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Coca-Cola FEMSA programs investments for US $ 438 million

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.

First, in 2020 and 2019, Coca-Cola FEMSA has focused its capital expenditures on investments in returnable containers and boxes, to improve the efficiency of its distribution infrastructure and place refrigerators with retailers, buying information technology and increasing the production capacity.

For now, 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.

In general, 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.
Coca-Cola FEMSA

Historically, The Coca-Cola Company has provided resources in addition to the Mexican company’s own capital expenditures.

Coca-Cola FEMSA generally uses these contributions for initiatives that promote growth in the volume of Coca-Cola brand beverages, including the placement of refrigerators at retailers.

While such contributions may result in a reduction in your selling expense line, The Coca-Cola Company’s contributions 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 for The Coca-Cola Company as the owner of the investments of the Coca-Cola brands, support the strength of brands in their territories cannot guarantee that such contributions will be made.