Coca-Cola FEMSA, S.A.B. de C.V. (KOF) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 26, 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 Second Quarter 2022 Conference Call. As a reminder, today's conference is being recorded and all participants are in a 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 current 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 like to turn the conference over to Jorge Collazo, Coca-Cola Femsa’s Investor Relations Director. Please go ahead.

Jorge Collazo

Good morning, everyone. Thank for joining us today to discuss our second quarter 2022 results. Our earnings release was published yesterday and is available in the Investor Relations section of our website.

Joining us today is Constantino Spas, our Chief Financial Officer who will conduct today’s call. Due to a conferencing agenda John Santa Maria, our Chief Executive Officer will not be able to join us today. We look forward to having him back for our third quarter earnings call next October. As usual, following prepared remarks, we will open the call up to take your questions.

With that, I’ll hand the call over to Constantino.

Constantino Spas

Good morning, everyone. We thank you for joining us today. Let me begin by saying that we are very pleased to report a solid set of second quarter results. We continue building on our positive momentum with strong volume performance across our territories. This solid volume growth, coupled with our pricing initiatives and mix recovery resulted in an impressive 19.9% top-line growth, while our operating cash flow increased by 6%.

Additionally, when adjusting for the extraordinary one-time effects we recognized in 2021 related to tax credits in Brazil, our operating cash flow margin remained virtually flat. This reflects the resilience of our company and our team’s outstanding ability to substantially mitigate margin pressures in the phase of increasing input cost inflation.

As we will discuss, during the quarter, we continue to executing against our key strategic initiatives. We continue accelerating the rollout of our omni-channel digital platform and developing a consumer-centric winning portfolio, specially focused on innovation and affordability. Together with the Coca-Cola Company, we continue executing against ambitious growth plans bolstering execution and investments across our markets.