Coca-Cola FEMSA has budgeted approximately 438 million dollars (10,110 million pesos as of June 30, 2020) for its capital investments to be exercised in 2020.
In 2020 and 2019, Coca-Cola FEMSA has focused its capital expenditures on investments in returnable bottles and cases, improving the efficiency of its distribution infrastructure, placing refrigerators with retailers, purchasing information technology and increasing production capacity.
The company estimates that of its projected capital investments for 2020, approximately 42.9% will be for its Mexican territories and the remainder will be for its non-Mexican territories.
Additionally, Coca-Cola FEMSA believes that internally generated funds will be sufficient to meet its budgeted capex for the remainder of 2020.
The company’s capital spending plan for the remainder of 2020 may change depending on the market and other conditions, its results and financial resources.
Historically, The Coca-Cola Company has contributed resources in addition to the Mexican company’s own capital expenditures.
Coca-Cola FEMSA generally uses these contributions for initiatives that promote volume growth of Coca-Cola brand beverages, including the placement of refrigerators at retailers.
Such contributions can result in a reduction in your selling expense line. Contributions from The Coca-Cola Company are made on a discretionary basis.
Although the company believes that The Coca-Cola Company will make additional contributions in the future to assist its capital expenditure program based on past practices and the benefits to The Coca-Cola Company as the owner of the Coca-Cola brands of investments they support the strength of the brands in their territories cannot guarantee that such contributions will be made.