Coca-Cola FEMSA Announces 31.5% Operating Profit Growth For Third Quarter of 2001.Business Editors MEXICO Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. CITY--(BUSINESS WIRE)--Oct. 25, 2001 Coca-Cola FEMSA Coca-Cola FEMSA is the anchor bottler of Coca-Cola and its related soft drink products in much of Latin America. The company is an important part of the Coca-Cola System. Specifically, Coca-Cola FEMSA distributes about 10% of the worldwide production of Coca-Cola products. , S.A. de C.V. (NYSE NYSE See: New York Stock Exchange :KOF KOF King of Fighters (game) KOF Konjunkturforschungsstelle (Zurich, Switzerland) KOF Knights of Freedom (online gaming clan) KOF Knights of Fire ) (BMV BMV Bolsa Mexicana de Valores BMV Bureau of Motor Vehicles BMV Bundesministerium für Verkehr (German: Federal Ministry of Transport) BMV Below Market Value BMV Brome Mosaic Virus BMV Bedside Medication Verification :KOFL KOFL Knightly Order of the Fiat Lux (US fraternal brotherhood; Charlotte, NC) )
THIRD QUARTER 2001
-- Consolidated sales volume increased by 5.3%, driven by a
3.6% and 12.8% increase in sales volume in the Mexican and
Argentine operations, respectively.
-- Consolidated operating income increased 31.5% to Ps. 957.9
million, reaching a consolidated operating margin of
21.7%, an increase of 4.6 percentage points from the third
quarter of 2000.
-- Consolidated earnings, before interest, tax, depreciation
and amortization ("EBITDA")(a) increased by 17.5% over the
third quarter of 2000 to Ps. 1,255.0 million.
-- Consolidated majority net income increased 96.2%,
reaching Ps. 525.7 million, resulting in an earnings
per share ("EPS") of Ps. 0.37 (US$0.39 per ADR).
Coca-Cola FEMSA, S.A. de C.V. (NYSE:KOF) (BMV:KOFL) ("KOF" or the "Company"), one of the global Coca-Cola Coca-Cola soft drink found throughout the world. [Trademarks:Crowley Trade, 115] See : Ubiquity anchor bottlers Anchor bottler is a term used by cola beverage manufacturers for their major bottlers around the world. The Coca-Cola Company employed the strategy of "anchor bottlers" to penetrate markets like China, Eastern Europe and Russia. and the largest Coca-Cola bottler in Mexico and Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. , announced today its consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results for the third quarter of 2001. "Our execution capabilities combined with our ability to understand and connect with our clients are driving our success during the third quarter of 2001. The launching of new products and presentations in our Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum and Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. territories, combined with revenue management, channel marketing and cost-saving strategies helped us achieve outstanding results," stated Carlos Salazar Carlos Salazar is the name of the following individuals:
CONSOLIDATED RESULTS Consolidated total revenues increased by 4.2% to Ps. 4,405.8 million during the third quarter of 2001. Volume growth in both Mexican and Argentine operations, combined with an improvement in average prices in Mexico, more than compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for the decrease in average prices in Argentina. The net result was a 31.5% increase in consolidated operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. over the comparable period in 2000. Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become grew 17.5%, reaching Ps. 1,255.0 million for the third quarter of 2001. EBITDA margin rose to 28.5% compared to a 25.3% margin in the third quarter of 2000. Integral cost of financing reached Ps. 42.2 million for the third quarter of 2001, which was substantially lower than the Ps. 165.9 million expense in the third quarter of 2000. The following factors contributed to the net decrease:
-- The Company's foreign exchange gain reached Ps. 26.7
million during the third quarter of 2001. This gain
reflected the effect of the depreciation of the Mexican
peso against the U.S. dollar applied to the U.S.
dollar-denominated cash position of the Company during the
third quarter of 2001, as well as the recognition of some
of the gains generated from the unwinding of US$30 million
dollar forward contracts during July 2001, from the
hedging program implemented by the Company to protect
itself against foreign exchange fluctuations between the
Argentine peso and the U.S. dollar.
-- Net interest expense decreased by 65.4% due to increased
interest income resulting from the Company's higher cash
holdings relative to the third quarter of 2000.
-- The loss on monetary position was generated by the Mexican
inflation adjustments applied to the net monetary assets
of our Mexican operations and the Argentine deflation
adjustments applied to the net monetary liabilities of our
Argentine operations.
Consolidated net income increased by 96.2% from Ps. 267.9 million in the third quarter of 2000 to Ps. 525.7 million for the same period in 2001. Net income per share reached Ps. 0.37 (US$0.39 per ADR ADR - Astra Digital Radio ). BALANCE SHEET On September September: see month. 30, 2001, Coca-Cola FEMSA recorded a cash balance of Ps. 3,678.9 million (US$386.8 million) and total bank debt of Ps. 2,908.2 million (US$305.7 million). As compared to June June: see month. 30, 2001, this represents a US$60.3 million increase in cash and cash equivalents during the quarter. RESULTS OF OPERATIONS IN MEXICO Sales Volume Sales volume in the Mexican territories amounted to 122.2 million unit cases ("MUC MUC Mount Union College (Ohio) MUC Multi User Chat MUC Message Understanding Conference MUC Montreal Urban Community MUC Malaspina University College (Canada) ")(b) for the third quarter of 2001, an increase of 3.6% over the third quarter of 2000. The increase in sales volume in our Mexican territories was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to (i) the increase in sales volume of Coca-Cola Light by 11.1% in the third quarter of 2001, (ii) the robust growth of the recently introduced Senzao Senzao is a carbonated drink made with guarana by the Coca-Cola Company sold in Mexico. Guarana is a fruit which grows in Brazil. In 2004 it was released for a limited time a Guarana-Orange flavor called Senzao Guaranaranja. , a new carbonated car·bon·ate tr.v. car·bon·at·ed, car·bon·at·ing, car·bon·ates 1. To charge (a beverage, for example) with carbon dioxide gas. 2. To burn to carbon; carbonize. 3. To change into a carbonate. guarana-flavored brand, which represented 2.4% of the total product mix during the third quarter of 2001, (iii) the solid performance of the new 250 ml. one-way one-way adj. 1. Moving or permitting movement in one direction only: a one-way street. 2. Providing for travel in one direction only: a one-way ticket. PET Delaware Punch Delaware Punch is a fruit-flavored soft drink. Its formula uses a blend of fruit flavors, with grape being the most prominent. It is non-carbonated and caffeine-free. Delaware Punch was created by Thomas E. Lyons in 1913. The brand is currently owned by Coca-Cola. , Lift and Fanta FANTA Food and Nutrition Technical Assistance presentations, which accounted for 1.1% of the total packaging mix during the third quarter of 2001, and (iv) the volume increase of Ciel (language) CIEL - An object-oriented Prolog-like language. ["CIEL: Classes et Instances En Logique", M. Gandriau, Thesis ENSEEIHT, 1988]. and Ciel Mineralizada, Coca-Cola trademark still and sparkling water brands, growing by 37.8% and 32.8%, respectively, in the third quarter of 2001 versus the same quarter in 2000. Average revenue per unit case increased by 0.6% as compared to the third quarter of 2000, reaching Ps. 29.7 per unit case. The increase in average price per unit case was attributable to (i) the price increase implemented in November November: see month. of 2000, and (ii) a change in product and packaging mix. Gross Profit The cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold decreased by 2.5% as compared to the third quarter of 2000 and declined as a percentage of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , resulting in a gross margin improvement of 3.1 percentage points to 55.1% from 52.0% recorded in the third quarter of 2000. Gross margin improvement resulted from (i) an increase in revenue per unit case sold, (ii) higher fixed-cost absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. driven by sales volume growth, (iii) lower unit price of certain packaging materials (aluminum and PET) and raw materials (sweeteners), and (iv) realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of fixed-cost reductions. Income from Operations During the third quarter of 2001, administrative expenses increased by 1.0%, mainly reflecting an increase in real wages and salaries. Selling expenses decreased by 4.9% due to a decrease in distribution expenses and lower bottle and case breakage expenses resulting from a higher non-returnable volume mix. Administrative and selling expenses decreased, as percentage of total revenues, by 0.3 and 2.0 percentage points, respectively. The gross margin improvement along with the reduction of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percentage of total sales resulted in an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increase of 5.4 percentage points, from 20.4% in the third quarter of 2000 to 25.8% in the third quarter of 2001. Operating profit for the period amounted to Ps. 938.3 million, an increase of 31.4%, and EBITDA reached Ps. 1,151.1 million, an increase of 17.9%, both as compared to the third quarter of 2000. RESULTS OF OPERATIONS IN BUENOS AIRES Buenos Aires (bwā`nəs ī`rēz, âr`ēz, Span. bwā`nōs ī`rās), city and federal district (1991 pop. "Our Argentine operations continue to achieve volume growth and margin expansion despite the challenging economic environment in Argentina. Coca-Cola FEMSA has accomplished these results by implementing successfully product development, revenue management, channel marketing and cost-cutting initiatives. These strategies have helped the Company regain its path to growth and increase its profitability," stated Carlos Salazar, Chief Executive Officer of the Company. Sales Volume Sales volume in the Argentine territory amounted to 29.7 MUC for the third quarter of 2001, an increase of 12.8% over the third quarter of 2000. The sales volume increase in Buenos Aires was attributable to (i) the volume growth of the premium brands, Coca-Cola Light, Sprite Light and Schweppes Schweppes may refer to:
Tai (tī), lake, c.1,300 sq mi (3,370 sq km), on the border between Jiangsu prov. and Zhejiang prov., E China; second largest freshwater lake in China. Dotted with islands, it is one of China's most scenic areas. and Crush crush A combination commodity trade in which soybean futures are purchased and soybean meal or oil futures are sold. Compare reverse crush. , which represented 12.3% of our total product mix during the third quarter of 2001. Average revenue per unit case amounted to A$2.63 per unit case, a decrease of 10.2% as compared to the third quarter of 2000. The decrease in average price per unit case was attributable to (i) increased sales of value protection brands, which have a lower price-per-ounce than the core brands, and (ii) a shift in product mix toward larger packaging presentations. Nonetheless, the increase in sale volume more than offset the decrease in the average unit case price, resulting in a net sales increase of 1.3% relative to the same period last year. Other revenues amounted to A$2.7 million, representing mainly sales from toll bottling to other bottlers of the Coca-Cola system in Argentina. The Company's total revenues in Argentina reached A$80.9 million, a 4.0% increase as compared with the same quarter of 2000. Gross Profit The cost of goods sold remained essentially flat, decreasing by 0.2% as compared to the third quarter of 2000. As a percentage of net sales, however, the cost of goods sold decreased, resulting in a gross margin improvement of 3.5 percentage points to 46.9% of net sales from 43.4% recorded in the third quarter of 2000. Gross margin expansion resulted from (i) lower concentrate costs, and (ii) realization of fixed-cost reductions resulting from productivity and efficiency initiatives in progress. Income from Operations During the third quarter of 2001, administrative expenses decreased 14.8% and selling expenses increased by 14.8%, as compared with the third quarter of 2000. Similar to the second quarter of 2001, the decrease in administrative expenses in the third quarter of 2001 reflected savings achieved from the workforce reduction in January January: see month. of this year, while the increase in selling expenses during this quarter represented mainly higher local marketing expenses as explained last quarter, and higher freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or and commission costs due to a higher sales volume. As compared to the third quarter of 2000, administrative expenses decreased by 1.3 percentage points to 5.7% while selling expenses increased by 3.1 percentage points to 33.6%, both as percentage of total revenues. The gross margin improvement more than offset the increase in operating expenses as a percentage of total sales, resulting in an operating margin expansion of 0.3 percentage points from 4.6% in the third quarter of 2000 to 4.9% in the third quarter of 2001. Operating profit for the period was A$4.0 million, an increase of 11.1%, and EBITDA reached A$11.1 million, an increase of 15.6%, as compared to the third quarter of 2000. RECENT DEVELOPMENTS During the third quarter of 2001, Coca-Cola FEMSA launched in its Mexican territories a new 250-ml. non-returnable PET presentation for Lift and Fanta, the apple- and orange-flavored carbonated Coca-Cola trademark brands, and a new eight-ounce non-returnable glass presentation for the Coca-Cola brand. These presentations intend to capture a new consumption opportunity and provide a new pricing alternative at the point of sale. On July July: see month. 28, 2001, Coca-Cola FEMSA closed the Atizapan distribution center, one of its 17 distribution facilities in the Valley of Mexico The Valley of Mexico is a highlands plateau in central Mexico roughly coterminous with the present-day Distrito Federal and the eastern half of the State of Mexico. Surrounded by mountains and volcanoes, the Valley of Mexico was a center for several pre-Columbian civilizations, . The Tlanepantla distribution facility will consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. the operations formerly conducted at Atizapan. The Company expects to realize permanent cost savings and operating efficiencies from the consolidation of the Atizapan facility beginning in the fourth quarter of 2001. On September 29, 2001, the Company initiated in the Valley of Mexico the rollout of POWERADE For the hockey arena, see . Powerade (or POWERADE, as stylized on logos) is a sports drink by The Coca-Cola Company and currently number two in the sports drink market worldwide. It was first introduced in 1988, starting in soda fountains. , the Coca-Cola trademark sports drink sports drink Performance drink Sports medicine A thirst-quenching beverage used in sports-related activities, which may boost energy and/or help build muscle mass; water, sugar, salt, potassium are common to all SDs. See Hydrotherapy, Water. . This product was launched in a 591-ml. non-returnable PET presentation with a sport cap. On October October: see month. 1, 2001, Coca-Cola FEMSA launched the new Hi-C Hi-C may refer to:
CURRENCY HEDGING hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. POLICY Coca-Cola FEMSA currently has US$16.4 million option contracts outstanding from its hedging program implemented during 2000 to protect the Company's exposure against a Mexican peso devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. . These contracts will expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. during the fourth quarter of 2001. As part of the Company's policy to partially hedge its exposure to working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. in Argentina, the Company has US$70 million forward contracts at $1.065 Argentine pesos The peso (originally established as the nuevo peso argentino or peso convertible) is the currency of Argentina. Its ISO 4217 code is ARS, and the symbol used locally for it is $ (to avoid confusion, Argentines frequently use US$, per U.S. dollar. The maximum cost that the Company could have in relation to these contracts (including the gain generated by the unwinding of US$30 million forward contracts in July of this year) is US$1.25 million. SUMMARY OF NINE MONTHS RESULTS AS OF SEPTEMBER 30, 2001 For the nine months ended September 30, 2001, consolidated total sales volumes increased 5.7% to 450.6 MUC. Consolidated total sales reached Ps. 13,070.8 million, an increase of 5.8% as compared to the first nine months of 2000. The increase in consolidated volume was attributable to 4.3% and 11.0% increases in volumes from the Mexican and Argentine territories, respectively, during the first nine months of 2001 as compared the same period of 2000. Consolidated average price per unit was slightly lower at Ps. 28.7 during the first nine months of 2001 as compared to Ps. 28.8 for the same period of 2000. Even though the average revenue per unit in Buenos Aires decreased 10.4% to A$2.66, the decrease was offset by an increase in the average revenue per unit in the Mexican territories of 2.2% that reached Ps. 29.6 during the first nine months of 2001 as compared to the same period of 2000. Gross operating margin as a percentage of net sales increased 2.8 percentage points, from 50.2% in the first nine months of 2000 to 53.0% in the first nine months of 2001. Consolidated operating expenses increased by 1.3%, but decreased as a percentage of consolidated total revenues to 30.8% in the first nine months of 2001 as compared to 32.1% for the same period of 2000. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 30.5% to Ps. 2,756.0 million and EBITDA reached Ps. 3,627.3 million, an increase of 19.3%, both as compared to the first nine months of 2000. The Argentine operations represented 6.6% and 10.5% of consolidated operating profits and EBITDA, respectively, during the first nine months of 2001. Consolidated net income increased by 71.1%, from Ps. 867.4 million recorded in the first nine months of 2000 to Ps. 1,484.0 million for the same period of 2001. Net income per share reached Ps. 1.04 (US$1.09 per ADR). -------- (a) Coca-Cola FEMSA calculated EBITDA based on income from operations plus depreciation, amortization and non-cash items (including bottle breakage expenses). The U.S. Securities and Exchange Commission does not endorse To sign a paper or document, thereby making it possible for the rights represented therein to pass to another individual. Also spelled indorse. endorse (indorse) v. the use of EBITDA; however, the management believes that reporting EBITDA is an industry standard and is a useful measure. (b) The "Unit Case" is a unit measurement equivalent to 24 eight-ounce servings. ----- Coca-Cola FEMSA, S.A. de C.V. produces Coca-Cola, Sprite, Fanta, Lift and other trademark beverages of The Coca-Cola Company in the Valley of Mexico and the Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3% of Coca-Cola global sales, 24% of all Coca-Cola sales in Mexico and approximately 35% of all Coca-Cola sales in Argentina. The Coca-Cola Company owns a 30% equity interest in Coca-Cola FEMSA. ----- Figures for the Company's operations in Mexico and its consolidated international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. were prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Mexican generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("Mexican GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Figures of the Company's operations in Argentina were prepared in accordance with Argentine generally accepted accounting principles. All figures are expressed in constant Mexican pesos with purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. at September 30, 2001. For comparison purposes, 2000 and 2001 figures from the Company's Argentine operations have been restated taking into account Argentine inflation with reference to the Argentine consumer price index and converted from Argentine pesos into Mexican pesos using the September 30, 2001 exchange rate of Ps. 9.51 per A$1.00. Also, all comparisons for third quarter 2001, ending September 30, 2001, in this report are made against the figures for the comparable period, third quarter 2000 unless otherwise noted. This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning Coca-Cola FEMSA's future performance and should be considered as good faith estimates of Coca-Cola FEMSA. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties that could materially impact the Company's actual performance. References herein to "US$" are to United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollars. This news release contains translations of certain peso amounts into U.S. dollars at specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. rates solely for the convenience of the reader. These translations should not be construed as representations that the peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. -----
Coca-Cola FEMSA, S.A. de C.V. and Subsidiaries
INCOME STATEMENT
For the three months ended September 30, 2001 and 2000
Expressed in currency with purchasing power as of September 30, 2001
------------------------------------------------
Consolidated Mexican Operations
------------------------------------------------
(Millions of Mexican Pesos)(a)
------------------------------------------------
2001 2000 % VAR 2001 2000 % VAR
----------------------------------------------------------------------
Sales volume
(millions unit cases) 151.9 144.3 5.3 122.2 118.0 3.6
Average unit
price per case 28.75 29.18 (1.5) 29.65 29.47 0.6
----------------------------------------------------------------------
Net revenues 4,368.4 4,212.0 3.7 3,624.1 3,477.9 4.2
Other operating
revenues 37.4 17.7 111.3 11.9 12.0 (0.8)
----------------------------------------------------------------------
Total revenues 4,405.8 4,229.7 4.2 3,636.0 3,489.9 4.2
Cost of sales 2,058.8 2,101.4 (2.0) 1,638.5 1,680.2 (2.5)
----------------------------------------------------------------------
Gross profit 2,347.0 2,128.3 10.3 1,997.5 1,809.7 10.4
----------------------------------------------------------------------
Administrative
expenses 335.9 340.8 (1.4) 292.0 289.1 1.0
Selling expenses 1,024.9 1,029.4 (0.4) 765.4 804.7 (4.9)
----------------------------------------------------------------------
Operating expenses 1,360.8 1,370.2 (0.7) 1,057.4 1,093.8 (3.3)
----------------------------------------------------------------------
Goodwill amortization 28.3 29.6 (4.4) 1.8 1.8 (0.0)
----------------------------------------------------------------------
Operating income 957.9 728.5 31.5 938.3 714.1 31.4
----------------------------------------------------------------------
Interest expense 80.1 83.1 (3.6)
Interest income 63.3 34.6 82.9
Interest expense, net 16.8 48.6 (65.4)
Foreign exchange loss
(gain) (26.7) 109.7 (124.3)
Loss (gain) on monetary
position 52.1 7.6 585.5
----------------------------------------------------------------------
Integral cost
of financing 42.2 165.9 (74.6)
Other (income)
expenses, net 13.4 32.0 (58.1)
----------------------------------------------------------------------
Income before taxes 902.3 530.6 70.1
Taxes 376.6 262.7 43.4
----------------------------------------------------------------------
Consolidated net income 525.7 267.9 96.2
----------------------------------------------------------------------
Majority net income 525.7 267.9 96.2
----------------------------------------------------------------------
EBITDA(b) 1,255.0 1,068.5 17.5 1,151.1 976.6 17.9
----------------------------------------------------------------------
-----------------------
Buenos Aires Operation
-----------------------
(Millions of Argentine Pesos)(a)
-----------------------
2001 2000 % VAR
---------------------------------------------
Sales volume
(millions unit cases) 29.7 26.3 12.8
Average unit
price per case 2.63 2.93 (10.2)
---------------------------------------------
Net revenues 78.2 77.2 1.3
Other operating revenues 2.7 0.6 350.0
---------------------------------------------
Total revenues 80.9 77.8 4.0
Cost of sales 44.2 44.3 (0.2)
---------------------------------------------
Gross profit 36.7 33.5 9.6
---------------------------------------------
Administrative expenses 4.6 5.4 (14.8)
Selling expenses 27.2 23.7 14.8
---------------------------------------------
Operating expenses 31.8 29.1 9.3
---------------------------------------------
Goodwill amortization 0.9 0.8 12.5
---------------------------------------------
Operating income 4.0 3.6 11.1
---------------------------------------------
---------------------------------------------
EBITDA(b) 11.1 9.6 15.6
---------------------------------------------
(a) Except volume and average price per unit case figures.
(b) Income from operations + depreciation, amortization and other
non-cash items (including returnable bottle breakage expenses).
Mexican Inflation June 2001 - September 2001 1.27%
Argentine Inflation June 2001 - September 2001 -1.39%
Mexican Peso / U.S.Dollar at September 30, 2001 9.512
Coca-Cola FEMSA, S.A. de C.V. and Subsidiaries
INCOME STATEMENT
For the nine months ended September 30, 2001 and 2000
Expressed in currency with purchasing power as of September 30, 2001
------------------------------------------------
Consolidated Mexican Operations
------------------------------------------------
(Millions of Mexican Pesos)(a)
------------------------------------------------
2001 2000 % VAR 2001 2000 % VAR
----------------------------------------------------------------------
Sales volume
(millions unit cases) 450.6 426.4 5.7 355.5 340.8 4.3
Average unit
price per case 28.72 28.84 (0.4) 29.63 28.98 2.2
----------------------------------------------------------------------
Net revenues 12,940.7 12,295.5 5.2 10,535.5 9,876.2 6.7
Other operating
revenues 130.1 54.3 139.6 43.9 31.1 41.2
----------------------------------------------------------------------
Total revenues 13,070.8 12,349.8 5.8 10,579.4 9,907.3 6.8
Cost of sales 6,209.4 6,180.8 0.5 4,852.9 4,791.3 1.3
----------------------------------------------------------------------
Gross profit 6,861.4 6,169.0 11.2 5,726.5 5,116.0 11.9
----------------------------------------------------------------------
Administrative
expenses 969.9 962.7 0.7 835.9 819.8 2.0
Selling expenses 3,049.9 3,003.8 1.5 2,255.2 2,279.3 (1.1)
----------------------------------------------------------------------
Operating expenses 4,019.8 3,966.5 1.3 3,091.1 3,099.1 (0.3)
----------------------------------------------------------------------
Goodwill amortization 85.6 89.9 (4.8) 5.5 5.4 1.9
----------------------------------------------------------------------
Operating income 2,756.0 2,112.6 30.5 2,629.9 2,011.5 30.7
----------------------------------------------------------------------
Interest expense 238.0 255.0 (6.7)
Interest income 208.8 84.9 145.9
Interest expense, net 29.2 170.1 (82.8)
Foreign exchange loss
(gain) 44.7 226.6 (80.3)
Loss (gain) on
monetary position 39.4 (18.5)(313.0)
----------------------------------------------------------------------
Integral cost
of financing 113.3 378.2 (70.0)
Other (income)
expenses, net 0.5 58.5 (99.2)
----------------------------------------------------------------------
Income before taxes 2,642.2 1,675.9 57.7
Taxes 1,131.7 808.5 40.0
----------------------------------------------------------------------
Effect of changes in
accounting principles (26.5) -- NA
----------------------------------------------------------------------
Consolidated net
income 1,484.0 867.4 71.1
----------------------------------------------------------------------
Majority net income 1,484.0 867.4 71.1
----------------------------------------------------------------------
EBITDA(b) 3,627.3 3,039.5 19.3 3,247.2 2,693.2 20.6
----------------------------------------------------------------------
-----------------------
Buenos Aires Operation
-----------------------
(Millions of Argentine Pesos)(a)
-----------------------
2001 2000 % VAR
---------------------------------------------
Sales volume
(millions unit cases) 95.1 85.6 11.0
Average unit
price per case 2.66 2.97 (10.4)
---------------------------------------------
Net revenues 252.9 254.3 (0.6)
Other operating revenues 9.0 2.5 260.0
---------------------------------------------
Total revenues 261.9 256.8 2.0
Cost of sales 142.6 146.1 (2.4)
---------------------------------------------
Gross profit 119.3 110.7 7.8
---------------------------------------------
Administrative expenses 14.1 15.0 (6.0)
Selling expenses 83.6 76.2 9.7
---------------------------------------------
Operating expenses 97.7 91.2 7.1
---------------------------------------------
Goodwill amortization 2.5 2.5 --
---------------------------------------------
Operating income 19.1 17.0 12.4
---------------------------------------------
---------------------------------------------
EBITDA(b) 39.9 36.4 9.7
---------------------------------------------
(a) Except volume and average price per unit case figures.
(b) Income from operations + depreciation, amortization and other
non-cash items (including returnable bottle breakage expenses).
Mexican Inflation September 2000 - September 2001 6.14%
Argentine Inflation September 2000 - September 2001 -1.14%
Mexican Peso / U.S.Dollar at September 30, 2001 9.512
Coca-Cola FEMSA, S.A. de C.V. and Subsidiaries
Consolidated Balance Sheet
As of September 30, 2001 and December 31, 2000
Millions of Mexican pesos (Ps.)
Expressed in currency with purchasing power as of September 30, 2001
----------------------------------------------------------------------
ASSETS 2001 2000
--------- ---------
Current Assets
Cash and cash equivalents Ps. 3,679 Ps. 1,960
--------- ---------
Accounts receivable:
Trade 432 650
Notes 56 61
Prepaid taxes 4 4
Other 141 169
--------- ---------
633 884
--------- ---------
Inventories 623 513
Prepaid expenses 80 66
--------- ---------
Total current assets 5,015 3,423
--------- ---------
Property, plant and equipment
Land 784 801
Buildings, machinery and equipment 8,546 8,656
Accumulated depreciation (3,001) (2,833)
Construction in progress 475 278
Bottles and cases 219 329
--------- ---------
Total property, plant and equipment 7,023 7,231
--------- ---------
Investment in shares 196 211
Deferred charges, net 488 510
Goodwill, net 1,541 1,672
--------- ---------
TOTAL ASSETS Ps. 14,263 Ps. 13,047
========= =========
--------- ---------
LIABILITIES & STOCKHOLDERS' EQUITY 2001 2000
--------- ---------
Current Liabilities
Short-term bank loans, notes
and interest payable Ps. 102 Ps. 89
Suppliers 1,193 1,411
Accounts payable and others 545 558
Taxes payable 473 264
--------- ---------
Total Current Liabilities 2,313 2,322
--------- ---------
Long-term bank loans 2,893 3,035
Pension plan and seniority premium 170 165
Other liabilities 1,134 999
--------- ---------
Total Liabilities 6,510 6,521
--------- ---------
Stockholders' Equity
Minority interest 0 0
Majority interest:
Capital stock 2,220 2,220
Additional paid in capital 1,562 1,562
Retained earnings of prior years 5,118 4,089
Net income for the period 1,484 1,328
Cumulative results of holding
non-monetary assets (2,631) (2,673)
--------- ---------
Total majority interest 7,753 6,526
--------- ---------
Total stockholders' equity 7,753 6,526
--------- ---------
TOTAL LIABILITIES & EQUITY Ps. 14,263 Ps.13,047
========= =========
Mexican Inflation December 2000 - September 2001 3.40%
Argentine Inflation December 2000 - September 2001 -0.64%
Mexican Peso / U.S.Dollar at September 30, 2001 9.512
Selected Information
For the nine months ended September 30, 2000
Expressed in Pesos as of September 30, 2001
2001
----------------------------------------------------------------------
Depreciation(a) 577.7
Amortization and others 293.5
Capital Expenditures(b) 621.5
----------------------------------------------------------------------
(a)(Includes good will amortization)
(b)(Includes Bottles and Cases and Deferred Charges)
Sales Volume Information
Expressed in millions of unit cases
2001 2000
----------------------------------------------------------------------
Mexico 355.5 340.8
Valley of Mexico 264.3 253.7
Southeast 91.2 87.1
Buenos Aires 95.1 85.6
----------------------------------------------------------------------
Total 450.6 426.4
======================================================================
Product Mix by Brand
(Colas / Flavors / Water)
Expressed as a percentage of total volume
2001 2000
----------------------------------------------------------------------
Mexico 75/21/4 76/21/3
Valley of Mexico 76/20/4 77/21/2
Southeast 72/22/6 74/20/6
Buenos Aires 70/29/1 77/22/1
----------------------------------------------------------------------
Total 74/23/3 76/21/3
======================================================================
Product Mix by Presentation
(Returnable / Non Returnable)
Expressed as a percentage of total volume
2001 2000
----------------------------------------------------------------------
Mexico 41/59 45/55
Valley of Mexico 40/60 42/58
Southeast 45/55 51/49
Buenos Aires 6/94 10/90
----------------------------------------------------------------------
Total 34/66 38/62
----------------------------------------------------------------------
Selected Information
For the three months ended September 30, 2001
Expressed in Pesos as of September 30, 2001
2001
----------------------------------------------------------------------
Depreciation(a) 188.8
Amortization and others 108.3
Capital Expenditures(b) 249.3
----------------------------------------------------------------------
(a)(Includes good will amortization)
(b)(Includes Bottles and Cases and Deferred Charges)
Sales Volume Information
Expressed in millions of unit cases
2001 2000
----------------------------------------------------------------------
Mexico 122.2 118.0
Valley of Mexico 90.6 87.7
Southeast 31.6 30.3
Buenos Aires 29.7 26.3
----------------------------------------------------------------------
Total 151.9 144.3
======================================================================
Product Mix by Brand
(Colas / Flavors / Water)
Expressed as a percentage of total volume
2001 2000
----------------------------------------------------------------------
Mexico 75/21/4 77/19/4
Valley of Mexico 76/20/4 78/20/2
Southeast 71/23/6 74/20/6
Buenos Aires 71/28/1 79/20/1
----------------------------------------------------------------------
Total 74/23/3 77/20/3
======================================================================
Product Mix by Presentation
(Returnable / Non Returnable)
Expressed as a percentage of total volume
2001 2000
----------------------------------------------------------------------
Mexico 40/60 45/55
Valley of Mexico 39/61 43/57
Southeast 44/56 50/50
Buenos Aires 6/94 10/90
----------------------------------------------------------------------
Total 33/67 39/61
----------------------------------------------------------------------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion