Q2 2024 Coca-Cola Femsa SAB de CV Earnings Call Transcript
Key Points
- Coca-Cola Femsa SAB de CV (KOF) reported a 7.5% year-on-year increase in consolidated volumes, driven by strong performance in Mexico, Brazil, Guatemala, and Central America South Territories.
- The company achieved double-digit top and bottom-line growth, with total revenues for the quarter growing 13.1% to MXN69.5 billion.
- Gross profit increased by 17.2% to MXN32 billion, leading to a margin expansion of 160 basis points to 46%, driven by solid top-line performance and favorable packaging costs.
- Adjusted EBITDA for the quarter increased 21.7% to MXN13.9 billion, with an EBITDA margin expansion of 140 basis points to 20%.
- The rollout of the Juntos+ app in Mexico and Brazil has digitized more than 50% of the customer base, enhancing customer engagement and sales efficiency.
- The company faced challenges due to unprecedented flooding in Rio Grande do Sul, Brazil, which led to operational disruptions and extraordinary expenses.
- Volume declines were reported in Argentina and Uruguay, with Argentina experiencing a 9.9% decrease due to a 31% contraction in disposable income.
- The depreciation of the Brazilian real and Argentine peso negatively impacted revenue growth when translated into Mexican pesos.
- Higher sweetener costs and the significant depreciation of the Argentine peso posed challenges to maintaining cost efficiencies.
- Capacity constraints in Mexico led to stockouts, limiting share recovery efforts despite strong demand.
Good day, and welcome to today's Coca-Cola FEMSA Second Quarter 2024 conference call. Throughout today's presentation, all participants will be in a listen only mode. (Operator Instructions) And now, I'd like to hand the call over to your host, Jorge Collazo. Please go ahead, sir.
Thank you. Good morning, everyone. Welcome to this webcast and conference call to review our second quarter 2024 results. Joining me this morning are Ian Craig, our Chief Executive Officer, and Gerardo Cruz, our Chief Financial Officer. As usual, after prepared remarks, we will open the call for a question-and-answer session.
Before we proceed, please allow me to remind all participants that this conference call may include forward looking statements and should be considered good faith estimates made by the company. 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 can
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