Coca-Cola FEMSA SAB de CV Files 20-F for Fiscal Year Ended December 31, 2023

TL;DR

<b>Coca-Cola FEMSA SAB de CV has submitted its 20-F annual report for the fiscal year 2023, detailing its financial performance and operations.</b>

AI Summary

COCA COLA FEMSA SAB DE CV (COCSF) filed a Foreign Annual Report (20-F) with the SEC on April 12, 2024. Coca-Cola FEMSA SAB de CV filed its annual 20-F report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at Mario Pani #100, Piso 7, Col Santa Fe, Cuajimalpa, DF 05348. Coca-Cola FEMSA SAB de CV is listed on the New York Stock Exchange. The report utilizes International Financial Reporting Standards (IFRS).

Why It Matters

For investors and stakeholders tracking COCA COLA FEMSA SAB DE CV, this filing contains several important signals. This 20-F filing provides a comprehensive overview of Coca-Cola FEMSA's financial position and operational results for the 2023 fiscal year, crucial for investors to assess the company's performance and outlook. As a significant player in the beverage industry, the details within this report can offer insights into market trends, competitive landscape, and the company's strategic direction, impacting investor decisions.

Risk Assessment

Risk Level: medium — COCA COLA FEMSA SAB DE CV shows moderate risk based on this filing. The company operates in a highly competitive beverage market and is subject to various regulatory and economic risks in the regions it serves, which could impact its financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors outlined in the 20-F to understand Coca-Cola FEMSA's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-12 — Filing Date (Date the 20-F was filed)

Key Players & Entities

• COCA COLA FEMSA SAB DE CV (company) — Filer of the 20-F report
• New York Stock Exchange (company) — Exchange where the company is listed
• Mario Pani #100, Piso 7 (location) — Street address of the company's principal executive offices
• Cuajimalpa (location) — City of the company's principal executive offices
• DF 05348 (location) — ZIP code of the company's principal executive offices

FAQ

Industry Context

Coca-Cola FEMSA operates within the global beverage industry, a sector characterized by strong brand recognition, extensive distribution networks, and evolving consumer preferences towards healthier options.

Regulatory Implications

The company is subject to various regulations concerning food and beverage production, labeling, marketing, and environmental standards across its operating geographies.

What Investors Should Do

1. Analyze the revenue and profitability trends presented in the 20-F for the fiscal year 2023.
2. Review the company's debt structure and liquidity position as detailed in the financial statements.
3. Assess the risk factors section for potential challenges and their impact on future operations.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 20-F filing.
• 2024-04-12: Filing Date — The date the 20-F report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual 20-F report for the fiscal year ending December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $ — References herein to "U.S. dollar," "US$," "dollar" or "$" are to the lawful cur
• $1 — at an exchange rate of Ps.16.8998 to US$1.00, the exchange rate for Mexican pesos
• $1.00 — this exchange rate was Ps.16.4809 to US$1.00. To the extent that estimates are cont

Filing Documents

• kof-20231231.htm (20-F) — 4998KB
• ex21312312023.htm (EX-2.13) — 176KB
• ex8112312023.htm (EX-8.1) — 12KB
• ex12112312023.htm (EX-12.1) — 9KB
• ex12212312023.htm (EX-12.2) — 9KB
• ex13112312023.htm (EX-13.1) — 4KB
• ex15112312023.htm (EX-15.1) — 4KB
• ex17112312023.htm (EX-17.1) — 12KB
• ex97112312023.htm (EX-97.1) — 47KB
• kof-20231231_g1.jpg (GRAPHIC) — 56KB
• kof-20231231_g2.gif (GRAPHIC) — 45KB
• 0001628280-24-016091.txt (&nbsp;) — 24286KB
• kof-20231231.xsd (EX-101.SCH) — 208KB
• kof-20231231_cal.xml (EX-101.CAL) — 144KB
• kof-20231231_def.xml (EX-101.DEF) — 830KB
• kof-20231231_lab.xml (EX-101.LAB) — 1451KB
• kof-20231231_pre.xml (EX-101.PRE) — 1137KB
• kof-20231231_htm.xml (XML) — 5117KB

Item 18

Item 17 Item 18 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No TABLE OF CONTENTS Introduction 3

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers 4

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable 4

Key Information

Item 3. Key Information 4 Dividends and Dividend Policy 5

Information on the Company

Item 4. Information on the Company 15 The Company 15 Regulation 29 Bottler Agreements 39 Description of Property, Plant and Equipment 41 Significant Subsidiaries 43

A. Unresolved Staff Comments

Item 4.A. Unresolved Staff Comments 43

Operating and Financial Review and Prospects

Item 5. Operating and Financial Review and Prospects 43

Directors, Senior Management and Employees

Item 6. Directors, Senior Management and Employees 58

Major Shareholders and Related Party Transactions

Item 7. Major Shareholders and Related Party Transactions 71 Major Shareholders 71 Related Party Transactions 74

Financial Information

Item 8. Financial Information 75 Consolidated Statements and Other Financial Information 76

Legal Proceedings

Legal Proceedings 76

The Offer and Listing

Item 9. The Offer and Listing 76 Trading on the Bolsa Mexicana De Valores, S.A.B. De C.V. and Bolsa Institucional De Valores, S.A. De C.V. 76

Additional Information

Item 10. Additional Information 77 Bylaws 77 Material Agreements 84 Taxation 84 Documents On Display 87

Quantitative and Qualitative Disclosures about Market Risk

Item 11. Quantitative and Qualitative Disclosures about Market Risk 87

Description of Securities Other than Equity Securities

Item 12. Description of Securities Other than Equity Securities 91

A. Debt Securities

Item 12.A. Debt Securities 91

B. Warrants and Rights

Item 12.B. Warrants and Rights 91

C. Other Securities

Item 12.C. Other Securities 91

D. American Depositary Shares

Item 12.D. American Depositary Shares 92 Item 13. Defaults, Dividend Arrearages and Delinquencies . 92

Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds. 92

Controls and Procedures

Item 15. Controls and Procedures 92

A. Audit Committee Financial Expert

Item 16.A. Audit Committee Financial Expert 95 Item 16.B. Code of Ethics 95 Item 16.C. Principal Accountant Fees and Services 95

D. Exemptions from the Listing Standards for Audit Committees

Item 16.D. Exemptions from the Listing Standards for Audit Committees 96 Item 16.E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 96

F. Change in Registrant's Certifying Accountant

Item 16.F. Change in Registrant's Certifying Accountant 96

G. Corporate Governance

Item 16.G. Corporate Governance 96 Item 16.H. Mine Safety Disclosure 98 Item 16.K. C y bersecu rity 98

Financial Statements

Item 17. Financial Statements 99 - i -

Financial Statements

Item 18. Financial Statements 99

Exhibits

Item 19. Exhibits 99 - ii - Introduction References Unless the context otherwise requires, the terms "Coca-Cola FEMSA," "our company," "we," "us" and "our" are used in this annual report to refer to Coca-Cola FEMSA, S.A.B. de C.V. and its subsidiaries on a consolidated basis. References herein to "U.S. dollar," "US$," "dollar" or "$" are to the lawful currency of the United States of America. References herein to "Mexican pesos" or "Ps." are to the lawful currency of the United Mexican States, or Mexico. As used in this annual report: "Central America" refers to Guatemala, Nicaragua, Costa Rica and Panama. "South America" refers to Argentina, Brazil, Colombia and Uruguay. "sparkling beverages" refers to non-alcoholic carbonated beverages. "still beverages" refers to non-alcoholic non-carbonated beverages. "U.S." or "United States" refers to United States of America. "waters" refers to flavored and non-flavored waters, whether or not carbonated. References to Coca-Cola trademark beverages in this annual report refer to products described in "Item 4. Information on the Company—The Company—Our Products." Currency Translations and Estimates This annual report contains translations of certain Mexican peso amounts into U.S. dollars at specified rates solely for the convenience of the reader. These translations should not be construed as representations that the Mexican peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise indicated, such U.S. dollar amounts have been translated from Mexican pesos at an exchange rate of Ps.16.8998 to US$1.00, the exchange rate for Mexican pesos on December 31, 2023, according to the U.S. Federal Reserve Board. On April 5, 2024, this exchange rate was Ps.16.4809 to US$1.00. To the extent that estimates are contained in this annual report, we believe such estimates, which are based on internal data, are reliable. Figures in this annual repor

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers Not applicable.

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable Not applicable.

Key Information

Item 3. Key Information We prepared our consolidated financial statements included in this annual report in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board, or IASB, referred to herein as "IFRS." This annual report includes (under Item 18) our audited consolidated statements of financial position as of December 31, 2023 and 2022 and the related consolidated income statements, comprehensive income, changes in equity and cash flows for the years ended December 31, 2023, 2022 and 2021. Pursuant to IFRS, the information in this annual report presents financial information in nominal terms and Mexican pesos. Our non-Mexican subsidiaries maintain their accounting records in their local currency and in accordance with accounting principles generally accepted in the country where they are located. For presentation in our consolidated financial statements, we adjust these accounting records into IFRS and report in Mexican pesos under these standards. In the case of Argentina, the economy meets the criteria to be treated as a hyperinflationary economy based on various economic factors, including that Argentina's cumulative inflation over the three-year period prior to December 31, 2023 exceeded 100.0%, according to available indexes in the country. We adjusted the financial information of our Argentine operations to recognize inflationary effects. Our functional currency in Argentina was converted to Mexican pesos for the periods ended December 31, 2023, 2022 and 2021 using the exchange rates at the end of such periods. See Note 3.4 to our consolidated financial statements. Except when specifically indicated, information in this annual report on Form 20-F is presented as of December 31, 2023 and does not give effect to any transaction subsequent to that date. 4 Dividends and Dividend Policy The following table sets forth the nominal amount in Mexican pesos of dividends declared, paid and to be pai

Risk Factors

Risk Factors Risks Related to Our Company Risks related to our relationship with our major shareholders Our business depends on our relationship with The Coca-Cola Company, and changes in this relationship may adversely affect our business, financial condition and results of operations. Substantially all of our sales are derived from sales of Coca-Cola trademark beverages. We produce, market, sell and distribute Coca-Cola trademark beverages through standard bottler agreements in the territories where we operate, which we refer to as "our territories." See "Item 4. Information on the Company—The Company—Our Territories." We are required to purchase concentrate for all Coca-Cola trademark beverages from affiliates of The Coca-Cola Company, which price is determined from time to time by The Coca-Cola Company in all such territories. We are also required to purchase sweeteners and other raw materials only from companies authorized by The Coca-Cola Company. Increases in the cost, disruption of supply or shortage of ingredients for concentrate could have an adverse effect on our business. In addition, under our bottler agreements, we are prohibited from bottling or distributing any other beverages without The Coca-Cola Company's authorization or consent, and we may not transfer control of the bottler rights of any of our territories without prior consent from The Coca-Cola Company. The Coca-Cola Company makes significant contributions to our marketing expenses, although it is not required to contribute a particular amount. Accordingly, The Coca-Cola Company may discontinue or reduce such contributions at any time. We depend on The Coca-Cola Company to continue with our bottler agreements. Our bottler agreements are automatically renewable for ten-year terms, subject to the right of either party to give prior notice that it does not wish to renew the applicable agreement. In addition, these agreements generally may be terminated in the case of material breach. See

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View this 20-F filing on SEC EDGAR