Coca-Cola Femsa SAB de CV (KOF) 2023 Q2 法說會逐字稿

Good day, and welcome to the Coca-Cola FEMSA Second Quarter 2023 Conference Call. Please note this conference is being recorded. (Operator Instructions). However, you will have the opportunity to ask questions at the end of the call. (Operator Instructions). I would now like to hand the call over to Jorge Palazzo, Coca-Cola FEMSA, Investor Relations. Please, go ahead.

美好的一天，歡迎參加可口可樂 FEMSA 2023 年第二季度電話會議。請注意，本次會議正在錄製中。 （操作員說明）。但是，您將有機會在通話結束時提問。 （操作員說明）。我現在想將電話轉交給可口可樂 FEMSA 投資者關係部門的 Jorge Palazzo。請繼續。

Thank you, and good morning, everyone. Welcome to our conference call to review our second quarter 2023 results. I am here with Ian Craig, our Chief Executive Officer; and Gerardo Kruse, our Chief Financial Officer. As usual, after prepared remarks, we will open the call up to take your questions. Please keep in mind that this conference call may include 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 that can materially impact the company's performance. And with that, let me hand the call over to our CEO. Please go ahead, Ian.

謝謝大家，大家早上好。歡迎參加我們的電話會議，回顧我們 2023 年第二季度的業績。我和我們的首席執行官伊恩·克雷格 (Ian Craig) 一起來到這裡。以及我們的首席財務官 Gerardo Kruse。像往常一樣，在準備好發言後，我們將打開電話來回答您的問題。請記住，本次電話會議可能包含有關可口可樂 FEMSA 未來業績的前瞻性陳述，應被視為該公司做出的善意估計。這些前瞻性陳述反映了管理層的預期，並基於當前可用的數據。實際結果受可能對公司業績產生重大影響的未來事件和不確定因素的影響。接下來，讓我將電話轉交給我們的首席執行官。請繼續，伊恩。

Thank you, Jorge, and good morning, everyone. We appreciate you joining us today. Coca-Cola FEMSA delivered another set of solid results for the second quarter. We continue to demonstrate our positive momentum with solid volume performance resulting from growth across all of our markets. Notably, we continued improving our execution, redoubling our focus on our customers and our consumers and increasing investments to continue supporting our growth. The first 6 months of the year have also been important for the Coca-Cola FEMSA senior leadership team to complete our listening tour and set the strategic priorities of our business going forward. As I have mentioned on our previous calls, as part of this process, we have worked our markets, met with key stakeholders and identified the pain points and the many opportunities that are ahead for us. We are convinced that we are very well positioned to accelerate the growth of our core business and become our customers' preferred commercial platform. With that, let's review our consolidated results for the second quarter. Our consolidated volumes increased 7% year-on-year, surpassing 1 billion unit cases. This marks the first time that our company surpassed 1 billion unit cases in a single quarter. Our volume growth was driven mainly by solid performance in key markets such as Mexico, Brazil and Guatemala. As was the case during the first quarter of the year, these volumes include the integration of Crystal, a bulk water business that we acquired at the end of last year in the Southeast region of Mexico. Excluding these integration, consolidated volumes increased 5.2%. Performance across our beverage categories remained strong. Parking beverage volumes grew 4%, while our still beverage and bottled water portfolio grew 7% and 18%, respectively. Our consolidated total revenues grew 7.2% to reach MXN 61.4 billion, driven mainly by volume growth. We achieved this performance device significant currency translation headwinds driven by the appreciation of the Mexican Peso. To give you a sense, excluding currency translation effects, our total revenues increased 16.9%, underscoring how strong our underlying performance is. Our gross profit increased 7.9% to reach MXN 27.3 billion, leading our gross margin to expand 30 basis points. This expansion was driven mainly by our top line performance, easing PET costs and favorable raw material hedging initiatives. These effects were partially offset by an increase in sugar prices across most of our territories. Our operating income increased 11.9%, reaching MXN 8.6 billion, and our operating margin expanded 50 basis points. Our positive top line, favorable mix effects and non-cash operating foreign exchange gain related to the appreciation of the Mexican Peso drove this growth. Finally, our EBITDA for the quarter increased 7.8%, reaching MXN 11.4 billion, resulting in an EBITDA margin of 18.6%. Our top line growth and cost efficiencies drove this performance, which was partially offset by increases in operating expenses, such as labor, marketing and mix. I will now move on to expand on key highlights during the first half of the year. In Mexico, our solid performance included record volumes during the month of May and June. A resilient consumer environment are focused in execution and favorable weather conditions supported this growth. Importantly, all of our beverage categories are growing, driven mainly by brand Coca-Cola and our personal water category. We are driving portfolio innovation as well with 2 recent launches in the flavored sparkling category, Delvis, a low carbonation sparkling orangeade and lemonade, and (inaudible), combining great fruit on line with a salty touch that makes it ideal for mix. Notably, our noncaloric portfolio led by Coca-Cola in Azucar grew a solid 14.3% versus the previous year. We also continue to see double-digit growth in the modern trade channel, outperforming what remains a resilient traditional trade. Finally, digitalization in Mexico continues evolving with Juntos plot, our digital B2B omnichannel plus. As a result of this rollout, 30% of the orders in the traditional trade are now digital. In Brazil, our volumes continued growing at a solid pace, driven by growth across all of our categories and (inaudible). Aligned with our priority, we continue accelerating our non-caloric portfolio with Coca-Cola Stenasuca, growing 32% versus the previous year. In categories such as energy and water, we continue consolidating our market leadership by strengthening our portfolio with new flavors. Finally, with Powerade, our sports drink volume is also growing in the double digits versus the previous year. On the digital front, Brazil continues increasing its untold user base month-over-month. We now reached 237,000 active monthly purchases, notably, 60% of our orders in the traditional trade channel are digital in Brazil. In Guatemala, we continue seeing an impressive performer. Our volumes have consistently grown in the double digits, driven by our focus on the fundamentals of the business. For instance, during the first half of the year, we've added more than 9,000 clients and installed more than 13,000 coolers. All this, as we continue to leverage our portfolio affordability and superior execution to continue gaining share across all of our beverage category. Additionally, aligned with our strategic pillar to remove infrastructure bottlenecks and to satisfy our Guatemalan consumers growing demand, we are installing a new 1-way (inaudible)line this year as well as new returnable bottling lines during the first quarter of 2024. Finally, I want to comment on Colombia. After historic volumes here in 2022, a tougher-than-anticipated macro and consumer environment has slowed our volume pace during the first half of the year, being flattish at 0.5% growth. Nonetheless, despite this challenging environment, we are outperforming the industry as we strengthened our competitive position by gaining share in the sparkling personal water and non-carbonated categories. As I previously mentioned, our first half results are in line with our plans, and we are encouraged to enter the second half of the year with positive momentum. Our teams across all of our operations are well equipped to continue accelerating across all of our strategic objectives, delivering on the growth strategy that we have set as an organization. Speaking of our team and our talent, I want to take the opportunity to comment on our culture, a topic that is very dear to me. As I previously shared with you, one of our strategic corridors focuses on strengthening our customer-centric culture. This is critical to be our customers' preferred commercial platform. Aligned with this priority, we are identifying opportunities to eye better understand our customers' needs to improve customer experience; and three, empower our organization towards a more customer-oriented project. We are convinced that by measuring the right KPIs as well as empowering and aligning our organization towards these objectives, we will continue progress improving our customer centricity, which is a common feature of high-growth organization. Finally, I want to take a moment to recognize our team in Argentina. Last week, Coca-Cola Fence, Argentina was awarded by the Coca-Cola Company with a caller cup for 2022. The Atacado cup, named Dr. Atacado, Founder of -- the Coca-Cola Company and the person who granted the first Coca-Cola franchise is an important award given to a bottler in recognition for its excellence in execution, coupled with its investments behind its people development, training and culture. Congratulations to the Coca-Cola Penta Argentina team, who're working together as one single team with our colleagues from the Coca-Cola Company in Argentina have made this recognition auto. In summary, we are confident that we're on the right track to achieve our objectives for 2023 as we continue winning in the market and progressing on our key strategic priorities across our opeartions. With that, I will hand the call over to Jerry to expand Anish division's results as well as progress on our selling initiatives.

謝謝你，豪爾赫，大家早上好。我們感謝您今天加入我們。可口可樂 FEMSA 第二季度又取得了一系列穩健的業績。我們所有市場的增長都帶來了穩健的銷量表現，繼續展現出我們的積極勢頭。值得注意的是，我們繼續提高執行力，加倍關注客戶和消費者，並增加投資以繼續支持我們的增長。今年的前 6 個月對於可口可樂 FEMSA 高級領導團隊完成我們的聆聽之旅並確定我們未來業務的戰略重點也很重要。正如我在之前的電話會議中提到的，作為此過程的一部分，我們對市場進行了工作，與主要利益相關者會面，並確定了我們面臨的痛點和許多機遇。我們堅信，我們完全有能力加速核心業務的增長，並成為客戶首選的商業平台。接下來，讓我們回顧一下第二季度的綜合業績。我們的綜合銷量同比增長 7%，超過 10 億箱。這標誌著我公司單季度出貨量首次突破10億件。我們的銷量增長主要得益於墨西哥、巴西和危地馬拉等主要市場的穩健表現。與今年第一季度的情況一樣，這些業務量包括對 Crystal 的整合，這是我們去年年底在墨西哥東南部地區收購的散裝水業務。排除這些整合，綜合銷量增長了 5.2%。我們的飲料類別表現依然強勁。停車飲料銷量增長了 4%，而我們的非碳酸飲料和瓶裝水產品組合分別增長了 7% 和 18%。我們的綜合總收入增長 7.2%，達到 614 億墨西哥比索，這主要是銷量增長的推動。我們實現了這一業績，並克服了墨西哥比索升值帶來的重大貨幣換算阻力。為了讓您感覺一下，排除貨幣換算影響，我們的總收入增長了 16.9%，這凸顯了我們的基本業績有多麼強勁。我們的毛利潤增長 7.9%，達到 273 億墨西哥比索，毛利率擴大 30 個基點。這一擴張主要是由我們的營收業績、PET 成本下降和有利的原材料對沖舉措推動的。這些影響被我們大部分地區糖價上漲所部分抵消。我們的營業收入增長了 11.9%，達到 86 億墨西哥比索，營業利潤率擴大了 50 個基點。我們積極的營收、有利的混合效應以及與墨西哥比索升值相關的非現金經營外匯收益推動了這一增長。最後，我們本季度的 EBITDA 增長了 7.8%，達到 114 億墨西哥比索，EBITDA 利潤率為 18.6%。我們的營收增長和成本效率推動了這一業績，但部分被勞動力、營銷和組合等運營費用的增加所抵消。我現在將繼續闡述上半年的主要亮點。在墨西哥，我們的業績表現穩健，五月和六月的銷量創歷史新高。富有彈性的消費者環境注重執行，有利的天氣條件支持了這一增長。重要的是，我們所有的飲料類別都在增長，主要是由可口可樂品牌和我們的個人水類別推動的。我們也在推動產品組合創新，最近推出了兩款風味起泡酒，Delvis，一種低碳碳酸橙水和檸檬水，以及（聽不清），將美味的水果與鹹味結合在一起，使其成為混合的理想選擇。值得注意的是，我們以 Azucar 的可口可樂為首的無熱量產品組合比上一年增長了 14.3%。我們還繼續看到現代貿易渠道的兩位數增長，表現優於仍然具有彈性的傳統貿易。最後，墨西哥的數字化通過我們的數字 B2B 全渠道 Plus Juntosplot 繼續發展。此次推出後，傳統貿易中 30% 的訂單現已實現數字化。在巴西，在我們所有類別的增長和（聽不清）的推動下，我們的銷量繼續以穩健的速度增長。根據我們的首要任務，我們繼續加快 Coca-Cola Stenasuca 的無熱量產品組合，與上一年相比增長了 32%。在能源和水等類別中，我們通過新口味加強產品組合，繼續鞏固我們的市場領導地位。最後，憑藉 Powerade，我們的運動飲料銷量與上一年相比也以兩位數增長。在數字方面，巴西的用戶群逐月持續增長。目前，我們的月度活躍採購量已達到 237,000 筆，值得注意的是，我們傳統貿易渠道中 60% 的訂單是巴西的數字訂單。在危地馬拉，我們繼續看到令人印象深刻的表演者。在我們對業務基本面的關注的推動下，我們的銷量持續以兩位數增長。例如，今年上半年，我們增加了 9,000 多個客戶，安裝了 13,000 多個冷卻器。所有這一切，我們繼續利用我們的投資組合的承受能力和卓越的執行力，繼續在我們所有飲料類別中獲得份額。此外，根據我們消除基礎設施瓶頸並滿足危地馬拉消費者不斷增長的需求的戰略支柱，我們今年將安裝一條新的單向（聽不清）生產線，並在 2024 年第一季度安裝新的可回收裝瓶生產線。最後，我想對哥倫比亞發表評論。在 2022 年創下歷史性銷量之後，比預期更嚴峻的宏觀和消費環境導致我們上半年的銷量增速放緩，增幅持平，為 0.5%。儘管如此，儘管環境充滿挑戰，但我們的表現仍然優於行業，因為我們通過在個人氣泡水和非碳酸水類別中獲得份額來增強我們的競爭地位。正如我之前提到的，我們上半年的業績符合我們的計劃，我們受到鼓舞，以積極的勢頭進入下半年。我們所有運營部門的團隊都裝備精良，能夠繼續加速實現我們所有的戰略目標，實現我們作為一個組織製定的增長戰略。談到我們的團隊和人才，我想藉此機會談談我們的文化，這是我非常喜歡的話題。正如我之前與您分享的，我們的戰略走廊之一專注於加強我們以客戶為中心的文化。這對於成為我們客戶首選的商業平台至關重要。根據這一優先事項，我們正在尋找機會更好地了解客戶的需求，以改善客戶體驗；第三，讓我們的組織能夠實施更加以客戶為導向的項目。我們相信，通過衡量正確的 KPI 以及授權和調整我們的組織以實現這些目標，我們將繼續改進我們的以客戶為中心，這是高增長組織的共同特徵。最後，我想花點時間來認識一下我們在阿根廷的團隊。上週，可口可樂公司向阿根廷可口可樂柵欄頒發了 2022 年呼叫者杯。阿塔卡多杯的名稱為阿塔卡多博士，他是可口可樂公司的創始人，也是授予第一屆可口可樂獎的人。 -可樂特許經營權是授予裝瓶商的一個重要獎項，以表彰其卓越的執行力以及對人員發展、培訓和文化的投資。祝賀可口可樂奔達阿根廷團隊，他們與阿根廷可口可樂公司的同事作為一個團隊共同努力，製作了這款識別汽車。總之，我們相信，隨著我們繼續贏得市場並在各業務部門的關鍵戰略重點上取得進展，我們將走在實現 2023 年目標的正確軌道上。這樣，我將把擴大 Anish 部門業績以及我們銷售計劃進展的電話轉交給 Jerry。

Thank you, Ian, and good morning, everyone. Expanding on our division's results for the quarter. In Mexico and Central America, volumes increased 8.9%, maintaining the solid pace of the first quarter. Growth across all of our territories in the division drove this performance. Excluding the integration of Crystal's bulk water business, our volume in the division increased 6%. Revenues in Mexico and Central America increased 13.4%, driven by our volume growth and revenue management initiatives. These effects were partially offset by the unfavorable translation effects from most Central American currencies into Mexican business. Our gross profit increased 13%, resulting in a gross margin of 47.7%, a compression of 10 basis points year-on-year. This is a sequential improvement from the first quarter of the year. Top line growth, raw material hedging initiatives and the appreciation of the Mexican Peso helped to partially offset cost of goods sold pressure. Operating income growth for the division accelerated by 13.7%. This resulted in a slight margin expansion of 10 basis points, driven mainly by our top line performance, coupled with a non-cash operating foreign exchange gain related to the appreciation of the Mexican business. Finally, our EBITDA grew 9.2% with margin declining 80 basis points due to an increase in operating expenses mainly related to labor, marketing and maintenance. Moving on to South America division, volumes increased 3.8%, in line with the pace of the first quarter, low to mid-single-digit growth in Brazil and double-digit growth in Uruguay primarily drove this performance. Our revenue for the South America division declined 2.2% as unfavorable currency translation effects into Mexican pesos more than offset our volume growth and revenue management initiatives. Notably, when excluding currency translation effects, our comparable total revenues in South America increased a solid 20.3% during the quarter. Gross profit in South America declined 1.6%, mainly due to a currency translation effect, resulting in a 20 basis point margin expansion. This expansion was driven mainly by volume growth, hedging initiatives and favorable mix. These effects were mainly offset by increases in raw materials costs, such as sweeteners and the depreciation of the Colombian and the Argentine peso. Operating income for the division increased 6.6% and operating margin expanded 80 basis points as compared to the previous year. As was the case during the first quarter of the year, our positive top line, coupled with tight expense control across our operations more than offset higher fixed costs and expenses. Finally, EBITDA in South America increased 4.4%, resulting in an EBITDA margin expansion of 90 basis points. Moving on to our financial results. The quarterly comprehensive financing results recorded a significant increase as compared to the previous year. This is explained mainly by an unfavorable comparison base that included a one-off market value gain in financial instruments of MXN 355 million recorded during the second quarter of last year. In addition, during the quarter, we recognized a foreign exchange loss of MXN 437 million, driven by the appreciation of the Mexican peso as applied to our U.S. dollar cash position and the lower gain in hyperinflationary subsidiaries. These effects were partially offset by a decrease in our net interest expense mainly because of an increase in interest income that was driven by higher interest rates. Finally, our controlling net income increased 6.5% to reach MXN 4.9 billion, resulting in earnings per share of MXN 0.29. It is important to note that our controlling net income for the first 6 months of the year increased 17.3%, underscoring our positive underlying operations performance in the face of significant currency translation headwind. Finally, as part of our initiatives to generate savings and efficiency at the beginning of the year, we shared with you a target of more than $60 million in savings to be driven by our supply chain team. We are encouraged by our progress year-to-date as we have achieved savings of more than $35 million during the first half of the year, driven mainly by initiatives to reduce our cost to make and our cost to serve, which exceeded our expectations for the first half of the year. We are confident in our team's ability to continue generating significant savings and efficiencies as we enter the second half of the year. With that, operator, we are ready to open the call for questions.

謝謝你，伊恩，大家早上好。擴大我們部門本季度的業績。在墨西哥和中美洲，銷量增長 8.9%，保持第一季度的穩健增長。該部門所有地區的增長推動了這一業績。不包括水晶集團散裝水業務的整合，我們該部門的銷量增長了 6%。在我們的銷量增長和收入管理舉措的推動下，墨西哥和中美洲的收入增長了 13.4%。大多數中美洲貨幣對墨西哥業務的不利兌換影響部分抵消了這些影響。我們的毛利潤增長13%，毛利率為47.7%，同比壓縮10個基點。這與今年第一季度相比連續改善。收入增長、原材料對沖舉措和墨西哥比索升值有助於部分抵消銷售成本壓力。該部門的營業收入增長加速了 13.7%。這導致利潤率小幅擴大 10 個基點，主要是由於我們的營收業績以及與墨西哥業務升值相關的非現金運營外匯收益。最後，我們的 EBITDA 增長了 9.2%，但由於主要與勞動力、營銷和維護相關的運營費用增加，利潤率下降了 80 個基點。轉向南美地區，銷量增長 3.8%，與第一季度的增速一致，巴西的低至中個位數增長和烏拉圭的兩位數增長主要推動了這一業績。我們南美洲部門的收入下降了 2.2%，因為不利的貨幣兌換成墨西哥比索的影響遠遠抵消了我們的銷量增長和收入管理舉措。值得注意的是，在排除貨幣換算影響後，本季度我們在南美的可比總收入穩定增長了 20.3%。南美洲的毛利潤下降1.6%，主要是由於貨幣換算效應，導致利潤率擴大20個基點。這種擴張主要是由銷量增長、對沖舉措和有利的組合推動的。這些影響主要被甜味劑等原材料成本的增加以及哥倫比亞和阿根廷比索的貶值所抵消。與上年相比，該部門的營業收入增長了 6.6%，營業利潤率提高了 80 個基點。與今年第一季度的情況一樣，我們積極的營收，加上對整個業務的嚴格費用控制，足以抵消固定成本和費用的增加。最後，南美洲的 EBITDA 增長了 4.4%，導致 EBITDA 利潤率擴大了 90 個基點。接下來是我們的財務業績。季度綜合融資業績較上年大幅增長。這主要是由於不利的比較基數造成的，其中包括去年第二季度記錄的金融工具一次性市場價值收益 3.55 億墨西哥比索。此外，在本季度，我們確認了 4.37 億墨西哥比索的外匯損失，這是由於墨西哥比索升值（適用於我們的美元現金頭寸）以及惡性通貨膨脹子公司的收益較低所致。這些影響被我們淨利息支出的減少部分抵消，這主要是由於利率上升導致利息收入增加。最後，我們的控股淨收入增長了 6.5%，達到 49 億墨西哥比索，每股收益為 0.29 墨西哥比索。值得注意的是，我們今年前 6 個月的控制淨利潤增長了 17.3%，突顯了我們在面臨重大貨幣換算逆風的情況下積極的基本運營業績。最後，作為我們年初實現節約和提高效率舉措的一部分，我們與您分享了由我們的供應鏈團隊推動的節約超過 6000 萬美元的目標。我們對今年迄今為止取得的進展感到鼓舞，因為我們在上半年節省了超過 3500 萬美元，這主要是由於降低製造成本和服務成本的舉措所推動，這超出了我們對今年上半年。我們對我們的團隊在進入下半年時繼續實現顯著節省和提高效率的能力充滿信心。接線員，我們已經準備好開始提問了。

Thank you. (Operator Instructions). The first question today comes from Ricardo Alves of Morgan Stanley...

謝謝。 （操作員說明）。今天的第一個問題來自摩根士丹利的里卡多·阿爾維斯……

I had a question on the competitive backdrop in Mexico. On an ex-crystal basis, I believe your volume is up 5% or so in the quarter. How do you think that's comparing to the industry in Mexico? Do you think it's fair to say you're gaining back some share here already in the first half of the year? And perhaps on that point, if you can expand a little bit perhaps on your commercial approach depending on the channel or tax, whatever color you can give on how you're dealing with competition in Mexico, that would be helpful. My second question, typically, and obviously, we tend to focus on the bigger markets. But when you take Guatemala, the other Central America region, Colombia together, it starts to build up, and particularly in Central America, the growth has been preimpressive. So just wondering if you can talk a little bit about that. I missed the earlier remarks you guys made, but more interested, particularly in what you're doing in Guatemala. And maybe more important, what is the prospect for this market? What Coke FEMSA can do to further develop the market? And then in Colombia, whatever color you can give, if this is a market where you see big prospects for growth as well. So a little bit outside of the Brazil and Mexico questions.

我有一個關於墨西哥競爭背景的問題。以不含水晶的價格計算，我相信本季度你們的交易量增長了 5% 左右。您認為與墨西哥的行業相比如何？您認為可以公平地說您在今年上半年已經重新獲得了一些份額嗎？也許在這一點上，如果您可以根據渠道或稅收稍微擴展一下您的商業方法，無論您對如何應對墨西哥的競爭有何看法，這都會有所幫助。我的第二個問題，通常且顯然，我們傾向於關注更大的市場。但當你把危地馬拉、另一個中美洲地區和哥倫比亞放在一起時，它開始增長，特別是在中美洲，增長令人印象深刻。所以想知道你是否可以談談這一點。我錯過了你們早些時候發表的言論，但我更感興趣，特別是你們在危地馬拉所做的事情。也許更重要的是，這個市場的前景如何？可口可樂FEMSA可以做些什麼來進一步開拓市場？然後在哥倫比亞，無論你能給出什麼顏色，只要你看到這個市場也有巨大的增長前景。所以有點超出巴西和墨西哥的問題。

Thanks for the question. In Mexico, just a little background, we had been in an environment where we have had about 5 years of a derate with deteriorating competitive position. As I stated, when we started at the beginning of the year that we needed to stabilize that and start to take a new growth trajectory. We've been able to accomplish that. So we will stabilize our competitive position. There's a lot that we're doing. I don't think it's healthy to go into the specifics. But in general, it revolves around multiserve, one-way path, where we're working with a better OBPPC, more focused and targeted calendar initiatives, and also, there is work to be done on certain pricing strategies between channels. The brand is so strong, our multi packs are there, our flavors are there, so far with very targeted adjustments that we're doing, it's responding very quickly. So I think the news and Mexico on the competitive position front is very positive. We will stabilize that. By year-end, we expect a slight gain. And that's the trajectory that we're going to look in to maintain. When you look at Guatemala, Guatemala is a dual for us as well as the rest of Central America. They're highly profitable market. And in the case of Guatemala, I think I mentioned before, this is a 17 million population country of EUR 17 million to EUR 18 million, where our per cap are around 207. It's growing double digits. There's no reason that in the medium term, we cannot pay per cap up to $250 million. We have enough of differential in share, where there's still a lot of share to capture as well as organic volume. So the story there has been fantastic. We've grown shares almost 8 points in the last 5 years. So our margins keep expanding as well as our return on investment capital. And it's a nice little secret that's very in the very large Coca-Cola FEMSA numbers. But now, it's already the third largest country in terms of profits for us, and it should continue gaining importance. I don't know if that covers the point, Ricardo.

謝謝你的提問。在墨西哥，僅介紹一點背景，我們所處的環境是我們經歷了大約 5 年的降額，競爭地位不斷惡化。正如我所說，當我們年初開始時，我們需要穩定局勢並開始走上新的增長軌跡。我們已經能夠做到這一點。這樣我們就會穩定我們的競爭地位。我們正在做很多事情。我認為深入細節並不健康。但總的來說，它圍繞著多服務、單向路徑，我們正在與更好的 OBPPC、更有針對性和有針對性的日曆計劃合作，而且，在渠道之間的某些定價策略上還有工作要做。這個品牌是如此強大，我們的多包裝在那裡，我們的口味在那裡，到目前為止，我們正在做非常有針對性的調整，它的反應非常快。所以我認為這個消息和墨西哥在競爭地位方面是非常積極的。我們將穩定這一點。到年底，我們預計會有小幅增長。這就是我們要努力維持的軌跡。當你看看危地馬拉時，危地馬拉對我們以及中美洲其他地區來說都是雙重的。他們是高利潤市場。就危地馬拉而言，我想我之前提到過，這是一個擁有 1700 萬人口的國家，年收入為 1700 萬至 1800 萬歐元，我們的人均上限約為 207 人。它正在以兩位數的速度增長。從中期來看，我們沒有理由不能支付高達 2.5 億美元的上限。我們在份額方面有足夠的差異，仍然有很多份額和有機數量需要捕獲。所以那裡的故事非常精彩。過去 5 年裡，我們的股價增長了近 8 個百分點。因此，我們的利潤率和投資資本回報率不斷擴大。這是一個很好的小秘密，在巨大的可口可樂 FEMSA 數字中非常明顯。但現在，就我們的利潤而言，它已經是第三大國家，並且它應該繼續變得越來越重要。我不知道這是否涵蓋了要點，里卡多。

Colombia, if I may expand Ricardo. We -- as Ian mentioned during the call, we are performing on top of a record volume year, which was 20.2%, basically in line a little bit above last year, even considering the slowdown in macroeconomic activity in the country. We do expect some headwinds at the end of the year with coming into effect of the sugar added beverage tax that will come into effect in November. But we certainly continue to be very bullish on the prospects of growth in Colombia going forward. We are operating basically at maximum capacity in both manufacturing and distribution capacity and we are investing importantly for the following years to build up on that capacity because we certainly think that those 2 are the biggest engines for growth going forward, Colombia and Guatemala.

哥倫比亞，請允許我擴展一下里卡多。正如伊恩在電話會議中提到的那樣，我們的表現是在創紀錄的年度銷量基礎上實現的，即 20.2%，基本上與去年持平，即使考慮到該國宏觀經濟活動放緩也是如此。我們確實預計，隨著 11 月份加糖飲料稅的生效，今年年底會出現一些阻力。但我們當然仍然非常看好哥倫比亞未來的增長前景。我們在製造和分銷能力方面基本上都處於最大產能狀態，並且我們將在接下來的幾年中進行重要投資，以增強這一能力，因為我們當然認為哥倫比亞和危地馬拉這兩個國家是未來增長的最大引擎。

It's very helpful Celaya. I appreciate the time.

這對塞拉亞很有幫助。我很感激時間。

And the next question comes from Tiago Bortoluci of Goldman Sachs.

下一個問題來自高盛的蒂亞戈·博爾托魯奇。

Yes, to (inaudible) following to icare question on Mexico, right. When I care to break down the top line driver that see strong volume, but like sequential price deceleration, right? How are you seeing the outlook for demand going forward, specifically if you risking any slowdown related to the Mexican depreciation, the impact on remittances and how your overall price strategy should behave in a context where your cost inflation is maturely decelerating? This is the first question. And the second one, and this is a more long-term stinted on what are the sources of synergies that you are identifying and might be able to explore under these new from the forward backdrop and joint effort to try to execute and monetize the B2B and the capillarity that the both platforms might have with the traditional trade. Those are the questions

是的，（聽不清）接下來關於墨西哥的 icare 問題，對吧。當我想分解看到成交量強勁但價格連續減速的營收驅動因素時，對吧？您如何看待未來的需求前景，特別是如果您冒著與墨西哥貶值相關的任何放緩風險、對匯款的影響以及在成本通脹成熟減速的背景下您的整體價格策略應如何運作？這是第一個問題。第二個，這是一個更長期的問題，即您正在確定的協同效應的來源是什麼，並且可以在這些新的未來背景下探索協同效應的來源，並共同努力嘗試執行 B2B 和貨幣化兩個平台可能與傳統貿易產生的毛細作用。這些就是問題

Thank you, Carlo. I think the first point, if I remember correctly, what the top line on Mexico and how that is going so far. So right now, our volumes in Mexico are growing around 8%. If you take out the bulk quarter business, it's 5% growth. So far, so good. We don't see any slowdown at all. Volumes are strong. I think we're going into an election year. There's a lot of the inflows coming in from Mexico as a whole due to the nearshoring. So we're very positive on Mexico. So I don't foresee any deacceleration or pressure on the top line on the contrary, I think the way we've managed to set the new competitive landscape and strategy, our top line and volumes should continue along this pace barring any unforeseen climate or our (inaudible). But so far, so good, and that seems to be going along nicely. In terms of the synergies we spent forward, like I told you before in another call, there are 2 very concrete cases where we are collaborating. And it's the case of the Juntos platform in Mexico, where we are tying in working to tie in FEMSA or spin fintech solution. So on the payments front, we will be rolling out that as a feature for our trade partners in Juntos plus and also in the loyalty plan, interim has a very large and robust loyalty plan what we aim to do is when we roll out the A4 version for Mexico in the end of the fourth quarter, our loyalty plan will have a link to the spin loyalty. So that only makes it more attractive, both for us and for the impact which it's very simple. The point will be exchangeable not only for products that we manage, both of the Coca-Cola Company and our third-party portfolio, but also interchangeable for skin premium rewards, which have a much wider catalog. So it just gives us a lot of added value for our trade clients. That's basically the 2 large areas where the largest impact that we have right now Thiago. I don't know, Gary, did I cover all points to.

謝謝你，卡洛。如果我沒記錯的話，我認為第一點是墨西哥的主要內容以及迄今為止的進展情況。目前，我們在墨西哥的銷量增長了 8% 左右。如果剔除大宗季度業務，則增長 5%。到目前為止，一切都很好。我們根本沒有看到任何放緩。成交量強勁。我認為我們即將進入選舉年。由於近岸外包，大量資金從墨西哥整體流入。所以我們對墨西哥非常樂觀。因此，我預計收入不會出現任何減速或壓力，相反，我認為我們設法制定新的競爭格局和戰略的方式，我們的收入和銷量應該繼續沿著這個速度前進，除非出現任何不可預見的氣候或情況。我們的（聽不清）。但到目前為止，一切都很好，而且似乎進展順利。就我們向前推進的協同效應而言，就像我之前在另一次電話會議中告訴過您的那樣，我們正在合作兩個非常具體的案例。墨西哥的 Juntos 平台就是這種情況，我們正在該平台努力整合 FEMSA 或旋轉金融科技解決方案。因此，在支付方面，我們將推出這一功能，作為 Juntos plus 中貿易夥伴的一項功能，並且在忠誠度計劃中，Interim 擁有一個非常龐大且強大的忠誠度計劃，我們的目標是在推出 A4 時進行第四季度末的墨西哥版本中，我們的忠誠度計劃將與旋轉忠誠度掛鉤。因此，這只會讓它更具吸引力，無論是對我們還是對它的影響來說，這是非常簡單的。積分不僅可以兌換我們管理的產品（包括可口可樂公司和我們的第三方產品組合），還可以兌換皮膚高級獎勵，其目錄範圍更廣。因此，它為我們的貿易客戶帶來了很多附加值。這基本上是我們目前影響最大的兩大領域，蒂亞戈。加里，我不知道我是否涵蓋了所有要點。

Yes.

是的。

That's clear. Thanks very much

很清楚。非常感謝

The next question comes from Sergio Matsumoto of Citigroup.

下一個問題來自花旗集團的塞爾吉奧·松本。

Ian, you mentioned just now on the Juntos plus. And you also on your prepared remarks about improving customer experience. There's some nice uptick on the traditional trade adopting the Juntos but can you give us some anecdotes on how they have improved their experience with you through this platform? That's my first question. And the second one is on Argentina, having one that can go very impressive. And can you share what do you think were the aspects of your team's performance in Argentina that was most recognized by the Coca-Cola Company, given that they operate in Argentina, they have particular challenges. And if there are any best practices that you can transfer into Brazil or Mexico

Ian，您剛才提到了 Juntos plus。您還發表了有關改善客戶體驗的準備言論。採用 Juntos 的傳統貿易有了一些不錯的增長，但您能給我們講講他們如何通過這個平台改善與您的體驗嗎？這是我的第一個問題。第二個是關於阿根廷的，有一個可以給人留下深刻印象的。您能否分享一下您認為您的團隊在阿根廷的哪些表現最受可口可樂公司認可，因為他們在阿根廷開展業務，面臨著特殊的挑戰。如果有任何最佳實踐可以轉移到巴西或墨西哥

Thank you, Sergio. I think on the first question on Juntos plus, what we're seeing is, and this thing applies in general to well-established platforms, when the client has time on his side, he has the possibility of ordering more items. So for us, what is happening is when we are allowing the client to place an order in the time and channel of their choosing, they're no longer hampered to take the order only when the pre-seller comes and visits. As you know, our Juntos plus model is omnichannel. That's a big difference to our main competitors. What that means is we have kept the free seller business, and on top of that, we offer the order on the app or WhatsApp chatbox. So whenever the clients enter via WhatsApp chatbox or app, they're usually doing that when they have a specific need that wasn't met of the pre-seller buses and/or when they have more time on their plan. So it ends up that our items per store on those orders are larger, so what we see is an uptick for us when they're ordering online and an increase on average frequency. So they're able to manage their working capital in a better way. And since we have either flexible deliveries in Brazil, which is next day delivery basically across 70% of our territory or where we have a lot of delivery frequencies such as in Mexico, it's an uptick for them to be able to plan and take their order when they have a time. So we're seeing very positive results on that front. And steadily, more and more of the orders are coming in digitally. And in regards to Argentina, the Andina cup recognized free assets that stood out in Argentina. And this is, as you know, Argentina is always a book context. However, they managed to ensure growth and consumption locations. So first of all, they had very high growth on the core, high growth on single serve, good plans on segmentations and returnables. The growth of women in leadership, coke no sugar, there were several aspects, so it's not only execution, but there are several minor points such as -- or not minor sevearl special points such as single-serve coke-no sugar, women in leadership that stood out, female talent and inclusion, customer centricity that stood out. And all of those practices, we share in the commercial form across Coca-Cola FEMSA. So as you know, we have a new position that reports to me as the Chief Growth Officer, and they create communities or forums across Coca-Cola FEMSA's commercial and marketing team, where these initiatives are shared. So we were very happy and proud for the Argentina team to be recognized with this cup. It's the first time anyone from Latin America has been recognized with this worldwide award on Coca-Cola

謝謝你，塞爾吉奧。我認為關於 Juntos plus 的第一個問題，我們看到的是，這件事通常適用於成熟的平台，當客戶有時間時，他有可能訂購更多商品。因此，對我們來說，當我們允許客戶在他們選擇的時間和渠道下訂單時，他們就不再受阻礙只有在預售者來訪時才能接受訂單。如您所知，我們的 Juntos plus 模型是全渠道的。這與我們的主要競爭對手有很大區別。這意味著我們保留了免費賣家業務，最重要的是，我們在應用程序或 WhatsApp 聊天框中提供訂單。因此，每當客戶通過 WhatsApp 聊天框或應用程序進入時，他們通常會在有預售巴士未滿足的特定需求和/或有更多時間執行計劃時這樣做。因此，最終我們在這些訂單上每家商店的商品都更大，所以我們看到的是，當他們在線訂購時，我們的商品數量有所增加，平均頻率也有所增加。因此他們能夠以更好的方式管理營運資金。由於我們在巴西有靈活的送貨服務，基本上在我們 70% 的領土範圍內都是次日送達，或者在墨西哥等我們有很多送貨頻率的地方，因此他們能夠計劃和接受訂單的能力有所提高當他們有時間的時候。因此，我們在這方面看到了非常積極的成果。穩步地，越來越多的訂單以數字方式進入。至於阿根廷，安迪納杯認可了阿根廷表現出色的自由資產。如您所知，這就是阿根廷始終是一本書的背景。然而，他們設法確保了增長和消費地點。首先，他們在核心業務上有非常高的增長，在單一服務上有很高的增長，在細分和可回報方面有良好的計劃。女性領導力的成長，無糖可樂，有幾個方面，所以不僅僅是執行力，還有幾個小點，比如——或者不是次要的幾個特殊點，比如單份可樂無糖，女性在突出的領導力、女性的才華和包容性、突出的以客戶為中心。所有這些做法，我們都以商業形式在可口可樂 FEMSA 中共享。如您所知，我們有一個新職位，作為首席增長官向我匯報，他們在可口可樂 FEMSA 的商業和營銷團隊中創建社區或論壇，在其中共享這些舉措。因此，我們對阿根廷隊獲得此杯賽的認可感到非常高興和自豪。這是拉丁美洲首次獲得可口可樂全球獎項

Great. Thanks for comment

偉大的。感謝您的評論

Thank you, Sergio.

謝謝你，塞爾吉奧。

The next question comes from from Fernando Ferreira of Bank of America.

下一個問題來自美國銀行的費爾南多·費雷拉。

My first question is starting on a consolidated basis. Regarding the EUR 1 billion in digital sales that you reached in the first half of the year, if you can comment what is the breakdown by country and where you see an opportunity? And my second question is related to Medical, if you can share your thoughts of how they are performing, the different kind of projects that you are doing the traditional channel as well as in the DTC and DPC platform. Thank you.

我的第一個問題是從綜合的基礎上開始的。關於您上半年達到的 10 億歐元的數字銷售額，您能否評論一下按國家/地區劃分的細分情況以及您在哪裡看到了機會？我的第二個問題與醫療有關，您是否可以分享您對他們的表現以及您在傳統渠道以及 DTC 和 DPC 平台中所做的不同類型項目的想法。謝謝。

It's Jorges here. On your first question regarding the sales on the vehicle revenues. Basically, what we have seen there, Fernando is to reach to those billion sales, we've seen a high level of growth coming from Mexico. So Mexico, to give you a little bit of the sense of the breakdown basically represents about $360 million out of those 1 billion in sales, but that's a very rapid increase. Mexico has been increasing, as we have been speaking before, very fast in the rollout of Juntos plus. And there's a very similar number coming out of Brazil, approximately EUR 370 million in digital sales coming from Brazil. The rest Fernando is split between the rest of the countries, we have Colombia catching up as well with around EUR 30 million, and the rest is split between the rest of the countries. But as you can see, most of this is coming from the level of growth because of the rollout of Juntos plus that we have in Mexico and Brazil.

這是豪爾赫斯。關於你的第一個問題，關於車輛收入的銷售。基本上，我們在那裡看到的是，費爾南多將達到十億美元的銷售額，我們看到墨西哥的高水平增長。因此，墨西哥，讓您稍微了解一下細分情況，基本上代表了這 10 億銷售額中的約 3.6 億美元，但這是一個非常快速的增長。正如我們之前所說，墨西哥在 Juntos plus 的推出中一直在快速增長。巴西的數字也非常相似，巴西的數字銷售額約為 3.7 億歐元。費爾南多的剩餘資金由其他國家分配，哥倫比亞也趕上，大約 3000 萬歐元，其餘的由其他國家分配。但正如您所看到的，其中大部分來自增長水平，因為我們在墨西哥和巴西推出了 Juntos plus。

Yes. And this has been the big focus on 2 large markets, and that's where we're focusing on for the version 4 and then the rest of Latam. So I think for us, next year, the rest of Latam will be a nice upside for our Juntos plus platform, and we want to concentrate the rest of this year, and I would say, the first quarter of next year on both Mexico and Brazil, which are the biggest countries for us so far.

是的。這是我們重點關注的兩個大市場，這也是我們在版本 4 中重點關注的地方，然後是拉丁美洲的其他市場。因此，我認為對我們來說，明年，拉丁美洲的其他地區對於我們的 Juntos plus 平台來說將是一個很好的優勢，我們希望將今年剩下的時間集中在墨西哥和墨西哥。巴西，這是我們迄今為止最大的國家。

Great. And regarding your pilot projects in Mexico.

偉大的。關於你們在墨西哥的試點項目。

Sorry. I think the line is breaking up a little bit, so we couldn't hear the second question. Can you repeat, please?

對不起。我認為線路有點斷了，所以我們聽不到第二個問題。您能重複一遍嗎？

So if you can share your thoughts on how they're performing the different type of projects that we are implementing in Mexico rental channel as well as in the DTC and DPC platforms.

因此，您是否可以分享您對他們如何執行我們在墨西哥租賃渠道以及 DTC 和 DPC 平台中實施的不同類型項目的想法。

So far so good, Fernando. We're adding more partners every day. I think Brazil, we're around 14 partners. I don't remember the amount of partners that we have in Mexico so far, but in Mexico, our footprint is so much larger than any other competitive platform that I know we're signing up the largest players well ahead of our competition. So we're very positive on that. As you know, I have mentioned that for these offerings to be of scale, we will need at least 5 to 6 years for this to be around 5% of revenue as we're growing our core business year-over-year, and we expect to be in growth mode. It's always a challenge for this to become relevant. So in Brazil, this gets to around almost 2% of revenues because we're growing as well in Mexico. We're going to be hitting 1% of revenue. So they're still small, but when you look at that multi-category, it's doubling its size every year, just as we're growing the base business as well. So you guys need to have some patients until we reach that ambition that we have to get to 5% of our revenue at the rate that we're growing our core business, even though this is accelerating as well, it's going to take its time.

到目前為止一切順利，費爾南多。我們每天都在增加更多的合作夥伴。我認為巴西，我們大約有 14 個合作夥伴。我不記得到目前為止我們在墨西哥有多少合作夥伴，但在墨西哥，我們的足跡比任何其他競爭平台都要大得多，我知道我們正在領先於我們的競爭對手簽約最大的參與者。所以我們對此非常積極。如您所知，我已經提到，為了使這些產品具有規模，我們至少需要 5 到 6 年的時間才能達到收入的 5% 左右，因為我們的核心業務逐年增長，而且我們預計處於增長模式。要使其變得有意義始終是一個挑戰。因此，在巴西，這幾乎佔收入的 2%，因為我們在墨西哥也在增長。我們將達到收入的 1%。所以它們仍然很小，但是當你看看這個多類別時，它的規模每年都在翻倍，就像我們也在發展基礎業務一樣。因此，你們需要有一些病人，直到我們實現我們的目標，即我們必須以核心業務增長的速度達到我們收入的 5%，儘管這也在加速，但這需要時間。

Our next question comes from Alan Alanis of Santander.

我們的下一個問題來自桑坦德銀行的艾倫·阿拉尼斯。

Congratulations on the results. A couple of questions. One of them is regarding the lower price of the commodities, sugar, aluminum and so forth, strength of the peso. Could you expand a bit more in terms of how much hedges are you expanding your hedges beyond what you usually do? And how much you have overcome advantage of as low oil prices of commodities and the trend, particularly on the Mexican peso? That would be the first question. And question is regarding Argentina, could you remind us what changes did you use on the consolidation of Argentina into your balance sheet and you new growth or given the depreciation of the into peso just as seen last year. So 2 very different questions.

祝賀結果。有幾個問題。其中之一是大宗商品、糖、鋁等價格下跌以及比索走強。您能否將您的對沖範圍擴大到超出您通常所做的範圍？您在多大程度上克服了大宗商品低油價和趨勢的優勢，特別是墨西哥比索？這是第一個問題。問題是關於阿根廷的，您能否提醒我們，您在將阿根廷合併到您的資產負債表和新增長方面使用了哪些變化，或者考慮到比索的貶值，就像去年看到的那樣。這是兩個非常不同的問題。

Alan, thank you very much for your questions. Regarding commodities, for 2023, we are with a very healthy hedging position on PEP basically across all of our operations, and we're starting to build a little bit of position of hedging PEP for next year. We are expecting a benign outlook for PEP and aluminum. So we're being careful to stay within the low end of the range of our hedging objective, but starting to see good opportunities to build a little bit more on those positions. On sweeteners, we're basically hedged for HFCS in Mexico, which is an important component of our sweetener expense. Sugar, there's a few alternatives that we have. But in Brazil, we also have a good position as well as in Uruguay, basically for 2023. We're a little bit above 50%, our sugar needs hedged in '23 in both countries. That's a little bit on the actual commodity price hedging on the FX front. We have certainly seen a good opportunity in the peso to build up hedging position. We're basically hedged at 80% of our dollar requirement in Mexico for '23. -- and being a little bit more careful to start to build positions for '24. Regarding your question of the range that we are able to hedge, we continue to look at a 12-month rolling period for hedging in both commodity prices and FX related to cost of goods sold. So we haven't changed that, and we do not expect to change that in the near future. FX hedging for other operations, Brazil, Colombia and Uruguay. We have a little bit -- or very close to 50% of our dollar requirements hedged for '23 and also as well as in Mexico starting to build position for the first half of '24 in line with that 12-month (inaudible) period. Going into your second question, or Argentina results, we continue using the official exchange rate to consolidate Argentina, that the number or the exchange rate that we used for the consolidating of this quarter was $256.7 million. We really don't have any other alternatives because we have to comply with the official exchange rate for purposes of consolidating that business. We understand that a portion of the economy transacts at the parallel exchange rate, but most of our business -- the raw materials that we require as well as the capital assets that we require for our business. are still done at the official exchange rate. So we understand that this represents a source of uncertainty, but that's the exchange rate that we have to use to consolidate that business. That was a very content to answer as we completed. Than you Alan.

艾倫，非常感謝你的提問。關於大宗商品，到 2023 年，我們基本上在所有業務中都對 PEP 擁有非常健康的對沖頭寸，並且我們開始為明年建立一點對沖 PEP 頭寸。我們預計 PEP 和鋁的前景良好。因此，我們小心翼翼地保持在對沖目標範圍的低端，但開始看到在這些頭寸上建立更多頭寸的好機會。在甜味劑方面，我們基本上對墨西哥的 HFCS 進行對沖，這是我們甜味劑支出的重要組成部分。糖，我們有一些選擇。但在巴西和烏拉圭，我們也有很好的地位，基本上是到 2023 年。我們略高於 50%，我們的食糖需求在 23 年在這兩個國家得到了對沖。這只是外匯方面實際商品價格對沖的一點點。我們當然看到了比索建立對沖頭寸的好機會。我們基本上對沖了 23 年墨西哥 80% 的美元需求。 ——並更加小心地開始為 24 年建立職位。關於您提出的我們能夠對沖的範圍的問題，我們將繼續研究 12 個月的滾動期，以對沖商品價格和與銷售商品成本相關的外匯。所以我們沒有改變這一點，並且我們預計在不久的將來也不會改變這一點。其他業務的外匯對沖，包括巴西、哥倫比亞和烏拉圭。我們有一點點——或者說非常接近 50% 的美元需求對沖 23 年，並且在墨西哥也開始根據 12 個月（聽不清）期間建立 24 年上半年的頭寸。關於你的第二個問題，即阿根廷的結果，我們繼續使用官方匯率來合併阿根廷，我們用於本季度合併的數字或匯率是 2.567 億美元。我們確實沒有任何其他選擇，因為為了鞏固業務，我們必須遵守官方匯率。我們知道經濟的一部分以平行匯率進行交易，但我們的大部分業務——我們所需的原材料以及我們業務所需的資本資產。仍按官方匯率進行。因此，我們知道這代表了不確定性的來源，但這是我們必須用來鞏固該業務的匯率。當我們完成時，這是一個非常滿意的回答。比你艾倫.

The next question today comes from Antonio Hernandez from Barclays.

今天的下一個問題來自巴克萊銀行的安東尼奧·埃爾南德斯。

My first question is regarding pricing going forward and overall is that you can see in Mexico? And just a quick follow-up on the Juntas plus penetration in terms of customers.

我的第一個問題是關於未來的定價，總體而言，您可以在墨西哥看到嗎？只是對 Juntas 的快速跟進以及客戶滲透率。

Thank you, Antonio. First on your first question regarding pricing. We -- as we talked about in the previous few calls, we're trying to focus on sustainable growth and basically in other territories and specifically in Mexico, as Ian mentioned during the script of the call, we have been facing share pressure in the past few years. So we're trying to stop that share erosion and recover competitiveness in our portfolio. We understand that our main objective and the way that we will continue to improve performance and return of our businesses through growth, and I want to underscore the word sustainable growth. And in that sense, what we're looking at for the foreseeable future is to price basically in line, at least in line with inflation, trying to recover that competitiveness, and we've seen very good data points in these first 6 months of the year regarding the performance of the share of our products. And the second question was on Juntas. I think when you talk about Juntos plus, if you look at it in percentage of orders, about 1/3 of our orders are coming to to Juntos plus, -- when you look at that in revenues, you know this offering goes towards the traditional trade it's around 16% of our total revenue. But when you look at traditional trade revenues, Antonio, it's almost 1/4 of our revenues of the traditional trip. And if we do like zooming on Brazil, which is a country that's first started with this platform, it's already 60% of traditional trade volumes. So I think that penetration is encouraging. Like I mentioned, Brazil started with this, but Mexico is accelerating fast. And next year, we would have an uptick in the rest of Latam market. So far, so good withJunto plus in terms of both the penetration and the partners that we are signing up.

謝謝你，安東尼奧。首先回答你關於定價的第一個問題。正如我們在前幾次電話會議中談到的，我們正在努力關注可持續增長，基本上是在其他地區，特別是在墨西哥，正如伊恩在電話會議腳本中提到的那樣，我們一直面臨著股票壓力過去幾年。因此，我們正在努力阻止份額侵蝕並恢復我們投資組合的競爭力。我們了解我們的主要目標以及我們將通過增長繼續提高業績和業務回報的方式，我想強調可持續增長這個詞。從這個意義上說，在可預見的未來，我們所關注的是基本上與通貨膨脹保持一致，至少與通貨膨脹保持一致，試圖恢復競爭力，並且我們在今年的前 6 個月中看到了非常好的數據點。關於我們產品份額的表現的年份。第二個問題是關於軍政府的。我認為，當您談論 Juntos plus 時，如果您從訂單百分比來看，大約 1/3 的訂單來自 Juntos plus，--當您從收入角度來看，您就知道該產品將用於傳統貿易約占我們總收入的 16%。但安東尼奧，當你看看傳統貿易收入時，它幾乎占我們傳統旅行收入的 1/4。如果我們確實喜歡聚焦巴西，這是一個首先使用該平台的國家，它已經佔傳統貿易量的 60%。所以我認為滲透率令人鼓舞。就像我提到的，巴西是從這個開始的，但墨西哥正在快速加速。明年，我們在拉丁美洲其他市場的銷量將會有所上升。到目前為止，Junto plus 在滲透率和我們簽約的合作夥伴方面都表現良好。

The next question comes from Luis Willard of GBM.

下一個問題來自 GBM 的 Luis Willard。

So first of all, congratulations on your win of the (inaudible) cup . And my question is on the digital revenues. I apologize if this feels repetitive. So as they accelerate and they seem to be doing so nicely. My question is, at this point, are you seeing any material difference in unit economics from a digital purchase versus a physical one or a traditional one. And more importantly, if you're seeing those differences already being reflected in your P&L more importantly, on the returns of your business? That will be my question.

首先，祝賀您贏得（聽不清）獎杯。我的問題是關於數字收入。如果這感覺重複，我深表歉意。因此，當他們加速時，他們似乎做得很好。我的問題是，在這一點上，您是否發現數字購買與實體購買或傳統購買在單位經濟效益方面存在任何重大差異。更重要的是，您是否發現這些差異已經反映在您的損益表中（更重要的是反映在您的業務回報中）？這將是我的問題。

Hi Luis, thank you for the comments on the Acandor. Like I mentioned, the unit -- the driver for us is not a cheaper cost to serve, although as you intuitively are pointing out in your question, it is -- depending on the market and the labor cost of the different markets, it can be all the way -- an average of 20% less cost to serve in the -- when it comes to the order up 20%, so 80% less cost user. So it's a big difference. However, this has not been our driver. What we're trying to do is be a higher growth company. So we are intent on keeping the omnichannel model. We're not reducing our feet on the street. The role of the pre-seller changes as far as -- the more penetration and orders are taken online, then we're freeing up these resellers to do more of the execution, the introduction of new products and launches, bringing in new partners. And we want to -- we think it's a big advantage to us how we look in the point of sales versus our competition. And that stems from the fact that we are omnichannel because the digital portion of our platform allows us to bring in more business, like I said, it's higher IPS. It's at a lower cost. But really, when it comes to execution at the point of sale, that having that relationship still makes a lot of difference. And for new product introductions as well, the new launches entering into different categories, developing coal channels, it makes a lot of difference having those specialized structures and our preseller. So we're not seeing a difference in the cost to serve because of that we're maintaining the omnichannel structure. And like I mentioned, in terms of revenue since it's still in the incipient stages, it's around 16% of total revenue. So it hasn't made that big of an impact so far, but we measure those digital revenues, and you can see a larger ticket. So in those digital revenues, when you compare them to the traditional or sales control point of sale when we look at those control points, we do have an optic. So a portion of that, which is not irrelevant, is incremental for us when you do those analysis.

您好 Luis，感謝您對 Acandor 的評論。就像我提到的，單位——我們的驅動力並不是更便宜的服務成本，儘管正如您在問題中直觀地指出的那樣——根據市場和不同市場的勞動力成本，它可以一直如此——平均服務成本減少20%——當訂單增加20%時，用戶成本減少80%。所以這是一個很大的區別。然而，這並不是我們的司機。我們正在努力做的是成為一家更高增長的公司。因此，我們致力於保持全渠道模式。我們不會減少在街上的腳步。預售商的角色發生了變化——在線滲透率和訂單量越大，那麼我們就可以讓這些經銷商騰出時間來做更多的執行工作，推出新產品和發布產品，引入新的合作夥伴。我們希望——我們認為，與競爭對手相比，我們在銷售方面的表現對我們來說是一個很大的優勢。這是因為我們是全渠道的，因為我們平台的數字部分使我們能夠帶來更多業務，就像我說的，它具有更高的 IPS。它的成本較低。但實際上，當談到銷售點的執行時，擁有這種關係仍然會帶來很大的不同。對於新產品的推出，新產品的推出進入不同的類別，開發煤炭渠道，擁有這些專業的結構和我們的預售商會產生很大的影響。因此，由於我們維持全渠道結構，因此我們沒有看到服務成本存在差異。正如我提到的，就收入而言，由於仍處於起步階段，約佔總收入的 16%。所以到目前為止它還沒有產生那麼大的影響，但我們衡量了這些數字收入，你可以看到更大的門票。因此，在這些數字收入中，當您將它們與傳統或銷售控制點進行比較時，當我們查看這些控制點時，我們確實有一個光學。因此，當您進行這些分析時，其中一部分並非無關緊要，對我們來說是增量的。

I know your -- you just gave me too much great thinking about costs. So I was looking for a ticket and higher orders

我知道你——你剛剛讓我對成本進行了太多的思考。所以我正在尋找一張票和更高的訂單

Next question comes from Felipe Ucroz Scotiabank.

下一個問題來自 Felipe Ucroz Scotiabank。

First thing maybe an update on partnerships for Juntos, obviously, our partners in Mexico are pretty defined at this content, but just wondering if you have made any advancements on talking to partners for royalties in the other regions that you can't give an update on. Of course, you may not be able to give us an update on the conversation. Just looking for any updates there. And also a question (inaudible)? Or are you looking to make any repatriation of capital ahead of a possible devaluation after elections..

首先，可能是關於 Juntos 合作夥伴關係的更新，顯然，我們在墨西哥的合作夥伴對此內容的定義非常明確，但只是想知道您在與其他地區的合作夥伴討論版稅方面是否取得了任何進展，而您無法提供更新在。當然，您可能無法向我們提供對話的最新情況。只是在那裡尋找任何更新。還有一個問題（聽不清）？或者您是否希望在選舉後可能出現的貨幣貶值之前將資本匯回國內？

Hi Felipe. In terms of our partnership on multi-category,I think you know like I mentioned, Brazil is around 14 partners, Mexico on to or around 10 partners. These are partners all with contracts aligned. We're entering different categories. (inaudible), you want to comment. So we're happy when this is like we want to have a few rated portfolio. We do not

嗨，費利佩。就我們的多類別合作夥伴關係而言，我想您知道，就像我提到的那樣，巴西大約有 14 個合作夥伴，墨西哥大約有 10 個合作夥伴。這些都是合同一致的合作夥伴。我們正在進入不同的類別。 （聽不清），你想發表評論。因此，當我們想要擁有一些評級投資組合時，我們會很高興。我們不

Understood on the partners that are jumping on the platform. I was looking more for -- I mean, will help on payments in the other countries. And the same as a partner to state the loyalty program in countries outside of Mexico.

了解正在跳上平台的合作夥伴。我一直在尋找更多 - 我的意思是，這將有助於其他國家/地區的付款。與合作夥伴一樣，在墨西哥以外的國家/地區聲明忠誠度計劃。

No. I was getting to that Filipe. So on the services front, we're still getting out of Mexico. So the focus is getting that done in Mexico, and then we'll be testing that out in the rest of the market. So far on the service portion, which includes both financial services and loyalty partners, Mexico you're getting that effort.

不，我正在去找那個菲利普。所以在服務方面，我們仍然要離開墨西哥。因此，重點是在墨西哥完成這項工作，然後我們將在其他市場進行測試。到目前為止，在服務部分，包括金融服務和忠誠合作夥伴，墨西哥您正在付出努力。

Understood. Very clear.

明白了。非常清楚。

On the second part of your question regarding Argentina and our exposure there. It's certainly not an easy solutions. The operation has been growing very importantly. So the first priority for using our capital generated in Argentina is to continue to build capacity to make front through that very healthy growth that we've been seeing. On the second alternative, we look for alternatives to invest in assets that -- where we can protect our cash exposure of FX depreciation. And we certainly continue to see or look for opportunities that we can materialize in our last position in our (inaudible) cash to repatriate assets, but that is much more complex because there's no access to free leases to dollars. We have a small position of our total cash, about 3% of our consolidated cash is concentrated in Argentina. So it's not a significant impact for the consolidated business, but we're certainly focused on booking growth and is for using that cash.

關於你關於阿根廷和我們在那裡的業務的問題的第二部分。這當然不是一個簡單的解決方案。該業務的增長非常重要。因此，利用我們在阿根廷產生的資本的首要任務是繼續建設能力，以實現我們所看到的非常健康的增長。對於第二種選擇，我們尋找投資資產的替代方案，這樣我們就可以保護我們的外匯貶值的現金風險。我們當然會繼續看到或尋找機會，我們可以在我們的（聽不清）現金的最後位置實現資產匯回，但這要復雜得多，因為無法獲得免費的美元租賃。我們的現金總額只佔一小部分，大約 3% 的綜合現金集中在阿根廷。因此，這對合併業務不會產生重大影響，但我們當然專注於預訂增長並使用這些現金。

Our next question is from Alvaro Garcia of BTG.

我們的下一個問題來自 BTG 的阿爾瓦羅·加西亞 (Alvaro Garcia)。

A couple of questions on my end. First, on beer in Brazil. We saw a nice sequential acceleration there. I was just wondering if you could maybe give us some color if that was Heineken brands or maybe some of the other smaller brands that you've been ramping up there. And then my second question is on sort of capital allocation as a follow-up to what we discussed on past calls in terms of what I sort of consider a suboptimal sort of cash balance and excess sort of cash balance, what's been your thinking there? Is there any update with regard to a potential shift as you're thinking about your dividends? Any sort of color there would be greatly appreciated.

我最後有幾個問題。首先是巴西的啤酒。我們在那裡看到了很好的連續加速。我只是想知道你是否可以給我們一些顏色，如果那是喜力品牌或者你一直在那裡發展的其他一些較小的品牌。然後我的第二個問題是關於資本配置的問題，作為我們在過去電話會議中討論的內容的後續，我認為現金餘額是次優的，現金餘額過剩，您對此有何看法？當您考慮股息時，有關於潛在轉變的任何更新嗎？任何種類的顏色都會受到極大的讚賞。

It's Jorge here, on your first question regarding beer, yes, as you mentioned, we saw a sequential improvement as compared with the first quarter. And it comes basically from a combination. We have been implementing some plans with Heineken as well together to accelerate the performance of the portfolio. We have some plans that we have implemented there that are starting to show some results. That is a (inaudible) as well, not the brand that we have as well. It's accelerating. It's growing. To give you a sense, there in the first 6 months, growing 30-plus rate as compared versus the previous year. So that's a little bit of what we're seeing in the year. Obviously, it takes time. We know that. But the strategy is what we have to continue improving, we are improving versus the first quarter, that's for sure. And in terms of capital allocation, we continue to review what's the best structure for us, like I mentioned, we want to, first of all, fund our growth and not look at other opportunities. There doesn't seem to be so far any relevant inorganic opportunities out there for us. So depending on how this continues to go, we should have a way to free up this cash. But I wouldn't expect anything in the short term. I think that's a decision for next year, where we'll be taking that.

我是豪爾赫，關於你關於啤酒的第一個問題，是的，正如你提到的，與第一季度相比，我們看到了連續的改善。它基本上來自於一個組合。我們一直在與喜力一起實施一些計劃，以加快產品組合的績效。我們在那裡實施了一些計劃，並開始顯示出一些成果。這也是（聽不清），但不是我們擁有的品牌。它正在加速。它正在增長。給大家一個感覺，前 6 個月，與去年相比增長了 30 多倍。這就是我們今年看到的一些情況。顯然，這需要時間。我們知道。但我們必須繼續改進策略，與第一季度相比，我們正在改進，這是肯定的。在資本配置方面，我們繼續審查什麼是最適合我們的結構，就像我提到的，我們希望首先為我們的增長提供資金，而不是尋找其他機會。到目前為止，我們似乎還沒有任何相關的無機機會。因此，根據事態的發展，我們應該有辦法釋放這筆現金。但短期內我不會期待任何事情。我認為這是明年我們將做出的決定。

Okay. Just maybe one last follow-up on Cock Sin Azucar, I was wondering if maybe you can walk through sort of penetration and how well that product has done.

好的。也許只是 Cock Sin Azucar 的最後一個後續行動，我想知道你是否可以介紹一下滲透以及該產品的表現如何。

It's doing very well. Actually, on the prepared remarks, Ian mentioned a couple of points regarding coke zero sugar. For example, in Mexico, it's growing double digits year-to-date. When you look at the mix, it still on the single digits, but it's growing, it's outperforming. In the case of Brazil, for example, is outstanding. And I would also highlight that Ian mentioned also during the prepared remarks, 30 plus 32%, if I remember correctly, as compared to the previous year on the first 6 months of the year. And there, the mix is now reaching double digits. So it's a great product. Obviously, it's a great brand, and we are executing that and winning in the market. So I think it's very encouraging to see what we're doing with Coca-Cola across our markets.

它做得很好。實際上，在準備好的發言中，伊恩提到了有關可樂零糖的幾點。例如，在墨西哥，今年迄今該數字正在以兩位數的速度增長。當你看看這個組合時，它仍然是個位數，但它正在增長，而且表現出色。以巴西為例，情況就很突出。我還要強調的是，伊恩在準備好的發言中也提到，如果我沒記錯的話，與去年相比，今年前 6 個月增加了 30% 和 32%。在那裡，這一比例現已達到兩位數。所以這是一個很棒的產品。顯然，這是一個偉大的品牌，我們正在執行這一品牌並贏得市場。因此，我認為看到我們在可口可樂整個市場上所做的事情非常令人鼓舞。

And the final question today comes from Rodrigo Camara of UBS.

今天的最後一個問題來自瑞銀集團的羅德里戈·卡馬拉。

I have 2 quick ones, one for Ian and another for Jerry. For Ian, thank you very much for the comments on the competitive position in Mexico, we expect to the pricing strategy over there. Maybe if you can replicate those on tail for the case of Brazil and the pricing strategy there. We saw a slight deceleration in the pricing in Brazil in real terms above year overdue growth it. So just curious of what's driving that -- what drove that deceleration? And my second question would be for Jerry; labor expenses castration of being like a topic more for retail industry, where we have seen like any more relevance for others pressuring margins. So was just curious of this year can come share with us like basis points, like how much of your margins have been loaded by the increase in labor expenses -- if you can comment on that also on the savings that you mentioned at the beginning of the call, for next year, the issue for most savings come coming from logistics. That will be my two questions.

我有 2 個快速的，一個給 Ian，另一個給 Jerry。對於 Ian，非常感謝您對墨西哥競爭地位的評論，我們期待那裡的定價策略。也許你可以復制巴西的案例以及那裡的定價策略。我們看到巴西的實際價格比去年同期的增長略有放緩。所以只是好奇是什麼推動了這種減速？我的第二個問題是問傑瑞的；勞動力成本閹割對於零售業來說更像是一個話題，我們已經看到與其他壓力利潤率的因素有更多相關性。因此，我只是好奇今年是否可以與我們分享一些基點，比如您的利潤有多少是由勞動力支出的增加所帶來的——如果您也可以對您在開頭提到的節省進行評論的話呼籲明年大部分節省的問題來自於物流。這將是我的兩個問題。

Thank you, Rodrigo. Yes. On your first question regarding pricing in Brazil. As Ian mentioned, during the remarks as well, I think we can definitely see that we're leveraging on the pricing carryover that we have. And also we're titling pricing from last year that was very solid. And so, we do expect that to moderate. We're seeing inflation across most of our markets normalizing, and we have initiatives to continue to improve our mix, leveraging revenue growth management. But you can expect that to moderate versus the pace that we had last year. As Ian mentioned, to summarize it, the target is to be at least in line with inflation. So partly that reflects on what you're seeing in Brazil. On the other hand, we continue to see on the competitive position that we're gaining share in Brazil. So obviously, also on the margins front, we're seeing in resin cost. So we continue to see space to be able to be more or less aggressive on that front.

謝謝你，羅德里戈。是的。關於你關於巴西定價的第一個問題。正如伊恩提到的，在講話中，我認為我們肯定可以看到我們正在利用我們擁有的定價結轉。而且我們去年的定價也非常穩定。因此，我們確實預計這種情況將會放緩。我們看到大多數市場的通貨膨脹正在正常化，並且我們採取措施繼續改善我們的組合，利用收入增長管理。但你可以預期，與去年相比，這一速度將會放緩。正如伊恩提到的，總而言之，目標是至少與通貨膨脹保持一致。這在一定程度上反映了你在巴西看到的情況。另一方面，我們繼續看到我們在巴西的競爭地位正在增加。顯然，在利潤率方面，我們也看到了樹脂成本。因此，我們繼續看到在這方面能夠或多或少激進的空間。

Regarding Rodrigo, your question on margins in Mexico, basically, the whole explanation of margin impact in Mexico is related to fixed cost and expenses and specifically, labor is one of the biggest impacts. I would say that of the total increase in fixed cost and expenses, about 20 -- a little bit above 20% of the impact is related to labor. DME marketing expense is also playing an important role that related to our tactic of recovering competitiveness and positioning our brands to recover share in the market is important. And the third, I guess, big component there is IT expense. As Ian was mentioning in the previous question, right now, we're investing importantly in digital capacity and technology. That represents an increase in IT expense, but it's related to our -- one of our main pillars, strategic pillars for growth and the way that we're trying to become the preferred B2B platform in our markets.

關於羅德里戈，你關於墨西哥利潤率的問題，基本上，墨西哥利潤率影響的整個解釋與固定成本和費用有關，具體來說，勞動力是最大的影響之一。我想說，在固定成本和開支的總增長中，大約有 20%（略高於 20%）的影響與勞動力有關。 DME 營銷費用也發揮著重要作用，這關係到我們恢復競爭力的策略以及定位我們的品牌以恢復市場份額非常重要。我認為第三個重要組成部分是 IT 費用。正如伊恩在上一個問題中提到的那樣，現在我們正在對數字能力和技術進行重要投資。這代表著 IT 支出的增加，但它與我們的主要支柱之一、增長的戰略支柱以及我們努力成為市場上首選 B2B 平台的方式有關。

That's useful. -- risotto expect that the 4Q OpEx growing at the same rates that we have seen in the last quarters, is that a fair assumption in minimal 20% or something like that.

這很有用。 -- risotto 預計第四季度運營支出的增長速度與我們在過去幾個季度看到的相同，這是一個合理的假設，至少增長 20% 或類似的水平。

Yes. Yes, that's a good estimate. It's fair

是的。是的，這是一個很好的估計。這是公平的

And regarding your per about saying, we're very positive on what we've seen in our capacity to realize the savings that we were expecting for the year. Basically, these savings have been concentrated in both cost to serve and cost to make, most of them in cost to make with efficiencies in our manufacturing facilities related to packaging, lightweighting, in packaging, freight optimization, also the transformation from resin to model. We've seen important savings there. And on cost to serve, we've invested importantly in route efficiencies and that provided important savings of savings for us.

關於您所說的，我們對實現今年預期的節省的能力非常樂觀。基本上，這些節省主要集中在服務成本和製造成本上，其中大部分是與包裝、輕量化、包裝、貨運優化以及從樹脂到模型的轉變相關的製造設施的效率提高的製造成本。我們在那裡看到了重要的節省。在服務成本方面，我們在路線效率方面進行了大量投資，這為我們節省了大量資金。

Okay. That's very clear. very much

好的。這非常清楚。非常

Thank you, Rodrigo.

謝謝你，羅德里戈。

And there are no further questions. I'd like to hand the call over to Harada Cruz, CFO, for closing or additional remarks.

沒有其他問題了。我想將電話轉交給首席財務官原田克魯茲 (Harada Cruz)，讓其作結束語或補充說明。

Thank you very much for your confidence and interest in Coca-Cola FEMSA and for joining us today on today's earnings call. As always, our Investor Relations team is available to answer any of your remaining questions, and we look forward to speaking again soon. And that does indeed conclude today's conference call.

非常感謝您對可口可樂 FEMSA 的信心和興趣，並感謝您今天參加我們的財報電話會議。與往常一樣，我們的投資者關係團隊可以回答您的任何剩餘問題，我們期待很快再次發言。今天的電話會議確實結束了。

We thank you all for participating, and you may now disconnect.

我們感謝大家的參與，現在您可以斷開連接了。