FORM 6-K
Securities and Exchange Commission
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant To Rule 13a-16 Or 15d-16
Of The
Securities Exchange Act of 1934
| For the month of July 2007 | Commission file number 1-12260 |
Guillermo González Camarena No. 600
Col. Centro de Ciudad Santa Fé
Delegación Alvaro Obregón
México, D.F. 01210
(Address of
principal office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F x Form 40-F
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
(Check One) 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 | ||||||||||||||
2007 SECOND-QUARTER AND FIRST SIX MONTHS RESULTS |
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| Mexican Stock Exchange | ||||||||||||||
| Ticker: KOFL | ||||||||||||||
| Second Quarter | YTD | |||||||||||||
| NYSE (ADR) | 2007 | 2006 | D % | 2007 | 2006 | D % | ||||||||
| Ticker: KOF | Total Revenues | 16,460 | 15,210 | 8.2% | 31,760 | 29,197 | 8.8% | |||||||
| Gross Profit | 7,916 | 7,304 | 8.4% | 15,056 | 13,968 | 7.8% | ||||||||
| Ratio of KOF L to KOF = 10:1 | Operating Income | 2,779 | 2,516 | 10.5% | 5,090 | 4,590 | 10.9% | |||||||
| Majority Net Income | 1,739 | 755 | 130.3% | 2,896 | 1,721 | 68.3% | ||||||||
| EBITDA(1) | 3,495 | 3,280 | 6.6% | 6,527 | 6,068 | 7.6% | ||||||||
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| Net Debt (2) (3) | 13,262 | 14,775 | -10.2% | |||||||||||
| EBITDA (1) / Interest Expense | 5.84 | 5.68 | ||||||||||||
| Earnings per Share | 0.94 | 0.41 | ||||||||||||
| Capitalization(4) | 32.3% | 33.2% | ||||||||||||
Expressed in million of Mexican pesos with purchasing power as of June 30, 2007 (1) EBITDA = Operating income + Depreciation + Amortization & Other Non-cash Charges. See reconciliation table on page 11. (2) Net Debt = Total Debt - Cash (3) Figures for 2006 are as of December 31, 2006. (4) Total debt / (long-term debt + stockholders' equity) |
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 Total revenues reached Ps. 16,460 million in the second quarter of 2007, an increase of 8.2% compared to the second quarter of 2006, and increased 8.8% for the first six months of the year to Ps. 31,760 million compared to same period of 2006. |
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| In spite of raw material pressures, consolidated operating income increased 10.5% to Ps. 2,779 million for the second quarter of 2007, and 10.9% for the first six months of the year to Ps. 5,090 million, mainly driven by higher profitability in the
operations outside of Mexico. Our operating margin was 16.9% for the second quarter of 2007 and 16.0% for the first half of the year. |
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| For Further Information: | Consolidated majority net income increased 130.3% to Ps. 1,739 million in the second quarter of 2007, and 68.3% to
Ps. 2,896 million for the first half of the year, resulting in earnings per share of Ps. 0.94 for the second quarter of 2007, and Ps. 1.57 for the first half of the year. |
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| Investor Relations | We have reached an understanding with The Coca-Cola Company to acquire its
wholly owned bottling franchise located in the state of Minas Gerais (“REMIL”) in Brazil. |
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| Alfredo Fernández | Mexico City (June 27, 2007), Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL, NYSE: KOF) (“Coca-Cola FEMSA” or the “Company”), the largest Coca-Cola bottler in Latin America and the second-largest Coca-Cola bottler in the world in terms of sales volume, announces results for the second quarter 2007 and the first six months of the year. |
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| alfredo.fernandez@kof.com.mx | ||||||||||||||
| (5255) 5081-5120 / 5121 | ||||||||||||||
| Maximilian Zimmermann | ||||||||||||||
| maximilian. zimmermann@kof .com.mx | “Our positive results for the quarter reflected higher domestic consumption of our beverage products, supported by our markets’ strengthening economies and currency revaluations. This growth, along with our greater operating leverage, fueled a double-digit increase in operating income for the quarter and more than compensated for sweetener cost pressures in Mexico. Our company’s focus on innovation and advanced multi-segmentation initiatives continued to foster double-digit growth in our markets outside of Mexico and improved results in our Mexican territories. Additionally, in line with our strategy of expand our footprint in Latin America, we have reached an understanding with The Coca-Cola Company to acquire one of its territories in Brazil. The transaction will increase our presence in the growing Brazilian market by more than a third.” said Carlos Salazar Lomelín, Chief Executive Officer of the Company. |
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| (5255) 5081-5186 | ||||||||||||||
| Website: | ||||||||||||||
| www.coca-colafemsa.com | ||||||||||||||
| July 27, 2007 |  |
Page 1 |
RECENT DEVELOPMENTS
- We have reached an understanding with The Coca-Cola Company to acquire its
wholly owned bottling franchise located in the state of Minas Gerais
(Refrigerantes Minas Gerais Ltda., “REMIL”) in Brazil. The closing, terms and
conditions of the transaction are subject to a confirmatory due-diligence
process, negotiation and execution of a definitive agreement and approval by
the board of directors of both companies. Remil covers a population of
approximately 15 million inhabitants, including Belo Horizonte, the third
largest city in Brazil. The transaction would be expected to close during the
first quarter of 2008.
- On June 25, the Comisión Federal de Competencia in Mexico (CFC), the
Mexican Antitrust Commission, officially notified the The Coca-Cola Company
and us of its decision to object to the acquisition of Jugos del Valle, S.A.B.
de C.V.(Jugos del Valle). Subsequently, we filed a motion of reconsideration
with the CFC. On July 17, the CFC made public on its official website its
decision to approve the acquisition of Jugos del Valle subject to certain
conditions. We expect to receive the final notification in the following
weeks.
- On June 25 we filed our annual report for the fiscal year ended December 31, 2006 with the Bolsa Mexicana de Valores and on Form 20-F with the U.S. Securities and Exchange Commission.
CONSOLIDATED RESULTS
Our consolidated total revenues increased 8.2% to Ps. 16,460 million in the second quarter of 2007, compared to the second quarter of 2006 as a result of increases in all of our territories; Mexico and Venezuela represented approximately 55% of this growth. Our consolidated average price per unit case increased 2.2% to Ps. 30.18 (US$ 2.80) in the second quarter of 2007 compared to the same period of 2006 driven by average price increases in the majority of our operations.
Total sales volume increased 5.9% to 535.9 million unit cases in the second quarter of 2007 as compared to the same period of 2006, mainly driven by 6.4% volume growth of the Coca-Cola brand, which accounted for more than 65% of our total incremental volumes during the quarter. Carbonated soft drinks sales volume grew 5.0% to 446.8 million unit cases, driven by volume growth across all of our territories.
Our gross profit increased 8.4% to Ps. 7,916 million in the second quarter of 2007, compared to the second quarter of 2006, driven by increases in all of our operations. Gross margin reached 48.1% in the second quarter of 2007 from 48.0% in the same period of 2006. Increases in average price per unit case more than compensated for higher sweetener costs mainly in Mexico.
Our consolidated operating income increased 10.5% to Ps. 2,779 million in the second quarter of 2007. Double-digit increases in operating income in most of our operations more than compensated for the decline in Mexico. Our operating margin was 16.9% in the second quarter of 2007, an improvement of 40 basis points as a result of higher fixed-cost absorption due to incremental revenues.
As we mentioned in our first quarter press release, beginning in 2007, accordingly to the Mexican Financial Reporting Standards, we recorded employee profit sharing in the other expenses line, instead of being recorded in the income tax line. For comparison purposes we are reflecting 2006 information with this change, which amounted to Ps. 92 million in the second quarter of 2006 and Ps. 53 million in the same period of 2007.
Our integral cost of financing declined by 80.2% in the second-quarter of 2007 to Ps. 181 million as compared to the same period of 2006, mainly driven by a foreign exchange gain resulting from the appreciation of the Mexican pesos against the U.S. dollar as applied to our liability position denominated in foreign currency, compared to a loss recorded in the same period of 2006 and a non-hedge accounting derivative instrument gain compared to a loss from the previous year.
During the second quarter of 2007 income tax, as a percentage of income before taxes, was 25.3% as compared to 39.2% in the same quarter of 2006 mainly due to tax credits received during the quarter in the amount of Ps. 67 million.
Our consolidated majority net income increased by 130.3% to Ps. 1,739 million in the second quarter of 2007, compared to the second quarter of 2006, resulting from (i) a decline in our integral cost of financing, (ii) an increase in our operating income, and (iii) a reduction in income taxes. Earnings per share (“EPS”) were Ps. 0.94 (US$ 0.87 per ADR) computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).
| July 27, 2007 | |
Page 2 |
BALANCE SHEET
As of June 30, 2007, Coca-Cola FEMSA had a cash balance of Ps. 6,988 million (US$ 648 million), an increase of Ps. 2,217 million (US$ 205 million), compared to December 31, 2006, resulting from the issuance of new debt during the first quarter and from internal cash generation.
Total short-term debt including current maturity of long term debt, was Ps. 2,917 million (US$ 270 million) and long-term debt was Ps. 17,333 million (US$ 1,606 million), a gross debt increase of Ps. 704 million (US$ 65 million) compared with year end 2006, as a result of the issuance of new debt. Net debt decreased approximately Ps. 1,513 million (US$ 140 million) compared to year end of 2006, due to bank debt prepayment and the maturity of our KOF03 “Certificado Bursátil” in April 2007.
As we mentioned on our first quarter press release, in March 2007 we successfully issued Ps. 3,000 million (US$ 278 million) in 5 year “Certificados Bursátiles” at a rate of 28-day TIIE minus 6 basis points, a portion of the proceeds from this issuance was used to refinance the maturity of our KOF 03 “Certificado Bursátil” in April 2007. The remaining portion of the proceeds will be used for the financing of the Jugos del Valle acquisition, once all necessary regulatory approvals take place.
The weighted average cost of debt for the quarter was 7.92% . The following charts sets forth the Company’s debt profile by currency and interest rate type and by maturity date as of June 30, 2007:
| Currency | % Total Debt(2) | % Interest Rate | ||
| Floating(2) | ||||
| U.S. dollars | 47.0% | 55.5% | ||
| Mexican pesos | 46.9% | 22.7% | ||
| Venezuelan bolivares | 2.9% | 0.0% | ||
| Other (1) | 3.2% | 17.8% | ||
| (1) | Includes the equivalent of US$
49.5 million denominated in Argentine pesos, and US$ 10.7
million denominated in Colombian pesos. |
| (2) |
After giving effect to
cross-currency swaps. |
Debt maturity Profile
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 + | |||||||
| % of Total Debt | 4.0% | 22.7% | 18.0% | 5.0% | 0.3% | 50.0% | ||||||
| Consolidated Statement of Changes in Financial Position | ||||
| Expressed in million of Mexican pesos and U.S. dollars as of June 30, 2007 | ||||
| Jan - Jun 2007 | ||||
| Ps. | USD | |||
| Net income | 3,001 | 278 | ||
| Non cash charges to net income | 1,692 | 157 | ||
| 4,693 | 435 | |||
| Change in working capital | (757) | (70) | ||
| NRGOA(1) | 3,936 | 365 | ||
| Total investments | (1,207) | (112) | ||
| Dividends declared | (809) | (75) | ||
| Debt increase | 704 | 65 | ||
| Deferred taxes and others | (407) | (38) | ||
| Increase in cash and cash equivalents | 2,217 | 205 | ||
| Cash and cash equivalents at begining of period | 4,771 | 442 | ||
| Cash and cash equivalents at end of period | 6,988 | 647 | ||
| (1) |
Net Resources Generated by Operating
Activities |
| July 27, 2007 | |
Page 3 |
MEXICAN OPERATING RESULTS
Revenues
Total revenues from our Mexican territories increased 4.0% to Ps. 8,537 million in the second quarter of 2007, as compared to the same period of the previous year. Sales volume growth compensated for slightly lower average price per unit case for the quarter. Average price per unit case declined 0.2% to Ps. 28.25 (US$ 2.62), as compared to the second quarter of 2006. Incremental volumes from jug water, which carry lower average price per unit case, more than offset average price per unit case increases in the carbonated soft drink category. Excluding Ciel water volume in 5.0, 19.0 and 20.0 -liter packaging presentations, our average price per unit case was Ps. 32.95 (US$ 3.05) a 0.9% increase as compared to the same period of 2006.
Total sales volume increased 3.8% to 300.4 million unit cases in the second quarter of 2007, as compared to the second quarter of 2006, resulted from (i) a 1.7% sales volume growth in carbonated soft drinks, driven by a 3.0% increase in the Coca-Cola brand, with Coca-Cola Zero accounting for more than 65% of this incremental volume, (ii) a 9.5% sales volume growth in jug water, and (iii) incremental volumes in bottled water in single serve presentations. The non-carbonated beverage segment excluding bottled water grew almost 40% in the second quarter of 2007 as compared to the same period of 2006, mainly driven by strong volume growth from the no calorie flavored water Ciel Aquarius, and Powerade, an isotonic beverage.
Operating Income
Our gross profit increased by 1.5% to Ps. 4,436 million in the second quarter of 2007 as compared to the same period of 2006. Gross margin declined from 53.3% in the second quarter of 2006 to 52.0% in the same period of 2007, as a result of higher sweetener costs year over year.
Operating income declined 1.6% to Ps. 1,827 million in the second quarter of 2007, as compared to Ps. 1,856 million in the same period of 2006 as a result of higher sweetener costs. Our operating margin was 21.4% in the second quarter of 2007, a decline of 120 basis points as compared to the second quarter of 2006, due to the gross margin decrease.
| July 27, 2007 | |
Page 4 |
CENTRAL AMERICAN OPERATING RESULTS (Guatemala, Nicaragua, Costa Rica and Panama)
Revenues
Total revenues reached Ps. 1,143 million in the second quarter of 2007, an increase of 7.7% compared to the same period of 2006. Volume growth accounted for more than 75% of our incremental revenues in the quarter and higher average prices per unit case were the balance. Average price per unit case increased by 1.6% to Ps. 35.66 (US$ 3.30) in the second quarter of 2007, as compared to the second quarter of 2006, mainly as a result of strong volume growth in single serve presentations, which carry higher average price per unit case, combined with price increases implemented during the last twelve months throughout Central America.
Total sales volume in our Central American territories grew 6.0% to 32.0 million unit cases in the second quarter of 2007, as compared to the same period of 2006, resulting from incremental volumes of the carbonated soft drink category, which accounted for more than 65% of the growth. Incremental volumes of the Coca-Cola brand accounted for more than 40% of the growth, and flavored carbonated soft drinks and non-carbonated beverages, excluding bottled water contributed almost equally to the balance. In the second quarter of 2007 non-carbonated beverages, excluding bottled water, increased more than 25% as compared to the same period of 2006 due to strong growth of Hi-C, a juice based product and Powerade, an isotonic beverage.
Operating Income
Gross profit reached Ps. 537 million, an increase of 9.6% in the second quarter of 2007, as compared to the same period of 2006, as a result of improved operating leverage due to higher revenues. Gross margin rose from 46.2% in the second quarter of 2006 to 47.0% in the second of 2007, resulting in a gross margin improvement of 80 basis points.
Our operating income increased 18.4% to Ps. 174 million in the second quarter of 2007, as compared to the second quarter of 2006, driven by higher fixed cost absorption resulting from improved operating leverage. Our operating margin reached 15.2% in the second quarter of 2007, an improvement of 130 basis points as compared to the same period of 2006.
COLOMBIAN OPERATING RESULTS
Revenues
Total revenues increased 12.0% to Ps. 1,696 million in the second quarter of 2007, as compared to the second quarter of 2006. Higher average prices drove more than 50% of this growth and sales volume growth represented the balance. Our average price per unit case grew 6.5% to Ps. 35.56 (US$ 3.30), as a result of price increases implemented in the last 12 months.
Total sales volume in the second quarter of 2007 grew 5.3%, as compared to the same period of 2006, to 47.7 million unit cases. Carbonated soft drinks volume growth accounted for more than 85% of the incremental volume in the quarter, mainly driven by the Coca-Cola brand, with bottled water accounting for the majority of the balance. Non-carbonated beverages, excluding bottled water, increased over 20% as a result of strong growth of Powerade, the isotonic beverage.
Operating Income
Our gross profit increased 26.4% to Ps. 833 million in the second quarter of 2007, as compared to the same period of the previous year. The strong appreciation of the Colombian peso as applied to our U.S. dollar denominated raw materials combined with lower sweetener costs and operating efficiencies, resulted in a gross margin expansion of 560 basis points from 43.5% in the second quarter of 2006 to 49.1% in the second quarter of 2007.
Operating expenses declined by 130 basis points as percentage of total revenues, due to operating leverage achieved by higher revenues as compared to the same period of 2006. Operating income increased 85.4% to Ps. 293 million in the second quarter of 2007, as compared to the same period of 2006. Our operating margin reached 17.3% in the second quarter of 2007, an increase of 690 basis points as compared to the same period of 2006.
| July 27, 2007 | |
Page 5 |
VENEZUELAN OPERATING RESULTS
Revenues
Total revenues from our Venezuelan operations increased 21.1% to Ps. 2,070 million in the second quarter of 2007, as compared to the same period of 2006. Volume growth accounted for over 75% of the incremental revenues during the quarter and an average price per unit case increase was responsible for the balance. Our average price reached Ps. 40.27 (US$ 3.73) in the second quarter of 2007.
Total sales volume increased 16.1% to 51.3 million unit cases during the second quarter of 2007, as compared to the same quarter of 2006. Carbonated soft drinks sales volume growth more than offset a decrease in jug water. Non-carbonated beverages, excluding bottled water, grew 5.0% in the quarter compared to the second quarter of 2006, mainly driven by incremental volumes of Nestea, a ready to drink iced-tea.
Operating Income
Gross profit reached Ps. 824 million, an increase of 25.6% in the second quarter of 2007, as compared to the same period of the previous year. In spite of the increase in the average cost per unit case driven by higher raw material prices, our gross margin improved 140 basis points from 38.4% in the second quarter of 2006 to 39.8% in the same period of 2007, due to higher revenues.
Operating income reached Ps. 89 million, in the second quarter of 2007, a significant increase from a small base, as compared to the same period of the previous year, resulting in an operating margin increase of 280 basis points to 4.3% . Operating expenses as a percentage of total revenues declined from 36.9% in the second quarter of 2006 to 35.5% in the same period of 2007 due to higher fixed-cost absorption driven by higher revenues.
ARGENTINE OPERATING RESULTS
Revenues
In Argentina, our total revenues reached Ps. 807 million in the second quarter of 2007 as a result of increases in sales volume and better average price per unit case. Average price per unit case reached Ps. 21.30 (US$ 1.97) in the second quarter of 2007 and continued to be the lowest among our territories.
In the second quarter of 2007, total sales volume increased 2.5% to 37.6 million unit cases, as compared to the same period of 2006. Sales volume growth from the Coca-Cola brand, driven by the introduction of Coca-Cola Zero more than compensated flavored carbonated soft drink sales volume decline of our value protection brand Tai. Sales volume of non-carbonated beverages, excluding bottled water, more than doubled its size in the quarter from a small base reaching 3.2% of our total sales volume in the second quarter of 2007 as compared to 1.6% in the same period of the previous year.
Operating Income
Gross profit increased 10.3% to Ps. 321 million in the second quarter of 2007, as compared to the second quarter of 2006. Higher sweetener costs were partially compensated by lower cost of PET bottles, resulting in a gross margin decrease of 10 basis points to 39.8%, as compared to the second quarter of 2006.
Operating expenses increased 11.4% in the second quarter of 2007 mainly due to higher freight costs and salary expenses. Higher revenues more than offset incremental expenses, resulting in an increase in operating income of 7.4% to Ps. 87 million in the second quarter of 2007, as compared to the same period of 2006. Our operating income margin decreased 30 basis points to 10.8% in the second quarter of 2007.
| July 27, 2007 | |
Page 6 |
BRAZILIAN OPERATING RESULTS
Revenues
Net revenues increased 11.3% to Ps. 2,201 million in the second quarter of 2007, as compared to the same period of 2006. Excluding beer, net revenues increased 13.3% to Ps. 1,982 million in the second quarter of 2007, as compared to the same period of 2006, with volume growth accounting for almost 85% of the incremental net revenues and average price improvement accounting for the balance. Excluding beer, average price per unit case increased 2.0% to Ps. 29.63 (US$ 2.75) during the second quarter of 2007, mainly driven by a product mix shift towards our core brands, which carry higher average price per unit case than our value protection brands. Total revenues from beer were Ps. 219 million in the second quarter of 2007.
Sales volume, excluding beer, increased 11.1% to 66.9 million unit cases in the second quarter of 2007, as compared to the second quarter of 2006. Carbonated soft drinks sales volume growth accounted for over 85% of the incremental volumes, driven by the Coca-Cola brand and the introduction of Coca-Cola Zero. Non-carbonated beverages, excluding bottled water, almost doubled its size from a small base reaching 1.6% of our total sales volume, driven by the introduction of Aquarius, a no-calorie flavored water, combined with strong performance of juice based products under Minute Maid Mais brand.
Operating Income
In the second quarter of 2007, our gross profit increased by 15.4% to Ps. 965 million, as compared to the same period of the previous year. Lower average cost per unit case, resulted from (i) the appreciation from the Brazilian Real as applied to our U.S. dollar denominated raw materials, (ii) lower sweetener costs, and (iii) lower PET bottler costs resulting from better procurement practices, contributed to gross margin improvement of 160 basis points to 43.7% in the second quarter of 2007.
Operating income increased 24.1% in the second quarter of 2007, as compared to the same period of 2006. Our operating margin was 14.0% in the second quarter of 2007, an increase of 150 basis points as compared to the second quarter of 2006, due to lower average cost per unit case combined with higher revenues.
| July 27, 2007 | |
Page 7 |
SUMMARY OF SIX-MONTH RESULTS
Our consolidated total revenues increased 8.8% to Ps. 31,760 million in the first half of 2007, as compared to the first half of 2006, as a result of growth in all of our territories; Venezuela, Colombia and Brazil represented more than 65% of this growth. Consolidated average price per unit case increased 2.2% to Ps. 30.13 (US$ 2.79) in the first half of 2007. Higher average prices per unit case for the soft drink portfolio in all of our operations, more than offset incremental volumes of jug water in Mexico, which carry lower average unit price per unit case.
Total sales volume increased 6.4% to 1,034.7 million unit cases in the first half of 2007, as compared to the same period of the previous year. Sales volume growth in Mexico and Venezuela accounted for over 50% of our incremental volumes. Carbonated soft-drink sales volume grew 5.9% to 868.0 million cases, driven by incremental volume across all of our territories.
Our gross profit increased 7.8% to Ps. 15,056 million in the first half of 2007, as compared to the first half of the previous year, driven by gross profit growth across all of our territories except Mexico. Gross margin decreased slightly to 47.4% during the first half of 2007 from 47.8% in the first half of 2006, due to higher cost per unit case in all of our territories except for Colombia and Brazil.
Our consolidated operating income increased 10.9% to Ps. 5,090 million in the first half of 2007, as compared to the first half of 2006. Colombia and Venezuela accounted for most of this growth and more than offset an operating income decline in Mexico. Our operating margin improved 30 basis points to 16.0% in the first half of 2007, mainly driven by the improved operating leverage that resulted from higher revenues.
Our consolidated majority net income was Ps. 2,896 million in the first half of 2007 an increase of 68.3% compared to the first half of 2006, resulting from a decline in our integral cost of financing combined with an increase in operating income. EPS were Ps. 1.57 (US$ 1.45 per ADR) in the first half of 2007, computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).
| July 27, 2007 |
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Page 8 |
CONFERENCE CALL INFORMATION
Our second-quarter 2007 Conference Call will be held on: July 27, 2007, 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 and 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 August 4, 2007. To listen to the replay, please dial: Domestic U.S.: 888-286-8010 or International: 617-801-6888. Pass code: 98344233.
Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola, Sprite, Fanta, Lift 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, Campinas, Santos, the state of Mato Grosso do Sul and part of the state of Goias) and Argentina (federal capital of Buenos Aires and surrounding areas), along with bottled water, beer and other beverages in some of these territories. The Company has 31 bottling facilities in Latin America and serves over 1,500,000 retailers in the region. The Coca-Cola Company owns a 31.6% equity interest in Coca-Cola FEMSA.
Figures for the Company’s operations in Mexico and its consolidated international operations were prepared in accordance with Mexican financial reporting standards (Mexican FRS). All figures are expressed in constant Mexican pesos with purchasing power at June 30, 2007. For comparison purposes, 2006 and 2007 figures from the Company’s operations have been restated taking into account local inflation of each country with reference to the consumer price index and converted from local currency into Mexican pesos using the official exchange rate at the end of the period published by the local central bank of each country. In addition, all comparisons in this report for the second quarter of 2007, which ended on June 30, 2007, are made against the figures for the comparable period in 2006, unless otherwise noted.
This news release may contain forward-looking statements concerning Coca-Cola FEMSA’s future performance and 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 that 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.
U.S. dollar amounts in this report solely for the convenience of the reader have been translated from Mexican pesos at the noon day buying rate for pesos as published by the Federal Reserve Bank of New York at June 30, 2007, which exchange rate was Ps. 10.7901 to $1.00.
(7 pages of tables to follow)
| July 27, 2007 | |
Page 9 |
| Consolidated Balance Sheet | ||||||||
| Expressed in million of Mexican pesos with purchasing power as of June 30, 2007 | ||||||||
| Assets | Jun 07 | Dec 06 | ||||||
| Current Assets | ||||||||
| Cash and cash equivalents | Ps. | 6,988 | Ps. | 4,771 | ||||
| Total accounts receivable | 2,564 | 3,113 | ||||||
| Inventories | 3,384 | 2,755 | ||||||
| Prepaid expenses and other | 1,401 | 1,071 | ||||||
| Total current assets | 14,337 | 11,710 | ||||||
| Property, plant and equipment | ||||||||
| Property, plant and equipment | 34,435 | 35,221 | ||||||
| Accumulated depreciation | -15,320 | -15,779 | ||||||
| Bottles and cases | 1,252 | 1,248 | ||||||
| Total property, plant and equipment, net | 20,367 | 20,690 | ||||||
| Investment in shares and other | 472 | 452 | ||||||
| Deferred charges, net | 1,783 | 1,882 | ||||||
| Intangibles assets and other assets | 43,319 | 42,274 | ||||||
| Total Assets | Ps. | 80,278 | Ps. | 77,008 | ||||
| Liabilities and Stockholders' Equity | Jun 07 | Dec 06 | ||||||
| Current Liabilities | ||||||||
| Short-term bank loans and notes | Ps. | 2,917 | Ps. | 3,262 | ||||
| Interest payable | 301 | 272 | ||||||
| Suppliers | 5,075 | 5,434 | ||||||
| Other current liabilities | 3,758 | 3,633 | ||||||
| Total Current Liabilities | 12,051 | 12,601 | ||||||
| Long-term bank loans | 17,333 | 16,284 | ||||||
| Pension plan and seniority premium | 916 | 896 | ||||||
| Other liabilities | 4,548 | 4,639 | ||||||
| Total Liabilities | 34,848 | 34,420 | ||||||
| Stockholders' Equity | ||||||||
| Minority interest | 1,434 | 1,252 | ||||||
| Majority interest | ||||||||
| Capital stock | 3,021 | 3,021 | ||||||
| Additional paid in capital | 12,925 | 12,925 | ||||||
| Retained earnings of prior years | 26,918 | 22,638 | ||||||
| Net income for the period | 2,896 | 5,088 | ||||||
| Cumulative results of holding non-monetary assets | -1,764 | -2,336 | ||||||
| Total majority interest | 43,996 | 41,336 | ||||||
| Total stockholders' equity | 45,430 | 42,588 | ||||||
| Total Liabilities and Equity | Ps. | 80,278 | Ps. | 77,008 | ||||
| July 27, 2007 | |
Page 10 |
| Consolidated Income Statement | ||||||||||||||||
| Expressed in million of Mexican pesos(1) with purchasing power as of June 30, 2007 | ||||||||||||||||
| 2Q 07 % Rev | 2Q 06 % Rev | D % | YTD 07 % Rev | YTD 06 % Rev | D % | |||||||||||
| Sales Volume (million unit cases) | 535.9 | 505.9 | 5.9% | 1,034.7 | 972.1 | 6.4% | ||||||||||
| Average price per unit case | 30.18 | 29.52 | 2.2% | 30.13 | 29.48 | 2.2% | ||||||||||
| Net revenues | 16,390 | 15,162 | 8.1% | 31,632 | 29,094 | 8.7% | ||||||||||
| Other operating revenues | 70 | 48 | 45.8% | 128 | 103 | 24.3% | ||||||||||
| Total revenues | 16,460 | 100% | 15,210 | 100% | 8.2% | 31,760 | 100% | 29,197 | 100% | 8.8% | ||||||
| Cost of sales | 8,544 | 51.9% | 7,906 | 52.0% | 8.1% | 16,704 | 52.6% | 15,229 | 52.2% | 9.7% | ||||||
| Gross profit | 7,916 | 48.1% | 7,304 | 48.0% | 8.4% | 15,056 | 47.4% | 13,968 | 47.8% | 7.8% | ||||||
| Operating expenses | 5,137 | 31.2% | 4,788 | 31.5% | 7.3% | 9,966 | 31.4% | 9,378 | 32.1% | 6.3% | ||||||
| Operating income | 2,779 | 16.9% | 2,516 | 16.5% | 10.5% | 5,090 | 16.0% | 4,590 | 15.7% | 10.9% | ||||||
| Other expenses, net | 208 | 292 | -28.8% | 378 | 333 | 13.5% | ||||||||||
| Interest expense | 634 | 519 | 22.2% | 1,118 | 1,068 | 4.7% | ||||||||||
| Interest income | 166 | 99 | 67.7% | 302 | 185 | 63.2% | ||||||||||
| Interest expense, net | 468 | 420 | 11.4% | 816 | 883 | -7.6% | ||||||||||
| Foreign exchange (gain) loss | (132) | 281 | -147.0% | (35) | 452 | -107.7% | ||||||||||
| (Gain) Loss on monetary position | (65) | 33 | -297.0% | (254) | (132) | 92.4% | ||||||||||
| Unhedged derivative instrument (gain) loss | (90) | 182 | -149.5% | (60) | 218 | -127.5% | ||||||||||
| Integral cost of financing | 181 | 916 | -80.2% | 467 | 1,421 | -67.1% | ||||||||||
| Income before taxes | 2,390 | 1,308 | 82.7% | 4,245 | 2,836 | 49.7% | ||||||||||
| Taxes | 605 | 513 | 17.9% | 1,244 | 1,019 | 22.1% | ||||||||||
| Consolidated net income | 1,785 | 795 | 124.5% | 3,001 | 1,817 | 65.2% | ||||||||||
| Majority net income | 1,739 | 10.6% | 755 | 5.0% | 130.3% | 2,896 | 9.1% | 1,721 | 5.9% | 68.3% | ||||||
| Minority net income | 46 | 40 | 15.0% | 105 | 96 | 9.4% | ||||||||||
| Operating income | 2,779 | 16.9% | 2,516 | 16.5% | 10.5% | 5,090 | 16.0% | 4,590 | 15.7% | 10.9% | ||||||
| Depreciation | 389 | 384 | 1.3% | 775 | 769 | 0.8% | ||||||||||
| Amortization and Other non-cash charges (2) | 327 | 380 | -13.9% | 662 | 709 | -6.6% | ||||||||||
| EBITDA (3) | 3,495 | 21.2% | 3,280 | 21.6% | 6.6% | 6,527 | 20.6% | 6,068 | 20.8% | 7.6% | ||||||
| (1) | Except volume and average price per unit case figures. |
| (2) | Includes returnable bottle breakage expense. |
| (3) | EBITDA = Operating Income + Depreciation +Amortization
& Other non-cash charges. |
| July 27, 2007 | |
Page 11 |
| Mexican operations | ||||||||||||||||
| Expressed in million of Mexican pesos(1) with purchasing power as of June 30, 2007 | ||||||||||||||||
| 2Q 07 % Rev | 2Q 06 % Rev | D % | YTD 07 % Rev | YTD 06% Rev | D % | |||||||||||
| Sales Volume (million unit cases) | 300.4 | 289.3 | 3.8% | 552.1 | 535.3 | 3.1% | ||||||||||
| Average price per unit case | 28.25 | 28.30 | -0.2% | 28.09 | 28.33 | -0.9% | ||||||||||
| Net revenues | 8,485 | 8,187 | 3.6% | 15,506 | 15,164 | 2.3% | ||||||||||
| Other operating revenues | 52 | 21 | 147.6% | 89 | 44 | 102.3% | ||||||||||
| Total revenues | 8,537 | 100.0% | 8,208 | 100.0% | 4.0% | 15,595 | 100.0% | 15,208 | 100.0% | 2.5% | ||||||
| Cost of sales | 4,101 | 48.0% | 3,836 | 46.7% | 6.9% | 7,590 | 48.7% | 7,131 | 46.9% | 6.4% | ||||||
| Gross profit | 4,436 | 52.0% | 4,372 | 53.3% | 1.5% | 8,005 | 51.3% | 8,077 | 53.1% | -0.9% | ||||||
| Operating expenses | 2,609 | 30.6% | 2,516 | 30.7% | 3.7% | 4,991 | 32.0% | 4,893 | 32.2% | 2.0% | ||||||
| Operating income | 1,827 | 21.4% | 1,856 | 22.6% | -1.6% | 3,014 | 19.3% | 3,184 | 20.9% | -5.3% | ||||||
| Depreciation, Amortization & Other non-cash charges (2) | 418 | 4.9% | 473 | 5.8% | -11.6% | 822 | 5.3% | 874 | 5.7% | -5.9% | ||||||
| EBITDA (3) | 2,245 | 26.3% | 2,329 | 28.4% | -3.6% | 3,836 | 24.6% | 4,058 | 26.7% | -5.5% | ||||||
| (1) | Except volume and average price per unit case figures. |
| (2) | Includes returnable bottle breakage expense. |
| (3) | EBITDA = Operating Income + Depreciation + Amortization
& Other non-cash charges. |
| Central American operations | ||||||||||||||||
| Expressed in million of Mexican pesos(1) with purchasing power as of June 30, 2007 | ||||||||||||||||
| 2Q 07 % Rev | 2Q 06 % Rev | D % | YTD 07 % Rev | YTD 06 | % Rev | D % | ||||||||||
| Sales Volume (million unit cases) | 32.0 | 30.2 | 6.0% | 63.5 | 58.6 | 8.4% | ||||||||||
| Average price per unit case | 35.66 | 35.10 | 1.6% | 35.46 | 34.35 | 3.2% | ||||||||||
| Net revenues | 1,141 | 1,060 | 7.6% | 2,252 | 2,013 | 11.9% | ||||||||||
| Other operating revenues | 2 | 1 | 1 | 4 | 1 | 300.0% | ||||||||||
| Total revenues | 1,143 | 100.0% | 1,061 | 100.0% | 7.7% | 2,256 | 100.0% | 2,014 | 100.0% | 12.0% | ||||||
| Cost of sales | 606 | 53.0% | 571 | 53.8% | 6.1% | 1,200 | 53.2% | 1,088 | 54.0% | 10.3% | ||||||
| Gross profit | 537 | 47.0% | 490 | 46.2% | 9.6% | 1,056 | 46.8% | 926 | 46.0% | 14.0% | ||||||
| Operating expenses | 363 | 31.8% | 343 | 32.3% | 5.8% | 723 | 32.0% | 668 | 33.2% | 8.2% | ||||||
| Operating income | 174 | 15.2% | 147 | 13.9% | 18.4% | 333 | 14.8% | 258 | 12.8% | 29.1% | ||||||
| Depreciation, Amortization & Other non-cash charges (2) | 55 | 4.8% | 58 | 5.5% | -5.2% | 110 | 4.9% | 114 | 5.7% | -3.5% | ||||||
| EBITDA (3) | 229 | 20.0% | 205 | 19.3% | 11.7% | 443 | 19.6% | 372 | 18.5% | 19.1% | ||||||
| (1) | Except volume and average price per unit case figures. |
| (2) | Includes returnable bottle breakage expense. |
| (3) | EBITDA = Operating Income + Depreciation + Amortization
& Other non-cash charges. |
| July 27, 2007 | |
Page 12 |
| Colombian operations | ||||||||||||||||
| Expressed in million of Mexican pesos(1) with purchasing power as of June 30, 2007 | ||||||||||||||||
| 2Q 07 % Rev | 2Q 06 % Rev | D % | YTD 07% Rev | YTD 06 % Rev | D % | |||||||||||
| Sales Volume (million unit cases) | 47.7 | 45.3 | 5.3% | 95.6 | 87.3 | 9.5% | ||||||||||
| Average price per unit case | 35.56 | 33.40 | 6.5% | 36.10 | 33.72 | 7.0% | ||||||||||
| Net revenues | 1,696 | 1,513 | 12.1% | 3,451 | 2,944 | 17.2% | ||||||||||
| Other operating revenues | - | 1 | -100.0% | - | 1 | -100.0% | ||||||||||
| Total revenues | 1,696 | 100.0% | 1,514 | 100.0% | 12.0% | 3,451 | 100.0% | 2,945 | 100.0% | 17.2% | ||||||
| Cost of sales | 863 | 50.9% | 855 | 56.5% | 0.9% | 1,798 | 52.1% | 1,650 | 56.0% | 9.0% | ||||||
| Gross profit | 833 | 49.1% | 659 | 43.5% | 26.4% | 1,653 | 47.9% | 1,295 | 44.0% | 27.6% | ||||||
| Operating expenses | 540 | 31.8% | 501 | 33.1% | 7.8% | 1,072 | 31.1% | 990 | 33.6% | 8.3% | ||||||
| Operating income | 293 | 17.3% | 158 | 10.4% | 85.4% | 581 | 16.8% | 305 | 10.4% | 90.5% | ||||||
| Depreciation, Amortization & Other non-cash charges (2) | 77 | 4.5% | 75 | 5.0% | 2.7% | 163 | 4.7% | 162 | 5.5% | 0.6% | ||||||
| EBITDA (3) | 370 | 21.8% | 233 | 15.4% | 58.8% | 744 | 21.6% | 467 | 15.9% | 59.3% | ||||||
| (1) | Except volume and average price per unit case figures. |
| (2) | Includes returnable bottle breakage expense. |
| (3) | EBITDA = Operating Income + Depreciation + Amortization
& Other non-cash charges. |
| |
| Venezuelan operations | ||||||||||||||||
| Expressed in million of Mexican pesos(1) with purchasing power as of June 30, 2007 | ||||||||||||||||
| 2Q 07 | % Rev | 2Q 06 | % Rev | D % | YTD 07 | % Rev | YTD 06 | % Rev | D % | |||||||
| Sales Volume (million unit cases) | 51.3 | 44.2 | 16.1% | 100.5 | 85.2 | 18.0% | ||||||||||
| Average price per unit case | 40.27 | 38.60 | 4.3% | 40.07 | 38.43 | 4.3% | ||||||||||
| Net revenues | 2,066 | 1,706 | 21.1% | 4,027 | 3,274 | 23.0% | ||||||||||
| Other operating revenues | 4 | 4 | 0.0% | 7 | 9 | -22.2% | ||||||||||
| Total revenues | 2,070 | 100.0% | 1,710 | 100.0% | 21.1% | 4,034 | 100.0% | 3,283 | 100.0% | 22.9% | ||||||
| Cost of sales | 1,246 | 60.2% | 1,054 | 61.6% | 18.2% | 2,431 | 60.3% | 2,022 | 61.6% | 20.2% | ||||||
| Gross profit | 824 | 39.8% | 656 | 38.4% | 25.6% | 1,603 | 39.7% | 1,261 | 38.4% | 27.1% | ||||||
| Operating expenses | 735 | 35.5% | 631 | 36.9% | 16.5% | 1,403 | 34.8% | 1,218 | 37.1% | 15.2% | ||||||
| Operating income | 89 | 4.3% | 25 | 1.5% | 256.0% | 200 | 5.0% | 43 | 1.3% | 365.1% | ||||||
| Depreciation, Amortization & Other non-cash charges (2) | 69 | 3.3% | 79 | 4.6% | -12.7% | 145 | 3.6% | 160 | 4.9% | -9.4% | ||||||
| EBITDA (3) | 158 | 7.6% | 104 | 6.1% | 51.9% | 345 | 8.6% | 203 | 6.2% | 70.0% | ||||||
| (1) | Except volume and average price per unit case figures. |
| (2) | Includes returnable bottle breakage expense. |
| (3) | EBITDA = Operating Income + Depreciation + Amortization
& Other non-cash charges. |
| July 27, 2007 | |
Page 13 |
| Argentine operations | ||||||||||||||||
| Expressed in million of Mexican pesos(1) with purchasing power as of June 30, 2007 | ||||||||||||||||
| 2Q 07 | % Rev | 2Q 06 | % Rev | D % | YTD 07 | % Rev | YTD 06 | % Rev | D % | |||||||
| Sales Volume (million unit cases) | 37.6 | 36.7 | 2.5% | 83.5 | 77.7 | 7.5% | ||||||||||
| Average price per unit case | 21.30 | 19.56 | 8.9% | 21.22 | 19.58 | 8.4% | ||||||||||
| Net revenues | 801 | 718 | 11.6% | 1,772 | 1,521 | 16.5% | ||||||||||
| Other operating revenues | 6 | 12 | -50.0% | 17 | 24 | -29.2% | ||||||||||
| Total revenues | 807 | 100.0% | 730 | 100.0% | 10.5% | 1,789 | 100.0% | 1,545 | 100.0% | 15.8% | ||||||
| Cost of sales | 486 | 60.2% | 439 | 60.1% | 10.7% | 1,066 | 59.6% | 930 | 60.2% | 14.6% | ||||||
| Gross profit | 321 | 39.8% | 291 | 39.9% | 10.3% | 723 | 40.4% | 615 | 39.8% | 17.6% | ||||||
| Operating expenses | 234 | 29.0% | 210 | 28.8% | 11.4% | 485 | 27.1% | 422 | 27.3% | 14.9% | ||||||
| Operating income | 87 | 10.8% | 81 | 11.1% | 7.4% | 238 | 13.3% | 193 | 12.5% | 23.3% | ||||||
| Depreciation, Amortization & Other non-cash charges (2) | 46 | 5.7% | 41 | 5.6% | 12.2% | 95 | 5.3% | 83 | 5.4% | 14.5% | ||||||
| EBITDA (3) | 133 | 16.5% | 122 | 16.7% | 9.0% | 333 | 18.6% | 276 | 17.9% | 20.7% | ||||||
| (1) | Except volume and average price per unit case figures. |
| (2) | Includes returnable bottle breakage expense. |
| (3) | EBITDA = Operating Income + Depreciation + Amortization
& Other non-cash charges. |
| Brazilian operations | ||||||||||||||||
| Expressed in million of Mexican pesos(1) with purchasing power as of June 30, 2007 | ||||||||||||||||
| Financial figures include beer results. | ||||||||||||||||
| 2Q 07 | % Rev | 2Q 06 | % Rev | D % | YTD 07 | % Rev | YTD 06 | % Rev | D % | |||||||
| Sales Volume (million unit cases) (2) | 66.9 | 60.2 | 11.1% | 139.5 | 128.0 | 9.0% | ||||||||||
| Average price per unit case (2) | 29.63 | 29.05 | 2.0% | 29.86 | 29.20 | 2.2% | ||||||||||
| Net revenues | 2,201 | 1,978 | 11.3% | 4,624 | 4,178 | 10.7% | ||||||||||
| Other operating revenues | 6 | 9 | -33.3% | 11 | 24 | -54.2% | ||||||||||
| Total revenues | 2,207 | 100.0% | 1,987 | 100.0% | 11.1% | 4,635 | 100.0% | 4,202 | 100.0% | 10.3% | ||||||
| Cost of sales | 1,242 | 56.3% | 1,151 | 57.9% | 7.9% | 2,619 | 56.5% | 2,408 | 57.3% | 8.8% | ||||||
| Gross profit | 965 | 43.7% | 836 | 42.1% | 15.4% | 2,016 | 43.5% | 1,794 | 42.7% | 12.4% | ||||||
| Operating expenses | 656 | 29.7% | 587 | 29.5% | 11.8% | 1,292 | 27.9% | 1,187 | 28.2% | 8.8% | ||||||
| Operating income | 309 | 14.0% | 249 | 12.5% | 24.1% | 724 | 15.6% | 607 | 14.4% | 19.3% | ||||||
| Depreciation, Amortization & Other non-cash charges (3) | 51 | 2.3% | 38 | 1.9% | 34.2% | 102 | 2.2% | 85 | 2.0% | 20.0% | ||||||
| EBITDA (4) | 360 | 16.3% | 287 | 14.4% | 25.4% | 826 | 17.8% | 692 | 16.5% | 19.4% | ||||||
| (1) | Except volume and average price per unit case figures. |
| (2) | Sales volume and average price per unit case exclude beer
results. |
| (3) | Includes returnable bottle breakage expense. |
| (4) | EBITDA = Operating Income + Depreciation + Amortization
& Other non-cash charges. |
| July 27, 2007 | |
Page 14 |
| SELECTED INFORMATION |
For the three months ended June 30, 2007 and 2006
Expressed in million of Mexican pesos as of June 30, 2007
| 2Q 07 | 2Q 06 | |||||
| Capex | 767.8 | Capex | 775.1 | |||
| Depreciation | 388.7 | Depreciation | 383.8 | |||
| Amortization & Other non-cash charges | 327.4 | Amortization & Other non-cash charges | 380.0 | |||
VOLUME
Expressed in million unit cases
| 2Q 07 | 1Q 07 | |||||||||||||||||||
| CSD | Water (1) | Jug Water | Other | Total | CSD | Water (1) | Jug Water | Other | Total | |||||||||||
| Mexico | 232.1 | 14.2 | 50.8 | 3.3 | 300.4 | 228.3 | 12.4 | 46.2 | 2.4 | 289.3 | ||||||||||
| Central America | 28.8 | 1.4 | 0.0 | 1.8 | 32.0 | 27.5 | 1.5 | 0.0 | 1.2 | 30.2 | ||||||||||
| Colombia | 42.0 | 2.5 | 2.6 | 0.6 | 47.7 | 39.9 | 2.5 | 2.4 | 0.5 | 45.3 | ||||||||||
| Venezuela | 46.2 | 3.0 | 0.0 | 2.1 | 51.3 | 38.3 | 3.1 | 0.9 | 1.9 | 44.2 | ||||||||||
| Brazil | 61.6 | 4.2 | 0.0 | 1.1 | 66.9 | 55.8 | 3.9 | 0.0 | 0.5 | 60.2 | ||||||||||
| Argentina | 36.2 | 0.2 | 0.0 | 1.2 | 37.6 | 35.6 | 0.6 | 0.0 | 0.5 | 36.7 | ||||||||||
| Total | 446.9 | 25.5 | 53.4 | 10.1 | 535.9 | 425.4 | 24.0 | 49.5 | 7.0 | 505.9 | ||||||||||
| (1) Excludes water presentations larger than 5.0 Lt | ||||||||||||||||||||
| SELECTED INFORMATION |
For the six months ended June 30, 2007 and 2006
Expressed in million of Mexican pesos as of June 30, 2007
| YTD 07 | YTD 06 | |||||
| Capex | 1,305.5 | Capex | 1,233.1 | |||
| Depreciation | 775.4 | Depreciation | 768.8 | |||
| Amortization & Other non-cash charges | 662.0 | Amortization & Other non-cash charges | 708.7 | |||
VOLUME
Expressed in million unit cases
| YTD 07 | YTD 06 | |||||||||||||||||||
| CSD | Water (1) | Jug Water | Other | Total | CSD | Water (1) | Jug Water | Other | Total | |||||||||||
| Mexico | 429.0 | 24.8 | 92.4 | 5.9 | 552.1 | 423.8 | 22.1 | 85.1 | 4.3 | 535.3 | ||||||||||
| Central America | 56.9 | 2.9 | 0.0 | 3.7 | 63.5 | 52.7 | 2.6 | 0.0 | 3.3 | 58.6 | ||||||||||
| Colombia | 83.7 | 5.3 | 5.4 | 1.2 | 95.6 | 76.6 | 5.2 | 5.4 | 0.1 | 87.3 | ||||||||||
| Venezuela | 90.6 | 5.5 | 0.0 | 4.4 | 100.5 | 73.7 | 5.4 | 2.0 | 4.1 | 85.2 | ||||||||||
| Brazil | 127.3 | 9.9 | 0.0 | 2.3 | 139.5 | 117.0 | 9.8 | 0.0 | 1.2 | 128.0 | ||||||||||
| Argentina | 80.6 | 0.3 | 0.0 | 2.6 | 83.5 | 75.5 | 1.1 | 0.0 | 1.1 | 77.7 | ||||||||||
| Total | 868.1 | 48.7 | 97.8 | 20.1 | 1,034.7 | 819.3 | 46.2 | 92.5 | 14.1 | 972.1 | ||||||||||
| July 27, 2007 | |
Page 15 |
June 2007
Macroeconomic Information
| Inflation (1) | Foreign Exchange Rate (local currency per US Dollar) (2) | |||||||||||
| LTM | 2Q 2007 | YTD | Jun 07 | Dec 06 | Jun 06 | |||||||
| Mexico | 3.98% | -0.43% | 0.58% | 10.7926 | 10.8755 | 11.3973 | ||||||
| Colombia | 6.04% | 1.33% | 4.56% | 1960.6100 | 2,238.7900 | 2633.1200 | ||||||
| Venezuela | 19.43% | 4.99% | 7.76% | 2150.0000 | 2,150.0000 | 2150.0000 | ||||||
| Argentina | 8.77% | 1.61% | 3.87% | 3.0930 | 3.0620 | 3.0860 | ||||||
| Brazil | 3.95% | 0.81% | 2.18% | 1.9262 | 2.1380 | 2.1643 | ||||||
| (1) | Source: Mexican inflation is published by Banco de
México (Mexican Central Bank). |
| (2) | Exchange rates at the end of period are the official
exchange rates published by Central Banks in each country. |
| July 27, 2007 | |
Page 16 |
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. | |
| (Registrant) | |
| Date: July 27 , 2007 | By: /s/ HÉCTOR TREVIÑO GUTIÉRREZ |
| Name: Héctor Treviño Gutiérrez | |
| Title: Chief Financial Officer |