Coca-Cola FEMSA, S.A.B. de C.V. (KOF) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 25, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, everyone, and welcome to Coca-Cola FEMSA's Third Quarter 2022 Conference Call. As a reminder, today's conference is being recorded and all participants are on listen-only mode.

At the request of the company, we will open the conference up for questions-and-answers after the presentation. During this conference call, management may discuss certain forward-looking statements concerning Coca-Cola FEMSA's future performance and should be considered as good faith estimates made by the company.

These forward-looking statements reflect management's expectations and are based on currently available data. Actual results are subject to future events and uncertainties, which can materially impact the company's actual performance.

At this time, I would now turn the conference over to John Santa Maria, Coca-Cola FEMSA’s, Chief Executive Officer. Please go ahead Mr. Santa Maria.

John Santa Maria

Thank you very much. Good morning, everyone. Thank you for joining us today to discuss Coca-Cola FEMSA’s Third Quarter 2022 results.

With me on the call today are Constantino Spas, our Chief Financial Officer and Jorge Collazo, Investor Relations Director.

It is a very important moment for our company. We are operating with momentum. We accelerated our digitalization and cultural transformation, and we continue making substantial progress towards our key long term strategic objectives.

For the quarter, despite the uncertain and volatile environment affecting industries worldwide, our business delivered solid volume growth, coupled with double digit growth in our revenues, property incomes and earnings per share.

Our strong momentum is underscored by the consistently healthy volume performance across all of our territories. While we continue to substantially mitigate margin pressures, we remain driven by increased input costs. Notably, our operating margin expanded by 70 basis points in an adjustment for extraordinary one-time effects with record volume during the previous year.

Additionally, we continue leveraging the strength of our enhanced cooperation framework with the Coca-Cola Company; operating with improved alignment to increase investment in the market, explore new revenue streams, and significantly advance the roll-out of our digital strategy.

During the call today I will review the results of this quarter, and then reflect on the highlights of the significant transformation that our business has experienced over the past five years. This transformation is enabling us to capture opportunities today, while ideally positioning Coca-Cola FEMSA to continue capturing the many opportunities that are in front of us for many years to come.