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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 2005 Commission file number 1-12260


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


Guillermo González Camarena No. 600
Col. Centro de Ciudad Santa Fé
Delegación Alvaro Obregón
Mexico, 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   2005
Mexican Stock Exchange THIRD-QUARTER AND NINE-MONTHS RESULTS
Ticker: KOFL
      Third Quarter   Nine Months  
   
 
 
NYSE (ADR)   2005  2004  D %  2005  2004  D % 
 
Ticker: KOF Total Revenues 12,519  11,938  4.9%  36,943  34,925  5.8% 
 
  Gross Profit 6,183  5,876  5.2%  18,127  17,087  6.1% 
 
  Operating Income 2,167  2,063  5.0%  6,198  5,595  10.8% 
 
Ratio of KOF L to KOF = 10:1 Majority Net Income 1,135  1,321  -14.1%  3,146  4,048  -22.3% 
 
  EBITDA(1) 2,765  2,595  6.5%  8,004  7,370  8.6% 
 
 
       
Net Debt (2)(3) 19,075  21,697    19,075  21,697   
 
 
 
 
  EBITDA (1) / Interest Expense 4.05  4.21    4.42  3.88   
 
 
 
  Earnings per Share 0.61  0.72    1.70  2.19   
 
 
 
Average Shares Outstanding 1,846.5  1,846.4    1,846.5  1,846.4   
Expressed in million of Mexican pesos with purchasing power as of September 30, 2005, except for per share amount.
  (1) EBITDA = Operating income + Depreciation + Amortization & Other Non-cash Charges. See reconciliation table on page 11.
  (2) Figures for 2004 are as of December 31, 2004
(3) Net Debt = Total Debt - Cash
 
 
    Total revenues increased 4.9% to Ps. 12,519 million in the third quarter of 2005.
For Further Information:

Investor Relations

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

Julieta Naranjo
julieta.naranjo@kof.com.mx
(5255) 5081-5148

Oscar Garcia
oscar.garcia@kof.com.mx
(5255) 5081-5186

Website:
www.coca-colafemsa.com
    Consolidated operating income grew 5.0% to Ps. 2,167 million, and operating margin remained stable at 17.3% in the third quarter of 2005.
    Consolidated majority net income decreased 14.1% to Ps. 1,135 million, resulting in earnings per share of Ps. 0.61 for the third quarter of 2005.
 
 
Mexico City (October 28, 2005), Coca-Cola FEMSA, S.A. 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 2005.
 
“Overall, our performance continued to benefit from the development and implementation of our multi-segmentation models, our shared commercial knowledge and best practices, and our optimization of the value chain.

Operationally, Mexico and Brazil accounted for the bulk of our top- and bottom-line growth in the third quarter. The strength of the Coca-Cola brand and our initial multi-segmentation strategy fostered growth year over year in Mexico. And our new business model—including our redesigned “go-to-market” strategy, reintroduction of returnable packages and better coordination with the Coca-Cola Bottling System fueled our continued growth in Brazil.” said Carlos Salazar, Chief Executive Officer of the Company.


October 28, 2005 Page 1 

Consolidated Results

CONSOLIDATED RESULTS

Our consolidated revenues increased 4.9% to Ps. 12,519 million in the third quarter of 2005 as a result of increases in all of our territories with the exception of Central America. Over 85% of our revenues growth came from Mexico, Brazil and Colombia. Consolidated average price per unit case was 1.6% higher in the third quarter of 2005 than in the same period of the previous year, at Ps. 26.32 (US$ 2.43) 1, driven by average price increases across all of our territories except Central America and Colombia.

Total sales volume increased 3.0% to 472.2 million unit cases in the third quarter of 2005 as compared with the same period of 2004. Sales volume growth in Mexico, Colombia and Brazil more than compensated for volume decline in Venezuela and Central America. Carbonated soft drinks (“CSD”) sales volume grew 2.6% to 399.3 million unit cases, driven by incremental volume in Mexico, Colombia and Brazil.

Our gross profit rose 5.2% to Ps. 6,183 million in the third quarter of 2005, as compared with the third quarter of 2004; Mexico represented over 80% of our growth. Gross margin increased 20 basis points to 49.4% in the third quarter of 2005 from 49.2% in the same period of 2004.

Our consolidated operating income grew 5.0% to Ps. 2,167 million in the third quarter of 2005, mainly driven by operating income growth in Mexico and Brazil, which more than offset declines in Central America, Colombia and Argentina. Our operating margin remained stable at 17.3% in the third quarter of 2005 as compared with the same period of 2004.

During the third quarter of 2005, our integral cost of financing totaled Ps. 351 million, reflecting i) a decrease in interest income resulting from a reduction in our cash balances, ii) an increase in interest expenses mainly derived from a higher proportion of debt in Mexican pesos, carrying higher interest rates, iii) a depreciation of the Mexican peso versus the U.S. dollar from June to September 2005, compared with an appreciation during the same period in 2004 and iv) a lower inflation rate applied to our monetary position.

During the third quarter of 2005, income tax, tax on assets and employee profit sharing as a percentage of income before taxes was 33.6%, reflecting a reduction in income tax rate in Mexico during this year.

Our consolidated majority net income was Ps. 1,135 million in the third quarter of 2005, a decrease of 14.1% compared to the same period of 2004, which was mainly driven by an increase in the integral cost of financing during 2005. Earnings per share (“EPS”) were Ps. 0.61 (US$ 0.56 per ADR) computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).

 

________________________________________
1 Using a foreign exchange rate of Ps. 10.8131 per U.S. dollar


October 28, 2005 Page 2  

Balance Sheet and Consolidated Statement of Changes in Financial Position

BALANCE SHEET

As of September 30, 2005, Coca-Cola FEMSA had a cash balance of Ps. 2,678 million (US$ 248 million), a decrease of Ps. 1,103 million (US$ 102 million) compared with December 31, 2004, as a result of cash used to reduce debt levels in connection to maturities of one of our “Certificados Bursatiles”, as mentioned in the previous quarter press release, and bank debt prepayments. The decrease in cash from working capital is due to the seasonality of our business and tax payments, which were provisioned at the end of last year.

Total short-term debt was Ps. 1,109 million (US$ 103 million) and long-term debt was Ps. 20,644 million (US$ 1,909 million). During the first nine-months of 2005 the effective net debt reduction was Ps. 1,880 million (US$ 174 million). Gross debt payments amounted to Ps. 2,983 million (US$ 276 million), and our cash balance was reduced by Ps. 1,103 million (US$ 102 million).

The weighted average cost of debt for the third quarter was 8.8%, the following chart sets forth the Company’s debt profile by currency and interest rate type as of September 30, 2005:

 
Currency    % Total Debt(2)   % Interest Rate 
        Floating(2)(3)
 
U.S. dollars    22%    10% 
Mexican pesos    72%    5% 
Colombian pesos    4%    39% 
Other (1)   1%    100% 
 
(1)      Includes the equivalent of US$ 27.7 million denominated in Argentine pesos, and US$ 3.8 million denominated in Guatemalan quetzales.
(2)      After giving effect to cross-currency swaps.
(3)      After giving effect to interest rate swaps.

Consolidated Statement of Changes in Financial Position
Expressed in million of Mexican pesos and U.S. dollars as of September 30, 2005

 
    Jan - Sept. 2005 
    Ps.    USD (1)
   
Net income    3,166    292 
Non cash charges to net income    1,596    148 
   
    4,762    440 
   
Change in working capital    (589)      (54)
   
NRGOA(2) before change in accounting principles    4,173    386 
   
NRGOA(2)   4,173    386 
   
Total investments    (1,124)   (104)
Dividend payments    (626)      (58)
Debt payments    (2,983)   (276)
Financial transactions    (543)      (50)
   
Increase in cash and cash equivalents    (1,103)   (102)
   
Cash and cash equivalents at begining of period    3,781    350 
Cash and cash equivalents at end of period    2,678    248 
 
(1)      Expressed in US$ millions assuming a foreign exchange rate of Ps. 10.8131 per US Dollar
(2)      Net Resources Generated by Operating Activities
 



October 28, 2005 Page 3 

Mexican Operating Results

MEXICAN OPERATING RESULTS

Revenues

Revenues from our Mexican territories increased 4.6% to Ps. 7,225 million in the third quarter of 2005, as compared with the same period of the previous year. Sales volume growth and average price increase each contributed around 50% of the incremental revenues. Average price per unit case grew 1.9% to Ps. 27.33 (US$ 2.53) during the third quarter of 2005. Higher average prices resulted from incremental volume from the Coca-Cola brand in single-serve presentations, which carry a higher price per unit case. Excluding Ciel water volume in 5.0, 19.0 and 20.0 -liter packaging presentations, our average price per unit case was Ps. 31.45 (US$ 2.91) .

Total sales volume increased 2.3% to 262.3 million unit cases in the third quarter of 2005, as compared with the third quarter of 2004. The increase in carbonated soft drinks sales volume and the non-carbonated beverage segment, including single-serve bottled water, represented over 65% of our incremental volume; the balance was mainly comprised of incremental jug water sales volume. Carbonated soft drinks sales volume grew 1.5% compared with the same period of the previous year, mainly driven by the Coca-Cola brand. Excluding bottled water, the non-carbonated beverage segment grew 33.3% in the third quarter of 2005 from a low base as a result of volume growth in Ciel Aquarius and Powerade.

Operating Income

Our gross profit grew 7.6% to Ps. 3,898 million in the third quarter of 2005, as compared with the same period of 2004, resulting in a 140 basis-point expansion of our gross margin to 53.9% . This growth was driven by a decrease in sweetener costs, as a result of lower sugar prices combined with usage of high fructose corn syrup, which carries a lower price than sugar, and an appreciation of the Mexican peso year over year, as applied to our U.S. dollar-denominated costs, both of which more than compensated for higher polyethylene terephtalate (“PET”) resin costs year over year.

Operating expenses as a percentage of total revenues increased 110 basis points to 31.9% in the third quarter of 2005, from 30.8% in the same period of 2004, as a result of an increase in breakage expenses of returnable bottles and expenses related to ongoing value creation initiatives. Operating income increased 6.6% to Ps. 1,594 million in the third quarter of 2005, an improvement in operating income margin of 50 basis points in the quarter.

October 28, 2005 Page 4  

Central American and Colombian Operating Results

CENTRAL AMERICAN OPERATING RESULTS (Guatemala, Nicaragua, Costa Rica and Panama)

Revenues

Revenues decreased 3.5% to Ps. 820 million in the third quarter of 2005, as compared with the same period of the previous year, mainly driven by lower average price per unit case. Average price per unit case declined 2.6% to Ps. 30.18 (US$ 2.79), mainly as a result of a more competitive environment in Nicaragua and Costa Rica, and a shift in our multi-serve packaging mix towards larger presentations.

Total sales volume in our Central American territories declined 1.8% to 26.9 million unit cases in the third quarter of 2005, as compared with the same period of 2004. Volume decline came from a 2.7% decrease in carbonated soft drinks due to a more competitive environment, which more than offset a 13.3% increase in bottled water and non-carbonated beverages.

Operating Income

Gross profit declined 2.3% in the third quarter of 2005, as compared with the same period of 2004, to Ps. 375 million. However, as a percentage of total revenues gross margin increased 50 basis points mainly due to lower costs per unit case driven by the standardization in accounting practices related to breakage expenses, which are now recorded as operating expenses.

Our operating income decreased 14.9% to Ps. 86 million in the third quarter of 2005, compared with the same period of 2004, driven by lower fixed cost absorption resulting from lower revenues and a slight increase in operating expenses. Operating income margin was 10.5% in the third quarter of 2005, a decrease of 140 basis points.

COLOMBIAN OPERATING RESULTS

Revenues

Total revenues increased 8.0% to Ps. 1,202 million in the third quarter of 2005, as compared with the third quarter of 2004. Higher volume more than offset average price reduction. Despite of price increases implemented during the third quarter of 2005, we were not able to offset last twelve months inflation, resulting in an average price per unit case decline of 3.5% to Ps. 26.53 (US$ 2.45)

Total sales volume grew 12.1%, as compared with the same period of 2004, to 45.4 million unit cases in the third quarter of 2005. Carbonated soft drinks posted a strong volume growth of 14.7%, more than compensating for a slight volume decline in other categories. The carbonated soft drink flavor brand Crush accounted for almost 75% of incremental volume, and the Coca-Cola brand for the majority of the balance.

Operating Income

Gross profit declined 1.5% to Ps. 544 million in the third quarter of 2005, as compared with the same period of the previous year, resulting in a gross margin of 45.2% . The gross margin decline of 440 basis points resulted from the combined effect of lower average price per unit case and higher cost per unit case due to a packaging mix shift to non-returnable presentations, which grew as a percentage of our total sales volume to 47.6% from 41.8% in the third quarter of 2004.

In spite of our higher marketing expenses and higher expenses resulting from the introduction of returnable bottles, both related to the introduction of the Crush brand, our operating expenses declined as a percentage of total sales and on a per unit case basis in the third quarter of 2005, driven by better execution practices, which resulted in a reduction in freight costs and breakage expenses. Our operating income declined by 7.3% to Ps. 153 million, mainly due to lower gross profit, resulting in a margin reduction of 210 basis points.

October 28, 2005 Page 5  

Venezuelan and Argentine Operating Results

VENEZUELAN OPERATING RESULTS

Revenues

Revenues from our Venezuelan operations increased 6.5% to Ps. 1,224 million in the third quarter of 2005, as compared with the same period of 2004, this increase was driven by higher average price per unit case, which more than offset a 2.0% volume decline. Our average price grew 8.3% to Ps. 27.53 (US$ 2.55) as a result of price increases implemented during the last twelve months.

Total sales volume decreased 2.0% to 44.3 million unit cases during the third quarter of 2005, as compared with the same quarter of 2004, driven by flavored carbonated soft drinks decline which more than offset volume growth of the Coca-Cola brand.

Operating Income

Gross profit decreased 1.4% to Ps. 479 million in the third quarter of 2005, as compared with the same period of the previous year. As a percentage of sales, our gross margin decreased to 39.1% in the third quarter of 2005 from 42.3% in the same period of 2004. This decline was a result of higher raw material prices and a shift in packaging mix to non-returnable presentations, which grew as a percentage of our total sales volume to 71.6% from 66.3% in the third quarter of 2004.

Operating expenses decreased 1.8% to Ps. 425 million in the third quarter of 2005, driven by the progress made in the standardization of administrative and commercialization processes, which more than offset salary increases. Operating income increased 1.9% to Ps. 54 million in the third quarter of 2005; however, the decline in operating expenses was partially offset by higher cost per unit case, resulting in a 20 basis-point operating margin decline to 4.4% in the third quarter of 2005 compared to the same period of 2004.

ARGENTINE OPERATING RESULTS

Revenues

In the third quarter of 2005, our total revenues increased by 2.4% to Ps. 639 million, compared with same period of 2004. Average price per unit case increased 3.1% to Ps. 18.05 (US$ 1.67), as a result of i) a positive product shift mix towards single-serve presentations form our core and premium brands, which carry higher average price per unit case ii), incremental volume from our carbonated soft drink premium and core segments combined with the strong performance of our non-carbonated portfolio, and iii) price increases implemented during the quarter.

Total volume increased by 1.2% to 34.3 million unit cases, resulting from volume growth in our carbonated soft drinks core and premium segments, which more than offset volume decline of our value protection brands. Non-carbonated beverages and bottled water doubled in size, representing 3.2% of total sales volume.

Operating Income

Our gross profit increased 1.6% to Ps. 257 million, as compared with the third quarter of 2004. Gross margin was 40.3%, declining from 40.6% in the same period of previous year, due to higher PET resin prices and labor costs.

Operating expenses increased 9.3% due to higher freight costs and salaries in the third quarter of 2005 as compared to the same period of 2004. As a result, higher top-line growth partially compensated for higher cost and expenses resulting in an operating income decline of 9.7% to Ps. 93 million in the third quarter of 2005.

October 28, 2005 Page 6  

Brazilian Operating Results

BRAZILIAN OPERATING RESULTS

Beginning with second quarter, we will no longer include beer that we distribute in Brazil in our sales volumes and net sales. Instead, the amount we receive for distributing beer in Brazil is included in other revenues. We have reclassified prior periods presented in this press release for comparability purposes. We believe this presentation better reflects the performance of our core operations.

Revenues

Our total revenues improved by 7.6% to Ps. 1,434 million in the third quarter of 2005, as compared with the same period of 2004, mainly driven by sales volume growth since average price per unit remained stable in real terms at Ps. 23.67 (US$ 2.19) .

Total sales volume increased 7.1% to 59.0 million unit cases in the third quarter of 2005. The increase included 6.8% growth in carbonated soft drinks, mainly driven by the Coca-Cola and Fanta brands, accounting for over 85% of incremental volume during the quarter. Bottled water sales volume grew 11.8% in the quarter, driven by an increased focus on the Crystal brand, both in marketing and execution.

Operating Income

In the third quarter of 2005, our gross profit increased 15.9% to Ps. 685 million, as compared with the same period of the previous year. Gross margin increased 350 basis points to 47.8%; manufacturing efficiencies and the appreciation of the Brazilian real against the U.S. dollar as applied to our raw material costs more than offset raw material price increases.

Our operating expenses as a percentage of total revenues decreased 70 basis points in the third quarter of 2005 from 33.4% in the same period of 2004 as a result of higher revenues and operating improvements such as presale efficiency. Operating income was Ps. 217 million in the third quarter of 2005, resulting in a 410 basis-point expansion in operating margin to 15.1% in the third quarter of 2005 from 11.0% in the same period in 2004.

October 28, 2005 Page 7  

Summary of Nine Months Results and Recent Developments

SUMMARY OF NINE-MONTH RESULTS

Our consolidated revenues increased 5.8% to Ps. 36,943 million in the first nine months of 2005, as compared with the first nine months of 2004, as a result of growth in all of our territories, with the exception of Central America. Over 80% of our revenues growth came from Mexico, Brazil and Colombia. Consolidated average price per unit case increased 1.0% to Ps. 26.26 (US$ 2.43) in the first nine months of 2005. Average price increased in all of our territories except for Central America.

Total sales volume increased 4.8% to 1,396.9 million unit cases in the first nine months of 2005, as compared with the same period of the previous year. Sales volume growth in Mexico and Brazil accounted for over 75% of our incremental volume. Carbonated soft-drink sales volume grew 4.1% to 1,177.1 million unit cases, driven by incremental volume across all of our territories, except for Central America.

Our gross profit increased 6.1% to Ps. 18,127 million in the first nine months of 2005, as compared with the first nine months of the previous year, driven by gross profit growth across all of our territories, except Central America. Brazil and Mexico accounted for over 85% of this increase. Gross margin increased to 49.1% during the first nine months of 2005 from 48.9% in the first nine months of 2004, driven by higher revenues in all of our territories except Central America.

Our consolidated operating income increased 10.8% to Ps. 6,198 million in the first nine months of 2005, as compared with the first nine months of 2004. Brazil and Mexico accounted for more than 90% of our growth. Our operating margin improved 80 basis points to 16.8% in the first nine months of 2005.

Our consolidated majority net income was Ps. 3,146 million in the first nine months of 2005, a decrease of 22.3% compared to the first nine months of 2004, driven by a one-time effect that increased net income during 20041 and a one-time effect that decreased net income in the first quarter of 20052. EPS were Ps. 1.70 (US$ 1.57 per ADR) computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares). Excluding the above-mentioned effects of non-recurring items majority net income would have grown by 16.2% .

RECENT DEVELOPMENTS

________________________________________

1 During the second quarter of 2004, we obtained a tax reimbursement in connection with a deduction of losses arising from a sale of shares during 2002 in the amount of Ps. 1,325 million; additionally there was a charge to income in the amount of Ps. 88 million related to interests and adjustments resulting from a change in the tax deduction criteria on coolers in Mexico. The net effect of these two transactions was Ps. 1,237 million.
2 As we disclosed in the first quarter of 2005, the tax authorities reviewed the payments in connection with the change in criteria that requires refrigerators to be treated as fixed assets with finite useful lives, which resulted in an additional one-time payment in Mexico in the amount of Ps. 119 million.

October 28, 2005 Page 8  

Conference Call Information and Disclaimer

CONFERENCE CALL INFORMATION

Our third-quarter 2005 Conference Call will be held on: October 28, 2005, 11:00 A.M. Eastern Time (10:00 A.M. Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: 800-561-2601 and International: 617-614-3518. 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 4, 2005. To listen to the replay, please dial: Domestic U.S.: 888-286-8010 or International: 617-801-6888. Pass code: 98344233.

 

 

Coca-Cola FEMSA, S.A. 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 and part of the state of Goias) 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 30 bottling facilities in Latin America and serves approximately 1,500,000 retailers in the region. The Coca-Cola Company owns a 39.6% equity interest in Coca-Cola FEMSA.

Figures for the Company’s operations in Mexico and its consolidated international operations were prepared in accordance with Mexican generally accepted accounting principles (Mexican GAAP). All figures are expressed in constant Mexican pesos with purchasing power at September 30, 2005. For comparison purposes, 2004 and 2005 figures from the Company’s operations have been restated taking into account local inflation of each country with reference to the consumer price index and converted from local currency into Mexican pesos using the exchange rate at the end of the period. In addition, all comparisons in this report for the third quarter of 2005, which ended on September 30, 2005, are made against the figures for the comparable period in 2004, unless otherwise noted.

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.

(7 pages of tables to follow)

 

October 28, 2005 Page 9  

Consolidated Balance Sheet

Consolidated Balance Sheet
Expressed in million of Mexican pesos with purchasing power as of September 30, 2005

 
Assets        Sep-05        Dec-04 
 
Current Assets                 
Cash and cash equivalents    Ps.    2,678    Ps.    3,781 
Total accounts receivable        1,769        2,226 
Inventories        2,623        2,585 
Prepaid expenses and other        822        880 
 
Total current assets        7,892        9,472 
 
Property, plant and equipment                 
Property, plant and equipment        30,700        31,164 
Accumulated depreciation        -13,393        -13,018 
Bottles and cases        951        1,071 
 
Total property, plant and equipment, net        18,258        19,217 
 
Investment in shares and other        539        445 
Deferred charges, net        1,416        1,552 
Intangibles        38,725        38,246 
 
Total Assets    Ps.    66,830    Ps.    68,932 
 


 
Liabilities and Stockholders' Equity        Sep-05        Dec-04 
 
Current Liabilities                 
Short-term bank loans and notes    Ps.    1,109    Ps.    3,346 
Interest payable        400        319 
Suppliers        3,725        4,268 
Other current liabilities        2,606        3,145 
 
Total Current Liabilities        7,840        11,078 
 
Long-term bank loans        20,644        22,132 
Pension plan and seniority premium        672        658 
Other liabilities        4,395        4,203 
 
Total Liabilities        33,551        38,071 
 
Stockholders' Equity                 
Minority interest        725        734 
Majority interest:                 
Capital stock        2,841        2,841 
Additional paid in capital        12,157        12,157 
Retained earnings of prior years        17,108        12,209 
Net income for the period        3,146        5,525 
Cumulative results of holding non-monetary assets        -2,698        -2,605 
 
Total majority interest        32,554        30,127 
 
Total stockholders' equity        33,279        30,861 
 
Total Liabilities and Equity    Ps.    66,830    Ps.    68,932 
 

 

October 28, 2005 Page 10  

Consolidated Income Statement

Consolidated Income Statement
Expressed in million of Mexican pesos(1) with purchasing power as of September 30, 2005

     
    3Q 05    3Q 04    YTD 05    YTD 04 
     
Sales Volume (million unit cases)   472.2    458.4    1,396.9    1,333.0 
Average price per unit case    26.32    25.91    26.26    26.01 
     
Net revenues    12,427    11,878    36,680    34,672 
Other operating revenues    92    60    263    253 
     
Total revenues    12,519    11,938    36,943    34,925 
Cost of sales    6,336    6,062    18,816    17,838 
     
Gross profit    6,183    5,876    18,127    17,087 
     
Operating expenses    4,016    3,813    11,929    11,492 
     
Operating income    2,167    2,063    6,198    5,595 
     
     Interest expense    682    616    1,812    1,898 
     Interest income    76    190    224    285 
     Interest expense, net    606    426    1,588    1,613 
     Foreign exchange loss (gain)   4    (107)   (236)   106 
     Loss (gain) on monetary position    (259)   (469)   (416)   (984)
     
Integral cost of financing    351    (150)   936    735 
Other (income) expenses, net    96    (121)   311    285 
     
Income before taxes    1,720    2,334    4,951    4,575 
Taxes    578    1,001    1,785    515 
     
Consolidated net income before ext. items    1,142    1,332    3,166    4,060 
     
Consolidated net income    1,142    1,332    3,166    4,060 
     
Majority net income    1,135    1,321    3,146    4,048 
     
Minority net income    7    12    20    13 
     
Operating income    2,167    2,063    6,198    5,595 
Depreciation    317    303    951    960 
Amortization and Other non-cash charges (2)   281    229    855    815 
     
EBITDA (3)   2,765    2,595    8,004    7,370 
     

(1)      Except volume and average price per unit case figures.
(2)      Includes returnable bottel breakage expense.
(3)      EBITDA = Operating Income + Depreciation +Amortization & Other non-cash charges.
 

 

October 28, 2005 Page 11 

Mexican and Central American operations

Mexican operations
Expressed in million of Mexican pesos(1) with purchasing power as of September 30, 2005

 
    3Q 05    % Rev    3Q 04    % Rev    YTD 05   % Rev    YTD 04   % Rev 
                         
Sales Volume (million unit cases)   262.3        256.3        768.7        741.6     
Average price per unit case    27.33        26.83        27.26        27.26     
                 
Net revenues    7,172        6,876        20,951        20,217     
Other operating revenues    53        31        180        110     
                         
Total revenues    7,225    100.0%    6,907    100.0%    21,131    100.0%    20,327    100.0% 
Cost of sales    3,327    46.1%    3,283    47.5%    9,883    46.8%    9,625    47.4% 
                         
Gross profit    3,898    53.9%    3,624    52.5%    11,248    53.2%    10,702    52.6% 
                         
Operating expenses    2,304    31.9%    2,129    30.8%    6,805    32.2%    6,531    32.1% 
                         
Operating income    1,594    22.1%    1,495    21.6%    4,443    21.0%    4,171    20.5% 
Depreciation, Amortization & Other non-cash charges (2)   359    5.0%    299    4.3%    1,056    5.0%    1,000    4.9% 
                         
EBITDA (3)   1,953    27.0%    1,794    26.0%    5,499    26.0%    5,171    25.4% 
 

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

 

Central American operations
Expressed in million of Mexican pesos(1) with purchasing power as of September 30, 2005

 
    3Q 05    % Rev    3Q 04    % Rev    YTD 05   % Rev    YTD 04   % Rev 
                         
Sales Volume (million unit cases)   26.9        27.4        81.0        80.8     
Average price per unit case    30.18        30.98        31.00        31.92     
                 
Net revenues    818        852        2,511        2,579     
Other operating revenues    2        (2)       3        3     
                         
Total revenues    820    100.0%    850    100.0%    2,514    100.0%    2,582    100.0% 
Cost of sales    445    54.3%    466    54.8%    1,315    52.3%    1,360    52.7% 
                         
Gross profit    375    45.7%    384    45.2%    1,199    47.7%    1,222    47.3% 
                         
Operating expenses    289    35.3%    283    33.3%    890    35.4%    937    36.3% 
                         
Operating income    86    10.5%    101    11.9%    309    12.3%    285    11.1% 
Depreciation, Amortization & Other non-cash charges (2)   53    6.5%    41    4.8%    162    6.4%    182    7.1% 
                         
EBITDA (3)   139    17.0%    142    16.8%    471    18.7%    467    18.1% 
 

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

 

October 28, 2005 Page 12 

Colombian and Venezuelan operations

Colombian operations
Expressed in million of Mexican pesos(1) with purchasing power as of September 30, 2005

 
    3Q 05    % Rev    3Q 04    % Rev    YTD 05   % Rev    YTD 04   % Rev 
                         
Sales Volume (million unit cases)   45.4        40.5        132.0        122.0     
Average price per unit case    26.53        27.48        26.16        25.68     
                 
Net revenues    1,202        1,113        3,451        3,133     
Other operating revenues       -           -        -        -     
                         
Total revenues    1,202    100.0%    1,113    100.0%    3,451    100.0%    3,133    100.0% 
Cost of sales    658    54.8%    561    50.4%    1,910    55.4%    1,680    53.6% 
                         
Gross profit    544    45.2%    552    49.6%    1,541    44.7%    1,453    46.4% 
                         
Operating expenses    391    32.6%    387    34.8%    1,185    34.3%    1,148    36.6% 
                         
Operating income    153    12.8%    165    14.9%    356    10.3%    305    9.7% 
Depreciation, Amortization & Other non-cash charges (2)   62    5.1%    70    6.3%    210    6.1%    236    7.5% 
                         
EBITDA (3)   215    17.9%    235    21.1%    566    16.4%    541    17.3% 
 

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

 

Venezuelan operations
Expressed in million of Mexican pesos(1) with purchasing power as of September 30, 2005

 
    3Q 05    % Rev    3Q 04    % Rev    YTD 05   % Rev    YTD 04   % Rev 
                         
Sales Volume (million unit cases)   44.3        45.2        129.9        126.7     
Average price per unit case    27.53        25.42        27.84        26.00     
                 
Net revenues    1,217        1,149        3,616        3,295     
Other operating revenues    7           -        10        2     
                         
Total revenues    1,224    100.0%    1,149    100.0%    3,626    100.0%    3,297    100.0% 
Cost of sales    745    60.8%    663    57.7%    2,154    59.4%    1,943    58.9% 
                         
Gross profit    479    39.1%    486    42.3%    1,472    40.6%    1,354    41.1% 
                         
Operating expenses    425    34.7%    433    37.7%    1,292    35.6%    1,152    35.0% 
                         
Operating income    54    4.4%    53    4.6%    180    5.0%    202    6.1% 
Depreciation, Amortization & Other non-cash charges (2)   61    5.0%    55    4.8%    178    4.9%    169    5.1% 
                         
EBITDA (3)   115    9.4%    108    9.4%    358    9.9%    371    11.2% 
 

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

 

October 28, 2005 Page 13 

Argentine and Brazilian operations

Argentine operations
Expressed in million of Mexican pesos(1) with purchasing power as of September 30, 2005

 
    3Q 05    % Rev    3Q 04    % Rev    YTD 05   % Rev    YTD 04   % Rev 
                         
Sales Volume (million unit cases)   34.3        33.9        105.6        102.5     
Average price per unit case    18.05        17.50        18.24        17.32     
                 
Net revenues    619        595        1,927        1,774     
Other operating revenues    20        29        74        87     
                         
Total revenues    639    100.0%    624    100.0%    2,001    100.0%    1,861    100.0% 
Cost of sales    382    59.9%    371    59.4%    1,223    61.1%    1,131    60.8% 
                         
Gross profit    257    40.3%    253    40.6%    778    38.9%    730    39.2% 
                         
Operating expenses    164    25.6%    150    24.1%    485    24.3%    439    23.6% 
                         
Operating income    93    14.5%    103    16.5%    293    14.6%    291    15.6% 
Depreciation, Amortization & Other non-cash charges (2)   32    4.9%    32    5.1%    97    4.9%    98    5.3% 
                         
EBITDA (3)   125    19.6%    135    21.6%    390    19.5%    389    20.9% 
 

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

Brazilian operations

Expressed in million of Mexican pesos(1) with purchasing power as of September 30, 2005

 
    3Q 05    % Rev    3Q 04    % Rev    YTD 05   % Rev    YTD 04   % Rev 
                         
Sales Volume (million unit cases)   59.0        55.1        179.7        159.4     
Average price per unit case    23.67        23.60        23.51        23.08     
                 
Net revenues    1,399        1,298        4,224        3,679     
Other operating revenues    35        35        114        115     
                         
Total revenues    1,434    100.0%    1,333    100.0%    4,338    100.0%    3,794    100.0% 
Cost of sales    749    52.2%    742    55.7%    2,305    53.1%    2,124    56.0% 
                         
Gross profit    685    47.8%    591    44.3%    2,033    46.9%    1,670    44.0% 
                         
Operating expenses    468    32.7%    445    33.4%    1,389    32.0%    1,332    35.1% 
                         
Operating income    217    15.1%    146    11.0%    644    14.8%    338    8.9% 
Depreciation, Amortization & Other non-cash charges (2)   32    2.3%    36    2.7%    104    2.4%    92    2.4% 
                         
EBITDA (3)   249    17.4%    182    13.7%    748    17.2%    429    11.3% 
 

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

 

October 28, 2005 Page 14 

Selected Information

SELECTED INFORMATION

For the three months ended September 30, 2005

Expressed in million of Mexican pesos as of September 30, 2005

         
  3Q 04      3Q 05 
         
Capex  530.0    Capex  502.0 
         
Depreciation  303.4    Depreciation  317.0 
         
Amortization & Other non-cash charges 228.9    Amortization & Other non-cash charges 281.6 
         


VOLUME
Expressed in million unit cases

                 
  3Q 04    3Q 05 
                 
  CSD  Water  Other  Total    CSD  Water  Other  Total 
                 
Mexico  205.1  49.1  2.1  256.3    208.2  51.3  2.8  262.3 
Central America  25.9  1.1  0.4  27.4    25.2  1.1  0.6  26.9 
Colombia  34.8  5.6  0.1  40.5    39.9  5.4  0.1  45.4 
Venezuela  38.8  3.8  2.6  45.2    38.1  4.0  2.2  44.3 
Brazil  51.2  3.4  0.5  55.1    54.7  3.8  0.5  59.0 
Argentina  33.4  0.3  0.2  33.9    33.2  0.7  0.4  34.3 
                 
Total  389.2  63.3  5.9  458.4    399.3  66.3  6.6  472.2 
                 


PACKAGE MIX BY PRESENTATION
Expressed as a Percentage of Total Volume

                 
  3Q 04   3Q 05
               
  Ret  Non-Ret  Fountain  Jug    Ret  Non-Ret  Fountain  Jug 
                 
Mexico  28.6  55.6  1.2  14.6    26.6           57.2           1.2  15.0 
Central America  48.3  48.0  3.7   -    41.6           54.3           4.1  - 
Colombia  51.4  38.5  3.3   6.8    46.4           44.1           3.5  6.0 
Venezuela  30.1  63.3  3.0  3.6    25.1           67.9           3.7  3.3 
Brazil  5.6  90.4  4.0   -    8.6           87.7           3.7   - 
Argentina  27.1  69.1  3.8  -    25.7           70.5           3.8   - 
                 


For the nine months ended September 30, 2005

Expressed in million of Mexican pesos as of September 30, 2005

         
  YTD 04      YTD 05 
         
Capex  1,299.4    Capex  1,084.6 
         
Depreciation  960.0    Depreciation  951.0 
         
Amortization & Other non-cash charges 815.0   Amortization & Other non-cash charges 855.0 
         


VOLUME
Expressed in million unit cases

               
  YTD 04    YTD 05 
                 
  CSD  Water Other Total    CSD  Water  Other  Total 
                 
Mexico  591.7  144.3  5.6  741.6    605.2  156.1  7.4  768.7 
Central America  76.0  3.5  1.3  80.8    75.9  3.5  1.6  81.0 
Colombia  104.9  16.7  0.4  122.0    115.7  16.1  0.2  132.0 
Venezuela  108.2  11.0  7.5  126.7    111.8  11.7  6.4  129.9 
Brazil  148.9  9.2  1.3  159.4    165.8  12.3  1.6  179.7 
Argentina  100.7  1.3  0.5  102.5    102.7  1.8  1.1  105.6 
                 
Total  1,130.4  186.0  16.6  1,333.0    1,177.1  201.5  18.3  1,396.9 
                 



PACKAGE MIX BY PRESENTATION
Expressed as a Percentage of Total Volume

                 
  YTD 04    YTD 05 
             
  Ret  Non-Ret  Fountain  Jug    Ret Non-Ret  Fountain  Jug 
                 
Mexico  28.5  55.5  1.3  14.7    26.9  56.5   1.2  15.4 
Central America  49.8  46.5  3.7  -    43.5  52.9  3.6  - 
Colombia  52.0  38.1  3.3  6.6    47.5  43.0  3.4  6.1 
Venezuela  31.0  62.2  2.8  4.0    25.2   68.4  3.1  3.3 
Brazil  5.3  90.8  3.9  -    7.6   88.9  3.5   - 
Argentina  27.3  69.0  3.7   -    26.7   69.8  3.5  - 
                 

 

October 28, 2005 Page 15 

Macroeconomic Information

 

September 2005
Macroeconomic Information

                     
    Inflation    Foreign Exchange Rate (local currency) per U.S. dollar
    LTM    YTD    3Q 05    Sep 05    Dec 04    Sep 04 
                     
 
                     
Mexico    3.51%    1.72%    0.91%    10.8131    11.1460    11.3759 
Colombia    5.00%    4.61%    0.77%    2,289.6100    2,389.7500    2,595.1700 
Venezuela    15.96%    11.57%    3.34%    2,150.0000    1,920.0000    1,920.0000 
Brazil    4.80%    3.79%    -0.18%    2.2222    2.6544    2.8586 
Argentina    9.59%    8.61%    2.21%    2.9100    2.9800    2.9800 
                     

 

 

October 28, 2005 Page 16 





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. DE C.V.
  (Registrant)
 
 
 
Date: October 28, 2005 By: /s/ HÉCTOR TREVIÑO GUTIÉRREZ
  Name:  Héctor Treviño Gutiérrez
  Title:    Chief Financial Officer