Revenues and operating flow (EBITDA) of Coca-Cola FEMSA (KOF), the largest bottler of Coca-Cola products, increased 12 and 7.1%, respectively, in the first quarter of 2023, compared to the same quarter of last year .
The results reflected a rise in sales of 6.6%, which, according to Monex analysts, “confirms our vision of attractive consumption at the beginning of the year, despite the persistent inflationary environment.
In its report to the Mexican Stock Exchange (BMV), KOF reported that its operating margin was 13.5%, a level that implied a slight expansion of 10 basis points (bps) compared to the same quarter of 2022, which it considers a Increase in costs for raw materials (mainly sweeteners and PET) in a lower proportion of sales, with an environment of higher expenses with respect to income.
For Monex analysts, the report was positive, “since at this start of the year growth inertia is maintained with consumption facing a high global inflationary environment.”
KOF revenues increased to 57,357 million pesos, primarily driven by volume growth, revenue optimization initiatives, and favorable mix effects. These factors were offset by unfavorable currency translation effects to Mexican pesos. On a comparable basis, total revenues would have increased 21.7 percent.
KOF suffered a foreign exchange loss of 640 million pesos compared to a gain of 165 million pesos in the same period of 2020, as its net cash exposure in dollars was affected by the appreciation of the Mexican peso and the Brazilian real.
