2017 Second Quarter and First Six Months Results

MEXICO CITY, MEXICO -- (Marketwired) -- 07/24/17 -- Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL) (NYSE: KOF) ("Coca-Cola FEMSA" or the "Company"), the largest franchise bottler in the world by sales volume, announces results for the second quarter of 2017.

Operational and Financial Highlights

• Revenues grew 25.5%, while comparable revenues grew 1.9% for the second quarter of 2017.
• Operating income grew 8.1%, while comparable operating income remained flat during the second quarter of 2017.
• Operating cash flow increased 20.7%, while comparable operating cash flow grew 1.3% for the second quarter of 2017.
• Majority net income increased 11.4% in the second quarter of 2017.

Results Summary

                                Second Quarter            Year to Date
                          --------------------------------------------------
                                 as      Comparable       as      Comparable
                              Reported       (1)       Reported       (1)
                          --------------------------------------------------
                            2017     D%      D%      2017     D%      D%

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Total revenues             50,108  25.5%    1.9%    99,849  30.3%    2.3%
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Gross profit               22,825  23.8%    3.8%    44,674  26.9%    4.2%
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Operating income           6,491    8.1%    0.0%    12,775  17.5%    3.4%
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Operating cash flow (2)    9,770   20.7%    1.3%    19,000  26.3%    2.6%
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Net income attributable to
 equity holders of the
 company                   2,229   11.4%            8,413   91.6%
----------------------------------------------------------------------------
Earnings per share (3)      1.07                     4.04
----------------------------------------------------------------------------

Expressed in millions of Mexican pesos.
(1) Comparable means, with respect to a year-over-year comparison, the
    change in a given measure excluding the effects of (i) mergers,
    acquisitions and divestitures, (ii) translation effects resulting from
    exchange rate movements (iii) the results of hyperinflationary economies
    in both periods, and (iv) includes the results of Coca-Cola FEMSA
    Philippines Inc., as if the consolidation had taken place at the
    beginning of first quarter 2016. From our operations, only Venezuela
    qualifies as a hyperinflationary economy.
(2) Operating cash flow = operating income + depreciation + amortization &
    other operative non-cash charges.
(3) 2Q EPS calculated with 2,090.4 million shares, the weighted average of
    the Company's outstanding shares over the period. YTD EPS calculated
    with 2,081.7 million shares, the weighted average of the Company's
    outstanding shares over the period. At the end of June 2017, total
    outstanding shares were 2,100.8 million shares.

Message from the Chief Executive Officer

"In the second quarter, we navigated the market challenges and opportunities of our geographically diversified footprint -- delivering revenue and operating income growth of 25.5% and 8.1%, respectively, resulting in majority net income growth of 11.4%.

During the quarter, our Mexico and Central America division faced a complex environment of increased inflation and raw material volatility. Nevertheless, this division was able to build on last year's growth thanks to the deployment of our commercial, distribution, and supply-chain transformational initiatives. These initiatives are already contributing to better route planning, improved point-of-sale execution, and operating expense savings, mitigating pressure on margins. In the face of a complicated consumer environment, our South America division mainly driven by an encouraging Brazil, expanded margins thanks to our relentless focus on efficiency and the outstanding results of our commercial and affordability initiatives. Moreover, our recent consolidation of our operation in the Philippines contributed positively to our consolidated results.

For the second half of the year, we will continue leveraging our disciplined approach to capital deployment, while working intensively to expand our portfolio and capitalize on our transformational initiatives to further our goal of becoming a global multi-category beverage leader," said John Santa Maria Otazua, Chief Executive Officer of the Company.

Conference Call Information

Our second quarter 2017 conference call will be held on July 24, 2017, at 12:00 P.M. Eastern Time (11:00 A.M. Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: 888-397-5338 or International: 719-325-2123. Participant code: 1479969. We invite investors to listen to the live audio cast of the conference call on the Company's website, www.coca-colafemsa.com. If you are unable to participate live, the conference call audio will be available at www.coca-colafemsa.com.

About the Company

Stock listing information: Mexican Stock Exchange, Ticker: KOFL | NYSE (ADR), Ticker: KOF | Ratio of KOF L to KOF = 10:1

Coca-Cola FEMSA, S.A.B. de C.V. is the largest franchise bottler in the world by sales volume. The company produces and distributes trademark beverages of The Coca-Cola Company, offering a wide portfolio of 154 brands to more than 375 million consumers daily. With over 100 thousand employees, the company markets and sells approximately 4 billion unit cases through 2.8 million points of sale a year. Operating 66 manufacturing plants and 328 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value for all of its stakeholders across the value chain. The company is a member of the Dow Jones Sustainability Emerging Markets Index, FTSE4Good Emerging Index, and the Mexican Stock Exchange's IPC and Social Responsibility and Sustainability Indices, among other indexes. Its operations encompass franchise territories in Mexico, Brazil, Colombia, Argentina, and Guatemala and, nationwide, in the Philippines, Venezuela, Nicaragua, Costa Rica, and Panama. For more information, please visit www.coca-colafemsa.com.

For additional information or inquiries contact the Investor Relations team:

Maria Dyla Castro
Email Contact
(5255) 1519-5186

Jorge Collazo
Email Contact
(5255) 1519-5218

Tania Ramírez
Email Contact
(5255) 1519-5013

Source: Coca-Cola FEMSA

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