Coca-Cola Femsa SAB de CV (KOF) Q3 2024 Earnings Call Highlights: Strong Revenue Growth Amid ...

GuruFocus.com10-26

Revenue: Increased 10.7% to MXN69.6 billion. Gross Profit: Increased 11.3% to MXN32.1 billion, with a margin expansion of 20 basis points to 46.1%. Operating Income: Increased 13.9% to MXN9.6 billion,...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoca-Cola Femsa SAB de CV (KOF) Q3 2024 Earnings Call Highlights: Strong Revenue Growth Amid ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-26 15:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/coca-cola-femsa-sab-cv-070814757.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: Increased 10.7% to MXN69.6 billion.\nGross Profit: Increased 11.3% to MXN32.1 billion, with a margin expansion of 20 basis points to 46.1%.\nOperating Income: Increased 13.9% to MXN9.6 billion,...</p>\n\n<a href=\"https://finance.yahoo.com/news/coca-cola-femsa-sab-cv-070814757.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KOF","symbol_name":"可口可乐凡萨瓶装","start_time":0,"source_url":"https://finance.yahoo.com/news/coca-cola-femsa-sab-cv-070814757.html","article_id":"2478945177","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Xj4zXIdGvqfeBFZy4OnKOw--~B/aD0xMjY7dz0yMjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/65173987656f6f9640f6374d6409b3a0"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2478945177","pubTimestamp":1729926494,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Gross Profit: Increased 11.3% to MXN32.1 billion, with a margin expansion of 20 basis points to 46.1%.Operating Income: Increased 13.9% to MXN9.6 billion, with a margin expansion of 30 basis points to 13.8%.Adjusted EBITDA: Increased 18.4% to MXN14 billion, with a margin expansion of 130 basis points to 20.1%.Majority Net Income: Increased 8.9% to MXN5.9 billion.Volume Growth: Consolidated volumes increased 0.8% to 1.04 billion unit cases.Mexico and Central America Revenue: Increased 9.6% to MXN42.5 billion.South America Revenue: Increased 13.6% to MXN27.1 billion.Insurance Claim Recovery: MXN340 million favorable effect included in operating income.GuruFocus has detected 3 Warning Sign with KOF.Coca-Cola Femsa SAB de CV  reported double-digit growth in revenues and operating income year-on-year, demonstrating resilience despite unfavorable weather conditions in Mexico.The company successfully expanded its digital platform, Juntos-plus, reaching 1.2 million active users, with 56% of th","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"KOF":"可口可乐凡萨瓶装","KO":"可口可乐"},"translate_title":"可口可乐Femsa SAB de CV(KOF)2024年第三季度收益看涨期权亮点：收入强劲增长...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KOF":1,"KO":0.7},"content_text":"Revenue: Increased 10.7% to MXN69.6 billion.\nGross Profit: Increased 11.3% to MXN32.1 billion, with a margin expansion of 20 basis points to 46.1%.\nOperating Income: Increased 13.9% to MXN9.6 billion, with a margin expansion of 30 basis points to 13.8%.\nAdjusted EBITDA: Increased 18.4% to MXN14 billion, with a margin expansion of 130 basis points to 20.1%.\nMajority Net Income: Increased 8.9% to MXN5.9 billion.\nVolume Growth: Consolidated volumes increased 0.8% to 1.04 billion unit cases.\nMexico and Central America Revenue: Increased 9.6% to MXN42.5 billion.\nSouth America Revenue: Increased 13.6% to MXN27.1 billion.\nInsurance Claim Recovery: MXN340 million favorable effect included in operating income.\n\n\nWarning! GuruFocus has detected 3 Warning Sign with KOF.\n\nRelease Date: October 25, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nCoca-Cola Femsa SAB de CV (NYSE:KOF) reported double-digit growth in revenues and operating income year-on-year, demonstrating resilience despite unfavorable weather conditions in Mexico.\nThe company successfully expanded its digital platform, Juntos-plus, reaching 1.2 million active users, with 56% of the customer base now digital buyers.\nKOF's loyalty program, Premier Juntos-plus, saw a 21% increase in enrolled clients, reaching over 920,000.\nGross profit increased by 11.3%, driven by top-line growth, easing raw material costs, and favorable hedging strategies.\nAdjusted EBITDA for the quarter increased by 18.4%, with a margin expansion of 130 basis points to 20.1%.\n\n Negative Points \n\nVolume growth was modest at 0.8%, with declines in Mexico, Colombia, and Uruguay offsetting gains in Brazil, Guatemala, and Central America.\nThe company faced increased fixed costs and the depreciation of the Argentine peso, which partially offset gross profit gains.\nOperating income growth was impacted by higher operating expenses, including labor, marketing, freight, and maintenance.\nThe closure of the Portalegre plant in Brazil led to increased costs due to sourcing products from other bottlers, affecting profitability.\nIn Colombia, consumer confidence and household expenditures declined, leading to a 4% contraction in volumes year-on-year.\n\n Q & A Highlights \nQ: Can you provide an update on the impact of the Portalegre plant closure in Brazil and expectations for next year? A: The plant closure impacted us by MXN200 million this quarter due to increased freight and maintenance costs. We expect the fourth quarter to be more challenging due to high season demand. The plant is expected to resume full operations in the first quarter of next year, which should improve profitability. Insurance claims are in process and should cover most expenses. (Ian Marcel Craig Garcia, CEO)\nQ: How is the Juntos-plus platform affecting your pricing strategy and customer engagement? A: Juntos-plus, with its advanced AI capabilities, allows us to tailor promotions and pricing at the client level, enhancing our revenue management. This has improved our competitive position and pricing strategies, particularly in Mexico, where digital orders now represent over 40% of total orders. (Gerardo Cruz Gelaya, CFO)\nQ: What are the main factors affecting gross margins in South America, and what is the outlook? A: Gross margin contraction in South America was due to increased sweetener costs, promotional activities in Colombia, and currency depreciation in Argentina. These are short-term effects, and we expect a more favorable raw material environment and stable currency conditions moving forward. (Ian Marcel Craig Garcia, CEO)\nQ: Can you elaborate on the volume decline in Mexico and the outlook for consumption? A: The volume decline in Mexico was influenced by increased rainfall and economic activity slowdown. Despite this, we remain optimistic about medium-term growth due to infrastructure projects and social programs boosting disposable income. (Ian Marcel Craig Garcia, CEO)\nQ: How is Coca-Cola Zero performing across your markets, and what is its potential? A: Coca-Cola Zero is performing exceptionally well in Brazil, with high double-digit growth. We are applying similar strategies in Mexico, where growth is starting to accelerate. We see significant potential for Coca-Cola Zero to increase market penetration and profitability across our regions. (Ian Marcel Craig Garcia, CEO)\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2478945177"}