kofpr2q11_6k.htm - Generated by SEC Publisher for SEC Filing

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 July 2011
Commission File Number 1-12260

 

COCA-COLA FEMSA, S.A.B. de C.V.

(Translation of registrant’s name into English)

United Mexican States

(Jurisdiction of incorporation or organization)

Guillermo González Camarena No. 600
Col. Centro de Ciudad Santa Fé
Delegación Alvaro Obregón
México, D.F. 01210

México

(Address of principal executive offices)

Indicate by check mark whether the registrant files or 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 submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)

Yes    No  X 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)

Yes    No  X 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes    No  X 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with

Rule 12g3-2(b): 82-__.

 
 
Stock Listing Information
 





























    
 
Mexican Stock Exchange
Ticker: KOFL

2011 SECOND-QUARTER AND FIRST SIX-MONTH RESULTS

                 
    Second Quarter   YTD   
NYSE (ADR)                
Ticker: KOF   2011 2010 Δ%    2011 2010 Δ% 
  Total Revenues 28,417 25,177 12.9%   54,388 49,205 10.5%
Ratio of KOF L to KOF = 10:1 Gross Profit 13,078 11,655 12.2%   24,934 22,555 10.5%

 



   

 Operating Income 4,596 4,088 12.4%   8,491 7,666 10.8%
Net Controlling Interest Income 2,629 2,480 6.0%   4,869 4,613 5.5%
EBITDA(1) 5,732 5,023 14.1%   10,715 9,571 12.0%
Net Debt (2) 5,344 4,817 10.9%        
Net Debt / EBITDA (3) 0.24 0.24          
EBITDA/ Interest Expense, net (3) 16.52 15.38          
Earnings per Share (3) 5.43 5.22          
Capitalization (4) 24.1% 19.4%          
Expressed in millions of Mexican pesos.
(1) EBITDA = Operating income + Depreciation + Amortization & Other operative Non-cash Charges.
See reconciliation table on page 9 except for Earnings per Share
(2) Net Debt = Total Debt - Cash
(3) LTM figures
(4) Total debt / (long-term debt + shareholders' equity)

    Total revenues reached Ps. 28,417 million in the second quarter of 2011, an increase of 12.9% compared to the second quarter of 2010 as a result of double-digit total revenue growth in every division.

     Consolidated operating income grew 12.4% to Ps. 4,596 million for the second quarter of 2011, mainly driven by double-digit operating income growth recorded in our Mexico and Mercosur divisions. Our operating margin was 16.2% in the second quarter of 2011.

     Consolidated net controlling interest income grew 6.0%, reaching Ps. 2,629 million in the second quarter of 2011, resulting in earnings per share of Ps. 1.42 in the second quarter of 2011.

For Further Information:
 
Investor Relations
 
José Castro                
jose.castro@kof.com.mx

Mexico City (July 20, 2011), Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL, NYSE: KOF) (“Coca-Cola FEMSA” or the “Company”), the largest public Coca-Cola bottler in the world in terms of sales volume, announces results for the second quarter of 2011.

“Our diversified portfolio of franchise territories enabled us to deliver strong results for the second quarter of 2011. Our performance was supported by volume growth across all of our divisions and our ability to implement pricing initiatives over the past several months throughout our main markets. The continued implementation of our commercial model at the point of sale is allowing us to better identify our customer’s value potential, satisfy our consumers’ needs and, at the same time, generate efficiencies for further investment in our marketplace. We are enthusiastic about the merger with Grupo Tampico’s beverage division in Mexico. This merger will not only reinforce our presence in one of our key markets, but also present the opportunity to integrate with the oldest bottling franchise in the Mexican Coca-Cola system, whose talented team of professionals will help us to drive our future growth. We have significantly advanced our strategy to grow through value-creating transactions during the first half of the year, as exemplified by our acquisition in Panama's dairy segment, completed in March, and the upcoming merger with Grupo Tampico’s beverage division. As we enter the second half of the year, we look forward with renewed optimism, eager to deliver both organic and non-organic growth for our investors through the execution of our business strategy." said Carlos Salazar Lomelin, Chief Executive Officer of the Company.

(5255) 5081-5120 / 5121
 
Gonzalo García
gonzalojose.garciaa@kof.com.mx
(5255) 5081-5148
 
Roland Karig
roland.karig@kof.com.mx
(5255) 5081-5186
 
 
Website:
www.coca-colafemsa.com
 
 
 
 

 

July 20, 2011    Page 1

 CONSOLIDATED RESULTS

Our consolidated total revenues increased 12.9% to Ps. 28,417 million in the second quarter of 2011, compared to the second quarter of 2010 as a result of double-digit total revenue growth in every division. On a currency neutral basis, total revenues grew approximately 14%, driven by average price per unit case growth in most of our territories, in combination with volume growth mainly in Mexico, Colombia and Argentina.

Total sales volume increased 5.0% to reach 665.6 million unit cases in the second quarter of 2011 as compared to the same period in 2010. The sparkling beverage category grew 5% mainly supported by strong volume growth of the Coca-Cola brand in Mexico and Colombia, contributing 75% of incremental volumes. The bottled water category, including bulk water, grew 5%, representing 15% of incremental volumes. The still beverage category grew 10%, mainly driven by the Jugos del Valle line of business in Mexico and Brazil, representing the balance.

Our gross profit increased 12.2% to Ps. 13,078 million in the second quarter of 2011, compared to the second quarter of 2010. Cost of goods sold increased 13.4%, mainly as a result of higher PET and sweetener costs across our territories, which were partially offset by the appreciation of the Brazilian real,(1) the Colombian peso(1)and the Mexican peso(1) as applied to our U.S. dollar-denominated raw material costs. Gross margin reached 46.0%, as compared to 46.3% in the second quarter of 2010.

Our consolidated operating income increased 12.4% to Ps. 4,596 million in the second quarter of 2011, mainly driven by double-digit operating income growth in our Mexico and Mercosur divisions. Operating expenses increased 12.1% in the second quarter of 2011 mainly as a result of higher labor costs in Venezuela and Mercosur and higher freight costs in Argentina. Our operating margin remained flat at 16.2% in the second quarter of 2011.

During the second quarter of 2011, we recorded Ps. 332 million in the other expenses, net line. These expenses mainly reflect the recording of employee profit sharing.

Our comprehensive financing result in the second quarter of 2011 recorded an expense of Ps. 340 million as compared to an expense of Ps. 364 million in the same period of 2010.

During the second quarter of 2011, income tax, as a percentage of income before taxes, was 30.5% compared to 25.8% in the same period of 2010. This difference was mainly driven by the cancellation of a provision during the second quarter of 2010, that had been recorded in excess during 2009.

Our consolidated net controlling interest income grew 6.0% reaching Ps. 2,629 million in the second quarter of 2011 as compared to the second quarter of 2010. Earnings per share (EPS) in the second quarter of 2011 were Ps. 1.42 (Ps. 14.24 per ADS) computed on the basis of 1,846.5 million shares outstanding (each ADS represents 10 local shares).

 

 

 

(1) See page 14 for average and end of period exchange rates for the second quarter and first six months.

July 20, 2011    Page 2

 


BALANCE SHEET

As of June 30, 2011, we had a cash balance of Ps. 16,723 million, including US$ 571 million denominated in U.S. dollars, an increase of Ps. 4,189 million compared to December 31, 2010, mainly as a result of the issuance of Ps. 5,000 million of Certificados Bursátiles in April 2011 and cash generated by our operations, net of the dividend payment made during the quarter.

As of June 30, 2011, total short-term debt was Ps. 5,582 million and long-term debt was Ps. 16,485 million. Total debt increased by Ps. 4,716 million, compared to year end 2010. Net debt increased Ps. 527 million compared to year end 2010. KOF’s total debt balance includes U.S. dollar-denominated debt in the amount of US$ 673 million.(1)

The weighted average cost of debt for the quarter was 5.9%. The following charts set forth the Company’s debt profile by currency and interest rate type and by maturity date as of June 30, 2011:

Currency % Total Debt(1) % Interest Rate Floating(1)(2)
Mexican pesos 48.9% 33.0%
U.S. dollars 35.8% 2.8%
Colombian pesos 9.6% 100.0%
Brazilian reais 0.5% 0.0%
Venezuelan bolivars 0.2% 0.0%
Argentine pesos 5.0% 5.3%

(1) After giving effect to cross-currency swaps and interest rate swaps.
(2) Calculated by weighting each year’s outstanding debt balance mix.

Debt Maturity Profile

Maturity Date 2011 2012 2013 2014 2015 2016 +
% of Total Debt 5.7% 22.2% 3.2% 6.4% 12.9% 49.6%

 

Consolidated Cash Flow

The following cash flow statement is presented on a historical basis and the balance sheet included on page 10 is presented in nominal terms. Certain differences resulting from calculations performed with the information contained in the balance sheet may differ from items shown in this cash flow statement. These differences are presented separately as a part of the Translation Effect in the cash flow statement in accordance with Mexican Financial Reporting Standards.

Consolidated Cash Flow  
Expressed in millions of Mexican pesos (Ps.) as of June 30, 2011
  jun-11
  Ps.
Income before taxes 7,428
Non cash charges to net income 3,091
  10,519
Change in working capital (2,418)
Resources Generated by Operating Activities 8,101
Investments (3,489)
Debt increase 5,018
Dividends declared and paid (4,367)
Other (756)
Increase in cash andcash equivalents 4,507
Cash, cash equivalents and marketable securities at begining of period 12,534
Translation Effect (318)
Cash, cash equivalents and marketable securities at end of period 16,723
 
July 20, 2011    Page 3

 

 


MEXICO DIVISION OPERATING RESULTS

Revenues

Total revenues from our Mexico division increased 10.8% to Ps. 11,802 million in the second quarter of 2011, as compared to the same period in 2010. Volume growth accounted for approximately 60% of incremental revenues during the quarter, and increased average price per unit case represented the balance. Average price per unit case reached Ps. 32.22, an increase of 3.9%, as compared to the second quarter of 2010, mainly reflecting selective price increases across our product portfolio implemented over the past several months. Excluding bulk water under the Ciel brand, our average price per unit case was Ps. 37.56, a 3.6% increase as compared to the same period in 2010.

Total sales volume increased 6.5% to 365.3 million unit cases in the second quarter of 2011, as compared to the second quarter of 2010. Sparkling beverage volume increased 6%, driven by a 7% growth of the Coca-Cola brand and a 5% increase in flavored sparkling beverages, accounting for more than 70% of incremental volumes. Our bottled water portfolio, including bulk water, grew 7% and contributed with close to 25% of incremental volumes. Still beverages grew 6% mainly driven by the Jugos del Valle line of products, Nestea and Powerade, contributing the balance.

Operating Income

Our gross profit increased 11.3% to Ps. 5,867 million in the second quarter of 2011 as compared to the same period in 2010. Cost of goods sold increased 10.3% as a result of higher PET costs, which were compensated mainly by the appreciation of the Mexican peso(1) as applied to our U.S. dollar-denominated raw material costs. Gross margin expanded 20 basis points to reach 49.7% in the second quarter of 2011.

Operating income increased 18.6% to Ps. 2,325 million in the second quarter of 2011, compared to Ps. 1,960 million in the same period of 2010. Operating leverage achieved through higher revenues, in combination with controlled operating expenses, resulted in an operating margin expansion of 130 basis points to reach 19.7% in the second quarter of 2011.

 

 

(1) See page 14 for average and end of period exchange rates for the second quarter and first six months.

July 20, 2011    Page 4

 


LATINCENTRO DIVISION OPERATING RESULTS (Colombia, Venezuela, Guatemala, Nicaragua, Costa Rica and Panama)

Revenues

Total revenues were Ps. 8,181 million in the second quarter of 2011, an increase of 11.0% as compared to the same period of 2010 as a result of total revenue growth in every territory. Higher average prices per unit case in Venezuela and Central America in combination with volume growth in Colombia and Central America, were partially offset by lower volumes in Venezuela. On a currency neutral basis, total revenues increased approximately 15%.

Total sales volume in our Latincentro division increased 2.7% to 147.4 million unit cases in the second quarter of 2011 as compared to the same period of 2010. Volumes in Colombia and Central America, which increased 10% and 8%, respectively, compensated for a 9% volume decline in Venezuela. Our sparkling beverage portfolio grew 4%, mainly driven by a strong performance of the Coca-Cola brand in Colombia and Central America, which grew 18% and 8%, respectively. The still beverage category grew 4% driven by the Jugos del Valle line of business in Central America. These increases compensated for a 6% decline in the bottled water portfolio, including bulk water.

Operating Income

Gross profit reached Ps. 3,752 million, an increase of 9.6% in the second quarter of 2011, as compared to the same period of 2010. Cost of goods sold increased 12.3% mainly driven by higher year-over-year PET and sweetener costs across the division, which were partially offset by the appreciation of the Colombian peso(1) as applied to our U.S. dollar-denominated raw material costs. Gross profit reached 45.9% in the second quarter of 2011 as compared to 46.5% in the same period of 2010.

Our operating income decreased 1.3% to Ps. 1,217 million in the second quarter of 2011, compared to the second quarter of 2010. Operating expenses increased 15.8%, mainly as a result of higher labor costs in Venezuela. Our operating margin was 14.9% in the second quarter of 2011, as compared to 16.7% in the same period of 2010.

 

 

(1) See page 14 for average and end of period exchange rates for the second quarter and first six months.

July 20, 2011    Page 5

 


MERCOSUR DIVISION OPERATING RESULTS (Brazil and Argentina)

Volume and average price per unit case exclude beer results.

Revenues

Total revenues increased 17.8% to Ps. 8,434 million in the second quarter of 2011, as compared to the same period of 2010. Excluding beer, which accounted for Ps. 850 million during the quarter, revenues increased 18.3% to Ps. 7,584 million. Average price per unit case growth accounted for close to 80% of incremental total revenues. On a currency neutral basis, our Mercosur division’s revenues increased approximately 16%.

Total sales volume in our Mercosur division increased 3.9% to 152.9 million unit cases in the second quarter of 2011 as compared to the same period of 2010. The sparkling beverage category grew 2%, mainly driven by a 7% volume growth in flavored sparkling beverages, accounting for close to 60% of incremental volumes. The still beverage category increased 35%, mainly driven by the performance of the Jugos del Valle line of business and the Matte Leao portfolio in Brazil and the Cepita juice brand in Argentina, representing more than 30% of incremental volumes. The bottled water category, including bulk water, grew 10%, mainly driven by the performance of Aquarius flavored water in Argentina, representing the balance.

Operating Income

In the second quarter of 2011, our gross profit increased 16.9% to Ps. 3,459 million, as compared to the same period in 2010. Cost of goods sold increased 18.5% mainly due to higher PET and sweetener costs across the division, which were partially offset by the appreciation of the Brazilian real(1) as applied to our U.S. dollar-denominated raw material costs. Gross margin reached 41.0% in the second quarter of 2011, a decrease of 40 basis points as compared to the second quarter of 2010.

Operating income grew 17.8% to Ps. 1,054 million in the second quarter of 2011, as compared to Ps. 895 million in the same period of 2010. Operating expenses increased 16.5% mainly due to higher labor cost in the division and higher freight costs in Argentina. Our operating margin remained flat at 12.5% in the second quarter of 2011.

 

 

 

(1) See page 14 for average and end of period exchange rates for the second quarter and first six months.

July 20, 2011    Page 6

 


SUMMARY OF SIX-MONTH RESULTS

Our consolidated total revenues increased 10.5% to Ps. 54,388 million in the first six months of 2011, as compared to the same period of 2010, mainly as a result of double-digit total revenue growth in our Mercosur and Mexico divisions. On a currency neutral basis, total revenues increased approximately 12% in the first half of 2011.

Total sales volume increased 3.9% to 1,270.5 million unit cases in the first six months of 2011, as compared to the same period in 2010. The sparkling beverage category, driven by a 4% growth of the Coca-Cola brand, contributed more than 70% of incremental volumes. Our bottled water portfolio, including bulk water, grew 4% and represented 15% of incremental volumes. The still beverage category grew 11%, mainly driven by the performance of the Jugos del Valle line of business in Mexico and Brazil, and the Cepita juice brand in Argentina, representing the balance.

Our gross profit increased 10.5% to Ps. 24,934 million in the first six months of 2011, as compared to the same period of 2010. Cost of goods sold increased 10.5% mainly as a result of higher PET and sweetener costs across our operations, which were partially offset by the appreciation of the Brazilian real,(1) the Colombian peso(1) and the Mexican peso(1) as applied to our U.S. dollar-denominated raw material costs. Gross margin remained flat at 45.8% for the first six months of 2011 as compared to the same period of 2010.

Our consolidated operating income increased 10.8% to Ps. 8,491 million in the first six months of 2011, as compared to the same period of 2010. Our Mexico and Mercosur divisions accounted for this growth. Our operating margin was 15.6% for the first six months of 2011, remaining flat as compared to the same period of 2010.

Our consolidated net controlling interest income increased 5.5% to Ps. 4,869 million in the first six months of 2011 as compared to the same period of 2010. Earnings per share (EPS) in the first six months of 2011 were Ps. 2.64 (Ps. 26.37 per ADS) computed on the basis of 1,846.5 million shares outstanding (each ADS represents 10 local shares).

 

 

 

(1) See page 14 for average and end of period exchange rates for the second quarter and first six months.

July 20, 2011    Page 7

 


RECENT DEVELOPMENTS

On June 28, 2011, Coca-Cola FEMSA and Grupo Tampico S.A. de C.V. and its shareholders agreed to merge Grupo Tampico’s beverage division, one of the largest family-owned bottlers in terms of sales volume in Mexico, with Coca-Cola FEMSA. The merger agreement has been approved by both Coca-Cola FEMSA’s and Grupo Tampico’s Board of Directors and is subject to the completion of confirmatory legal, financial and operating due diligence and to customary regulatory and corporate approvals, among them, the approval of The Coca-Cola Company and the Comisión Federal de Competencia, the Mexican antitrust authority.

CONFERENCE CALL INFORMATION

Our second-quarter 2011 Conference Call will be held on July 20, 2011, 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.: 866-700-7477 or International: 617-213-8840. 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, an instant replay of the conference call will be available through July 26, 2011. To listen to the replay, please dial: Domestic U.S.: 888-286-8010 or International: 617-801-6888. Pass code: 85154446.

vvv

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 and southeast 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, part of the state of Goias and part of the state of Minas Gerais) and Argentina (Buenos Aires and surrounding areas), along with bottled water, juices, teas, isotonics, beer and other beverages in some of these territories. The Company has 30 bottling facilities in Latin America and serves close to 1,600,000 retailers in the region. The Coca-Cola Company owns a 31.6% equity interest in Coca-Cola FEMSA.

vvv

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.

vvv

(6 pages of tables to follow)

 

July 20, 2011    Page 8

 


Consolidated Income Statement
Expressed in millions of Mexican pesos(1)
  2Q 11 % Rev  2Q 10 % Rev  Δ%  YTD 11 % Rev  YTD 10 % Rev  Δ% 
Volume (million unit cases) (2) 665.6   633.8   5.0% 1,270.5   1,223.2   3.9%
Average price per unit case (2) 41.23   38.41   7.3% 41.25   38.83   6.2%
Net revenues 28,296   25,092   12.8% 54,137   49,000   10.5%
Other operating revenues 121   85   42.4% 251   205   22.4%
Total revenues 28,417 100% 25,177 100% 12.9% 54,388 100% 49,205 100% 10.5%
Cost of goods sold 15,339 54.0% 13,522 53.7% 13.4% 29,454 54.2% 26,650 54.2% 10.5%
Gross profit 13,078 46.0% 11,655 46.3% 12.2% 24,934 45.8% 22,555 45.8% 10.5%
Operating expenses 8,482 29.8% 7,567 30.1% 12.1% 16,443 30.2% 14,889 30.3% 10.4%
Operating income 4,596 16.2% 4,088 16.2% 12.4% 8,491 15.6% 7,666 15.6% 10.8%
Other expenses, net 332   248   33.9% 571   417   36.9%
Interest expense 406   420   -3.3% 753   794   -5.2%
Interest income 144   71   102.8% 237   155   52.9%
Interest expense, net 262   349   -24.9% 516   639   -19.2%
Foreign exchange loss 78   94   -17.0% 87   285   -69.5%
Gain on monetary position in Inflationary subsidiries (12)   (105)   -88.6% (60)   (258)   -76.7%
Market value loss (gain) on ineffective portion of                    
derivative instruments 12   26   -53.8% (51)   (108)   -52.8%
Comprehensive financing result 340   364   -6.6% 492   558   -11.8%
Income before taxes 3,924   3,476   12.9% 7,428   6,691   11.0%
Income taxes 1,195   896   33.4% 2,340   1,856   26.1%
Consolidated net income 2,729   2,580   5.8% 5,088   4,835   5.2%
Net controlling interest income 2,629 9.3% 2,480 9.9% 6.0% 4,869 9.0% 4,613 9.4% 5.5%
Net non-controlling interest income 100   100   0.0% 219   222   -1.4%
Operating income 4,596 16.2% 4,088 16.2% 12.4% 8,491 15.6% 7,666 15.6% 10.8%
Depreciation 761   645   18.0% 1,505   1,294   16.3%
Amortization and other operative non-cash charges 375   290   29.3% 719   611   17.7%
EBITDA (3) 5,732 20.2% 5,023 20.0% 14.1% 10,715 19.7% 9,571 19.5% 12.0%

 

(1) Except volume and average price per unit case figures.
(2) Sales volume and average price per unit case exclude beer results
(3) EBITDA = Operating Income + depreciation, amortization & other operative non-cash charges.

July 20, 2011    Page 9

 


Consolidated Balance Sheet
Expressed in millions of Mexican pesos.
Assets   Jun 11   Dec 10
Current Assets        
Cash, cash equivalents and marketable securities Ps. 16,723 Ps. 12,534
Total accounts receivable   5,034   6,363
Inventories   5,307   4,962
Other current assets (1)   2,088   2,577
Total current assets   29,152   26,436
Property, plant and equipment        
Property, plant and equipment   58,812   57,330
Accumulated depreciation   (26,149)   (25,230)
Total property, plant and equipment, net   32,663   32,100
Other non-current assets (1)   57,782   55,525
Total Assets Ps. 119,597 Ps. 114,061
 
 
Liabilities and Shareholders' Equity   Jun 11   Dec 10
Current Liabilities        
Short-term bank loans and notes Ps. 5,582 Ps. 1,840
Suppliers   8,937   8,988
Other current liabilities   6,524   6,818
Total Current Liabilities   21,043   17,646
Long-term bank loans   16,485   15,511
Other long-term liabilities   6,995   7,023
Total Liabilities   44,523   40,180
Shareholders' Equity        
Non-controlling interest   2,823   2,602
Total controlling interest   72,251   71,279
Total shareholders' equity   75,074   73,881
Liabilities and Shareholders' Equity Ps. 119,597 Ps. 114,061

 

(1) As of January 1, 2010, according to Mexican Financial Reporting Standards, advances to suppliers presentation is part of the entry "Other current assets” and "Other non-current assets". Reclassification is made for comparative purposes in 2010

July 20, 2011    Page 10

 


Mexico Division
Expressed in millions of Mexican pesos(1)
  2Q 11 % Rev  2Q 10 % Rev  Δ%  YTD 11 % Rev   YTD 10   % Rev  Δ% 
Volume (million unit cases) 365.3   343.1   6.5% 663.0   614.4   7.9%
Average price per unit case 32.22   31.01   3.9% 32.04   30.81   4.0%
Net revenues 11,768   10,640   10.6% 21,238   18,928   12.2%
Other operating revenues 34   13   161.5% 56   30   86.7%
Total revenues 11,802 100.0% 10,653 100.0% 10.8% 21,294 100.0% 18,958 100.0% 12.3%
Cost of goods sold 5,935 50.3% 5,381 50.5% 10.3% 10,862 51.0% 9,682 51.1% 12.2%
Gross profit 5,867 49.7% 5,272 49.5% 11.3% 10,432 49.0% 9,276 48.9% 12.5%
Operating expenses 3,542 30.0% 3,312 31.1% 6.9% 6,740 31.7% 6,204 32.7% 8.6%
Operating income 2,325 19.7% 1,960 18.4% 18.6% 3,692 17.3% 3,072 16.2% 20.2%
Depreciation, amortization & other operative non-cash charges 467 4.0% 441 4.1% 5.9% 907 4.3% 896 4.7% 1.2%
EBITDA (2) 2,792 23.7% 2,401 22.5% 16.3% 4,599 21.6% 3,968 20.9% 15.9%

 

(1) Except volume and average price per unit case figures.
(2) EBITDA = Operating Income + Depreciation, amortization & other operative non-cash charges.

 

Latincentro Division
Expressed in millions of Mexican pesos(1)
  2Q 11 % Rev  2Q 10 % Rev  Δ%  YTD 11 % Rev   YTD 10   % Rev  Δ% 
Volume (million unit cases) 147.4   143.5   2.7% 278.9   296.7   -6.0%
Average price per unit Case 55.45   51.25   8.2% 54.85   50.96   7.6%
Net revenues 8,173   7,354   11.1% 15,300   15,121   1.2%
Other operating revenues 8   13   -38.5% 16   20   -20.0%
Total revenues 8,181 100.0% 7,367 100.0% 11.0% 15,316 100.0% 15,141 100.0% 1.2%
Cost of goods sold 4,429 54.1% 3,944 53.5% 12.3% 8,193 53.5% 8,169 54.0% 0.3%
Gross profit 3,752 45.9% 3,423 46.5% 9.6% 7,123 46.5% 6,972 46.0% 2.2%
Operating expenses 2,535 31.0% 2,190 29.7% 15.8% 4,769 31.1% 4,453 29.4% 7.1%
Operating income 1,217 14.9% 1,233 16.7% -1.3% 2,354 15.4% 2,519 16.6% -6.6%
Depreciation, amortization & other operative non-cash charges 395 4.8% 323 4.4% 22.3% 763 5.0% 660 4.4% 15.6%
EBITDA (2) 1,612 19.7% 1,556 21.1% 3.6% 3,117 20.4% 3,179 21.0% -2.0%

 

(1) Except volume and average price per unit case figures.
(2) EBIT DA = Operating Income + Depreciation, amortization & other operative non-cash charges.

 

July 20, 2011    Page 11

 


Mercosur Division
Expressed in millions of Mexican pesos(1)
Financial figures include beer results
  2Q 11 % Rev 2Q 10 % Rev Δ%  YTD 11 % Rev YTD 10 % Rev Δ% 
Volume (million unit cases) (2) 152.9   147.2   3.9% 328.6   312.1   5.3%
Average price per unit case (2) 49.07   43.15   13.7% 48.30   43.07   12.1%
Net revenues 8,355   7,098   17.7% 17,599   14,951   17.7%
Other operating revenues 79   59   33.9% 179   155   15.5%
Total revenues 8,434 100.0% 7,157 100.0% 17.8% 17,778 100.0% 15,106 100.0% 17.7%
Cost of goods sold 4,975 59.0% 4,197 58.6% 18.5% 10,399 58.5% 8,799 58.2% 18.2%
Gross profit 3,459 41.0% 2,960 41.4% 16.9% 7,379 41.5% 6,307 41.8% 17.0%
Operating expenses 2,405 28.5% 2,065 28.9% 16.5% 4,934 27.8% 4,232 28.0% 16.6%
Operating income 1,054 12.5% 895 12.5% 17.8% 2,445 13.8% 2,075 13.7% 17.8%
Depreciation, Amortization & Other operative non-cash charges 274 3.2% 171 2.4% 60.2% 554 3.1% 349 2.3% 58.7%
EBITDA (3) 1,328 15.7% 1,066 14.9% 24.6% 2,999 16.9% 2,424 16.0% 23.7%

 

(1) Except volume and average price per unit case figures.
(2) Sales volume and average price per unit case exclude beer results
(3) EBITDA = Operating Income + Depreciation, amortization & other operative non-cash charges.

July 20, 2011    Page 12

 


SELECTED INFORMATION

For the three months ended June 30, 2011 and 2010

Expressed in millions of Mexican pesos.

  2Q 11     2Q 10
Capex 1,848.7   Capex 1,742.2
Depreciation 761.0   Depreciation 645.0
Amortization & Other non-cash charges 375.0   Amortization & Other non-cash charges 290.0
   
 

VOLUME
Expressed in million unit cases

  2Q 11   2Q 10
  Sparkling Water (1) Bulk Water (2) Still (3) Total   Sparkling Water (1) Bulk Water (2) Still (3) Total
Mexico 264.5 21.0 61.7 18.1 365.3   248.5 17.9 59.6 17.1 343.1

Central America

 31.7 1.7 0.1 3.4 36.9   29.4 1.5 0.1 3.1 34.1

Colombia

 47.8 5.4 7.0 4.2 64.4   41.7 5.6 7.1 4.2 58.6

Venezuela

 42.4 2.0 0.5 1.2 46.1   46.2 2.9 0.5 1.2 50.8
Latincentro 121.9 9.1 7.6 8.8 147.4   117.3 10.0 7.7 8.5 143.5

Brazil

 97.5 4.6 0.5 5.0 107.6   97.0 4.3 0.4 3.9 105.6

Argentina

 40.8 2.4 0.2 1.9 45.3   38.1 2.1 0.2 1.2 41.6
Mercosur 138.3 7.0 0.7 6.9 152.9   135.1 6.4 0.6 5.1 147.2
Total 524.7 37.1 70.0 33.8 665.6   500.9 34.3 67.9 30.7 633.8
                     

(1) Excludes water presentations larger than 5.0 Lt
(2) Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations

Certain brands within our portfolio have been reclassified across categories. This reclassification affects, among others, flavored water brands that were previously included as a part of still beverages and will now be presented within our water category. For comparison purposes, the figures of 2010 have been restated. This change mainly affects our Mexico, Brazil and Argentina second quarter 2010 volumes and accounts for 3.9 million unit cases.

SELECTED INFORMATION

For the six months ended June 30, 2011 and 2010

Expressed in millions of Mexican pesos.

  YTD 11     YTD 10
Capex 2,464.9   Capex 2,706.4
Depreciation 1,505.0   Depreciation 1,294.0
Amortization & Other non-cash charges 719.0   Amortization & Other non-cash charges 611.0
   

 

VOLUME
Expressed in million unit cases

  YTD 11   YTD 10
  Sparkling Water (1) Bulk Water (2) Still (3) Total   Sparkling Water (1) Bulk Water (2) Still (3) Total
Mexico 482.4 35.4 110.8 34.4 663.0   447.8 30.1 105.0 31.5 614.4

Central America

 60.5 3.8 0.2 6.4 70.9   59.3 3.2 0.2 6.0 68.7

Colombia

 91.0 10.4 13.8 8.2 123.4   87.0 12.6 14.9 8.5 123.0

Venezuela

 78.0 3.7 1.0 1.9 84.6   95.8 5.9 0.9 2.4 105.0
Latincentro 229.5 17.9 15.0 16.5 278.9   242.1 21.7 16.0 16.9 296.7

Brazil

 207.0 11.1 1.3 10.4 229.8   203.8 10.8 1.2 7.7 223.5

Argentina

 89.0 5.7 0.4 3.7 98.8   80.4 5.2 0.5 2.5 88.6
Mercosur 296.0 16.8 1.7 14.1 328.6   284.2 16.0 1.7 10.2 312.1
Total 1,007.9 70.1 127.5 65.0 1,270.5   974.1 67.8 122.7 58.6 1,223.2
                     

(1) Excludes water presentations larger than 5.0 Lt
(2) Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations

Certain brands within our portfolio have been reclassified across categories. This reclassification affects, among others, flavored water brands that were previously included as a part of still beverages and will now be presented within our water category. For comparison purposes, the figures of 2010 have been restated. This change mainly affects our Mexico, Brazil and Argentina first half 2010 volumes and accounts for 8.0 million unit cases.

July 20, 2011    Page 13

 


June 2011
Macroeconomic Information

    Inflation (1)
    LTM 2Q 2011 YTD
 
Mexico   3.28% -0.75% 0.30%
Colombia   3.23% 0.73% 2.53%
Venezuela   23.58% 6.62% 13.02%
Brazil   6.71% 1.40% 3.87%
Argentina   9.67% 2.30% 4.68%

 

(1) Source: inflation is published by the Central Bank of each country.

Average Exchange Rates for each Period

    Quarterly Exchange Rate (local currency per USD)   YTD Exchange Rate (local currency per USD)
    2Q 11 2Q 10 Δ%    YTD 11 YTD 10 Δ% 
 
Mexico    11.7364 12.5543  -6.5%    11.9098 12.6770  -6.1% 
Guatemala    7.6891  8.0033 -3.9%    7.7598 8.0944  -4.1% 
Nicaragua    22.2841  21.2230 5.0%    22.1501  21.0954  5.0% 
Costa Rica    508.2812 531.5654   -4.4%   508.3342 544.2584  -6.6% 
Panama    1.0000  1.0000  0.0%    1.0000 1.0000  0.0% 
Colombia    1,797.8340  1,949.2961  -7.8%    1,837.4608  1,948.6718 -5.7% 
Venezuela    4.3000  4.3000  0.0%    4.3000  4.2307  1.6%
Brazil    1.5956  1.7921  -11.0%    1.6315  1.7973  -9.2%
Argentina    4.0818  3.9015 4.6%     4.0477  3.8703 4.6% 

 

End of Period Exchange Rates

   
 
    Exchange Rate (local currency per USD)
    Jun 11 Jun 10 Δ% 
 
Mexico    11.8389 12.6567  -6.5% 
Guatemala   7.7702   8.0314 -3.3% 
Nicaragua    22.4184  21.3509 5.0% 
Costa Rica   509.5700  540.2400   -5.7%
Panama   1.0000   1.0000  0.0%
Colombia    1,780.1600  1,916.4600  -7.1%
Venezuela   4.3000  4.3000  0.0% 
Brazil   1.5611  1.8015  -13.3% 
Argentina    4.1100 3.9310  4.6% 
 
 
July 20, 2011    Page 14

 

 

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 by the undersigned, thereunto duly authorized.

 

 

 

COCA-COLA FEMSA, S.A.B. DE C.V.

 

By:  /s/ Héctor Treviño Gutiérrez              

 

Héctor Treviño Gutiérrez

Chief Financial Officer

 

 

 Date: July 20, 2011