Coca-Cola FEMSA, S.A.B. de C.V. (KOF): history, ownership, mission, how it works & makes money

A Brief History of Coca-Cola FEMSA, S.A.B. de C.V. (KOF)

Formation and Early Years

Coca-Cola FEMSA, S.A.B. de C.V. (KOF) was established in 1979 in Mexico. Initially, the merger consisted of several bottling plants in Mexico, gradually increasing its footprint in Latin America. KOF is one of the largest bottlers of Coca-Cola products worldwide.

Expansion and Acquisitions

In the 1990s, KOF embarked on an expansion strategy, acquiring several bottling companies. By 1995, it had acquired the bottling rights for Coca-Cola products in Guatemala and Panama.

Public Listing and Financial Performance

KOF was publicly listed on the Mexican Stock Exchange (BMV) in 1999. As of Q3 2023, KOF reported revenues of approximately MXN 150 billion and an EBITDA of about MXN 32 billion.

Market Presence

As of 2023, Coca-Cola FEMSA operates in 10 countries, including Mexico, Guatemala, Colombia, and Brazil. It serves a customer base of more than 400 million people.

Corporate Social Responsibility

KOF has invested significantly in sustainability initiatives, with approximately MXN 2 billion spent on environmental programs in 2022. Programs address water conservation, recycling, and community support.

Recent Developments

In September 2023, Coca-Cola FEMSA announced plans to invest USD 350 million over the next three years to enhance its distribution and increase its production capacity throughout Latin America.

Stock Performance

As of October 2023, KOF's stock was trading at approximately MXN 68.50, with a year-to-date return of about 10.2%.

Conclusion

The company continues to innovate and adapt, maintaining a strong position in the beverage industry in Latin America and expanding its markets globally.

A Who Owns Coca-Cola FEMSA, S.A.B. de C.V. (KOF)

Ownership Structure

Coca-Cola FEMSA, S.A.B. de C.V. (KOF) is primarily owned by a combination of institutional and individual shareholders. The largest stakeholders include:

• Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) - 47.5% ownership
• The Coca-Cola Company - 29.2% ownership
• Public float - 23.3% ownership

Shareholder Breakdown

The following table represents the detailed breakdown of Coca-Cola FEMSA's ownership:

Financial Performance

As of the latest fiscal year, Coca-Cola FEMSA reported the following financial data:

• Total Revenue: $10.3 billion
• Net Income: $1.5 billion
• Total Assets: $16.5 billion
• Total Liabilities: $7.8 billion
• Equity: $8.7 billion

Market Capitalization

The market capitalization of Coca-Cola FEMSA as of October 2023 is approximately:

$25.1 billion

Stock Performance

Coca-Cola FEMSA's stock price fluctuates according to market conditions. As of the latest trading session:

• Current Stock Price: $73.25 USD
• 52-Week High: $75.00 USD
• 52-Week Low: $54.00 USD

Dividend Payout

The company has maintained a consistent dividend payout, reflecting its financial stability:

• Latest Dividend: $1.00 per share
• Dividend Yield: 1.4%
• Payout Ratio: 40%

Corporate Governance

Coca-Cola FEMSA's governance is overseen by a board comprising a mix of representatives from FEMSA and the Coca-Cola Company, ensuring a balanced approach to corporate strategy. The board includes:

• Chairman: José Antonio Fernández Carbajal
• CEO: John Santa Maria
• Board Members: 12

Coca-Cola FEMSA, S.A.B. de C.V. (KOF) Mission Statement

Mission Statement Overview

The mission of Coca-Cola FEMSA, S.A.B. de C.V. (KOF) is to generate value for their consumers, customers, and stakeholders through the production and distribution of beverages, primarily the Coca-Cola line of products, while acting in a responsible and sustainable manner.

Core Components of the Mission Statement

• Focus on Quality: Ensuring high standards in manufacturing and product offerings.
• Consumer Orientation: Understanding and fulfilling consumer preferences.
• Sustainability: Commitment to environmental and social responsibility.
• Stakeholder Engagement: Building long-term relationships with customers, suppliers, and communities.

Financial Performance

As of 2022, Coca-Cola FEMSA reported revenues of approximately $10.3 billion. The company operates in various markets, contributing to its robust financial standing.

Key Financial Metrics

Market Presence

Coca-Cola FEMSA is the largest bottler of Coca-Cola beverages in terms of sales volume. The company operates in multiple countries, including Mexico, Brazil, and various Central American nations.

Environmental Responsibility

• Water Use: Aiming for a 20% reduction in water use ratio by 2025.
• Recycling: Targeting a 100% recyclable packaging goal by 2030.
• Carbon Footprint: Committed to reducing greenhouse gas emissions by 25% by 2030.

Community Engagement

Coca-Cola FEMSA participates in community projects that support education, health, and environmental sustainability, investing approximately $5 million annually in social initiatives across their operational territories.

Future Goals

The company aims to expand its product portfolio by introducing healthier options, tapping into the growing market for low-sugar and functional beverages.

Recent Initiatives

• Product Innovation: Introduction of Coca-Cola with Coffee in various markets.
• Digital Transformation: Investment in e-commerce platforms and digital marketing strategies.
• Employee Development: Launching training programs to enhance skill sets and promote career growth.

How Coca-Cola FEMSA, S.A.B. de C.V. (KOF) Works

Overview of Operations

Coca-Cola FEMSA, S.A.B. de C.V. (KOF) operates as the second-largest Coca-Cola bottler in the world. As of 2022, it serves over 266 million consumers across various markets, including Mexico, Central America, Colombia, Brazil, and Argentina.

Financial Performance

In the fiscal year 2022, KOF reported a revenue of approximately $12.37 billion, reflecting a growth of about 15.2% compared to the previous year. The net income for the same period was around $1.12 billion.

Market Segments

• Non-Alcoholic Beverages
• Carbonated Soft Drinks
• Bottled Water
• Juices
• Tea and Coffee

Distribution and Logistics

KOF utilizes an extensive distribution network with over 80,000 retail customers and a fleet of approximately 17,000 delivery trucks. The company operates 58 bottling plants across its territories.

Workforce

As of 2023, Coca-Cola FEMSA employs around 42,000 individuals in various capacities, ranging from production to sales and distribution.

Investment in Sustainability

KOF has committed to sustainability initiatives, including a goal to recycle the equivalent of 100% of its packaging by 2030. In 2022, the company invested over $186 million in eco-friendly practices.

Recent Acquisitions

In 2022, KOF announced the acquisition of a 40% stake in a Brazilian beverage company, further expanding its footprint in South America.

Stock Performance

As of the end of 2022, Coca-Cola FEMSA's stock (KOF) closed at $64.00 per share, with a market capitalization of roughly $14.77 billion.

Key Partnerships

KOF maintains significant partnerships with retailers and distributors which enhance its market penetration. Notable collaborations include agreements with Walmart and other major grocery chains.

Conclusion of Key Operations

Coca-Cola FEMSA's integrated approach in production, distribution, and marketing allows it to maintain a competitive edge. Its focus on sustainability, market expansion, and financial robustness positions it favorably amongst peers.

How Coca-Cola FEMSA, S.A.B. de C.V. (KOF) Makes Money

Revenue Streams

The primary revenue sources for Coca-Cola FEMSA include:

• Sale of ready-to-drink beverages.
• Sale of non-carbonated drinks.
• Sale of sparkling beverages.

Sales Data

As of 2022, Coca-Cola FEMSA reported total revenue of $9.2 billion.

The breakdown of revenue by segment for 2022 is as follows:

Geographic Distribution

Coca-Cola FEMSA operates primarily in the following regions:

Cost Structure

The major costs incurred by Coca-Cola FEMSA include:

• Cost of goods sold (COGS).
• Operating expenses.
• Distribution expenses.

In 2022, the COGS amounted to $5.4 billion.

Operating expenses for the same period stood at $2.0 billion.

Net Income

Coca-Cola FEMSA reported a net income of $574 million in 2022.

Pricing Strategy

Pricing strategies are influenced by:

• Market conditions.
• Cost of raw materials.
• Consumer demand.

Market Share

As of late 2022, Coca-Cola FEMSA held a market share of approximately 27% in the Mexican beverage market.

Investments and Expansion

The company has invested approximately $1.3 billion in capital expenditures in 2022, focusing on:

• Manufacturing capacity improvements.
• Distribution logistics enhancements.
• Marketing initiatives.

Financial Ratios

Key financial ratios as of 2022 include: