COCA-COLA
femsa
COCA-COLA
femsa
We are Coca-Cola FEMSA, and we are united by:
One vision that unifies our organization under a single vision to become an undisputed total beverage leader with sustainable and profitable growth, focused on creating and fulfilling consumer demand anytime, everywhere.
One platform that ensures our teams work together as a cohesive unit that strives to create sustainable value in collaboration our stakeholders through our everyday decisions and actions.
One future that enables us to evolve together with our consumers and customers to match their ever-changing needs and generate social and environmental wellbeing as our shared purpose.
Underscoring our progress, we successfully deployed strategies across diverse fronts to capitalize on our industry’s potential and to produce positive results in a challenging macroeconomic environment. Among our accomplishments, we achieved outstanding operating benchmarks—delivering high-single digit growth in Brazil, while hitting the 100 million unit case mark in Guatemala. We further captured better than expected synergies from our acquired territories in Guatemala and Uruguay.
Thanks to our ongoing transformation, we are developing the capabilities to win in a world marked by rapid change and technological disruption. Thus, we embarked on our Fuel for Growth strategy to create an even leaner, more agile organization fully focused on our customers and consumers.
This multi-year journey aims to strengthen our organization through new ways of working, strive for efficiency with best-in-class capabilities enabled by digital technology, eliminate redundancy, and ensure our sustainable business growth.
As part of our strategic vision, we’re unifying our organization under one vision to become an undisputed total beverage leader with sustainable, profitable growth—creating and fulfilling consumer demand anytime, anywhere; one platform to ensure our teams work as a cohesive unit to create sustainable value for our company and our stakeholders through their everyday decisions and actions; and one future to maintain our flexibility to evolve together with our consumers and customers to match their ever-changing needs. Our flexibility is key as we continue to strengthen our winning portfolio, transform our operating models, and lead our cultural evolution.
Driven by our obsessive consumer focus, we’re consolidating a winning total beverage portfolio to satisfy their evolving tastes and lifestyles. Capitalizing on brand Coca-Cola, we’re fostering sparkling beverage growth by leveraging portfolio innovation and affordability. We’re also driving our low or no-sugar sparkling beverage portfolio ahead of consumer trends, offering great taste with less sugar across our franchise territories. Exemplified by our multi-tier strategies in Argentina and Brazil and our launch of naturally sourced Topo Chico mineral water in Mexico, we’re amplifying our premium, mainstream, and value water portfolio to establish consistent leadership across this growing category.
We’re improving our competitive position in the still beverage category, underscored by Monster’s market leading growth in Brazil and Uruguay. We’re also accelerating our Santa Clara dairy portfolio’s double-digit growth in Mexico and reenergizing our AdeS plant-based beverage business in Argentina, while expanding this category to Costa Rica and Panama.
As part of our Fuel for Growth journey, we functionalized our transformative finance, supply chain, and human resources operating models to create a leaner, more agile, and collaborative service organization that leverages our company’s scale and shared value opportunities to drive our operations’ sustainable, profitable business growth.
Consistent with our cultural evolution, we’re creating one culture throughout our organization. Underpinned by KOF DNA, we’re building a collaborative customer and consumer-centric culture founded on operational excellence, agile decision-making, an owners’ mentality, and always placing our people first.
Moreover, we’re accelerating our digitally driven business transformation. After rolling out our KOFmmercial digital platform (KDP) across our traditional trade channel, we deployed KDP throughout Brazil and Mexico’s modern trade channel. In Brazil, we further expanded our first mover advantage across food aggregators and digital channels, while piloting our omnichannel order entry capability for our “KOF Edge” business-to-business platform.
Sustainability is one of the foundations upon which we built our holistic corporate strategy. Through value chain synergies and community partnerships, we collected 50% of the bottles that we put into the market, well positioned to achieve our 2030 commitment of collecting 100%. We used 23.5% of recycled materials in our PET packaging, on track to achieve our 2020 goal of 25%. We improved our water use ratio to 1.53 liters of water per liter of beverage produced, on track to achieve our 2020 goal of 1.5 liters. Impressively, 68% of our manufacturing operations’ power comes from clean energy sources, up over seven times the past five years.
Guided by our holistic strategic framework, we navigated a challenging macroeconomic environment to deliver positive results for the year. Our total sales volume increased x.x% to x.xx billion unit cases, with transactions growing x.x% to xx.x billion. Total revenues grew x.x% to Ps. xxx.x billion. Operating income grew xx.x% to Ps. xx.x billion. Operating cash flow grew xx.x% to Ps. xx.x billion. Importantly, controlling net income reached Ps. xx.x billion for earnings per share of Ps. x.xx and per unit of Ps. x.xx (Ps. xx.xx per ADS).
Our resilient Mexico operation achieved strong top-line growth, despite uncertain macroeconomic conditions. Our portfolio innovation, affordability, and commercial initiatives enabled us to generate price-mix improvements and deliver xx% revenue growth, while our ability to drive cost and expense efficiencies resulted in margin expansion.
In Central America, we delivered solid top-line growth, driven mainly by the strong performance of our Guatemala and Costa Rica operations. Our ability to capture synergies from new territories, expanded distribution platform, and improved point-of-sale execution enabled us to achieve outstanding volume growth in Guatemala.
Despite slow macroeconomic growth, our Brazilian operation continued its impressive turnaround, generating strong volumes that built on two years of continuous growth. Importantly, this growth is leading to market share gains across our key beverage categories, driven by our relentless consumer focus, robust portfolio, and point-of-sale execution.
After a complicated start to the year, we’re encouraged by our Colombian operation’s turnaround over the second half of 2019, driven by our efficiency, coverage, and portfolio initiatives. In Argentina, we adapted our portfolio to remain close to our consumers, driven by our affordability strategy. Similarly, in Venezuela, we reengaged our consumers through our launch of affordable multi-serve presentations.
Finally, we seamlessly consolidated our Uruguay operation. Beyond exceeding our estimated synergies, we improved our volumes and margins, driven by increased production efficiency and market share gains in the sparkling and still beverage categories.
Moving forward, our overarching strategic priority is to become the best option for our customers and consumers in all of our markets—creating and fulfilling their demand anytime, everywhere.
On behalf of our employees, we thank you for your continued confidence in our ability to deliver economic value and to generate social and environmental wellbeing for you all.
Click here to see each country info
* As of December 31, 2017, Venezuela is reported as an investment in shares, as a non-consolidated operation.
Me parum ius volorporerio verferor as et aut iligenissi consediosam veles volest, corrum sequis audit es endae dolo omnimossus. Ipicitia et laboriaernam harum fugias eation cor mo eum quid quame et porepero iust qui ommo blatur, consequam alibeaqui vel ius sin reris eium que vel ipsusan tiandae nulpa nobita sit laudaesci utam ex et poreperum consendelent pero et ilit asperferempe moluption estem is el iumquiatur.
Volorerspiet ut iur soloressini od est quossitia voluptatur os dolestiore, int quibea issitas ut aliqui reicimus adio. Nemporeped undae essNam nam ium volor sam es eoste quiam consequi si tempor renihit, quam, inciam vel magnat.
population served
points of sale
centers
2,589
volume*
16,068
transactions*
518
volume*
1,690
transactions*
214
volume*
1,968
transactions*
Click on the highlighted
countries to see the info
INGREDIENTS
We work with our suppliers to have the best raw materials, sweeteners and packaging materials. And we are committed to efficient water use and conservation.
digitally driven
operating models
Me parum ius volorporerio verferor as et aut iligenissi consediosam veles volest, corrum sequis audit es endae dolo omnimossus. Ipicitia et laboriaernam harum fugias eation cor mo eum quid quame et porepero iust qui ommo blatur, consequam alibeaqui vel ius sin reris eium que vel ipsusan tiandae nulpa nobita sit laudaesci utam ex et poreperum consendelent pero et ilit asperferempe moluption estem is el iumquiatur.
Volorerspiet ut iur soloressini od est quossitia voluptatur os dolestiore, int quibea issitas ut aliqui reicimus adio. Nemporeped undae essNam nam ium volor sam es eoste quiam consequi si tempor renihit, quam, inciam vel magnat.
We continue to develop our innovative portfolio of still, sparkling, and flavored bottled water to rehydrate our consumers throughout their day.
4.8%
volume growth in our personal water category year over year
We reinforced our leadership position in the water category. To complement our personal water portfolio, we launched Dasani Fruit in our 600-ml PET presentation, coupled with Dasani mainstream water in our 355-ml.
We implemented a three-tier strategy to differentiate our brands and better compete in the value, mainstream, and premium water segments.
Through our 360° strategic plan, we strengthened our personal water portfolio while becoming a more robust player in this big beverage category In the natural water segment, we achieved a major turnaround in our performance, significantly expanding our market share this year.
We reinforced our leadership position Consistent with our water strategy, we undertook a three-tier approach during the year. In the mainstream water segment, we focused on expanding the coverage of our Crystal brand 500-ml PET single-serve and 1.5-liter PET.
We continue to develop our innovative portfolio of still, sparkling, and flavored bottled water to rehydrate our consumers throughout their day.
3.2%
volume growth in our personal water category year over year
We reinforced our leadership position in the water category. To complement our personal water portfolio, we launched Dasani Fruit in our 600-ml PET presentation, coupled with Dasani mainstream water in our 355-ml.
We implemented a three-tier strategy to differentiate our brands and better compete in the value, mainstream, and premium water segments.
Through our 360° strategic plan, we strengthened our personal water portfolio while becoming a more robust player in this big beverage category In the natural water segment, we achieved a major turnaround in our performance, significantly expanding our market share this year.
We reinforced our leadership position Consistent with our water strategy, we undertook a three-tier approach during the year. In the mainstream water segment, we focused on expanding the coverage of our Crystal brand 500-ml PET single-serve and 1.5-liter PET.
We continue to develop our innovative portfolio of still, sparkling, and flavored bottled water to rehydrate our consumers throughout their day.
2.4%
volume growth in our personal water category year over year
We reinforced our leadership position in the water category. To complement our personal water portfolio, we launched Dasani Fruit in our 600-ml PET presentation, coupled with Dasani mainstream water in our 355-ml.
We implemented a three-tier strategy to differentiate our brands and better compete in the value, mainstream, and premium water segments.
Through our 360° strategic plan, we strengthened our personal water portfolio while becoming a more robust player in this big beverage category In the natural water segment, we achieved a major turnaround in our performance, significantly expanding our market share this year.
We reinforced our leadership position Consistent with our water strategy, we undertook a three-tier approach during the year. In the mainstream water segment, we focused on expanding the coverage of our Crystal brand 500-ml PET single-serve and 1.5-liter PET.
We continue to develop our innovative portfolio of still, sparkling, and flavored bottled water to rehydrate our consumers throughout their day.
1.5%
volume growth in our personal water category year over year
We reinforced our leadership position in the water category. To complement our personal water portfolio, we launched Dasani Fruit in our 600-ml PET presentation, coupled with Dasani mainstream water in our 355-ml.
We implemented a three-tier strategy to differentiate our brands and better compete in the value, mainstream, and premium water segments.
Through our 360° strategic plan, we strengthened our personal water portfolio while becoming a more robust player in this big beverage category In the natural water segment, we achieved a major turnaround in our performance, significantly expanding our market share this year.
We reinforced our leadership position Consistent with our water strategy, we undertook a three-tier approach during the year. In the mainstream water segment, we focused on expanding the coverage of our Crystal brand 500-ml PET single-serve and 1.5-liter PET.
Me parum ius volorporerio verferor as et aut iligenissi consediosam veles volest, corrum sequis audit es endae dolo omnimossus. Ipicitia et laboriaernam harum fugias eation cor mo eum quid quame et porepero iust qui ommo blatur, consequam alibeaqui vel ius sin reris eium que vel ipsusan tiandae nulpa nobita sit laudaesci utam ex et poreperum consendelent pero et ilit asperferempe moluption estem is el iumquiatur.
Volorerspiet ut iur soloressini od est quossitia voluptatur os dolestiore, int quibea issitas ut aliqui reicimus adio. Nemporeped undae essNam nam ium volor sam es eoste quiam consequi si tempor renihit, quam, inciam vel magnat.
| 2018 | 2018 | 2017 | % change | |
| Sales volume (million unit cases) |
3,321.8 | 3,321.8 | 3,321.8 | 0.1% |
|---|---|---|---|---|
| Total Revenues | 9,287 | 182,342 | 183,256 | -0.5% |
| Income from Operations | 1,257 | 24,673 | 24,996 | -1.3% |
| Controlling Interest Net Income3 | 708 | 13,911 | -12,802 | NA |
| Total Assets | 13,435 | 263,787 | 285,677 | -7.7% |
| Long-Term Bank Loans and Notes Payable | 3,575 | 70,201 | 71,189 | -1.4% |
| Controlling Interest | 6,363 | 124,943 | 122,569 | 1.9% |
| Capital Expenditures | 564 | 11,069 | 12,917 | -14.3% |
| Book value per share4 | 3.03 | 59.47 | 58.34 | 1.9% |
Our people and the way they work together are our company’s most valuable assets. Accordingly, we encourage the comprehensive professional and personal development of our people, while creating an inclusive, diverse, and safe work environment. Through our continuous talent management and development, we promote trust, transparency, and teamwork, prepare our next generation of leaders, advance meritocracy, recognize and celebrate our teams’ success, while providing them with honest, regular feedback. In this way, we look to attract, retain, and develop the best multicultural talent to ensure our sustainable success.
Our communities and other stakeholders are key enablers of our business success. Accordingly, we are committed to creating economic, environmental, and social value by encouraging dialogue and continuous interaction with our neighbors and stakeholders in order to develop and implement programs and initiatives that address their particular needs and guarantee the continuity of our social license to operate.
Our communities and other stakeholders are key enablers of our business success. Accordingly, we are committed to creating economic, environmental, and social value by encouraging dialogue and continuous interaction with our neighbors and stakeholders in order to develop and implement programs and initiatives that address their particular needs and guarantee the continuity of our social license to operate.
Our financial and operating discipline, strong capital structure and financial flexibility, transformational digital initiatives, and adaptability to changing market dynamics enable us to capture organic and inorganic growth opportunities in our industry, while creating sustainable value for our investors.
We are accelerating our digitally driven business transformation throughout our value chain. We are further capturing the insights from our powerful analytical platform to develop tailored business models. By building our critical capabilities, we are creating a stronger, more agile, and flexible organization to drive our competitiveness, proactively address industry challenges, capitalize on market opportunities, and foster intellectual development across our organization.
We are accelerating our digitally driven business transformation throughout our value chain. We are further capturing the insights from our powerful analytical platform to develop tailored business models. By building our critical capabilities, we are creating a stronger, more agile, and flexible organization to drive our competitiveness, proactively address industry challenges, capitalize on market opportunities, and foster intellectual development across our organization.
Our people and the way they work together are our company’s most valuable assets. Accordingly, we encourage the comprehensive professional and personal development of our people, while creating an inclusive, diverse, and safe work environment. Through our continuous talent management and development, we promote trust, transparency, and teamwork, prepare our next generation of leaders, advance meritocracy, recognize and celebrate our teams’ success, while providing them with honest, regular feedback. In this way, we look to attract, retain, and develop the best multicultural talent to ensure our sustainable success.
Our business is committed to the responsible use of our natural resources. As the main ingredient in our beverages, our comprehensive water strategy focuses on ensuring efficient water management in our operations, facilitating access to safe water and sanitation in our communities, and implementing water conservation and replenishment projects to protect the environment. We also work to increase energy efficiency across our value chain, while integrating clean and renewable energy to reduce our carbon emissions. Aligned with The Coca-Cola Company’s “World Without Waste” global initiative, we continue to focus on comprehensive and responsible waste management, increase our use of recycled materials in our packaging, and participate in schemes and models that support post-consumption collection and recycling.
Our communities and other stakeholders are key enablers of our business success. Accordingly, we are committed to creating economic, environmental, and social value by encouraging dialogue and continuous interaction with our neighbors and stakeholders in order to develop and implement programs and initiatives that address their particular needs and guarantee the continuity of our social license to operate.
Our financial and operating discipline, strong capital structure and financial flexibility, transformational digital initiatives, and adaptability to changing market dynamics enable us to capture organic and inorganic growth opportunities in our industry, while creating sustainable value for our investors.
We are accelerating our digitally driven business transformation throughout our value chain. We are further capturing the insights from our powerful analytical platform to develop tailored business models. By building our critical capabilities, we are creating a stronger, more agile, and flexible organization to drive our competitiveness, proactively address industry challenges, capitalize on market opportunities, and foster intellectual development across our organization.
Our highly experienced team of specialists operate 49 bottling plants and 275 distribution centers across 9 countries, deliver approximately 3.3 billion unit cases of beverages through a primary and secondary fleet of more than 11,000 trucks to 2.0 million points of sale and serve a population of 257 million people.