Coca-Cola FEMSA announced that it estimates to invest $ 648 million in 2020.
For the past three years, the company has focused its investment capital expenditures on increasing production capacity; place refrigerators with retailers; in returnable bottles and boxes; improve the efficiency of its distribution infrastructure, and in information technology.
In particular, and again, Coca-Cola FEMSA’s capital expenditure budget for the current year is destined mainly for those same purposes.
The company estimates that of its projected capital expenditures for 2020, approximately 38.0% will be for its Mexican territories and the rest will be for its non-Mexican territories.
Coca-Cola FEMSA also believes that the funds generated internally will be sufficient to meet its budgeted capital expenditure for 2020.
However, the company clarified that its capital expenditure plan for 2020 may change depending on the market and other conditions, such as the recent COVID-19 outbreak, and its results and financial resources.
Coca-Cola FEMSA and its contract
The Coca-Cola Company has historically contributed resources in addition to its own capital expenditures. Overall, it uses these contributions for initiatives that promote volume growth for Coca-Cola brand beverages, including cooler placement with retailers.
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 help its capital spending program based on past practice and benefits for The Coca-Cola Company as owner of Coca-Cola investment brands that support the strength with regard to brands in their territories, cannot guarantee that such contributions will be made.