Financial Risks - As of December 31, 2024, approximately 28.6% of the company's total debt was variable rate funding, which could increase costs if interest rates rise[1] - Argentina's cumulative inflation over the past three years exceeded 100.0%, categorizing it as a hyperinflationary economy, which may adversely affect the company's financial position[2] - Depreciation of local currencies relative to the U.S. dollar increases costs for raw materials and debt obligations, negatively impacting financial results[3] - Significant fluctuations in local currencies may continue to affect the company's results and financial condition[4] Political and Social Risks - Political and social events, including upcoming elections in 2024 and 2025 in several countries, may introduce risks associated with changes in government and public policies[5] - Recent constitutional reforms in Mexico could create operational risks and affect the company's ability to conduct business[6] - The new U.S. administration's policies may lead to economic slowdown and increased operational costs, impacting demand for the company's products[7] Market and Economic Influences - The market value of the company's securities may be influenced by economic conditions in other countries, including the ongoing military conflict involving Russia and Ukraine[8] Equity and Capital Concerns - Holders of units and ADSs in the U.S. may face dilution of equity interests due to restrictions on preemptive rights in capital offerings[9] - The company may not file a registration statement with the SEC, limiting U.S. holders' ability to participate in future capital increases[10]

Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) Q3 2024 Earnings Conference Call October 25, 2024 11:00 AM ET Company Participants Jorge Collazo - Investor Relations Director Ian Craig - Chief Executive Officer Gerardo Cruz - Chief Financial Officer Conference Call Participants Felipe Ucros - Scotiabank Alejandro Fuchs - Itau Lucas Ferreira - JPMorgan Ben Theurer - Barclays Fernando Olvera - Bank of America Lucas Mussi - Morgan Stanley Antonio Hernandez - Actinver Ulises Argote - Santander Operator Hello, and we ...

Financial Data and Key Metrics Changes - Consolidated volumes increased by 7.5% year-on-year, with total revenues growing by 13.1% to reach MXN69.5 billion [31][32] - Operating income rose by 13.8% to MXN9.7 billion, with an operating margin of 14% [10][12] - Adjusted EBITDA increased by 21.7% to MXN13.9 billion, with an EBITDA margin expanding by 148 basis points to 20% [11] - Majority net income increased by 13.8% to MXN5.6 billion, driven by operating income growth and a decrease in comprehensive financing results [12] Business Line Data and Key Metrics Changes - Sparkling beverage volumes grew by 6.8%, primarily driven by a 7.8% growth in brand Coca-Cola [9] - Still beverages and bottled water saw growth of 13.2% and 13.4%, respectively [9] - In Mexico, volumes increased by 7.9%, reaching 600 million unit cases for the first time [13] - In Central America, volumes increased by 6.2%, with notable growth in energy drinks [36] Market Data and Key Metrics Changes - Brazil experienced a solid volume increase of 12.1%, despite challenges from flooding [40] - Volume in South America increased by 6.5%, driven by double-digit growth in Brazil, offset by declines in Argentina and Uruguay [44] - In Argentina, volumes declined by 9.9% due to a 31% contraction in disposable income [53] Company Strategy and Development Direction - The company is focused on becoming the preferred commercial platform for customers through initiatives like Juntos+ [7] - Plans to add seven new bottling lines across various countries to increase capacity by 15% over three years [50][129] - The company aims to maintain a balanced pricing strategy while focusing on sustainable growth and revenue per unit case [116] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the consumer environment across most markets, despite challenges in specific regions [42] - The company anticipates a gradual recovery in disposable income and controlled inflation, which should positively impact consumer sentiment [41] - Management remains optimistic about the second half of the year, maintaining a mid-single-digit volume growth outlook [63] Other Important Information - The company faced extraordinary expenses due to flooding in Brazil, impacting operations but also leading to community support initiatives [19][29] - A non-cash operating foreign exchange loss of approximately MXN400 million was recorded due to the depreciation of the Mexican peso [10][12] Q&A Session Summary Question: Volume outlook for the remainder of the year - Management maintains a mid-single-digit volume growth outlook for the full year, expressing optimism for the second half [63] Question: Market share performance in key markets - In Mexico, supply chain shortages have impacted market share, while Brazil has shown positive trends overall, despite recent losses in Rio Grande do Sul [64] Question: Impact of Juntos+ on volume growth - Juntos+ has positively influenced the number of SKUs purchased and the average ticket per transaction, contributing to overall volume growth [85][88] Question: Pricing strategy in the current environment - The company aims to maintain a balanced pricing strategy aligned with inflation while focusing on sustainable growth [116] Question: Cost outlook and hedging strategies - The company has hedged over 60% of its exposure to dollarized raw materials for 2024, providing certainty for operations [97] Question: Consumer behavior in Argentina - Management noted a shift towards returnable packaging in Argentina as consumers face economic challenges, but they remain optimistic about recovery [117]

Group 1 - The stock of Coca-Cola FEMSA, S.A.B. de C.V. (KOF) is experiencing significant attention due to high implied volatility in the options market, particularly the Aug 16, 2024 $80.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Coca-Cola FEMSA's stock price, potentially due to an upcoming event [2] - Currently, Coca-Cola FEMSA holds a Zacks Rank 3 (Hold) in the Beverages - Soft drinks industry, which is in the top 24% of the Zacks Industry Rank, with no analysts increasing earnings estimates for the current quarter and one analyst revising estimates downward [3] Group 2 - The high implied volatility surrounding Coca-Cola FEMSA could indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Operator Hi, Fernando. How are you? It's Jorge. Regarding your first question, I would say, April pretty much a continuation of the performance we have seen, which is encouraging. Obviously, giving inter-month performance is challenging. We have information for a little over 20 days. But so far, we haven't seen any significant changes to what the quarter was. So, we continue to see positive performance. The plans that we are executing across our territories are coming along well. So we see nothing really to ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

As filed with the Securities and Exchange Commission on April 12, 2024. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Commission file number 1-12260 Coca-Cola FEMSA, S.A.B. de C.V. (Exact name of registrant as specified in its charter) Not Applicable (Translation of registrant's name into English) United Mexican States (Jurisdiction of incorporation or o ...

Financial Data and Key Metrics Changes - Total revenues for the quarter grew 8% to MXN 66.1 billion, driven mainly by solid volume growth that offset unfavorable currency translation headwinds [34] - Full year top line reached MXN 245.1 billion, operating income of MXN 34.2 billion, and adjusted EBITDA of MXN 46.4 billion, representing new benchmarks for the company [35] - Majority net income declined 24.5% to MXN 5.4 billion, primarily due to a base effect of a lower effective tax rate during the same period of the previous year [50] Business Line Data and Key Metrics Changes - Sparkling beverage volumes grew 4.6%, with brand Coca-Cola achieving 6.2% growth, while still beverages grew 7.8% and bottled water grew 10.3% [34] - In Mexico, volumes increased 8.7%, reaching 2.05 billion unit cases, a historic record for the operation [51] - In South America, volumes for the quarter increased 6.2% to 475 million unit cases, with Brazil and Colombia showing strong performance [59] Market Data and Key Metrics Changes - The modern channel in Mexico is experiencing aggressive growth, while the traditional channel also grew 5.3% year-on-year [3] - In Brazil, Coca-Cola Zero Sugar grew 28% versus the previous year, and energy drinks grew 19% [28] - The macroeconomic backdrop in Mexico remains favorable, with a record of 22.1 million jobs and a 10.4% increase in average base salary [51] Company Strategy and Development Direction - The company is focusing on a sustainable growth model, moving away from aggressive pricing strategies and aiming for reasonable pricing dynamics [2] - Investments in digital platforms like Juntos+ are part of a broader strategy to enhance customer experience and operational efficiency [17] - The company plans to increase manufacturing capacity by 15% and distribution capacity by around 30% over the next three years [98] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about short-term momentum across markets, particularly in Mexico, with expectations for mid-single-digit volume growth [72] - The company is navigating a dynamic environment in Colombia, achieving record volume growth while expanding its customer base [45] - Management acknowledged challenges in Argentina but remains confident in the team's ability to execute the strategy [55] Other Important Information - The company invested a record CapEx of MXN 21.4 billion, representing 8.7% of revenues, to support growth ambitions [35] - Adjusted EBITDA for the quarter increased 10% to reach MXN 13.1 billion, with EBITDA margin expanding 40 basis points to reach 19.9% [49] - The rollout of Juntos+ version 4.0 is expected to enhance customer experience with advanced AI capabilities [47] Q&A Session Summary Question: What is the outlook on volume mainly in markets like Mexico and Brazil? - Management expressed optimism about the outlook in both Mexico and Brazil, citing strong demand and favorable weather conditions [5] Question: Can you comment on the pricing discipline and pressure across markets? - Management stated that they are focusing on sustainable growth and have not faced issues with pricing dynamics [2] Question: How is the digital platform Juntos+ performing? - The digital platform has seen impressive growth, with more than 512,000 monthly active purchasers, and the rollout of version 4.0 is expected to improve customer experience [27][47] Question: What are the expectations for CapEx in 2024? - Management indicated that CapEx as a percentage of sales is expected to remain between 8% to 9% until 2026, supporting growth and addressing capacity limitations [21] Question: How is the competitive landscape in Mexico affecting market share? - Management noted positive share performance across nearly all nonalcoholic ready-to-drink categories, indicating a successful strategy against competitors [52]

Thank you. Our next question comes from Alvaro Garcia of BTG Pactual. Please go ahead. And then my second question would be, I guess, for Ian or whoever you want to take it on back to Mexico, and back to the very impressive volume performance? And I guess, just a very simple question of with this COK System decision, both in Mexico and in Brazil, or was this a KOF specific decision to really emphasize volumes? Thank you. Alvaro Garcia Thank you. Our next question comes from Carlos Laboy of HSBC. So all of t ...

Financial Data and Key Metrics Changes - Consolidated total revenues grew 7.2% to reach MXN 61.4 billion, driven mainly by volume growth, with a 16.9% increase when excluding currency translation effects [6][31] - Operating income increased 11.9% to MXN 8.6 billion, with an operating margin expansion of 50 basis points [7] - EBITDA grew 7.8% to MXN 11.4 billion, resulting in an EBITDA margin of 18.6% [7][58] - Controlling net income increased 6.5% to MXN 4.9 billion, with earnings per share of MXN 0.29 [31] Business Line Data and Key Metrics Changes - Sparkling beverage volumes grew 4%, while the non-caloric portfolio, led by Coca Cola Sin Azúca, grew 14.3% [6][8] - In Mexico and Central America, volumes increased 8.9%, while excluding the integration of Cristal's bulk water business, volumes increased 6.6% [12] - South America division revenues declined 2.2% due to unfavorable currency translation effects, but comparable total revenues increased 20.3% when excluding these effects [14] Market Data and Key Metrics Changes - Volume growth was driven mainly by solid performance in key markets such as Mexico, Brazil, and Guatemala [5][19] - In Guatemala, volumes consistently grew in double digits, with over 9,000 new clients added [9] - Brazil's non-caloric portfolio grew 32%, with energy and water categories consolidating market leadership [53] Company Strategy and Development Direction - The company is investing significantly in digital capacity and technology to become the preferred B2B platform in its market [4] - Strategic priorities have been set to accelerate growth in core business and improve customer experience [4][55] - The company aims for sustainable growth and plans to price in line with inflation to recover competitiveness [113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving objectives for 2023, with positive momentum entering the second half of the year [10][11] - The competitive position in Mexico is stabilizing, with expectations of slight gains by year-end [36] - Management remains bullish on growth prospects in Colombia and Guatemala, despite macroeconomic challenges [38] Other Important Information - The company achieved over $1 billion in digital sales in the first half of the year, with Mexico contributing approximately $360 million [52][103] - The Juntos+ platform has seen significant uptake, with about 30% of orders in traditional trade now digital [8][89] Q&A Session All Questions and Answers Question: Can you discuss the impressive growth in Guatemala and what strategies are being implemented? - Management highlighted that Guatemala is a profitable market with double-digit growth, focusing on fundamentals and expanding infrastructure to meet demand [9][66] Question: What is the outlook for demand in Mexico, especially regarding the impact of peso appreciation? - Management reported strong volume growth in Mexico, with no signs of slowdown, and positive inflows due to nearshoring [44] Question: How is the Juntos+ platform improving customer experience? - The platform allows clients to place orders at their convenience, leading to larger order sizes and increased frequency [49][134] Question: What are the synergies being explored with FEMSA? - Management mentioned collaboration on the Juntos+ platform and loyalty programs, aiming to enhance customer engagement [45][138] Question: How is the company managing labor expenses and their impact on margins? - Management acknowledged rising labor costs but emphasized maintaining competitive pricing and operational efficiencies [127]