SOURCE: Coca-Cola FEMSA

October 25, 2016 16:05 ET

2016 Third Quarter and First Nine Months Results

MEXICO CITY--(Marketwired - Oct 25, 2016) - Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL) (NYSE: KOF) ("Coca-Cola FEMSA" or the "Company"), the largest franchise bottler in the world by sales volume, announces results for the third quarter of 2016.

Operational and Financial Highlights

  • Comparable revenues grew 5.6% for the third quarter of 2016.
  • Comparable operating income grew 6.6% for the third quarter of 2016, with a margin expansion of 10 basis points.
  • Comparable operating cash flow declined 0.9% for the third quarter of 2016.
  • Comparable earnings per share grew 30.3% to Ps. 0.99 in the third quarter of 2016.

Results Summary

                       
  Third Quarter   Year to Date
  as Reported   Comparable (1)   as Reported   Comparable (1)
  2016 change %   2016 change %   2016 change %   2016 change %
Total revenues 42,351 12.5%   39,826 5.6%   120,628 10.2%   112,977 7.8%
Gross profit 18,877 5.3%   18,157 2.3%   54,678 5.9%   52,048 5.8%
Operating income 5,644 3.2%   5,656 6.6%   16,576 5.5%   16,396 9.5%
Operating cash flow (2) 8,180 2.4%   7,742 (0.9%)   23,473 7.0%   22,247 6.6%
Net income attributable to equity holders of the company 2,265 13.9%   2,051 30.3%   6,581 (4.9%)   6,601 6.2%
Earnings per share (3) 1.09     0.99     3.17     3.18  

Expressed in millions of Mexican pesos.
(1) Comparable: 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 and (iii) the results of hyperinflationary economies in both periods. Currently, only Venezuela qualifies as a hyperinflationary economy.
(2) Operating cash flow = operating income + depreciation + amortization & other operative non-cash charges.
(3) Quarterly & FY earnings / outstanding shares as of the end of period. Outstanding shares as of 3Q'16 and YTD were 2,072.9 million. 

Message from the Chief Executive Officer

"In the face of a very challenging consumer, currency, and raw material environment across the region, we delivered comparable revenue and operating income growth of 6% and 7%, respectively, while comparable earnings per share grew 30%.

Our consumer transactions continued to outperform volumes, as we increased prices ahead of inflation in most countries and maintained or gained share in key beverage categories.

Our Strategic Framework continues to guide our long-term business growth. As we focus on the evolution of our core capabilities to build our competitive advantage, we continue the rollout of our KOFmmercial Digital Platform -- now reaching more than 470,000 clients in over 2,600 routes across Mexico with encouraging volume, sales, and profit generation. Moreover, our Manufacturing and Distribution & Logistics centers of excellence will provide us with an integrated operational perspective to develop consistent capabilities, improve customer service, and optimize costs.

We further strengthen our footprint in Brazil through our agreement to acquire Vonpar. This strategically important franchise borders our territories in southern Brazil, enables us to serve more than 88 million consumers, and bolsters our leading position in the Coca-Cola system in one of the largest markets for Coke products in the world," said John Santa Maria, Chief Executive Officer of the Company.

Conference Call Information

Our third quarter 2016 conference call will be held on October 25, 2016, at 17:00 P.M. Eastern Time (16:00 P.M. Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: 888-220-8451 or International: 913-312-1466. Participant code: 7391255. We invite investors to listen to the live audiocast 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.

About the Company

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. produces and distributes Coca-Cola, Fanta, Sprite, Del Valle, and other trademark beverages of The Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City, as well as southeast and northeast Mexico), Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia (most of the country), Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state of Mato Grosso do Sul, the state of Paraná, part of the state of Goias, part of the state of Rio de Janeiro and part of the state of Minas Gerais), Argentina (federal capital of Buenos Aires and surrounding areas) and Philippines (nationwide), along with bottled water, juices, teas, isotonics, beer, and other beverages in some of these territories. The Company has 63 bottling facilities and serves more than 358 million consumers through 2,800,000 retailers with more than 100,000 employees worldwide.

Contact Information

  • For additional information or inquiries contact the Investor Relations team:
    Maria Dyla Castro
    Email Contact
    (5255) 1519-5186

    Jorge Collazo
    Email Contact
    (5255) 1519-5148

    Tania Ramírez
    Email Contact
    (5255) 1519-5013