expanded 70 basis points to 44.1%.
(Continued on next page)
Press Release 1Q 2018
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Page
16
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April 25, 2018
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|
Equity method:
T
he
reported share of the profits of associates and joint ventures recorded a loss of Ps. 49 million in the first quarter of 2018,
compared to a gain of Ps. 46 million recorded in the first quarter of 2017. This is mainly due to: (i) a loss in our dairy joint
venture in Panama; (ii) larger gains in our joint ventures in Brazil during the first quarter of 2017 as compared to the first
quarter of 2018; and (iii) the consolidation of Coca-Cola FEMSA Philippines, Inc., which is no longer included in the equity method
as of February 2017.
Operating Income:
Operating
income decreased 3.4% to Ps. 5,883 million, and operating margin contracted 10 basis points to 11.8% during the first quarter 2018
as compared with the same period of 2017, which benefited from the reversal of expense-related provisions that did not materialize.
Other non-operative expenses,
net:
Other non-operative expenses, net, recorded an expense of Ps. 62 million, compared to a gain of Ps. 2,471 million during
the first quarter of 2017, due mainly to the consolidation of Coca-Cola FEMSA Philippines, Inc., starting February 2017.
Comprehensive financing result:
Comprehensive financing result in the first quarter of 2018 recorded an expense of Ps. 2,072 million, compared to an expense of
Ps. 1,286 million in the same period of 2017.
During the first quarter of 2018,
we recorded an interest expense, net, of Ps. 1,598 million, compared to Ps. 2,328 million in the first quarter of 2017. This decrease
was driven by the decline of short-term interest rates in Brazil; the average exchange rate depreciation of the Brazilian Real
compared to the Mexican Peso as applied to existing Brazilian Real-denominated interest expense; and the reduction of debt in Argentina,
Brazil, and Colombia. However, these effects were partially offset by: (i) an interest rate increase in Mexico; (ii) additional
debt in Mexico; and (iii) an interest rate increase resulting from swapping U.S. dollar-denominated debt to Brazilian Real and
Mexican Peso-denominated debt, as part of our strategy to eliminate our U.S. dollar net debt exposure.
In addition, for the first quarter,
we recorded a foreign exchange loss of Ps. 228 million as compared to a gain of Ps. 53 million in 2017, which resulted from the
quarterly appreciation of the Mexican Peso as applied to our U.S. dollar-denominated cash position.
Additionally, due to the announced
change in the reporting method, the results of Coca-Cola FEMSA de Venezuela are no longer included in our consolidated financial
statements, for this reason no monetary position in hyperinflationary subsidiaries was recorded as of January 1, 2018.
Market value on financial instruments
recorded a loss of Ps. 246 million as compared to a gain of Ps. 434 million in the first quarter of 2017 due to the decrease during
the quarter in the long-term interest rates in Brazil as applied to our fixed rate cross-currency swaps.
Income tax:
During the first
quarter of 2018, reported income tax as a percentage of income before taxes was 32.0%, compared to 17.1% in the same period of
2017. The lower tax rate in the first quarter of 2017 was driven mainly by one-time non-cash gain recorded in connection with the
consolidation of Coca-Cola FEMSA Philippines, Inc.
Net income:
Consolidated
net controlling interest income decreased 59.0% to Ps. 2,414 million in the first quarter of 2018, resulting in earnings per share
(EPS) of Ps. 1.15 (Ps. 11.49 per ADS), in the face of a high comparable driven mainly by one-time non-cash gain recorded in connection
with the consolidation of Coca-Cola FEMSA Philippines, Inc.
Operating cash flow:
Operating
cash flow decreased 8.9% to Ps. 8,706 million, and operating cash flow margin contracted 110 basis points to 17.5%.
Press Release 1Q 2018
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Page
17
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April 25, 2018
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|
As of March 31, 2018, we had a cash balance
of Ps. 19,549 million, including US$353 million denominated in U.S. dollars, an increase of Ps. 777 million as compared to December
31, 2017. As of March 31, 2018, total short-term debt was Ps. 11,238 million, and long-term debt was Ps. 67,463 million. Total
debt decreased by Ps. 4,664 million, and net debt decreased by Ps. 5,447 million compared to year-end 2017, due mainly to our cash
flow generation during the year and the positive translation effect resulting from the appreciation of the end-of-period exchange
rate of the Mexican Peso as applied to our U.S. dollar-denominated debt position.
The weighted average cost of debt for the quarter,
including the effect of debt swapped to Brazilian Reals and Mexican Pesos, was 7.67%, a reduction as compared to the fourth quarter
2017, due mainly to the reduction of interest rates in Brazil. The following charts set forth the Company’s debt profile
by currency and interest rate type and by maturity date as of March 31, 2018.
Currency
|
% Total Debt
(2)
|
% Interest Rate Floating
(2)(3)
|
Mexican Pesos
|
45.9%
|
3.1%
|
U.S. Dollars
|
1.4%
|
0.0%
|
Colombian Pesos
|
2.9%
|
71.8%
|
Brazilian Reals
|
49.7%
|
50.9%
|
Argentine Pesos
|
0.1%
|
0.0%
|
Debt Maturity Profile
Maturity Date
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023+
|
% of Total Debt
|
13.9%
|
8.7%
|
12.1%
|
8.1%
|
2.00%
|
55.23%
|
|
(1)
|
See page 14 for detailed information.
|
|
(2)
|
After giving effect to cross-currency swaps.
|
|
(3)
|
Calculated by weighting each year’s outstanding debt balance mix.
|
Selected Financial Ratios
|
|
LTM 2018
|
FY 2017
|
D
%
|
Net debt including effect of hedges
(1)(3)
|
64,321
|
68,973
|
-6.7%
|
Net debt including effect of hedges / Operating cash flow
(1)(3)
|
1.65
|
1.74
|
|
Operating cash flow/ Interest expense, net
(1)
|
5.45
|
4.99
|
|
Capitalization
(2)
|
38.1%
|
39.3%
|
|
(1) Net debt = total debt - cash
(2) Total debt / (long-term debt + shareholders' equity)
(3) After giving effect to cross-currency swaps.
Press Release 1Q 2018
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Page
18
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April 25, 2018
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|
Mexico & Central America Division
|
(Costa Rica, Guatemala, México, Nicaragua,
and Panama)
Comparable figures:
(1)
Revenues:
Comparable total
revenues from our Mexico and Central America division increased 5.2% in the first quarter of 2018, compared to the same period
in 2017, driven by an increase in average price per unit case in Mexico and volume growth in Central America, partially offset
by a slight volume decline in Mexico and an unfavorable price/mix effect in Central America.
Transactions:
Total transactions
in our Mexico and Central America division remained flat in the first quarter of 2018. Our sparkling beverage portfolio’s
transactions contracted 0.8%, driven mainly by a 0.7% decline in our colas portfolio and a 1.5% decline in flavors. Our still beverage
category’s transactions increased 2.0% in the division, driven by 1.4% growth in Mexico and 4.3% growth in Central America,
while our water transactions, including bulk water, increased 3.1%, driven by 3.0% growth in Mexico and 4.7% growth in Central
America.
Volume:
Total sales volume
for the division remained flat in the first quarter of 2018, compared to the same period of 2017. Our sparkling beverage category’s
volume remained flat, driven by a 0.6% increase in our colas portfolio and flat performance in flavors. Our performance in colas
was driven mainly by 14.2% growth in Central America, while our performance in flavors was driven by 2.2% growth Central America.
Our still beverage category’s volume increased 1.6%, driven by growth in both Mexico and Central America. Our personal water
portfolio’s volume increased 6.8%, driven by 6.2% growth in Mexico and 13.0% growth in Central America. Our bulk water portfolio’s
volume declined 3.0% in the division due to a contraction in Mexico, partially offset by growth in Central America.
Gross profit:
Comparable
gross profit grew 1.9% in the first quarter of 2018 as compared to the same period in 2017. In Mexico, our pricing initiatives
and the appreciation of the average exchange rate of the Mexican Peso as applied to U.S. dollar-denominated raw material costs
were offset by the increase in concentrate cost, higher prices of sweeteners, and an unfavorable currency hedging position. In
Central America, lower sweetener prices were offset by higher PET prices, an unfavorable price/mix, and the depreciation of the
average exchange rates of the Costa Rican Colon and the Nicaraguan Cordoba as applied to U.S. dollar-denominated raw material costs.
Operating income:
Comparable
operating income in the division decreased 10.5% in the first quarter of 2018 as compared to the same period in 2017.
Operating cash flow:
Comparable
operating cash flow decreased 1.7% in the first quarter of 2018 as compared to the same period in 2017.
As reported figures:
Revenues:
Reported total
revenues increased 3.7% in the first quarter of 2018 as compared to the same period of 2017.
Gross profit:
Reported gross
profit increased 0.6% in the first quarter of 2018, and gross profit margin reached 47.1%, a gross margin contraction of 150 basis
points.
Operating income:
Reported
operating income decreased 11.0% in the first quarter of 2018, and operating income margin reached 11.9%, contracting 200 basis
points during the period.
Operating cash flow:
Reported
operating cash flow decreased 3.3% in the first quarter of 2018, resulting in a margin contraction of 130 basis points to 18.4%.
Press Release 1Q 2018
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Page
19
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April 25, 2018
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(Argentina, Brazil and Colombia)
Comparable figures:
(1)
Revenues:
Comparable total
revenues increased 6.7%, driven mainly by volume growth in Brazil and Colombia, coupled with an average price per unit case increase
in Argentina, which was partially offset by an unfavorable price/mix in Brazil and Colombia.
Transactions:
Comparable
transactions in the division increased 4.4% during the first quarter of 2018. Our sparkling beverage portfolio’s transactions
increased 3.7%, driven by 7.9% growth in our colas portfolio, partially offset by an 8.9% contraction in flavors. Our positive
performance in colas was driven by growth across our South American operations. However, flavors’ negative performance was
driven by Colombia and Brazil, partially offset by growth in Argentina. Our still beverage category’s transactions increased
2.0%, driven by growth in Brazil, partially offset by a decline in Argentina and Colombia. Our water transactions, including bulk
water, increased 12.0%, driven by growth in Brazil and Colombia, partially offset by a decline in Argentina.
Volume:
Comparable total
sales volume in South America grew 3.2% during the first quarter of 2018 as compared to the same period of 2017. Our sparkling
beverage category’s volume increased 2.3%, driven by 6.4% growth in our colas portfolio, which was partially offset by a
9.3% decline in flavors. Colas’ positive performance was driven by growth in Brazil and Colombia, while our decline in flavors
was also driven by Brazil and Colombia. Our still beverage category’s volume increased 1.5%, driven by growth in Brazil,
partially offset by a decline in Colombia. Our personal water category’s volume increased 18.2%, driven by growth in Brazil
and Colombia, offset by a decline in Argentina. Our bulk water business’s volume declined 9.0%, driven by a decline in Colombia,
partially offset by growth in Argentina and Brazil.
Gross profit:
Comparable
gross profit increased 16.2% as a result of lower sweetener prices, a favorable currency hedging position, and the appreciation
of the Colombian Peso as applied to U.S. dollar-denominated raw material costs, which offset higher PET prices in Colombia, an
unfavorable raw material hedging position, and the depreciation of the average exchange rate of the Brazilian Real and the Argentine
Peso as applied to U.S. dollar-denominated raw material costs.
Operating income:
Comparable
operating income in the division increased 11.7% as compared to the same period in 2017.
Operating cash flow:
Comparable
operating cash flow increased 12.3% as compared to the same period of 2017.
As reported figures:
Revenues:
Reported total
revenues declined 16.9% to Ps. 21,845 million in the first quarter of 2018, driven by an unfavorable currency translation effect
resulting from the depreciation of all of our operating currencies as compared to the Mexican Peso, the deconsolidation of Coca-Cola
FEMSA de Venezuela, and the unfavorable price-mix effect in Brazil and Colombia. These effects were partially offset by volume
growth in Brazil and Colombia, coupled with an average price per unit case increase in Argentina.
Transactions:
Reported total
number of transactions decreased 0.3% to 2,011.5 million in the first quarter of 2018 as compared to the same period in 2017.
Volume:
Reported total sales
volume decreased 1.0% to 313.0 million unit cases in the first quarter of 2018 as compared to the same period in 2017.
Gross profit:
Reported gross
profit decreased 6.7% to Ps. 9,732 million in the first quarter of 2018, and gross profit margin expanded 480 basis points to 44.5%.
Operating income:
Reported
operating income grew 8.1% to Ps. 3,103 million in the first quarter of 2018, resulting in a margin expansion of 330 basis points
to 14.2%.
Operating cash flow:
Reported
operating cash flow declined 13.8% to Ps. 4,068 million in the first quarter of 2018, resulting in a margin expansion of 70 basis
points to 18.6%.
Press Release 1Q 2018
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Page
20
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April 25, 2018
|
|
(The Philippines)
As of January 1, 2018, the
Philippines implemented a comprehensive tax reform to fund infrastructure investments. As part of this reform, among other initiatives,
excise taxes on sweetened beverages were applied as follows: (i) 6 Philippine Pesos per liter on beverages containing sugar or
non-caloric sweeteners; and (ii) 12 Philippine Pesos per liter on beverages containing high fructose corn syrup (HFCS).
As this excise tax is applied
to soft drink production, margins in this operation are incomparable with margins from 2017. This impact in comparability is caused
by the recognition of this excise tax in cost of goods sold and the Company’s increased prices to adjust to this change,
resulting in increased revenues.
Comparable figures:
(1)
Revenues:
Comparable total
revenues increased 18.5% during the first quarter of 2018, driven by average price per unit case increase as an adjustment to the
excise tax, partially offset by a volume decline.
Transactions:
Comparable
transactions decreased 1.2% in the first quarter of 2018. Our sparkling beverage portfolio’s transactions decreased 1.4%,
driven by a 3.5% decline in our colas portfolio, partially offset by 2.6% growth in flavors. Our still beverage category’s
transactions, not including powders, increased by 35.1%. Our water transactions, including bulk water, increased 8.2%.
Volume:
Comparable total
sales volume decreased 8.1% in the first quarter of 2018. Our sparkling beverage category’s volume decreased 7.0%, driven
by an 8.4% decline in our colas portfolio and a 4.2% decline in flavors. Our still beverage category’s volume, excluding
powders, increased 18.8%
.
Our personal water category’s volume decreased 1.3%
.
Our bulk water business’s
volume grew 20.6%
.
Gross profit:
Comparable
gross profit decreased 14.9% as compared to the same period of 2017, driven mainly by the inclusion of the excise tax on soft drink
production as a cost of goods sold, as well as higher sweetener and PET resin prices and the devaluation of the Philippine Peso
as applied to our U.S. dollar-denominated raw material costs.
Operating income:
Comparable
operating income decreased 38.8% to Ps. 117 million during the first quarter of 2018.
Operating cash flow:
Comparable
operating cash flow decreased 6.4% to Ps. 541 million as compared to the same period of 2017.
As reported figures:
Revenues:
Reported total
revenues increased 55.2% to Ps. 5,591 million for the first quarter 2018 as compared to the results of February and March 2017.
Additionally, total revenues were driven by an average price per unit case increase, as an adjustment to the excise tax, partially
offset by a volume decline and the negative translation effect resulting from the depreciation the Philippine Peso as compared
to the Mexican Peso.
Transactions:
Reported total
number of transactions increased 39.0% to 1,452.1 million in the first quarter of 2018 as compared to the same period of 2017.
Volume:
Reported total sales
volume increased 29.9% to 119.9 million unit cases in the first quarter of 2018 as compared to the same period of 2017.
Gross profit:
Gross profit
grew 17.9% to Ps. 1,701.3 million, and gross margin contracted 970 basis points to 30.4%.
Operating income:
Reported
operating income declined 48.7% to Ps. 117.3 million in the first quarter of 2018, resulting in a margin of contraction of 430
basis points to 2.1%.
Operating cash flow:
Reported
operating cash flow declined 9.8% to Ps. 541.1 million in the first quarter of 2018, resulting in a margin of contraction of 700
basis points to 9.7%.
Press Release 1Q 2018
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Page
21
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April 25, 2018
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|
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·
|
On March 9, 2018, Coca-Cola FEMSA held
its Annual Ordinary General Shareholders Meeting, during which its shareholders approved the Company’s consolidated financial
statements for the year ended December 31, 2017, the annual report presented by the Board of Directors, the declaration of dividends
corresponding to fiscal year 2017, and the composition of the Board of Directors and the Finance and Planning, Audit, and Corporate
Practices Committees for 2018. Shareholders approved the payment of a cash dividend in the amount of Ps. 3.35 per share outstanding,
equivalent to Ps. 7,038 million, to be paid in two installments as of May 3, 2018, and November 1, 2018.
|
Conference Call Information
|
Our first quarter 2018 conference call will
be held on April 25, 2018, at 11:00 A.M. Eastern Time (10:00 A.M. Mexico City Time). To participate in the conference call, please
dial: Domestic U.S.: 888-726-2418 or International: 719-785-1753. Participant code: 6219919. We invite investors to listen to the
live audio cast of the conference call on the Company’s website,
www.coca-colafemsa.com
. If you are unable to participate
live, the conference call audio will be available at
www.coca-colafemsa.com
.
Mexican Stock Exchange Quarterly Filing
|
Coca-Cola FEMSA encourages the reader to refer
to our quarterly filing to the Mexican Stock Exchange (
Bolsa Mexicana de Valores
or BMV) for more detailed information.
This filing contains a detailed cash flow statement and selected notes to the financial statements, including segment information.
This filing is available at
www.bmv.com.mx
in the
Información Financiera
section for Coca-Cola FEMSA (KOF)
and on our corporate website at
www.coca-colafemsa.com/inversionistas/registros-bmv
.
Press Release 1Q 2018
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Page
22
|
April 25, 2018
|
|
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.
All of the financial information presented
in this report was prepared under International Financial Reporting Standards (IFRS).
In an effort to provide our readers with a
more useful representation of our company's underlying financial and operating performance, we are including the term “Comparable.”
This means, with respect to a year-over-year comparison, the change in a given measure excluding the effects of: (i) mergers, acquisitions,
and divestitures, (ii) translation effects resulting from exchange rate movements, (iii) the results of Coca-Cola FEMSA de Venezuela
in 2017; and including the results of Coca-Cola FEMSA Philippines, Inc., as if its consolidation had taken place at the beginning
of first quarter 2017. In preparing this measure, management has used its best judgment, estimates, and assumptions in order to
maintain comparability.
Earnings per share were computed based on 2,100.8
million shares (each ADS represents 10 local shares).
For reporting purposes, all corporate expenses,
including the equity method recorded from our stake of the results of Coca-Cola FEMSA Philippines, Inc., were included in the results
of the Mexico and Central America division. Starting on February 2013 and ending on January 2017, we incorporated our stake of
the results of Coca-Cola FEMSA Philippines, Inc. through the equity method.
Stock listing information: Mexican Stock Exchange,
Ticker: KOFL | NYSE (ADR), Ticker: KOF | Ratio of KOF L to KOF = 10:1
Coca-Cola FEMSA, S.A.B. de C.V. is the largest
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 169 brands to more than 349 million consumers daily. With over 96 thousand employees, the company
markets and sells approximately 3.8 billion unit cases through 2.6 million points of sale a year. Operating 60 manufacturing plants
and 300 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, Colombia, Argentina,
and Guatemala and, nationwide, in the Philippines, Nicaragua, Costa Rica, and Panama. For further information, please visit
www.coca-colafemsa.com
For additional information or inquiries,
contact the Investor Relations team:
|
·
|
Maria Dyla Castro | mariadyla.castro@kof.com.mx
| (5255) 1519-5186
|
|
·
|
Jorge Collazo | jorge.collazo@kof.com.mx
| (5255) 1519-5218
|
|
·
|
Maria Fernanda Garcia | maria.garciacr@kof.com.mx
| (5255) 1519-6240
|
(7 pages of tables to follow)
Press Release 1Q 2018
|
Page
23
|
April 25, 2018
|
|
Quarter - Consolidated Income Statement
|
Expressed in millions of Mexican pesos
(1)
|
|
|
1Q 18
|
|
|
% Rev
|
|
|
1Q 17
|
|
|
% Rev
|
|
|
D
%
Reported
|
|
|
D
%
Comparable
(8)
|
|
Transactions (million transactions)
|
|
|
6,137.6
|
|
|
|
|
|
|
|
5,741.7
|
|
|
|
|
|
|
|
6.9
|
%
|
|
|
1.0
|
%
|
Volume (million unit cases)
(2)
|
|
|
907.8
|
|
|
|
|
|
|
|
881.3
|
|
|
|
|
|
|
|
3.0
|
%
|
|
|
0.1
|
%
|
Average price per unit case
(2)
|
|
|
50.69
|
|
|
|
|
|
|
|
54.17
|
|
|
|
|
|
|
|
-6.4
|
%
|
|
|
|
|
Net revenues
|
|
|
49,596
|
|
|
|
|
|
|
|
51,262
|
|
|
|
|
|
|
|
-3.2
|
%
|
|
|
|
|
Other operating revenues
|
|
|
117
|
|
|
|
|
|
|
|
96
|
|
|
|
|
|
|
|
22.3
|
%
|
|
|
|
|
Total revenues
(3)
|
|
|
49,713
|
|
|
|
100.0
|
%
|
|
|
51,357
|
|
|
|
100.0
|
%
|
|
|
-3.2
|
%
|
|
|
7.2
|
%
|
Cost of goods sold
|
|
|
27,796
|
|
|
|
55.9
|
%
|
|
|
29,060
|
|
|
|
56.6
|
%
|
|
|
-4.3
|
%
|
|
|
|
|
Gross profit
|
|
|
21,917
|
|
|
|
44.1
|
%
|
|
|
22,297
|
|
|
|
43.4
|
%
|
|
|
-1.7
|
%
|
|
|
6.1
|
%
|
Operating expenses
|
|
|
15,934
|
|
|
|
32.1
|
%
|
|
|
16,644
|
|
|
|
32.4
|
%
|
|
|
-4.3
|
%
|
|
|
|
|
Other operative expenses, net
|
|
|
51
|
|
|
|
0.1
|
%
|
|
|
(391
|
)
|
|
|
-0.8
|
%
|
|
|
NA
|
|
|
|
|
|
Operative equity method (gain) loss in associates
(4)
|
|
|
49
|
|
|
|
0.1
|
%
|
|
|
(46
|
)
|
|
|
-0.1
|
%
|
|
|
NA
|
|
|
|
|
|
Operating income
(5)
|
|
|
5,883
|
|
|
|
11.8
|
%
|
|
|
6,090
|
|
|
|
11.9
|
%
|
|
|
-3.4
|
%
|
|
|
-1.1
|
%
|
Other non operative expenses, net
|
|
|
62
|
|
|
|
|
|
|
|
(2,471
|
)
|
|
|
|
|
|
|
NA
|
|
|
|
|
|
Non Operative equity method (gain) loss in associates
(6)
|
|
|
12
|
|
|
|
|
|
|
|
(37
|
)
|
|
|
|
|
|
|
NA
|
|
|
|
|
|
Interest expense
|
|
|
2,012
|
|
|
|
|
|
|
|
2,513
|
|
|
|
|
|
|
|
-19.9
|
%
|
|
|
|
|
Interest income
|
|
|
414
|
|
|
|
|
|
|
|
185
|
|
|
|
|
|
|
|
123.8
|
%
|
|
|
|
|
Interest expense, net
|
|
|
1,598
|
|
|
|
|
|
|
|
2,328
|
|
|
|
|
|
|
|
-31.4
|
%
|
|
|
|
|
Foreign exchange loss (gain)
|
|
|
228
|
|
|
|
|
|
|
|
(53
|
)
|
|
|
|
|
|
|
NA
|
|
|
|
|
|
Loss (gain) on monetary position in inflationary subsidiries
|
|
|
-
|
|
|
|
|
|
|
|
(555
|
)
|
|
|
|
|
|
|
NA
|
|
|
|
|
|
Market value (gain) loss on financial instruments
|
|
|
246
|
|
|
|
|
|
|
|
(434
|
)
|
|
|
|
|
|
|
NA
|
|
|
|
|
|
Comprehensive financing result
|
|
|
2,072
|
|
|
|
|
|
|
|
1,286
|
|
|
|
|
|
|
|
61.1
|
%
|
|
|
|
|
Income before taxes
|
|
|
3,737
|
|
|
|
|
|
|
|
7,312
|
|
|
|
|
|
|
|
-48.9
|
%
|
|
|
|
|
Income taxes
|
|
|
1,196
|
|
|
|
|
|
|
|
1,254
|
|
|
|
|
|
|
|
-4.6
|
%
|
|
|
|
|
Consolidated net income
|
|
|
2,541
|
|
|
|
|
|
|
|
6,058
|
|
|
|
|
|
|
|
-58.1
|
%
|
|
|
|
|
Net income attributable to equity holders of the company
|
|
|
2,414
|
|
|
|
4.9
|
%
|
|
|
5,887
|
|
|
|
11.5
|
%
|
|
|
-59.0
|
%
|
|
|
|
|
Non-controlling interest
|
|
|
127
|
|
|
|
|
|
|
|
171
|
|
|
|
|
|
|
|
-25.6
|
%
|
|
|
|
|
Operating income
(5)
|
|
|
5,883
|
|
|
|
11.8
|
%
|
|
|
6,090
|
|
|
|
11.9
|
%
|
|
|
-3.4
|
%
|
|
|
|
|
Depreciation
|
|
|
2,353
|
|
|
|
|
|
|
|
2,496
|
|
|
|
|
|
|
|
-5.7
|
%
|
|
|
|
|
Amortization and other operative non-cash charges
|
|
|
470
|
|
|
|
|
|
|
|
968
|
|
|
|
|
|
|
|
-51.4
|
%
|
|
|
|
|
Operating cash flow
(5)(7)
|
|
|
8,706
|
|
|
|
17.5
|
%
|
|
|
9,554
|
|
|
|
18.6
|
%
|
|
|
-8.9
|
%
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPEX
|
|
|
1,786
|
|
|
|
|
|
|
|
3,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Except volume and average price per
unit case figures.
(2)
Sales volume and average price per
unit case exclude beer results.
(3)
Includes total revenues of Ps. 19,084
million from our Mexican operation, Ps. 14,848 million from our Brazilian operation, Ps. 3,600 million from our Colombian operation,
Ps. 3,397 million from our Argentine operation, and Ps. 5,591 million from our Philippines operation for the first quarter of 2018;
and Ps. 18,113 million from our Mexican operation, Ps. 16,074 million from our Brazilian operation, Ps. 3,635 from our Colombian
operation, and Ps. 3,707 million from our Argentine operation for the same period of the previous year. Total Revenues includes
Beer revenues in Brazil of Ps. 3,586 million for the first quarter of 2018 and Ps. 3,525 million for the same period of the previous
year.
(4)
Includes equity method in Jugos del
Valle, Leao Alimentos, Estrella Azul, among others. For January '17 includes Coca-Cola FEMSA Philippines, Inc.
(5)
The operating income and operative
cash flow lines are presented as non-gaap measures for the convenience of the reader.
(6)
Includes equity method in PIASA,
IEQSA, Beta San Miguel, IMER and KSP Participacoes among others.
(7)
Operative cash flow = operating income
+ depreciation, amortization & other operative non-cash charges.
(8)
Comparable means, with respect to
a year-over-year comparison, the change in a given measure excluding the effects of of: (i) mergers, acquisitions and divestitures,
(ii) translation effects resulting from exchange rate movements, (iii) the results of Coca-Cola FEMSA de Venezuela in 2017, and
including the results of Coca-Cola FEMSA Philippines, Inc., as if its consolidation had taken place at the beginning of first quarter
2017.
Press Release 1Q 2018
|
Page
24
|
April 25, 2018
|
|
Mexico & Central America Division
|
Expressed in millions of Mexican pesos
(1)
|
Quarterly information
|
|
|
1Q 18
|
|
|
% Rev
|
|
|
1Q 17
|
|
|
% Rev
|
|
|
D
%
Reported
|
|
|
D
%
Comparable
(6)
|
|
Transactions (million transactions)
|
|
|
2,674.0
|
|
|
|
|
|
|
|
2,680.4
|
|
|
|
|
|
|
|
-0.2
|
%
|
|
|
-0.2
|
%
|
Volume (million unit cases)
|
|
|
474.9
|
|
|
|
|
|
|
|
472.9
|
|
|
|
|
|
|
|
0.4
|
%
|
|
|
0.4
|
%
|
Average price per unit case
|
|
|
46.89
|
|
|
|
|
|
|
|
45.37
|
|
|
|
|
|
|
|
3.4
|
%
|
|
|
|
|
Net revenues
|
|
|
22,269
|
|
|
|
|
|
|
|
21,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating revenues
|
|
|
9
|
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
(2)
|
|
|
22,277
|
|
|
|
100.0
|
%
|
|
|
21,472
|
|
|
|
100.0
|
%
|
|
|
3.7
|
%
|
|
|
5.2
|
%
|
Cost of goods sold
|
|
|
11,794
|
|
|
|
52.9
|
%
|
|
|
11,047
|
|
|
|
51.4
|
%
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
10,484
|
|
|
|
47.1
|
%
|
|
|
10,425
|
|
|
|
48.6
|
%
|
|
|
0.6
|
%
|
|
|
1.9
|
%
|
Operating expenses
|
|
|
7,866
|
|
|
|
35.3
|
%
|
|
|
7,509
|
|
|
|
35.0
|
%
|
|
|
|
|
|
|
|
|
Other operative expenses, net
|
|
|
(103
|
)
|
|
|
-0.5
|
%
|
|
|
(79
|
)
|
|
|
-0.4
|
%
|
|
|
|
|
|
|
|
|
Operative equity method (gain) loss in associates
(3)
|
|
|
59
|
|
|
|
0.3
|
%
|
|
|
4
|
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
Operating income
(4)
|
|
|
2,662
|
|
|
|
11.9
|
%
|
|
|
2,991
|
|
|
|
13.9
|
%
|
|
|
-11.0
|
%
|
|
|
-10.5
|
%
|
Depreciation, amortization & other operative non-cash charges
|
|
|
1,434
|
|
|
|
6.4
|
%
|
|
|
1,245
|
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
Operating cash flow
(4)(5)
|
|
|
4,096
|
|
|
|
18.4
|
%
|
|
|
4,237
|
|
|
|
19.7
|
%
|
|
|
-3.3
|
%
|
|
|
-1.7
|
%
|
(1)
Except volume and average price per
unit case figures.
(2)
Includes total revenues of Ps. 19,084
million from our Mexican operation for the first quarter of 2018 and 18,113 for the same period of the previous year
(3)
Includes equity method in Jugos del Valle, Estrella
Azul, among others. For January '17 includes Coca-Cola FEMSA Philippines, Inc.
(4)
The operating income and operative
cash flow lines are presented as non-gaap measures for the convenience of the reader.
(5)
Operative cash flow = operating income
+ depreciation, amortization & other operative non-cash charges.
(6)
Comparable means, with respect to
a year-over-year comparison, the change in a given measure excluding the effects of: (i) mergers, acquisitions and divestitures,
(ii) translation effects resulting from exchange rate movements, (iii) the results of Coca-Cola FEMSA de Venezuela in 2017, and
including the results of Coca-Cola FEMSA Philippines, Inc., as if its consolidation had taken place at the beginning of first quarter
2017.
Press Release 1Q 2018
|
Page
25
|
April 25, 2018
|
|
South America Division
|
Expressed in millions of Mexican pesos
(1)
|
Quarterly information
|
|
|
1Q 18
|
|
|
% Rev
|
|
|
1Q 17
|
|
|
% Rev
|
|
|
D
%
Reported
|
|
|
D
%
Comparable
(7)
|
|
Transactions (million transactions)
|
|
|
2,011.5
|
|
|
|
|
|
|
|
2,016.7
|
|
|
|
|
|
|
|
-0.3
|
%
|
|
|
4.4
|
%
|
Volume (million unit cases)
(2)
|
|
|
313.0
|
|
|
|
|
|
|
|
316.1
|
|
|
|
|
|
|
|
-1.0
|
%
|
|
|
3.2
|
%
|
Average price per unit case
(2)
|
|
|
57.98
|
|
|
|
|
|
|
|
71.75
|
|
|
|
|
|
|
|
-19.2
|
%
|
|
|
|
|
Net revenues
|
|
|
21,737
|
|
|
|
|
|
|
|
26,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating revenues
|
|
|
108
|
|
|
|
|
|
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
(3)
|
|
|
21,845
|
|
|
|
100.0
|
%
|
|
|
26,284
|
|
|
|
100.0
|
%
|
|
|
-16.9
|
%
|
|
|
6.7
|
%
|
Cost of goods sold
|
|
|
12,113
|
|
|
|
55.5
|
%
|
|
|
15,855
|
|
|
|
60.3
|
%
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
9,732
|
|
|
|
44.5
|
%
|
|
|
10,429
|
|
|
|
39.7
|
%
|
|
|
-6.7
|
%
|
|
|
16.2
|
%
|
Operating expenses
|
|
|
6,504
|
|
|
|
29.8
|
%
|
|
|
7,932
|
|
|
|
30.2
|
%
|
|
|
|
|
|
|
|
|
Other operative expenses, net
|
|
|
135
|
|
|
|
0.6
|
%
|
|
|
(323
|
)
|
|
|
-1.2
|
%
|
|
|
|
|
|
|
|
|
Operative equity method (gain) loss in associates
(4)
|
|
|
(10
|
)
|
|
|
-0.0
|
%
|
|
|
(50
|
)
|
|
|
-0.2
|
%
|
|
|
|
|
|
|
|
|
Operating income
(5)
|
|
|
3,103
|
|
|
|
14.2
|
%
|
|
|
2,870
|
|
|
|
10.9
|
%
|
|
|
8.1
|
%
|
|
|
11.7
|
%
|
Depreciation, amortization & other operative non-cash charges
|
|
|
965
|
|
|
|
4.4
|
%
|
|
|
1,848
|
|
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
Operating cash flow
(5)(6)
|
|
|
4,068
|
|
|
|
18.6
|
%
|
|
|
4,717
|
|
|
|
17.9
|
%
|
|
|
-13.8
|
%
|
|
|
12.3
|
%
|
(1)
Except volume and average price per
unit case figures.
(2)
Sales volume and average price per
unit case exclude beer results.
(3)
Includes total revenues of Ps. 14,848
million from our Brazilian operation, Ps. 3,600 million from our Colombian operation, and Ps. 3,397 million from our Argentine
operation for the first quarter of 2018; and Ps. 16,074 million from our Brazilian operation, Ps. 3,635 from our Colombian operation,
and Ps. 3,707 million from our Argentine operation for the same period of the previous year. Total Revenues includes Beer revenues
in Brazil of Ps. 3,586 million for the first quarter of 2018 and Ps. 3,525 million for the same period of the previous year.
(4)
Includes equity method in Leao Alimentos,
Verde Campo, among others.
(5)
The operating income and operative
cash flow lines are presented as non-gaap measures for the convenience of the reader.
(6)
Operative cash flow = operating income
+ depreciation, amortization & other operative non-cash charges.
(7)
Comparable means, with respect to
a year-over-year comparison, the change in a given measure excluding the effects of: (i) mergers, acquisitions and divestitures,
(ii) translation effects resulting from exchange rate movements, (iii) the results of Coca-Cola FEMSA de Venezuela in 2017, and
including the results of Coca-Cola FEMSA Philippines, Inc., as if its consolidation had taken place at the beginning of first quarter
2017.
Press Release 1Q 2018
|
Page
26
|
April 25, 2018
|
|
Asia Division
|
Expressed in millions of Mexican pesos
(1)
|
Quarterly information
|
|
|
1Q 18
|
|
|
% Rev
|
|
|
1Q 17
(2)
|
|
|
% Rev
|
|
|
D
%
Reported
|
|
|
D
%
Comparable
(4)
|
|
Transactions (million transactions)
|
|
|
1,452.1
|
|
|
|
|
|
|
|
1,044.6
|
|
|
|
|
|
|
|
39.0
|
%
|
|
|
-1.2
|
%
|
Volume (million unit cases)
|
|
|
119.9
|
|
|
|
|
|
|
|
92.3
|
|
|
|
|
|
|
|
29.9
|
%
|
|
|
-8.1
|
%
|
Average price per unit case
|
|
|
46.64
|
|
|
|
|
|
|
|
39.03
|
|
|
|
|
|
|
|
19.5
|
%
|
|
|
|
|
Net revenues
|
|
|
5,591
|
|
|
|
|
|
|
|
3,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating revenues
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
(3)
|
|
|
5,591
|
|
|
|
100.0
|
%
|
|
|
3,601
|
|
|
|
100.0
|
%
|
|
|
55.2
|
%
|
|
|
18.5
|
%
|
Cost of goods sold
|
|
|
3,889
|
|
|
|
69.6
|
%
|
|
|
2,158
|
|
|
|
59.9
|
%
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1,701
|
|
|
|
30.4
|
%
|
|
|
1,443
|
|
|
|
40.1
|
%
|
|
|
17.9
|
%
|
|
|
-14.9
|
%
|
Operating expenses
|
|
|
1,564
|
|
|
|
28.0
|
%
|
|
|
1,203
|
|
|
|
33.4
|
%
|
|
|
|
|
|
|
|
|
Other operative expenses, net
|
|
|
20
|
|
|
|
0.4
|
%
|
|
|
12
|
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
Operating income
(5)
|
|
|
117
|
|
|
|
2.1
|
%
|
|
|
229
|
|
|
|
6.4
|
%
|
|
|
-48.7
|
%
|
|
|
-38.8
|
%
|
Depreciation, amortization & other operative non-cash charges
|
|
|
424
|
|
|
|
7.6
|
%
|
|
|
371
|
|
|
|
10.3
|
%
|
|
|
|
|
|
|
|
|
Operating cash flow
(5)(6)
|
|
|
541
|
|
|
|
9.7
|
%
|
|
|
600
|
|
|
|
16.7
|
%
|
|
|
-9.8
|
%
|
|
|
-6.4
|
%
|
(1)
Except volume and average price per
unit case figures.
(2)
Includes only February and March
for 2017
(3)
Operative cash flow = operating income
+ depreciation, amortization & other operative non-cash charges.
(4)
Comparable means, with respect to
a year-over-year comparison, the change in a given measure excluding the effects of: (i) mergers, acquisitions and divestitures,
(ii) translation effects resulting from exchange rate movements, (iii) the results of Coca-Cola FEMSA de Venezuela in 2017, and
including the results of Coca-Cola FEMSA Philippines, Inc., as if its consolidation had taken place at the beginning of first quarter
2017.
Press Release 1Q 2018
|
Page
27
|
April 25, 2018
|
|
Consolidated Balance Sheet
|
Expressed in millions of Mexican pesos.
|
|
|
Mar-18
|
|
|
Dec-17
|
|
Assets
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and marketable securities
|
|
Ps.
|
19,549
|
|
|
Ps.
|
18,767
|
|
Total accounts receivable
|
|
|
13,132
|
|
|
|
17,576
|
|
Inventories
|
|
|
12,142
|
|
|
|
11,364
|
|
Other current assets
|
|
|
10,374
|
|
|
|
7,950
|
|
Total current assets
|
|
|
55,197
|
|
|
|
55,657
|
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
118,382
|
|
|
|
121,968
|
|
Accumulated depreciation
|
|
|
(47,137
|
)
|
|
|
(46,141
|
)
|
Total property, plant and equipment, net
|
|
|
71,244
|
|
|
|
75,827
|
|
Investment in shares
|
|
|
12,033
|
|
|
|
12,540
|
|
Intangibles assets and other assets
|
|
|
119,533
|
|
|
|
124,243
|
|
Other non-current assets
|
|
|
17,751
|
|
|
|
17,410
|
|
Total Assets
|
|
Ps.
|
275,759
|
|
|
Ps.
|
285,677
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
Short-term bank loans and notes payable
|
|
Ps.
|
11,233
|
|
|
Ps.
|
12,171
|
|
Suppliers
|
|
|
18,440
|
|
|
|
19,956
|
|
Other current liabilities
|
|
|
30,041
|
|
|
|
23,467
|
|
Total current liabilities
|
|
|
59,714
|
|
|
|
55,595
|
|
Long-term bank loans and notes payable
|
|
|
67,463
|
|
|
|
71,189
|
|
Other long-term liabilities
|
|
|
19,637
|
|
|
|
18,184
|
|
Total liabilities
|
|
|
146,813
|
|
|
|
144,968
|
|
Equity
|
|
|
|
|
|
|
|
|
Non-controlling interest
|
|
|
16,538
|
|
|
|
18,141
|
|
Total controlling interest
|
|
|
112,408
|
|
|
|
122,568
|
|
Total equity
|
|
|
128,946
|
|
|
|
140,710
|
|
Total Liabilities and Equity
|
|
Ps.
|
275,759
|
|
|
Ps.
|
285,677
|
|
Press Release 1Q 2018
|
Page
28
|
April 25, 2018
|
|
Quarter - Volume & Transactions
|
For the three months ended March 31, 2018 and 2017
|
|
Volume
|
Expressed in million unit cases
|
|
1Q 2018
|
|
1Q 2017
|
|
Sparkling
|
Water
(1)
|
Bulk
Water
(2)
|
Still
|
Total
|
|
Sparkling
|
Water
(1)
|
Bulk
Water
(2)
|
Still
|
Total
|
Mexico
|
310.1
|
25.2
|
66.5
|
28.2
|
430.0
|
|
312.0
|
23.7
|
68.6
|
28.0
|
432.4
|
Central America
|
36.8
|
2.9
|
0.2
|
5.0
|
44.9
|
|
33.2
|
2.6
|
0.2
|
4.6
|
40.5
|
Mexico & Central America
|
347.0
|
28.1
|
66.7
|
33.1
|
474.9
|
|
345.2
|
26.3
|
68.8
|
32.6
|
472.9
|
Colombia
|
50.4
|
8.8
|
3.1
|
4.4
|
66.7
|
|
44.9
|
5.4
|
4.8
|
5.8
|
60.9
|
Venezuela
|
-
|
-
|
-
|
-
|
-
|
|
10.5
|
1.5
|
0.1
|
0.6
|
12.7
|
Brazil
|
169.3
|
12.4
|
2.1
|
10.9
|
194.8
|
|
168.1
|
11.2
|
1.8
|
9.1
|
190.2
|
Argentina
|
40.8
|
5.3
|
1.5
|
4.0
|
51.6
|
|
41.7
|
5.8
|
0.8
|
4.1
|
52.4
|
South America
|
260.5
|
26.5
|
6.7
|
19.3
|
313.0
|
|
265.2
|
23.9
|
7.4
|
19.6
|
316.1
|
Philippines
(3)
|
97.1
|
5.9
|
10.2
|
6.7
|
119.9
|
|
73.4
|
4.3
|
5.9
|
8.7
|
92.3
|
Asia
|
97.1
|
5.9
|
10.2
|
6.7
|
119.9
|
|
73.4
|
4.3
|
5.9
|
8.7
|
92.3
|
Total
|
704.6
|
60.5
|
83.6
|
59.1
|
907.8
|
|
683.8
|
54.5
|
82.1
|
60.9
|
881.3
|
(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) Philippines information reported for 2017 includes only February
and March.
Transactions
|
Expressed in million transactions
|
|
1Q 2018
|
|
1Q 2017
|
|
Sparkling
|
Water
|
Still
|
Total
|
|
Sparkling
|
Water
|
Still
|
Total
|
Mexico
|
1,886.4
|
182.7
|
230.3
|
2,299.4
|
|
1,922.5
|
177.4
|
227.0
|
2,327.0
|
Central America
|
295.2
|
16.3
|
63.1
|
374.6
|
|
277.3
|
15.6
|
60.5
|
353.4
|
Mexico & Central America
|
2,181.6
|
199.0
|
293.4
|
2,674.0
|
|
2,199.8
|
193.0
|
287.5
|
2,680.4
|
Colombia
|
373.5
|
83.6
|
48.7
|
505.8
|
|
350.2
|
67.4
|
59.9
|
477.6
|
Venezuela
|
-
|
-
|
-
|
-
|
|
71.4
|
14.8
|
3.8
|
90.0
|
Brazil
|
1,024.3
|
108.3
|
116.0
|
1,248.7
|
|
994.3
|
100.0
|
99.9
|
1,194.2
|
Argentina
|
204.4
|
27.5
|
25.1
|
257.0
|
|
200.1
|
28.5
|
26.4
|
255.0
|
South America
|
1,602.2
|
219.4
|
189.9
|
2,011.5
|
|
1,616.1
|
210.7
|
189.9
|
2,016.7
|
Philippines
(1)
|
1,290.5
|
72.5
|
89.1
|
1,452.1
|
|
927.4
|
48.6
|
68.7
|
1,044.6
|
Asia
|
1,290.5
|
72.5
|
89.1
|
1,452.1
|
|
927.4
|
48.6
|
68.7
|
1,044.6
|
Total
|
5,074.3
|
490.9
|
572.3
|
6,137.6
|
|
4,743.3
|
452.3
|
546.1
|
5,741.7
|
(1)
Philippines information reported for 2017 includes
only February and March.
Press Release 1Q 2018
|
Page
29
|
April 25, 2018
|
|
Macroeconomic Information
|
First quarter 2018
|
|
LTM
|
1Q 18
|
|
|
|
|
|
Mexico
|
5.13%
|
1.30%
|
|
|
|
|
|
Colombia
|
3.07%
|
2.05%
|
|
|
|
|
|
Brazil
|
2.83%
|
0.93%
|
|
|
|
|
|
Argentina
|
25.48%
|
6.74%
|
|
|
|
|
|
Philippines
|
4.41%
|
2.59%
|
|
|
|
|
|
(1)
Source: inflation estimated by the company based
on historic publications from the Central Banks of each country.
Average Exchange Rates for each Period
(2)
|
|
Quarterly Exchange Rate (local currency per USD)
|
|
|
|
|
|
1Q 18
|
1Q 17
|
D
%
|
|
|
|
|
Mexico
|
18.76
|
20.39
|
-8.0%
|
|
|
|
|
Guatemala
|
7.37
|
7.43
|
-0.9%
|
|
|
|
|
Nicaragua
|
30.98
|
29.50
|
5.0%
|
|
|
|
|
Costa Rica
|
571.95
|
564.72
|
1.3%
|
|
|
|
|
Panama
|
1.00
|
1.00
|
0.0%
|
|
|
|
|
Colombia
|
2,860.36
|
2,922.07
|
-2.1%
|
|
|
|
|
Brazil
|
3.24
|
3.14
|
3.2%
|
|
|
|
|
Argentina
|
19.70
|
15.67
|
25.7%
|
|
|
|
|
Philippines
|
51.45
|
49.99
|
2.9%
|
|
|
|
|
End of Period Exchange Rates
|
|
Quarter Exchange Rate (local currency per USD)
|
|
Previous Quarter Exchange Rate (local currency per USD)
|
|
Mar 2018
|
Mar 2017
|
D
%
|
|
Dec 2017
|
Dec 2017
|
D
%
|
Mexico
|
18.34
|
18.81
|
-2.5%
|
|
19.74
|
20.66
|
-4.5%
|
Guatemala
|
7.40
|
7.34
|
0.8%
|
|
7.34
|
7.52
|
-2.4%
|
Nicaragua
|
31.16
|
29.68
|
5.0%
|
|
30.79
|
29.32
|
5.0%
|
Costa Rica
|
569.31
|
567.34
|
0.3%
|
|
572.56
|
561.10
|
2.0%
|
Panama
|
1.00
|
1.00
|
0.0%
|
|
1.00
|
1.00
|
0.0%
|
Colombia
|
2,780.47
|
2,880.24
|
-3.5%
|
|
2,984.00
|
3,000.71
|
-0.6%
|
Brazil
|
3.32
|
3.17
|
4.9%
|
|
3.31
|
3.26
|
1.5%
|
Argentina
|
20.15
|
15.39
|
30.9%
|
|
18.65
|
15.89
|
17.4%
|
Philippines
|
52.21
|
50.19
|
4.0%
|
|
49.92
|
49.81
|
0.2%
|
(2)
Average exchange rate for each period computed with
the average exchange rate of each month.
Press Release 1Q 2018
|
Page
30
|
April 25, 2018
|
|
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/ Eduardo Padilla
|
|
|
Eduardo Padilla
|
|
|
Chief Executive Officer
|
Date: April 26, 2018
Fomento Economico Mexica... (PK) (USOTC:FMXUF)
過去 株価チャート
から 6 2024 まで 7 2024
Fomento Economico Mexica... (PK) (USOTC:FMXUF)
過去 株価チャート
から 7 2023 まで 7 2024