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Bank Loans and Notes Payable
12 Months Ended
Dec. 31, 2024
Bank Loans and Notes Payable [Abstract]  
Bank Loans and Notes Payable Bank Loans and Notes Payable
    
As of December 31, (1)
                    
CarryingFairCarrying
Value atValue atValue at
(in millions of Mexican pesos)    202520252027202820292030 and thereafterDecember 31, 2024December 31, 2024December 31, 2023
Short-term debt: 
Fixed-rate debt: 
Euros
Bank loansPs.— Ps.— Ps.— Ps.— Ps.— Ps.— Ps. Ps. Ps.15 
Interest rate— %— %— %— %— %— % % 2.6 %
Argentine pesos 
Bank loans 638 — — — — — 638 638 72 
Interest rate 50.1 %— %— %— %— %— %50.1 % %130.0 %
Chilean pesos 
Bank loans 460 — — — — — 460 460 633 
Interest rate 6.4 %— %— %— %— %— %6.4 % 9.6 %
Colombian pesos
Bank loans345 — — — — — 345 345 — 
Interest rate10.4 %— %— %— %— %— %10.4 % — %
Uruguayan pesos
Bank loans46 — — — — — 46 46 — 
Interest rate10.8 %— %— %— %— %— %10.8 % — %
Variable-rate debt: 
Mexican pesos 
Bank loans 650 — — — — — 650 650 979 
Interest rate 13.5 %— %— %— %— %— %13.5 % 13.3 %
Chilean pesos
Bank loans1,222 — — — — — 1,222 1,222 754 
Interest rate6.4 %— %— %— %— %— %6.4 % 9.2 %
Colombian pesos
Bank loans414 — — — — — 414 414  
Interest rate10.4 %— %— %— %— %— %10.4 %  %
Total short-term debt Ps.3,775 Ps.— Ps.— Ps.— Ps.— Ps.— Ps.3,775 Ps.3,775 Ps.2,453 
(1)All interest rates shown in this table are weighted average contractual annual rates.
    
As of December 31, (1)
    
Carrying Value at December 31, 2024Fair Value at December 31, 2024Carrying Value at December 31, 2023⁽¹⁾
2030 and Thereafter
(in millions of Mexican pesos)20252026202720282029
Long-term debt:                  
Fixed-rate debt:                            
Euro                            
Senior unsecured notes Ps.Ps.10,457Ps.Ps.6,223Ps.Ps.5,068Ps.21,748Ps.20,274Ps.18,988
Interest rate %2.6%%0.5%%1.0%1.6%1.6%
Promissory notes1,064
Interest rate%%%%%%%1.3%
Swiss franc
Promissory notes463
Interest rate%%%%%%%0.8%
U.S. dollars 
Yankee bond (2)
 43,50443,50439,58636,352
Interest rate %%%%%3.1%3.1%3.1%
Bank of NY (FEMSA USD 2043) 8,5638,5637,2837,121
Interest rate (1)
 %%%%%4.4%4.4%4.4%
Bank of NY (FEMSA USD 2050) 27,24927,24919,66426,162
Interest rate (1)
 %%%%%3.5%3.5%3.5%
Bank loans 1382,3312,4692,4692,083
Interest rate 6.7%%5.1%%%%5.2%3.8%
Mexican pesos 
(CEBUR MXN L22-2L) 8,4358,4358,1108,434
Interest rate (1)
%%%%%9.7%9.7%9.7%
Domestic senior notes 8,4959,9615,49323,94922,49023,946
Interest rate %%7.9%7.4%%10.0%8.1%8.1%
Bank loans 18413210438458458644
Interest rate 10.8%11.8%12.3%12.9%%%11.6%11.4%
Brazilian reais 
Bank loans 21
Interest rate %%%%%%%6.9%
Chilean pesos 
Bank loans 27
Interest rate %%%%%%%9.3%
Subtotal Ps.322Ps.10,589Ps.10,930Ps.16,222Ps.Ps.98,312Ps.136,375Ps.120,334Ps.125,305
(1)All interest rates shown in this table are weighted average contractual annual rates.
    
As of December 31, (1)
 
Carrying Value at December 31, 2024Fair Value at December 31, 2024Carrying Value at December 31, 2023⁽¹⁾
2030 and thereafter
(in millions of Mexican pesos)20252026202720282029
Variable-rate debt:                           
Euro
Promissory notesPs.Ps.Ps.Ps.Ps.Ps.Ps.Ps.Ps.1,700
Interest rate%%%%%%%4.8%
Swiss franc
Promissory notes— — — — — —   603 
Interest rate %%— %— %— %— %% 2.1%
Mexican pesos
(CEBUR MXN L22)826 826832826
Interest rate (1)
%%11.6 %%%%11.6%11.6%
Domestic senior notes 1,7272,9274,6544,6594,653
Interest rate (1)
 10.5%%10.5%%%%10.5%11.6%
Bank Loans 892 450 544 444 186 49 2,565 2,566 1,270 
Interest rate (1)
 13.4 %13.4 %12.6 %13.7 %13.8 %13.8 %13.3 % 13.0 %
Brazilian reais 
Bank loans — — — — 9 8 14 
Interest rate 9.1 %9.1 %— %— %— %— %9.1 % 8.9 %
Subtotal Ps.2,625 Ps.453 Ps.4,297 Ps.444 Ps.186 Ps.49 Ps.8,054 Ps.8,065 Ps.9,066 
Total long-term debt Ps.2,947 Ps.11,042 Ps.15,227 Ps.16,666 Ps.186 Ps.98,361 Ps.144,429 Ps.128,399 Ps.134,371 
Current portion of long-term debt (2,947)(5,998)
Total debt (3)
Ps.148,204 Ps.136,824 
(1)All interest rates shown in this table are weighted average contractual annual rates.

(2)Interest rate derivatives that have been designated as fair value hedge relationships have been used by Coca-Cola FEMSA to mitigate the volatility in the fair value of existing financing instruments due to changes in floating interest rate benchmarks. Gains and losses on these instruments are recorded in “Market value (gain) loss on financial instruments” in the period in which they occur. During December 31, 2024, the Company applied hedging to a portion of the Senior Notes of US$705, which are linked to an interest rate swap. Starting in 2022, the hedging gain or loss adjust the carrying amount of the hedged item and is recognized in the consolidated income statement under “Market value (gain) loss in financial instruments”. During the year ended December 31, 2024, the Company recognized a gain of Ps. 383 in the consolidated income statement under “Market value (gain) loss in financial instruments”, which offsets the loss on interest rate derivatives used to hedge debt denominated in USD, that resulted from increases in interest rates.

(3)For the years ended December 31, 2024 and 2023 the Company paid for amortization cost Ps. 1,122 and Ps. 1,121 respectively.
2030 andTotalTotal 
 Hedging Derivative Financial Instruments (1)
20252026202720282029Thereafter20242023 
 (notional amounts in millions of Mexican pesos)
`
Cross-currency swaps:                                                
U.S. dollars to Mexican pesos                        
Fixed to a variable (3) (4)
 Ps.Ps.Ps.Ps.Ps.14,330Ps.14,330Ps.6,031
Interest pay rate 8.9%8.9%56.1%
Interest receive rate 3.9%3.9%3.6%
Fixed to fixed 10,00010,00010,000
Interest pay rate 8.9%8.9%8.9%
Interest receive rate 3.5%3.5%3.5%
Fixed to fixed (2)
 
Interest pay rate 9.4%9.4%9.4%
Interest receive rate4.4%4.4%4.4%
U.S. dollars to Euro
Fixed to fixed6,8195,59512,41410,940
Interest pay rate1.7%2.1%1.9%1.9%
Interest receive rate0.5%1.0%0.7%0.7%
U.S. dollars to Brazilian reais
Fixed to variable5,0672,0277,0945,912
Interest pay rate12.9%2.8%12.1%11.6%
Interest receive rate2.1%2.8%2.3%2.3%
Fixed to fixed9,7299,7298,109
Interest pay rate8.0%8.0%8.0%
Interest receive rate2.8%2.8%2.8%
Colombian pesos
Fixed to fixed1,1841,184987
Interest pay rate6.3%6.3%6.3%
Interest receive rate2.8%2.8%2.8%
Interest rate swaps:
Fixed to variable rate:10,13410,1348,447
Interest pay rate4.8%4.8%5.7%
Interest receive rate1.9%1.9%1.9%
Variable to a fixed rate:2,3312,3311,943
Interest pay rate3.6%3.6%3.6%
Interest receive rate1.9%1.9%1.9%
Total6,2514,3586,81949,78867,21652,369
(1)All interest rates shown in this table are weighted average contractual annual rates.

(2)Cross Currency swaps which covers U.S. dollars to Mexican pesos with a notional of Ps. 24,330, that have a starting date in December 31, 2024; receiving a fixed rate of 4.4% and pay a fixed rate of 9.4%.

(3)Interest rate swaps with a notional amount of Ps.12,465 that receive a variable rate of 1.9% and pay a fixed rate of 3.6%; joined with a cross-currency swaps, which covers U.S. dollars to Mexican pesos, that receives a fixed rate of 4.4% and pay a variable rate of 9.4%.

(4)In 2023, the Company had an unwind of part of its cross-currency swaps related with the debt prepayment.
For the years ended December 31, 2024, December 31, 2023 and December 31, 2022, the interest expense is comprised as follows:
202420232022
Interest on debts and borrowingsPs.8,817 Ps.8,555 Ps.8,129 
Interest expense charges for employee benefits (Note 17.4)587 590 553 
Derivative instruments3,188 (1,891)1,795 
Finance operating charges175 821 (413)
Interest expense for leases liabilities (Note 12)7,235 6,841 5,789 
Ps.20,002 Ps.14,916 Ps.15,853 


For the years ended December 31, 2024, December 31, 2023 and December 31, 2022, the interest income is comprised as follows:


202420232022
Tender OfferPs.782 Ps.6,961 Ps.— 
Interest on investments10,764 9,566 3,782 
Finance operating products305 514 — 
Others59 568 (13)
Ps.11,910 Ps.17,609 Ps.3,769 

On May 7, 2013, the Company issued long-term debt on the NYSE (Yankee Bond) in the amount of U.S. $1,000, which was made up of senior notes of U.S. $300 with a maturity of 10 years and a fixed interest rate of 2.875%; and senior notes of U.S. $700 with a maturity of 30 years and a fixed interest rate of 4.375%. In March 2023, the Company made a tender offer in international markets for a principal amount of U.S. $147 related to this Yankee Bond, with a settlement price of U.S. $130, which includes accrued expenses. The difference between the settlement price and the book value of the debt at the date of prepayment was recognized in the consolidated income statement, representing a gain of Ps. 346. Then, in May 2023, the Company paid the senior notes of U.S. $300 which became to maturity. Finally, in November 2023, the Company made an additional tender offer for a principal amount of U.S. $127 related to the same senior notes.

On January 16, 2020, the Company issued U.S. $1,500 3.500% Senior Unsecured Notes at an annual rate of 130 basis points over the relevant benchmark. In addition, on February 12, 2020, the Company placed a re-tap to its US-denominated SEC-registered Senior Unsecured Notes due 2050 and issued U.S. $300 3.500% at an annual rate of 137.5 basis points over the relevant benchmark, raising the total outstanding balance to U.S. $1,800 with an implied yield to maturity of 3.577%. In June 2020, the Company issued U.S. $700 3.500% Senior Unsecured Notes due 2050 with an implicit weighted performance of 3.358%. In March 2023, the Company made a tender offer in international markets for a principal amount of U.S. $943 related with these senior notes, with a settlement price of U.S. $715, which includes accrued expenses. The difference between the settlement price and the book value of the debt at the date of prepayment was recognized in the consolidated income statement, representing a gain of Ps. 4,199. In June 2024, the Company made a tender offer in International markets for a principal amount of U.S. $207 related with these senior notes. The difference between the settlement price and the book value of the debt at the date of prepayment was recognized in the consolidated income statement, representing a gain of Ps. 703.

The Company had designated a portion of these non-derivative financial liabilities as a hedge on the net investment. During 2023, the Company divested its investments in JRD and Envoy; as a result of these transactions, the net investment hedge was discontinued, recycling the effects of Envoy’s hedge in the consolidated income statements, which amount to a gain of Ps. 3,910; while in the case of JRD’s hedge, it remained in other comprehensive income, as this investment was classified as FVOCI, which amount to a gain of Ps. 1,188.

In April 2021, the Company issued €500 and €700 in debt certificates at a fixed rate of 1.0%, maturing in 2033 and 0.5% maturing in 2028, respectively. In March 2023, the Company made a tender offer in international markets for a principal amount of €404 in debt securities maturing in 2028 and €259 in debt securities maturing in 2033, with a settlement price of €347 for maturing in 2028 and €197 for maturing in 2033, which includes accrued expenses. The difference between the settlement price and the book value of the debt at the date of prepayment was recognized in the consolidated income statement, representing a loss of Ps. 616.
On May 21, 2021, this non-derivative financial liability was designated as a hedge of the net investment in Heineken. During 2023, the Company divested its investment in Heineken. Therefore, the net investment hedge was discontinued, recycling the effects of Heineken’s hedge in the consolidated income statements, which amount to a gain of Ps. 5,763 (See Note 4.3.1).

In November 2022, the Company issued Ps. 8,446 and Ps. 827 in debt certificates at a fixed rate of 9.65%, maturing in 2032 and a floating rate of TIIE28 + 0.10%, maturing in 2027, respectively. The bond’s interest rate depends on the Company achieving key performance indicators, and in the event that such indicators are not met by the dates established in the offering documents, (2027 and 2032), the interest rate on the will increase by 25 basis points. As of December 31, 2024 the Company continues monitoring and expects to meet these key performance indicators. In accordance with the terms of the Bonds, they are linked to FEMSA's Sustainability-Linked Bond Framework, the which was adopted and published by the Company in relation to the issuance of the Sustainability-Linked Bond denominated in Euros issued in 2021 in the international capital market, for €700 in senior notes maturing in 2028, and €500 in senior notes maturing in 2033.
In February 2023, as part of Heineken Offering shares, the Company issued debt on the Frankfurt Stock Exchange (FWB) in the amount of EUR 500 million which was made up of senior unsecured Exchangeable Bonds (EB) due 2026; with a fixed interest rate of 2.625% per annum payable annually. The aggregate principal amount of the EB will be repayable with Heineken Holding N.V. shares or cash, considering an initial exchange price of EUR 95.625, being a premium of 27.5%, to EUR 75.00, being the clearing price of each share. As of the issuance date, the initial exchange option shall be comprised of 5,228,758 shares. See Note 14.2.


Coca-Cola FEMSA has the following bonds:

a)registered with the Mexican stock exchange:
i)   Ps. 8,500 (nominal value) with a maturity in 2027 and a fixed interest rate of 7.87%; ii) Ps. 1,727 (nominal value) with a maturity date in 2025 and a floating interest rate of Equilibrium Interbank Interest Rate (“TIIE”) + 0.08%; iii) Ps. 3,000 (nominal amount) with a maturity date in 2028 and fixed interest rate of 7.35%, iv) Ps. 6,965 (nominal amount) on a Sustainability-Linked Bond ("SLB") with a maturity date in 2028 and fixed rate of 7.36%, and v) Ps. 2,435 (nominal amount) on an SLB with a maturity date in 2026 and floating rate of TIIE + 0.05%, vi) Ps.5,500 (nominal amount) with a maturity date in 2029 and a fixed rate of 9.95%, vii) Ps.$500 (nominal amount) with a maturity date in 2026 and a floating rate of TIIE + 0.05%.

b)registered with the New York Stock Exchange:
i)    Senior notes of U.S. $1,041 with a fixed interest rate of 2.75% and maturity on January 22, 2030; ii) Senior notes of US. $705 with interest at a fixed rate of 1.85% and maturity date on September 1, 2032 and iii) Senior notes of US. $489 with interest at a fixed rate of 5.25% and maturity date on November 26, 2043.

The Senior Notes are guaranteed by Coca-Cola FEMSA subsidiaries: Propimex, S. de R.L. de C.V., Comercializadora La Pureza de Bebidas, S. de R.L. de C.V., Controladora Interamericana de Bebidas, S. de R.L. de C.V., Grupo Embotellador Cimsa, S. de R.L. de C.V., Refrescos Victoria del Centro, S. de R.L. de C.V., and Yoli de Acapulco, S. de R.L. de C.V. (the “Guarantors”).
During the third quarter of 2021, Coca-Cola FEMSA issued the first SLB in the Mexican market for a total of Ps. 9,400 in the modality of communicating vessels with maturities in 2025 and 2026 and with those resources prepaid bilateral loans denominated in Mexican pesos of: i) Ps. 3,760 with a maturity date of February 2025 and ii) Ps. 5,640 with an expiration date of August 2026. The bond’s interest rate depends on us achieving key performance indicators, and in the event that such indicators are not met by the dates established in the offering documents, (2024 and 2026), the interest rate on the bonds will increase by 25 basis points. As of December 31, 2024 Coca-Cola FEMSA based on our external consulting firm review and the evidence presented by the Company, the indicator was complied and was reliably obtained, is fairly presented, has no significant deviations or omissions, and was prepared based on the requirements set forth in the supplement to the notes.
During the fourth quarter of 2022, Coca-Cola FEMSA repurchased a portion of the following notes registered with the SEC i) Senior notes of US. $209 with maturity date on January 2030, and ii) Senior notes of US. $111 with maturity date on November 2043, representing a net savings of Ps. 408 (nominal amounts). The amounts shown on the first paragraph already consider these repurchases.

Additionally during 2022, Coca-Cola FEMSA issued a social and sustainable bond in the Mexican Market on a dual-tranche transaction for an amount of Ps. 6,000.

During the second quarter of 2023, the Company paid on the maturity date May,12,2023 a Certificado Bursátil for i) Ps. 7,500 (nominal value) and a fixed interest rate of 5.46%.

Additionally, during 2024 and 2023, the Company obtained bank loans in Argentina for Ps. 657 and Ps. 73 respectively.

The Company has financing from different institutions under agreements that stipulate different restrictions and covenants, which mainly consist of maximum levels of leverage and capitalization as well as minimum consolidated net equity and debt and interest coverage ratios. As of the date of these consolidated financial statements, the Company complied with all restrictions and covenants contained in its financing agreements.
19.1 Reconciliation of liabilities arising from financing activities
 Carrying Carrying
 Value at Value at
 January 1, 2024Cash FlowsNon-cash effects December 31, 2024
            Foreign    
AcquisitionsNew leasesExchange
Others (1)
Income
(Loss)
Bank loans Ps.10,518Ps.2,105Ps.Ps.Ps.504Ps.(39)Ps.13,088
Notes payable 126,306(7,262)1,51016,926(2,364)135,116
Total liabilities from financing activities 136,824(5,157)1,51017,430(2,403)148,204
Lease liabilities 96,073(19,675)47417,5203,9959,708108,095
Total financing activities Ps.232,897Ps.(24,832)Ps.1,984Ps.17,520Ps.21,425Ps.7,305Ps.256,299
(1) Includes mainly remeasurements of leases, and amortized costs.

Carrying
Value atCarrying
JanuaryValue at
1, 2023Cash FlowsNon-cash effectsDecember 31, 2023
Foreign
AcquisitionNew leasesExchange
Others (1)
Income
(Loss)
Bank loansPs.12,893Ps.(1,526)Ps.3Ps.Ps.(852)Ps.Ps.10,518
Notes payable178,848(30,657)(15,364)(6,521)126,306
Total liabilities from financing activities191,741(32,183)3(16,216)(6,521)136,824
Lease liabilities93,317(16,171)4820,698(1,891)7296,073
Total financing activitiesPs.285,058Ps.(48,354)Ps.51Ps.20,698Ps.(18,107)Ps.(6,449)Ps.232,897
(1)Includes mainly remeasurements of leases, and amortization of transaction costs.
Carrying
Value atCarrying
JanuaryValue at
1, 2022
Cash Flows (2)
Non-cash effectsDecember 31, 2022
Foreign
AcquisitionNew leasesExchange
Others (1)
Income
(Loss)
Bank loansPs.7,580Ps.(415)Ps.6,181Ps.Ps.(78)Ps.(375)Ps.12,893
Notes payable183,0056,718(8,957)(1,919)178,848
Total liabilities from financing activities190,5856,3036,181(9,034)(2,294)191,741
Lease liabilities62,355(15,108)21,93310,686(356)13,80793,317
Total liabilities from financing activities252,940(8,805)28,11410,686(9,390)11,513285,058

(1)Includes mainly remeasurements of leases, and amortization of transaction costs.
(2)Cash flows of Total liabilities from financing activities include Ps. 5,973 from continuing operations and Ps. 330 from discontinued operations.