Femsa, the Coca-Cola bottling plant, closes a positive 2022 due to price increases

Coca Cola Femsa, the largest public bottling plant of Coca-Cola products in the world by volume of sales, announced its consolidated results for the fourth quarter of 2022 and the full year of operations in Mexico, Brazil, Guatemala, Colombia, Argentina, Costa Rica, Nicaragua, Panama, Uruguay and Venezuela.

In 2022, the total revenue of the company of Mexican origin reached 226.740 million Mexican pesos, alreadyincreased by 16.4% compared to 2021. while its comparable revenues increased by 17.8%, mainly driven by pricing initiatives, a favorable price mix effect and volume growth, according to a results report sent to the Mexican Stock Exchange (BMV).

PERFORMANCE OF COCA-COLA FEMSA IN 2022

"These factors were partially neutralized by the decrease in beer revenues related to the portfolio transition in Brazil and adverse currency translation effects", he explained in the text.

The year ended with a year-on-year growth in operating revenues of 12.5%, while comparable operating revenues increased by 11.6%, mainly driven by sales and operating cost efficiency.

"These effects were partially neutralized by higher costs of raw materials, together with a high base of comparison that includes recognizing the extraordinary effects of non-recurring taxes in Brazil during 2021," the report said.

While, the sales volume increased by 8.6% driven by growth in all territories where the company operatesincluding double-digit increases in Brazil, Colombia, Argentina and Guatemala, with strong results in Mexico and Uruguay. On a comparable basis, the increase was 7.5%.

With respect by the fourth quarter, total revenues increased by 14.9%, while the same revenues increased by 18.9%, mainly driven by a favorable price mix and volume growth, the company explained. "These effects were partially offset by unfavorable currency translation effects," the earnings report added.

Operating income increased by 15.9%, while comparable operating income increased by 18%. "Our strong sales growth, raw material conservation strategies and operating cost efficiency were partially offset higher costs of raw materials", the company assures.

In 2022, the total revenues of Coca-Cola Femsa increased by 16.4% compared to 2021.

In that period, consolidated volume increased by 4.6%, mainly driven by growth in Brazil, Mexico, Guatemala, Argentina and Uruguay, and partially offset by a slight decrease in volume in Colombia. On a comparable basis, the increase was 3.6%.

Eye, This was confirmed by Ian Craig, CEO of Coca-Cola Fems "2022 was a positive year". "Faced with an inflationary environment, the company managed to reach the highest level of revenue, operating profit and operating flow. In particular, we achieved double-digit revenue growth in our territories, reflecting the ability to implement the right strategies at the local level, revenue optimization opportunities and effective execution at the point of sale.", it stated.

"We are leveraging our partnership framework with the Coca-Cola Company to increase investment in the business, We have made progress in implementing our multi-channel platform job for job (B2B) and expanded our multi-category strategy to explore new revenue streams. Looking ahead, we are optimistic about the opportunities we see. We have a talented team, clear advantages in victories and positive momentum a new chapter of growth and sustainable value creation for Coca-Cola Femsa", he predicted.

Faced with an inflationary environment, the company managed to reach the highest level of revenue, operating profit and business flow.

As for the balance for 2022. Daniel Rodríguez Cofré, Chief Executive Officer of Femsa, commented: "We closed the year strongly, with performance in the fourth quarter continuing the strong momentum seen throughout most of 2022. Especially, we again saw sustained strength in operating trends at OXXO Mexicowhere traffic increased again by several percentage points and contributed to a double-digit increase in same-store sales, which also reflecting good growth in important categories associated with meeting spending opportunitiesrelevant in the season at the end of the year".

"Outside of Mexico, 'Proximity' continued to grow at a good pace in most of its markets, and we report Valora's results for the first time, reflecting its consolidation in early October. Femsa Salud again achieved stable results against a demanding comparison base, facing a challenging macroeconomic environment, particularly in Chile, doc OXXO Gas had another strong quarter thanks to higher volume recovery and strong operating leverage," the CEO described.

In return, he assured that On the 'digital' front, the group continued to add OXXO Premia and Spin by OXXO clients at a solid pace, at the same time as he focused on generating more participation and measuring those users who are constantly interacting with the product. "We have also made progress in launching our loyalty platform at Coalition, where we recently announced an important alliance with Volaris, and we're working on a lot more," he said.

This strong close to 2022 puts us in a good position to drive further growth in 2023.

And continued: "Coca-Cola Femsa had a strong end to the year in which record results were achieved, encouraged by their excellent performance and by taking advantage of their new framework of cooperation with the Coca-Cola Company for joint investment and business growth. Finally, Logistics and distribution had a strong quarter this was partially overshadowed by extraordinary costs at Envoy Solutions."

"This strong close to 2022 puts us in a good position to drive further growth in 2023, as we begin to execute on the focused strategy set out in our FEMSA forward vision presented last week. We expect an interesting year", concluded Rodríguez Cofré.

BUSINESS OF THE COCA-COLA FEMSA COMPANY

Femsa is the world's largest bottler of Coca-Cola products by volume of sales and the second largest shareholder of Heineken, one of the main brewing companies, present in more than 70 countries. Produces and distributes beverages under 131 brands The Coca-Cola Company, which reach more than 266 million consumers every day, through 2 million points of sale.

Except, participates in different business segments. It has a 'Proximity Division', of which OXXO is a partsmall format store chain; OXXO gas, gas station chain; and valueunit of retail the company that manages the stores and food service. In the last quarter, this unit achieved a growth in total revenues of 17%, compared to the same period in 2021.

It also has a 'Health Division', which includes pharmacy networks and related activities, such as YZA, Pharmacon and Moderna in Mexico; green cross in Colombia and Chile; and Fybec and Hello hello in Ecuador; as well as the Maicao chain of beauty stores in Chile. In the last quarter of 2022. adjusted for currency effects, same-store sales of this unit increased by 8.3% compared to the same period in 2021.

for his part, 'Digital Division', includes Spin by OXXO, with 3.9 million active users; and OXXO awards, with 12.9 million active users, along with other loyalty initiatives and digital financial services.

In turn, Femsa participates in the logistics and distribution industry with Femsa Negocios Estratégicoswhich provides its companies and external clients with cooling solutions at the point of sale and in plastics.

Through all its business units, it employs more than 350,000 associates in 18 countries and operates 49 production plants and 260 distribution centers. It is a member of the Dow Jones MILA Pacific Alliance Sustainability Index, the FTSE4Good Emerging Index and the S&P/BMV Total Mexico ESG Index, among other indices that assess its sustainability.