Coca-Cola FEMSA S.A.B de C.V. (NYSE:KOF) Q4 2018 Earnings Conference Call - Final Transcript

Feb 26, 2019 • 10:00 am ET


Coca-Cola FEMSA S.A.B de C.V. (NYSE:KOF) Q4 2018 Earnings Conference Call - Final Transcript


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Good morning, everyone and welcome to Coca-Cola FEMSA's Fourth Quarter and Full Year 2018 Conference. 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 upon currently available data. Actual results are subject to future events and uncertainties, which can materially impact the company's actual performance. And now at this time, I would like to turn the call over to Mr. John Santa Maria, Coca-Cola FEMSA's Chief Executive Officer. Please go ahead, sir.

John Anthony Santa Maria Otazua

Good morning, everyone. Thank you for joining us to discuss our fourth quarter 2018 results. Constantino Spas, Hector Trevino and Maria Dyla Castro are all with us today. We completed a historic year for our company as we celebrated the 25th anniversary of Coca-Cola FEMSA's incorporation and stock exchange listing. At the time of its IPO in September 1993, our company was valued at MXN1 billion. Today, our Company is valued at almost MXN13 billion, 13 times its original market value for an annual total return to shareholders of over 19.2%.

In 1994, we took our first step abroad with the acquisition of Coca-Cola Buenos Aires in Argentina. In 2003 we see the leadership position of the beverage industry with the transformational acquisition of Panamco, expanding our presence to nine of Latin America's most important markets and multiplying our volumes six times.

From 2008 to 2016, we strengthened our company's leadership position in Brazil. With the acquisition and integration of four significant franchises that expanded our presence to more than 50% of the Coca-Cola system country-wide. Correspondingly, we bolstered our footprint in Mexico through our merger and integration of four bottling franchises from 2011 to 2013.

Moreover, we remain at the forefront of the total beverage portfolio evolution. First, our joint acquisition of Jugos del Valle in 2007 captured the potential of a powerful brand that is now one of the Coca-Cola system's a $1 billion brands. Second, we established a partnership with (inaudible) in Brazil to develop a broad portfolio of stills beverages. Third, we began our journey into the value added dairy category through our joint ventures in -- with Estrella Azul in Panama, Santa Clara in Mexico and Verde Campo in Brazil. More recently, we entered a new plant-based beverage category with our joint acquisition of AdeS in 2017. Finally in 2018 we integrated two franchises in Guatemala and expanded our geographic footprint to Uruguay to continue capitalizing on strategic long-term value creation opportunities for Coca-Cola FEMSA.

Over the past 25 years, we have reinvested more than MXN20 billion in our business with MXN11.4 billion in accretive mergers and acquisitions and joined the privilege of integrating great bobbing franchises, traditional families and great collaborators