Provided by MZ Technologies

FORM 6-K

Securities and Exchange Commission
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant To Rule 13a-16 Or 15d-16
Of The
Securities Exchange Act of 1934


For the month of October 2009 Commission file number 1-12260


COCA-COLA FEMSA, S.A.B. de C.V.
(Translation of Registrant’s name into English)


Guillermo González Camarena No. 600
Col. Centro de Ciudad Santa Fé
Delegación Alvaro Obregón
México, D.F. 01210
(Address of principal office)


        (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

             (Check One) Form 20-F  x  Form 40-F    

        (Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

             (Check One) Yes    No  x 

        (If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82-   .)

Stock Listing Information 

Mexican Stock Exchange 
Ticker: KOFL 

NYSE (ADR)
Ticker: KOF 

                            
                           
  2009 THIRD-QUARTER AND FIRST NINE MONTHS RESULTS 
                         
                           
                           
      Third Quarter        YTD     
           
        2009    2008    Δ%    2009    2008    Δ% 
         
Ratio of KOF L to KOF = 10:1    Total Revenues    26,007    19,770    31.5%    73,358    56,248    30.4% 
         
    Gross Profit    12,064    9,396    28.4%    34,230    26,899    27.3% 
         
    Operating Income    3,959    3,194    24.0%    10,979    9,248    18.7% 
         
    Net Controlling Income (1)   2,134    1,252    70.4%    5,679    4,747    19.6% 
         
    EBITDA(2)   4,948    4,007    23.5%    13,826    11,602    19.2% 
         

   Net Debt (3)   6,733    12,382    -45.6%             
         
  LTM EBITDA/ Interest Expense, net    10.35    10.12                 
           
  LTM EBITDA/ Interest Expense    9.05    7.60                 
           
  LTM Earnings per Share    3.54    3.63                 
           
  Capitalization(4)   20.5%    26.5%                 
         
  Expressed in millions of Mexican pesos. 
  (1) Majority Net Income, the name changed according to Mexican Financial Reporting Standards 
  (2) EBITDA = Operating income + Depreciation + Amortization & Other operative Non-cash Charges. 
  See reconciliation table on page 9 except for Earnings per Share 
  (3) Net Debt = Total Debt - Cash 
  (4) Total debt / (long-term debt + stockholders' equity)
   
   

Total revenues reached Ps. 26,007 million in the third quarter of 2009, an increase of 31.5% compared to the third quarter of 2008 driven by double-digit increases in every division. 
Consolidated operating income grew 24.0% to Ps. 3,959 million for the third quarter of 2009, mainly driven by double-digit operating income growth recorded in our Latincentro and Mercosur divisions. Our operating margin was 15.2% in the third quarter of 2009. 
Consolidated net controlling income increased 70.4% to Ps. 2,134 million in the third quarter of 2009, mainly reflecting higher operating income, resulting in earnings per share of Ps. 1.16 in the third quarter of 2009. 

Mexico City (October 27, 2009), Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL, NYSE: KOF)(“Coca-Cola FEMSA” or the “Company”), the largest Coca-Cola bottler in Latin America and the second- largest Coca-Cola bottler in the world in terms of sales volume, announces results for the third quarter of 2009. 

“Our company achieved another quarter of strong top- and bottom-line results, with our revenues up more than 30% and our operating income and EBITDA up 24%. Along with price increases implemented across our territories, our results reflected the strong growth of sparkling beverages in Mexico and the growth of still beverages in all of our divisions. During the quarter, we continued the integration of the Brisa water business in our Colombian operation. We also continued to benefit from our broad offering of beverage categories, which have helped us to reach consumers even under difficult economic conditions. As the economic environment has improved recently, our Company has taken advantage of our solid financial position to continue investing for the long term. This is exemplified by the development and deployment of new go-to-market models that will enable us to maximize our clients' revenue potential. In the process, we have delivered growing resul ts and value for our shareholders while building a total beverage platform that will positively position us to capture growth in the coming years." said Carlos Salazar Lomelin, Chief Executive Officer of the Company. 

   
   
   

For Further Information: 

Investor Relations 

Alfredo Fernández 
alfredo.fernandez@kof.com.mx 
(5255) 5081-5120 / 5121 

Gonzalo García 
gonzalojose.garciaa@kof.com.mx 
(5255) 5081-5148 

Roland Karig 
roland.karig@kof.com.mx 
(5255) 5081-5186 

Website: 
www.coca-colafemsa.com 

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

October 27, 2009  Page 1 

CONSOLIDATED RESULTS

Our consolidated total revenues increased 31.5% to Ps. 26,007 million in the third quarter of 2009, compared to the third quarter of 2008, as a result of double-digit revenue increases in all of our divisions. Revenue growth was driven by (i) organic growth, in both pricing and volumes, accounting for more than 55% of incremental revenues, (ii) a positive exchange rate translation effect, resulting from the depreciation of the Mexican peso against our operation’s local currencies(1), contributing more than 40% of incremental revenues, and (iii) the consolidation of Brisa in Colombia providing less than 5%. On a currency neutral basis and excluding the acquisition of Brisa, our consolidated total revenues would have increased approximately 17%.

Total sales volume increased 7.5% to reach 615.6 million unit cases in the third quarter of 2009 as compared to the same period in 2008 driven by (i) increases in sparkling beverages in our Mexico division, accounting for approximately 40% of incremental volumes, (ii) still beverages sales volume, mainly driven by the Jugos del Valle line of business in our Mexico and Latincentro divisions, accounting for more than 30% of incremental sales volume, and (iii) our bottled water business, driven by the acquisition of Brisa in Colombia, representing the balance. Excluding Brisa, total sales volume increased 5.3% .

Our gross profit increased 28.4% to Ps. 12,064 million in the third quarter of 2009, compared to the third quarter of 2008. Cost of goods sold increased 34.4% driven by (i) the devaluation of the local currencies in our main operations as applied to our U.S. dollar-denominated raw material cost, (ii) higher year-over-year sweetener costs and (iii) the third and final stage of the scheduled Coca-Cola Company increase in concentrate prices in Mexico; which were partially offset by lower resin costs. Gross margin reached 46.4% in the third quarter of 2009 as compared to 47.5% in the same period in 2008.

Our consolidated operating income increased 24.0% to Ps. 3,959 million in the third quarter of 2009, mainly driven by double-digit operating income growth in our Latincentro and Mercosur divisions. Our operating margin was 15.2% in the third quarter of 2009, a decrease of 100 basis points compared to the same period in 2008 mainly as a result of gross margin pressures.

During the third quarter of 2009, we recorded Ps. 341 million in other expenses. These expenses mainly reflected the loss on sale of certain fixed assets and the recording of employee profit sharing in the other expenses line, in accordance with Mexican Financial Reporting Standards.

Our comprehensive financing result in the third quarter of 2009 recorded an expense of Ps. 378 million as compared to an expense of Ps. 514 million in the same period of 2008, mainly due to a lower foreign exchange loss driven by a lower U.S. dollar-denominated net debt position.

During the third quarter of 2009, income tax, as a percentage of income before taxes, was 30.9% compared to 38.3% in the same period of 2008. This difference was mainly driven by additional tax provisions recorded during the third quarter 2008.

Our consolidated net controlling income(2) increased by 70.4% to Ps. 2,134 million in the third quarter of 2009 as compared to the third quarter of 2008, mainly as a result of higher operating income. Earnings per share (EPS) were Ps. 1.16 (Ps. 11.56 per ADR) computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).

 

 

(1) See tables on page 14 related to quarterly and YTD foreign exchange rate movements.
(2) Previously referred to as Majority Net Income, the name changed according to Mexican Financial Reporting Standards.

October 27, 2009  Page 2 

BALANCE SHEET

As of September 30, 2009, we had a cash balance of Ps. 8,946 million, including US$ 174 million denominated in U.S. dollars, an increase of Ps. 2,754 million compared to December 31, 2008, as a result of cash generated by our operations and financing during the first nine months of the year.

Total short-term debt was Ps. 5,151 million and long-term debt was Ps. 10,528 million. Total debt decreased Ps. 2,895 million compared with year-end 2008 mainly due to the maturity of the outstanding balance of the Yankee Bond inherited through the acquisition of Panamco in the amount of US$ 265 million and the maturity of a Certificado Bursátil in the amount of Ps. 500 million in July, 2009. In addition, we prepaid debt denominated in Colombian pesos equivalent to US$ 117 million. All of these maturities were paid with cash generated from our operations. Net debt decreased Ps. 5,649 million compared to year-end 2008, mainly as a result of cash generated during the first nine months of the year. KOF’s total debt balance includes U.S. dollar-denominated debt in the amount of US$ 376 million. (1)

The weighted average cost of debt for the quarter was 6.5% . The following charts set forth the Company’s debt profile by currency and interest rate type and by maturity date as of September 30, 2009:

   
Currency    % Total Debt(1)   % Interest Rate 
        Floating(1)(2)
   
Mexican pesos    55.1%    46.1% 
U.S. dollars    31.6%    43.0% 
Colombian pesos    4.3%    100.0% 
Venezuelan bolivars    1.1%    0.0% 
Argentine pesos    7.9%    15.7% 
   

(1) After giving effect to cross-currency swaps and interest rate swaps.
(2) Calculated by weighting each year’s outstanding debt balance mix.

Debt Maturity Profile

   
Maturity Date    2009    2010    2011    2012    2013    2014 + 
   
% of Total Debt    4.2%    28.6%    0.0%    25.2%    15.1%    26.9% 
   

Consolidated Cash Flow
Expressed in millions of Mexican pesos as of September 30, 2009

   
    Sep-09 
    Ps. 
   
Income before taxes    8,544 
Non cash charges to net income    4,614 
   
    13,158 
Change in working capital    (124)
   
Resources Generated by Operating Activities    13,034 
   
Investments    (3,941)
Debt payments    (2,953)
Other    (3,160)
   
Increase in cash and cash equivalents    2,980 
   
Cash and cash equivalents at begining of period    6,192 
Translation Effect    (226)
Cash and cash equivalents at end of period    8,946 
   

The difference between the debt decrease of the balance sheet and the debt decrease in nominal terms presented in the cash flow is related to the foreign exchange impact, presented separately as a part of the translation effect, in accordance with the Mexican Financial Reporting Standards.

October 27, 2009  Page 3 

MEXICO DIVISION OPERATING RESULTS

Revenues

Total revenues from our Mexico division increased 12.3% to Ps. 9,581 million in the third quarter of 2009, as compared to the same period in 2008. Increased sales volume accounted for close to 75% of incremental revenues during the quarter. Average price per unit case reached Ps. 29.74, an increase of 2.6%, as compared to the third quarter of 2008, reflecting higher volumes from the Coca-Cola brand, which carries higher average price per unit case. Excluding bulk water under the Ciel brand, our average price per unit case was Ps. 34.65, a 1.7% increase as compared to the same period in 2008.

Total sales volume increased 9.6% to 321.4 million unit cases in the third quarter of 2009, as compared to the third quarter of 2008, mainly driven by (i) an 8% volume growth in sparkling beverages supported by incremental volumes from the Coca-Cola brand in multi-serve and single-serve presentations that compensated for a low single-digit decline in flavored sparkling beverages, (ii) incremental volumes in the still beverage category, growing more than 80%, due to the Jugos del Valle product line and (iii) a 5% volume growth in our bottled water business.

Operating Income

Our gross profit increased 6.6% to Ps. 4,707 million in the third quarter of 2009 as compared to the same period in 2008. Cost of goods sold increased 18.3% as a result of the devaluation of the Mexican peso as applied to our U.S. dollar-denominated raw material costs and the third and final stage of the scheduled Coca-Cola Company concentrate price increase announced in 2006, which were partially offset by lower year-over-year resin costs. Gross margin decreased from 51.7% in the third quarter of 2008 to 49.1% in the same period of 2009.

Operating income remained flat at Ps. 1,699 million in the third quarter of 2009, compared to Ps. 1,696 million in the same period of 2008. Our operating margin was 17.7% in the third quarter of 2009, a decrease of 220 basis points as compared to the same period of 2008, mainly due to gross margin pressures.

October 27, 2009  Page 4 

LATINCENTRO DIVISION OPERATING RESULTS (Colombia, Venezuela, Guatemala, Nicaragua, Costa Rica and Panama)

As of June 1, 2009, Coca-Cola FEMSA started to distribute the Brisa portfolio in Colombia.

Revenues

Total revenues reached Ps. 9,844 million in the third quarter of 2009, an increase of 70.7% as compared to the same period of 2008. Higher average price per unit case and volume growth accounted for approximately 50% of incremental revenues. A positive currency translation effect, resulting from the depreciation of the Mexican peso against our operation’s local currencies(1), represented approximately 45% of incremental revenues and the integration of Brisa contributed the balance. On a currency neutral basis and excluding the acquisition of Brisa, our Latincentro division’s revenues would have increased approximately 35%.

Total sales volume in our Latincentro division increased 10.3% to 151.8 million unit cases in the third quarter of 2009 as compared to the same period of 2008. Volume growth was mainly driven by (i) the consolidation of the Brisa water brand in Colombia, (ii) the strong performance of the Jugos del Valle line of business in Colombia and Central America and (iii) increases in sparkling beverages in Central America and Colombia.

Operating Income

Gross profit reached Ps. 4,471 million, an increase of 72.0% in the third quarter of 2009, as compared to the same period of 2008. Cost of goods sold increased 69.5% mainly driven by higher year-over-year sweetener costs across the division, which were partially compensated by lower resin costs. Gross margin increased 30 basis points to 45.4% in the third quarter of 2009.

Our operating income increased 73.2% to Ps. 1,301 million in the third quarter of 2009, compared to the third quarter of 2008, as a result of operating leverage achieved by higher revenues that more than compensated for higher labor costs in Venezuela, and increased marketing expenses in the division, as a result of the integration of the Brisa portfolio in Colombia and the continued expansion of the Jugos del Valle line of business in Colombia and Central America. Our operating margin reached 13.2% in the third quarter of 2009, resulting in a 20 basis points increase as compared to the same period of 2008.

 

 

 

(1) See tables on page 14 related to quarterly and YTD foreign exchange rate movements.

October 27, 2009  Page 5 

MERCOSUR DIVISION OPERATING RESULTS (Brazil and Argentina)

Volume and average price per unit case exclude beer results.

Revenues

Total revenues increased 20.4% to Ps. 6,582 million in the third quarter of 2009, as compared to the same period of 2008. Excluding beer, which accounted for Ps. 642 million during the quarter, revenues increased 20.3% to Ps. 5,940 million, compared to the same period of 2008. A positive translation effect, resulting from the depreciation of the Mexican peso against our operation’s local currencies(1), represented almost 65% of incremental revenues and higher average prices per unit case and volume growth accounted for the balance. On a currency neutral basis, our Mercosur division’s revenues would have increased more than 7%.

Sales volume, excluding beer, increased 0.6% to 142.4 million unit cases in the third quarter of 2009, as compared to the third quarter of 2008, driven by the still beverage portfolio in Argentina and Brazil.

Operating Income

In the third quarter of 2009, our gross profit increased 21.1% to Ps. 2,886 million, as compared to the same period in 2008. Cost of goods sold increased 19.8% driven by higher cost of sweetener in Brazil and the devaluation of local currencies as applied to our U.S. dollar-denominated raw material costs, which were partially offset by lower resin costs. Gross margin in the Mercosur division increased 20 basis points to 43.8% in the third quarter of 2009.

Operating income increased 28.4%, reaching Ps. 959 million in the third quarter of 2009, as compared to Ps. 747 million in the same period of 2008. Operating leverage achieved by higher revenues more than compensated for higher labor and freight costs in Argentina. Our operating margin was 14.6% in the third quarter of 2009, an increase of 90 basis points as compared to the third quarter of 2008.

 

 

(1) See tables on page 14 related to quarterly and YTD foreign exchange rate movements.

October 27, 2009  Page 6 

SUMMARY OF NINE-MONTH RESULTS

Our consolidated total revenues increased 30.4% to Ps. 73,358 million in the first nine months of 2009, as compared to the same period of 2008, as a result of revenue growth in all of our divisions. Organic growth across our operations contributed approximately 55% of incremental revenues; a positive exchange rate translation effect, resulting from the depreciation of the Mexican peso against our operation’s local currencies(1), accounted for more than 30%; and the acquisitions of Refrigerantes Minas Gerais, Ltda. (REMIL)(2) in Brazil and Brisa(3) in Colombia together contributed less than 15%, representing the balance. On a currency neutral basis and excluding the acquisitions of REMIL(2) and Brisa(3), our consolidated revenues for the first nine months would have increased approximately 17%.

Total sales volume increased 8.1% to 1,776.8 million unit cases in the first nine months of 2009, as compared to the same period in 2008. Excluding the acquisitions of REMIL(2) and Brisa(3), total sales volume increased 4.6% to reach 1,718.5 million unit cases. The still beverage category, mainly driven by the performance of the Jugos del Valle line of business across our territories, contributed close to 60% of incremental volumes; the sparkling beverage category, driven by the Coca-Cola brand, contributed more than 25% of volume growth and water, including bulk water, represented the balance.

Our gross profit increased 27.3% to Ps. 34,230 million in the first nine months of 2009, as compared to the same period of 2008, driven by gross profit growth across all of our divisions. Cost of goods sold increased 33.3% as a result of (i) the devaluation of local currencies in our main operations as applied to our U.S. dollar-denominated raw material costs, (ii) the higher cost of sweetener across our operations, (iii) the integration of REMIL and (iv) the third and final stage of the scheduled Coca-Cola Company concentrate price increase announced in 2006 in Mexico; all of which were partially offset by lower resin costs. Gross margin reached 46.7% for the first nine months of 2009, a decrease of 110 basis points as compared to the same period of 2008.

Our consolidated operating income increased 18.7% to Ps. 10,979 million in the first nine months of 2009, as compared to 2008. Our Mercosur and Latincentro divisions accounted for more than 95% of this growth. Our operating margin was 15.0% for the first nine months of 2009, a 140 basis points decline as compared to the same period of 2008.

Our consolidated net controlling income(4) was Ps. 5,679 million in the first nine months of 2009, an increase of 19.6% compared to the same period in 2008, mainly reflecting higher operating income. EPS was Ps. 3.08 (Ps. 30.76 per ADR) in the first nine months of 2009, computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).

 

(1) See tables on page 14 related to quarterly and YTD foreign exchange rate movements.
(2) REMIL was included in our operating results beginning June 1, 2008. REMIL was accounted for as an acquisition during the months of January through May of 2009.
(3) Since June 1, 2009 we integrate the results of Brisa in our Colombia, Latincentro division and consolidated results.
(4) Previously referred to as Majority Net Income, the name changed according to Mexican Financial Reporting Standards.

October 27, 2009  Page 7 

CONFERENCE CALL INFORMATION

Our third-quarter 2009 Conference Call will be held on: October 27, 2009, at 12:00 P.M. Eastern Time (10:00 A.M. Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: 866-700-7477 or International: 617-213-8840. We invite investors to listen to the live audiocast of the conference call on the Company’s website: www.coca-colafemsa.com.
If you are unable to participate live, an instant replay of the conference call will be available through November 3, 2009. To listen to the replay, please dial: Domestic U.S.: 888-286-8010 or International: 617-801-6888. Pass code: 56366733.

Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola, Sprite, Fanta, Lift and other trademark beverages of The Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City and southeast Mexico), Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia (most of the country), Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state of Mato Grosso do Sul, part of the state of Goias and part of the state of Minas Gerais) and Argentina (federal capital of Buenos Aires and surrounding areas), along with bottled water, beer and other beverages in some of these territories. The Company has 31 bottling facilities in Latin America and serves over 1,500,000 retailers in the region. The Coca-Cola Company owns a 31.6% equity interest in Coca-Cola FEMSA.

This news release may contain forward-looking statements concerning Coca-Cola FEMSA’s future performance and should be considered as good faith estimates by Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA’s control that could materially impact the Company’s actual performance.

References herein to “US$” are to United States dollars. This news release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations should not be construed as representations that Mexican peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated.


(6 pages of tables to follow)

 

October 27, 2009  Page 8 

Consolidated Income Statement
Expressed in millions of Mexican pesos(1)

 
    3Q 09   % Rev    3Q 08     % Rev   Δ%    YTD 09    % Rev   YTD 08   % Rev    Δ% 
 
Volume (million unit cases) (2)   615.6        572.4        7.5%    1,776.8        1,643.0        8.1% 
Average price per unit case (2)   41.03        33.42        22.8%    40.02        33.30        20.2% 
             
Net revenues    25,901        19,654        31.8%    72,964        55,940        30.4% 
Other operating revenues    106        116        -8.6%    394        308        27.9% 
             
Total revenues    26,007    100%    19,770    100%    31.5%    73,358    100%    56,248    100%    30.4% 
Cost of Goods Sold    13,943    53.6%    10,374    52.5%    34.4%    39,128    53.3%    29,349    52.2%    33.3% 
             
Gross profit    12,064    46.4%    9,396    47.5%    28.4%    34,230    46.7%    26,899    47.8%    27.3% 
             
Operating expenses    8,105    31.2%    6,202    31.4%    30.7%    23,251    31.7%    17,651    31.4%    31.7% 
             
Operating income    3,959    15.2%    3,194    16.2%    24.0%    10,979    15.0%    9,248    16.4%    18.7% 
             
Other expenses, net    341        562        -39.3%    1,158        1,267        -8.6% 
             
   Interest expense    455        407        11.8%    1,496        1,566        -4.5% 
   Interest income    70        71        -1.4%    192        357        -46.2% 
             
   Interest expense, net    385        336        14.6%    1,304        1,209        7.9% 
   Foreign exchange loss (gain)   71        180        -60.6%    374        (26)       -1538.5% 
   Gain on monetary position in Inflationary subsidiries    (161)       (232)       -30.6%    (374)       (517)       -27.7% 
   Fair value loss (gain) on derivative financial instruments    83        230        -63.9%    (27)       122        -122.1% 
             
Comprehensive financing result    378        514        -26.5%    1,277        788        62.1% 
             
Income before taxes    3,240        2,118        53.0%    8,544        7,193        18.8% 
             
Income taxes    1,002        812        23.4%    2,606        2,293        13.7% 
             
Consolidated net income    2,238        1,306        71.4%    5,938        4,900        21.2% 
             
Net controlling income (3)   2,134    8.2%    1,252    6.3%    70.4%    5,679    7.7%    4,747    8.4%    19.6% 
             
Net non-controlling income    104        54        92.6%    259        153        69.3% 
             
Operating income    3,959    15.2%    3,194    16.2%    24.0%    10,979    15.0%    9,248    16.4%    18.7% 
Depreciation (4)   672        593        13.3%    2,113        1,766        19.6% 
Amortization and other operative non-cash charges (5)   317        220        44.1%    734        588        24.8% 
             
EBITDA (6)   4,948    19.0%    4,007    20.3%    23.5%    13,826    18.8%    11,602    20.6%    19.2% 
             

(1) Except volume and average price per unit case figures.
(2) Sales volume and average price per unit case exclude beer results
(3) Majority Net Income, the name changed according to Mexican Financial Reporting Standards
(4) Amortization of coolers has been reclassified into the depreciation line for accounting purposes
(5) Includes returnable bottle breakage expense.
(6) EBITDA = Operating Income + depreciation, amortization & other operative non-cash charges.
As of June 1st, 2008, we integrated the operation of Minas Gerais (REMIL) in the results of Brazil.
As of June 1st, 2009, we integrated the operation of Brisa in the results of Colombia.

October 27, 2009  Page 9 

Consolidated Balance Sheet
Expressed in millions of Mexican pesos.

 
Assets        Sep 09        Dec 08 
 
Current Assets                 
Cash and cash equivalents    Ps.    8,946    Ps.    6,192 
Total accounts receivable        4,508        5,240 
Inventories        5,077        4,313 
Prepaid expenses and other        2,388        2,247 
 
Total current assets        20,919        17,992 
 
Property, plant and equipment                 
Bottles and cases        1,720        1,622 
Property, plant and equipment        56,001        50,925 
Accumulated depreciation        (27,358)       (24,388)
 
Total property, plant and equipment, net        30,363        28,159 
 
Other Non Current Assets        55,464        51,807 
 
Total Assets    Ps.    106,746    Ps.    97,958 
 
 
 
 
Liabilities and Stockholders' Equity        Sep 09        Dec 08 
 
Current Liabilities                 
Short-term bank loans and notes    Ps.    5,151    Ps.    6,119 
Interest payable        90        267 
Suppliers        8,332        7,790 
Other current liabilities        8,159        7,157 
 
Total Current Liabilities        21,732        21,333 
 
Long-term bank loans        10,528        12,455 
Pension plan and seniority premium        1,069        936 
Other liabilities        7,347        5,618 
 
Total Liabilities        40,676        40,342 
 
Stockholders' Equity                 
Non-controlling interest        2,147        1,703 
Controlling interest:                 
   Capital stock        3,116        3,116 
   Additional paid in capital        13,220        13,220 
   Retained earnings of prior years        38,189        33,935 
   Net income for the period        5,679        5,598 
   Other comprehensive income        3,719        44 
 
Total controlling interest        63,923        55,913 
 
Total stockholders' equity        66,070        57,616 
 
Total Liabilities and Equity    Ps.    106,746    Ps.    97,958 
 

October 27, 2009  Page 10 

Mexico Division
Expressed in millions of Mexican pesos(1)

 
    3Q09   % Rev     3Q08   % Rev   Δ%    YTD 09     % Rev   YTD 08   % Rev   Δ% 
             
Volume (million unit cases)   321.4        293.2        9.6%    923.0        866.1        6.6% 
Average price per unit case    29.74        28.99        2.6%    29.63        29.16        1.6% 
                     
Net revenues    9,559        8,499        12.5%    27,353        25,254        8.3% 
Other operating revenues    22        34        -35.3%    118        96        22.9% 
             
Total revenues    9,581    100.0%    8,533    100.0%    12.3%    27,471    100.0%    25,350    100.0%    8.4% 
Cost of Goods Sold    4,874    50.9%    4,119    48.3%    18.3%    13,799    50.2%    12,321    48.6%    12.0% 
             
Gross profit    4,707    49.1%    4,414    51.7%    6.6%    13,672    49.8%    13,029    51.4%    4.9% 
             
Operating expenses    3,008    31.4%    2,718    31.9%    10.7%    8,740    31.8%    8,155    32.2%    7.2% 
             
Operating income    1,699    17.7%    1,696    19.9%    0.2%    4,932    18.0%    4,874    19.2%    1.2% 
Depreciation, amortization & other operative non-cash charges (2)   401    4.2%    384    4.5%    4.4%    1,214    4.4%    1,226    4.8%    -1.0% 
             
EBITDA (3)   2,100    21.9%    2,080    24.4%    1.0%    6,146    22.4%    6,100    24.1%    0.8% 
             

(1) Except volume and average price per unit case figures.
(2) Includes returnable bottle breakage expense.
(3) EBITDA = Operating Income + Depreciation, amortization & other operative non-cash charges.

Latincentro Division
Expressed in millions of Mexican pesos(1)

 
    3Q 09   % Rev     3Q 08   % Rev   Δ%     YTD 09   % Rev   YTD 08   % Rev    Δ%  
             
Volume (million unit cases)   151.8        137.6        10.3%    426.9        397.3        7.4% 
Average price per unit Case    64.81        41.88        54.7%    63.82        42.70        49.5% 
                     
Net revenues    9,838        5,763        70.7%    27,244        16,964        60.6% 
Other operating revenues    6        5        20.0%    12        14        -14.3% 
             
Total revenues    9,844    100.0%    5,768    100.0%    70.7%    27,256    100.0%    16,978    100.0%    60.5% 
Cost of Goods Sold    5,373    54.6%    3,169    54.9%    69.5%    14,702    53.9%    9,255    54.5%    58.9% 
             
Gross profit    4,471    45.4%    2,599    45.1%    72.0%    12,554    46.1%    7,723    45.5%    62.6% 
             
Operating expenses    3,170    32.2%    1,848    32.0%    71.5%    9,123    33.5%    5,376    31.7%    69.7% 
             
Operating income    1,301    13.2%    751    13.0%    73.2%    3,431    12.6%    2,347    13.8%    46.2% 
Depreciation, amortization & other operative non-cash charges (2)   340    3.5%    249    4.3%    36.5%    995    3.7%    663    3.9%    50.1% 
             
EBITDA (3)   1,641    16.7%    1,000    17.3%    64.1%    4,426    16.2%    3,010    17.7%    47.0% 
             

(1) Except volume and average price per unit case figures.
(2) Includes returnable bottle breakage expense.
(3) EBITDA = Operating Income + Depreciation, amortization & other operative non-cash charges.
Since June 2009, we integrated Brisa in the operations of Colombia.

October 27, 2009  Page 11 

Mercosur Division
Expressed in millions of Mexican pesos(1) Financial figures include beer results

 
    3Q 09    % Rev   3Q 08   % Rev   Δ%     YTD 09   % Rev   YTD 08   % Rev    Δ%  
             
Volume (million unit cases) (2)   142.4        141.6        0.6%    426.9        379.6        12.5% 
Average price per unit case (2)   41.16        34.40        19.6%    38.66        32.89        17.5% 
                     
Net revenues    6,504        5,392        20.6%    18,367        13,722        33.9% 
Other operating revenues    78        77        1.3%    264        198        33.3% 
             
Total revenues    6,582    100.0%    5,469    100.0%    20.4%    18,631    100.0%    13,920    100.0%    33.8% 
Cost of Goods Sold    3,696    56.2%    3,086    56.4%    19.8%    10,627    57.0%    7,773    55.8%    36.7% 
             
Gross profit    2,886    43.8%    2,383    43.6%    21.1%    8,004    43.0%    6,147    44.2%    30.2% 
             
Operating expenses    1,927    29.3%    1,636    29.9%    17.8%    5,388    28.9%    4,120    29.6%    30.8% 
             
Operating income    959    14.6%    747    13.7%    28.4%    2,616    14.0%    2,027    14.6%    29.1% 
Depreciation, Amortization & Other operative non-cash charges (3)   248    3.8%    180    3.3%    37.8%    638    3.4%    465    3.3%    37.2% 
             
EBITDA (4)   1,207    18.3%    927    17.0%    30.2%    3,254    17.5%    2,492    17.9%    30.6% 
             

(1) Except volume and average price per unit case figures.
(2) Sales volume and average price per unit case exclude beer results
(3) Includes returnable bottle breakage expense.
(4) EBITDA = Operating Income + Depreciation, amortization & other operative non-cash charges. Since June 2008, we integrated Minas Gerais (Remil) in the operations of Brazil.

October 27, 2009  Page 12 

SELECTED INFORMATION 
 

For the three months ended September 30, 2009 and 2008

Expressed in millions of Mexican pesos.

    3Q 09        3Q 08 
       
Capex    1,541.5    Capex    1,446.8 
   
Depreciation    672.0    Depreciation    593.0 
   
Amortization & Other non-cash charges    317.0    Amortization & Other non-cash charges    220.0 
   

VOLUME

Expressed in million unit cases

    3Q 09    3Q 08 
     
    Sparkling    Water (1)   Bulk Water (2)   Still (3)   Total    Sparkling    Water (1)   Bulk Water (2)   Still (3)   Total 
   
Mexico    237.3    12.5    54.8    16.8    321.4    220.0    14.1    50.1    9.0    293.2 
 Central America    29.3    1.4    0.1    3.2    34.0    28.1    1.4    0.0    2.4    31.9 
 Colombia    43.3    7.1    7.1    4.6    62.1    42.5    2.7    2.2    1.9    49.3 
 Venezuela    50.7    2.3    0.7    2.0    55.7    51.5    3.4    0.0    1.5    56.4 
Latincentro    123.3    10.8    7.9    9.8    151.8    122.1    7.5    2.2    5.8    137.6 
 Brazil    91.4    4.3    0.5    3.5    99.7    91.7    5.0    0.0    2.7    99.4 
 Argentina    39.6    0.4    0.2    2.5    42.7    40.3    0.6    0.0    1.3    42.2 
Mercosur    131.0    4.7    0.7    6.0    142.4    132.0    5.6    0.0    4.0    141.6 
   
Total    491.6    28.0    63.4    32.6    615.6    474.1    27.2    52.3    18.8    572.4 
   

(1)Excludes water presentations larger than 5.0 Lt
(2) Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations
(3) Still Beverages include flavored water

SELECTED INFORMATION 
 

For the nine months ended September 30, 2009 and 2008

Expressed in millions of Mexican pesos.

    YTD 09        YTD 08 
       
Capex    3,321.1    Capex    2,640.4 
   
Depreciation    2,113.0    Depreciation    1,766.0 
   
Amortization & Other non-cash charges    734.0    Amortization & Other non-cash charges    588.0 
   

VOLUME

Expressed in million unit cases

    YTD 09    YTD 08 
     
    Sparkling    Water (1)   Bulk Water (2)   Still (3)   Total    Sparkling    Water (1)   Bulk Water (2)   Still (3)   Total 
   
Mexico    670.5    39.8    164.8    47.9    923.0    653.9    43.2    147.2    21.9    866.1 
 Central America    86.1    4.4    0.2    8.6    99.3    87.5    4.2    0.0    6.8    98.5 
 Colombia    125.0    13.1    13.1    12.6    163.8    125.2    7.6    7.3    3.2    143.3 
 Venezuela    150.2    6.4    1.9    5.3    163.8    142.1    8.9    0.0    4.5    155.5 
Latincentro    361.3    23.9    15.2    26.5    426.9    354.8    20.7    7.3    14.5    397.3 
 Brazil    270.6    13.9    1.6    9.7    295.8    229.3    14.7    0.0    5.2    249.2 
 Argentina    121.7    1.2    0.5    7.7    131.1    124.2    1.7    0.0    4.4    130.4 
Mercosur    392.3    15.1    2.1    17.4    426.9    353.5    16.4    0.0    9.6    379.6 
   
Total    1,424.1    78.8    182.1    91.8    1,776.8    1,362.2    80.4    154.5    46.0    1,643.0 
   

(1) Excludes water presentations larger than 5.0 Lt 
(2) Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations
(3) Still Beverages include flavored water

(4) REMIL was included in our operating results beginning June 1, 2008. REMIL was accounted for as an acquisition during the months of January through May of 2009.

October 27, 2009  Page 13 

September 2009
Macroeconomic Information

        Inflation (1)    
    LTM    3Q 2009    YTD 
       
Mexico    4.89%    1.01%    2.30% 
Colombia    3.20%    -0.11%    2.10% 
Venezuela    27.43%    6.95%    18.57% 
Brazil    4.45%    0.47%    3.23% 
Argentina    6.15%    2.21%    4.99% 
       

(1) Source: inflation is published by the Central Bank of each country.

Average Exchange Rates for each Period

     Quarterly Exchange Rate (local currency per USD)        YTD Exchange Rate (local currency per USD)
    3Q 09    3Q 08    Δ%     YTD 09    YTD 08    Δ%  
     
 
Mexico    13.2628    10.3097    28.6%    13.6610    10.5162    29.9% 
Guatemala    8.2451    7.4451    10.7%    8.1027    7.5444    7.4% 
Nicaragua    20.4620    19.4886    5.0%    20.2550    19.2531    5.2% 
Costa Rica    590.0153    552.0882    6.9%    578.2441    520.9505    11.0% 
Panama    1.0000    1.0000    0.0%    1.0000    1.0000    0.0% 
Colombia    2,014.9636    1,898.2374    6.1%    2,219.0846    1,858.8032    19.4% 
Venezuela    2.1500    2.1500    0.0%    2.1500    2.1500    0.0% 
Brazil    1.8659    1.6675    11.9%    2.0840    1.6867    23.6% 
Argentina    3.8304    3.0460    25.8%    3.7008    3.1064    19.1% 
     

End of Period Exchange Rates

    Exchange Rate (local currency per USD)
    Sep 09    Sep 08    Δ%  
   
 
Mexico    13.5042    10.7919    25.1% 
Guatemala    8.3416    7.4718    11.6% 
Nicaragua    20.5858    19.6062    5.0% 
Costa Rica    591.7300    559.2600    5.8% 
Panama    1.0000    1.0000    0.0% 
Colombia    1,922.0000    2,174.6200    -11.6% 
Venezuela    2.1500    2.1500    0.0% 
Brazil    1.7781    1.9143    -7.1% 
Argentina    3.8430    3.1350    22.6% 
   

October 27, 2009  Page 14 



SIGNATURES

           Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



  COCA-COLA FEMSA, S.A.B. DE C.V.
  (Registrant)
 
 
 
Date: October 27, 2009 By: /s/ HÉCTOR TREVIÑO GUTIÉRREZ
  Name:  Héctor Treviño Gutiérrez
  Title:    Chief Financial Officer