Coca-Cola (NYSE:KO) FEMSA S.A.B. de C.V. (BMV: KOFUBL; NYSE: KOF), the largest franchise bottler of Coca-Cola products in Latin America, has successfully met the sustainability performance target set for its water usage, as confirmed on Thursday. The company achieved a water use efficiency ratio of 1.36 liters per liter of beverage produced, a benchmark stipulated in its sustainability-linked bonds.
This accomplishment, verified by an independent external verifier, ensures that there will be no change to the interest rate of the sustainability-linked bonds for the period starting September 19, 2024. Coca-Cola FEMSA's CEO, Ian Craig, emphasized the company's dedication to maximizing water efficiency and its broader commitment to environmental stewardship.
The company has invested $17.42 million in 2022 and 2023 to enhance water efficiency across its operations. These investments have funded a range of initiatives, including the adoption of innovative technologies that foster ongoing improvements in production processes.
Coca-Cola FEMSA's efforts have led to a 21% improvement in water usage efficiency since 2016, positioning the company as an industry leader in this area. The report is based on a press release statement. For more detailed information on the company's sustainability performance, refer to its 2023 Integrated Report.
Coca-Cola FEMSA operates in various Latin American countries, including Mexico, Brazil, Guatemala, Colombia, and Argentina, and serves over 270 million consumers with a portfolio of 134 brands. The company's commitment to sustainability has earned it recognition in several ESG indices, reflecting its focus on creating value across the economic, social, and environmental dimensions.
In other recent news, Coca-Cola FEMSA, the world's largest franchise bottler of Coca-Cola products, has reported robust growth in its second-quarter 2024 earnings. Despite macroeconomic challenges and natural calamities, the company's consolidated volumes increased by 7.5% year-on-year.
Total revenues grew by 13.1% reaching MXN 69.5 billion, and gross profit rose by 17.2% to MXN 32 billion. A significant milestone was achieved in Mexico, where volume growth reached a record 600 million unit cases.
In addition, Coca-Cola FEMSA has opened a new distribution center in Funza, Bogota and has hedged a significant portion of its exposure to dollarized raw materials for 2024 and the first half of 2025. The company's Juntos+ loyalty program has attracted 750,000 participants in Mexico. Looking ahead, the company plans to create 15% additional manufacturing capacity by the end of 2025.
InvestingPro Insights
In alignment with Coca-Cola FEMSA's commitment to sustainability and efficiency, the company's financial health and market performance also reflect significant milestones. An InvestingPro Tip highlights that Coca-Cola FEMSA (KOF) has raised its dividend for five consecutive years, showcasing its ability to return value to shareholders consistently. Additionally, the company's gross profit margins are impressive, standing at 45.66% over the last twelve months as of Q2 2024, which underscores its operational efficiency and solidifies its status as a prominent player in the Beverages industry.
From a financial perspective, Coca-Cola FEMSA's market capitalization is currently $1.83 billion, with a P/E ratio of 16.86, which indicates the company is trading at a premium based on its earnings. Moreover, the company has experienced a robust revenue growth of 10.02% over the last twelve months as of Q2 2024, which is a testament to its strong market presence and business expansion efforts. These financial metrics, coupled with the company's sustainable initiatives, position Coca-Cola FEMSA as a noteworthy investment consideration.
For investors seeking more in-depth analysis and additional InvestingPro Tips, such as the company's moderate level of debt and analysts' profitability predictions for this year, the complete list can be found at InvestingPro's platform. Coca-Cola FEMSA's full financial data and expert insights into its market performance are available to help investors make informed decisions.
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