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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 February 2008 Commission file number 1-12260


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


Guillermo González Camarena No. 600
Col. Centro de Ciudad Santa Fé
Delegación Alvaro Obregón
México, 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                             
    2007 FOURTH-QUARTER AND FULL YEAR RESULTS
                           
   Mexican Stock Exchange                             
   Ticker: KOFL             
                             
   NYSE (ADR)                            
   Ticker: KOF                             
             Fourth Quarter        YTD     
               
        2007    2006    D   2007    2006    D
                         
   Ratio of KOF L to KOF = 10:1    Total Revenues    18,361    16,908    8.6%    69,251    64,046    8.1% 
                         
    Gross Profit    9,011    7,913    13.9%    33,370    30,301    10.1% 
                         
    Operating Income    3,224    2,862    12.6%    11,447    10,251    11.7% 
                         
    Majority Net Income    1,932    1,625    18.9%    6,908    5,292    30.5% 
                         
    EBITDA(1)   3,930    3,475    13.1%    14,434    13,278    8.7% 
                         
  Net Debt (2)(3)   11,374    15,144    -24.9%             
                   
  EBITDA (1) / Interest Expense    6.75    5.90                 
                   
  Earnings per Share    1.05    0.88                 
                   
  Capitalization(4)   29.2%    33.0%                 
             
  EBITDA (1) / Net Interest Expense                9.46    7.10     
             
  Net Debt (2) (3) / EBITDA (1)               0.79    1.14     
                 
    Expressed in million of Mexican pesos with purchasing power as of December 31, 2007
 (1) EBITDA = Operating income + Depreciation + Amortization & Other Non-cash Charges. 
See reconciliation table on page 11, except poer share figures
 (2) Net Debt = Total Debt - Cash
 (3) Figures are as of December 31, of the applicable year.
 (4) Total debt / (long-term debt + stockholders' equity)
 
   
 
  
  
 
 
 
 
                           
 
Total revenues reached Ps. 18,361 million in the fourth quarter of 2007, an increase of 8.6% compared to the fourth quarter of 2006, and increased 8.1% for the full year to Ps. 69,251 million compared to the full year 2006.
 
   
Driven by higher profitability from Mexico and strong growth in most of our South American operations, consolidated operating income increased 12.6% to Ps. 3,224 million for the fourth quarter of 2007, and 11.7% to Ps. 11,447 million for the full year. Our operating margin was 17.6% for the fourth quarter of 2007 and 16.5% for the full year.
   
   For Further Information:   
Consolidated majority net income increased 18.9% to Ps. 1,932 million in the fourth quarter of 2007, and 30.5% to Ps. 6,908 million for the full year, resulting in earnings per share of Ps. 1.05 for the fourth quarter of 2007, and Ps. 3.74 for the full year.
   
   Investor Relations   
   
   Alfredo Fernández   
Mexico City (February 19, 2008), Coca-Cola FEMSA, S.A.B. 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 fourth quarter and full year of 2007.
   alfredo.fernandez@kof.com.mx   
   (5255) 5081-5120 / 5121   
   
   Gonzalo García   
   gonzalojose.garciaa@kof.com.mx   
   (5255) 5081-5148                             
                             
   Maximilian Zimmermann   
“Our company achieved record-breaking volume, revenue, and EBITDA for the year. As our Mexican operations continued to improve their profitability—recording their best quarter for the year—it was our markets outside of Mexico that drove our top- and bottom-line growth. Our growth is fueled by our winning marketplace execution as exemplified by our successful launch of innovative new products, led by Coca-Cola Zero and Aquarius Fresh in the sparkling beverages category. Our strong balance sheet and profitable operations have enabled us to deliver diversified free cash flow, reduce our debt, and finance additional acquisitions with cash from operations. During the quarter, our company and The Coca-Cola Cola Company successfully closed the public tender offer for Jugos del Valle, and we are in the process of integrating other Coca Cola bottlers into the joint venture. In January, we had already started to distribute Jugos del Valle’s juice products in some of our Mexican market territories,” said Carlos Salazar Lomelín, Chief Executive Officer of the company.
   maximilian.zimmermann@kof.com.mx  
   (5255) 5081-5186   
   
   
   Website:   
   www.coca-colafemsa.com   
   

 

 

February 19 , 2008      Page 1  



CONSOLIDATED RESULTS

Our consolidated total revenues increased 8.6% to Ps. 18,361 million in the fourth quarter of 2007, compared to the fourth quarter of 2006, as a result of increases in most of our territories. Our consolidated average price per unit case increased 1.3% to Ps. 31.94 (US$ 2.93) in the fourth quarter of 2007 compared to the same period of 2006, as a result of higher average prices in Mexico and other operations in our South American territories.

Total sales volume increased 6.7% to 558.4 million unit cases in the fourth quarter of 2007 as compared to the same period of 2006, mainly driven by a 5.8% volume growth of the Coca-Cola brand, which accounted for more than 55% of our total incremental volumes during the quarter. Sparkling beverages sales volume grew 6.7% to 478.4 million unit cases, driven by volume growth across most of our territories. The fourth quarter of 2007 represented 26.3% of total volumes for the year.

Our gross profit increased 13.9% to Ps. 9,011 million in the fourth quarter of 2007, compared to the fourth quarter of 2006, driven by increases in all of our operations. Gross margin reached 49.1% in the fourth quarter of 2007 from 46.8% in the same period of 2006. Lower sweetener costs in Brazil and Colombia in conjunction with lower PET (polyethylene terephtalate) costs in Mexico and Brazil more than compensated for higher sweetener costs mainly in Mexico and Argentina.

Our consolidated operating income increased 12.6% to Ps. 3,224 million in the fourth quarter of 2007. Double-digit increases in operating income in Brazil, Venezuela and Argentina combined with higher operating income in Mexico for the second quarter in a row, more than compensated for the decline in Colombia. Our operating margin was 17.6% in the fourth quarter of 2007, an improvement of 70 basis points as a result of higher fixed-cost absorption combined with lower sweetener costs in Brazil and Colombia.

As we mentioned in our first quarter press release, beginning in 2007, pursuant to Mexican Financial Reporting Standards, we recorded employee profit sharing in the “other expenses” line, instead of recording it in the “income tax” line. For comparison purposes we are reflecting this change in the 2006 information presented, which amounted to Ps. 13 million in the fourth quarter of 2006 and Ps. 68 million in the same period of 2007.

Additionally the “other expenses” line reflects lower expenses driven by a high comparable due to extraordinary expenses recorded for strategic projects in 2006.

Our integral cost of financing in the fourth quarter of 2007 reached a gain of Ps. 162 million as compared to a loss of Ps. 85 million in the same period of 2006, mainly driven by lower interest expenses due to lower gross debt and higher interest income coming from our higher cash position.

During the fourth quarter of 2007 income tax, as a percentage of income before taxes, was 38.28%, compared to 30.6% in the same quarter of 2006. The tax rate in the fourth quarter of 2007 was higher than the same period of 2006, mainly due to additional tax accruals in some of our operations.

Our consolidated majority net income increased by 18.9% to Ps. 1,932 million in the fourth quarter of 2007 compared to the fourth quarter of 2006, driven by an increase in our operating income, lower net interest expenses recorded this quarter compared to the fourth quarter of 2006 and the results in the “other expenses” line as mentioned above. Earnings per share (EPS) were Ps. 1.05 (US$ 0.96 per ADR) computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).

February 19 , 2008      Page 2  



BALANCE SHEET

As of December 31, 2007, Coca-Cola FEMSA had a cash balance of Ps. 7,542 million (US$ 691 million), an increase of Ps. 2,468 million (US$ 226 million), compared to December 31, 2006, resulting from internal cash generation.

Total short-term debt, was Ps. 4,814 million (US$ 441 million) and long-term debt was Ps. 14,102 million (US$ 1,292 million). Total debt decreased Ps. 1,299 million (US$ 119 million) compared with year end 2006. Net debt decreased approximately Ps. 3,770 million (US$ 345 million) compared to year-end 2006, mainly as a result of internal cash generation. Our debt reduction figures were achieved notwithstanding our Ps. 2,198 million (US$201 million) investment in the Jugos del Valle acquisition, net of reimbursements received from other Coca-Cola bottlers in Mexico as of December 31, 2007.

The weighted average cost of debt for the quarter was 8.01% . The following charts sets forth the Company’s debt profile by currency and interest rate type and by maturity date as of December 31, 2007:

 
Currency    % Total Debt(1)   % Interest Rate 
        Floating(1)
 
U.S. dollars    46.6%    54.3% 
Mexican pesos    48.5%    19.5% 
Venezuelan bolivares    2.3%    0.0% 
Argentine pesos    2.7%    0.0% 
 
(1) After giving effect to cross-currency and interest rate swaps.

 

Debt maturity profile

 
Maturity Date    2008    2009    2010    2011    20112    2013 + 
 
% of Total Debt    25.5%    19.4%    5.3%    0.0%    20.0%    29.8% 
 

 

Consolidated Statement of Changes in Financial Position
Expressed in million of Mexican pesos and U.S. dollars as of December 31, 2007
     
    Jan - Dec 2007
    Ps.     USD 
     
Net income    7,105    651 
Non cash charges to net income    3,448    316 
     
    10,553    967 
     
Change in working capital    (1,469)   (135)
     
NRGOA(1)   9,084    832 
     
Total investments    (3,887)   (356)
Dividends declared    (831)    (76)
Decrease in debt    (1,299)   (119)
Other liabilities    (599)    (55)
     
Increase in cash and cash equivalents    2,468    226 
     
Cash and cash equivalents at begining of period    5,074    465 
Cash and cash equivalents at end of period    7,542    691 
     
(1) Net Resources Generated by Operating Activities

 

February 19 , 2008      Page 3  




MEXICAN OPERATING RESULTS

Revenues

Total revenues from our Mexican territories increased 4.4% to Ps. 8,089 million in the fourth quarter of 2007, as compared to the same period of the previous year. Incremental volumes accounted for more than 80% of the incremental revenues during the quarter and higher price per unit case represented the balance. Average price per unit case increased 0.8% to Ps. 29.57 (US$ 2.71), as compared to the fourth quarter of 2006 mainly driven by price increases from sparkling beverages. Excluding bulk water under the brand Ciel, our average price per unit case was Ps. 34.18 (US$ 3.13), a 1.1% increase as compared to the same period of 2006.

Total sales volume increased 3.7% to 272.2 million unit cases in the fourth quarter of 2007, as compared to the fourth quarter of 2006, resulting from (i) a 2.6% sales volume growth in sparkling beverages, driven by a 3.6% increase in the Coca-Cola brands, (ii) sales volume growth in bulk water and (iii) incremental volumes of bottled water in single serve presentations.

Operating Income

Our gross profit increased by 5.6% to Ps. 4,355 million in the fourth quarter of 2007 as compared to the same period of 2006. Gross margin increased from 53.2% in the fourth quarter of 2006 to 53.8% in the same period of 2007, as a result of lower PET costs year-over-year, mainly driven by our light-weighting initiatives, which more than compensated for higher cost of sweeteners.

Operating income increased 3.7% to Ps. 1,719 million in the fourth quarter of 2007, as compared to Ps. 1,657 million in the same period of 2006 as a result of operating leverage achieved by higher revenues as compared to the same period of 2006. Our operating margin was 21.3% in the fourth quarter of 2007, a decline of 10 basis points as compared to the same period of 2006.

February 19 , 2008      Page 4  



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

Revenues

Total revenues reached Ps. 1,227 million in the fourth quarter of 2007, an increase of 0.7% compared to the same period of 2006. Volume growth offset lower average prices per unit case. Average price per unit case declined by 2.8% to Ps. 36.19 (US$ 3.32) in the fourth quarter of 2007, as compared to the fourth quarter of 2006, as a result of strong volume growth in multiserve presentations, which carry a lower average price per unit case.

Total sales volume in our Central American territories grew 3.7% to 33.9 million unit cases in the fourth quarter of 2007, as compared to the same period of 2006, resulting from incremental volumes in the sparkling beverage category, which accounted for more than 75% of the growth; the balance was brought mainly by still beverages. In the fourth quarter of 2007, sales volume of still beverages, excluding bottled water, increased almost 20% as compared to the same period of 2006 due to strong growth of Hi-C, a juice based product line, and Powerade, an isotonic beverage.

Operating Income

Gross profit reached Ps. 568 million, an increase of 0.7% in the fourth quarter of 2007, as compared to the same period of 2006, as a result of lower costs driven by the appreciation of local currencies as applied to the U.S. dollar-denominated raw materials combined with light-weighting PET initiatives. Gross margin remained flat at 46.3% in the fourth quarter of 2007, compared to the fourth quarter of 2006.

Our operating income increased 9.6% to Ps. 205 million in the fourth quarter of 2007, as compared to the fourth quarter of 2006, driven by higher fixed cost absorption. Our operating margin reached 16.7% in the fourth quarter of 2007, expanding 130 basis points as compared to the same period of 2006.

COLOMBIAN OPERATING RESULTS

Revenues

Total revenues declined 3.0% to Ps. 1,782 million in the fourth quarter of 2007, as compared to the fourth quarter of 2006. Our average price per unit case declined 1.2% to Ps. 33.81 (US$ 3.10) . A decline in sales volumes accounted for more than 60% of the revenue decrease during the quarter and lower price per unit case represented the balance.

Total sales volume in the fourth quarter of 2007 declined 1.9%, as compared to the same period of the previous year, reaching 52.7 million unit cases lapping over a 12.3% growth in the fourth quarter of 2006. Volume growth in bottled water, excluding bulk water, combined with growth in the still beverages, partially offset a volume decline in sparkling beverages.

Operating Income

Our gross profit increased 10.8% to Ps. 913 million in the fourth quarter of 2007, as compared to the same period of the previous year. The 10% appreciation of the Colombian peso as applied to our U.S. dollar denominated raw materials combined with lower sweetener costs and operating efficiencies, resulted in a gross margin expansion of 640 basis points from 44.8% in the fourth quarter of 2006 to 51.2% in the fourth quarter of 2007.

Our operating income decreased 6.6% to Ps. 310 million in the fourth quarter of 2007, as compared to the fourth quarter of 2006. Incremental gross profit partially compensated (i) higher marketing expenses, (ii) higher breakage costs, and incremental distribution fleet maintenance expenses. Our operating margin reached 17.4% in the fourth quarter of 2007, a contraction of 70 basis points as compared to the same period of 2006.

February 19 , 2008      Page 5  



VENEZUELAN OPERATING RESULTS

Revenues

Total revenues from our Venezuelan operations increased 21.9% to Ps. 2,627 million in the fourth quarter of 2007, as compared to the same period of 2006. Incremental volumes accounted for more than 65% of the incremental revenues during the quarter and higher price per unit case represented the balance. Our average price reached Ps. 46.00 (US$ 4.21) in the fourth quarter of 2007.

Total sales volume increased 14.5% to 57.0 million unit cases during the fourth quarter of 2007, as compared to the same quarter of 2006. We posted double digit volume growth in the flavored sparkling beverages category, driven by Freskolita and Hit combined with growth of the Coca-Cola brand.

Operating Income

Gross profit reached Ps. 1,051 million, an increase of 34.6% in the fourth quarter of 2007, as compared to the same period of the previous year. Higher revenues combined with lower PET costs improved our gross margin by 380 basis points from 36.2% in the fourth quarter of 2006 to 40.0% in the same period of 2007.

Operating income increased 72.0% to Ps. 172 million, in the fourth quarter of 2007 compared to the same period of 2006. Operating expenses as a percentage of total revenues increased from 31.6% in the fourth quarter of 2006 to 33.5% in the same period of 2007, mainly due to higher labor costs. Higher revenues combined with lower costs of raw material more than offset higher operating expenses in the quarter, resulting in an operating margin increase of 190 basis points from 4.6% in the fourth quarter of 2006 to 6.5% in the fourth quarter of 2007, which continues to be the lowest among our territories.

ARGENTINE OPERATING RESULTS

Revenues

In Argentina, our total revenues reached Ps. 1,277 million in the fourth quarter of 2007, as a result of increases in sales volume and better average price per unit case. Incremental volumes accounted for more than 75% of the incremental revenues during the quarter and higher price per unit case represented the balance. Average price per unit case reached Ps. 22.48 (US$ 2.05) in the fourth quarter of 2007, which continues to be the lowest among our territories.

In the fourth quarter of 2007, total sales volume increased 14.4% to 54.9 million unit cases, as compared to the same period of 2006. Sales volume growth was driven by incremental volumes from the Coca-Cola brand, mainly by the introduction of Coca-Cola Zero, combined with the growth of flavored sparkling beverages.

Operating Income

Gross profit increased 25.4% to Ps. 504 million in the fourth quarter of 2007, as compared to the fourth quarter of 2006. Higher revenues compensated for higher sweetener costs, resulting in a gross margin expansion of 90 basis points to 39.5%, as compared to the fourth quarter of 2006.

Operating expenses increased 31.8% in the fourth quarter of 2007, mainly due to higher salary expenses and freight costs. Higher revenues offset incremental expenses, resulting in an increase in operating income of 13.5% to Ps. 160 million in the fourth quarter of 2007, as compared to the same period of 2006. Our operating income margin reached 12.5% in the fourth quarter of 2007.

February 19, 2008   
  Page 6 



BRAZILIAN OPERATING RESULTS

Revenues

Net revenues increased 15.4% to Ps. 3,359 million in the fourth quarter of 2007, as compared to the same period of 2006. Excluding beer, net revenues increased 14.2% to Ps. 2,920 million in the fourth quarter of 2007, as compared to the same period of 2006, mainly due to volume growth. Excluding beer, average price per unit case slightly declined to Ps. 33.30 (US$ 3.05) during the fourth quarter of 2007. Total revenues from beer were Ps. 430 million in the fourth quarter of 2007.

Sales volume, excluding beer, increased 14.5% to 87.7 million unit cases in the fourth quarter of 2007, as compared to the fourth quarter of 2006. Sparkling beverages sales volume growth accounted for more than 95% of the incremental volumes, mainly driven by the Coca-Cola brand in multi-serve presentations and the introduction of Coca-Cola Zero. Still beverages, excluding bottled water, grew more than 45% in the quarter, driven by strong performance of Minute Maid Mais, a juice based beverage line.

Operating Income

In the fourth quarter of 2007, our gross profit increased 33.0% to Ps. 1,620 million, as compared to the same period of the previous year. Lower average cost per unit case, resulting from (i) lower PET bottle costs, (ii) lower sugar costs and (iii) the appreciation of the Brazilian Real as applied to our U.S. dollar-denominated raw materials, contributed to a gross margin improvement of 630 basis points to 48.2% in the fourth quarter of 2007.

Operating income increased 47.9% reaching Ps. 658 million in the fourth quarter of 2007, as compared to Ps. 445 million in the same period of 2006. Our operating margin was 19.6% in the fourth quarter of 2007, an increase of 430 basis points as compared to the fourth quarter of 2006, due to an expansion in gross margin that more than compensated for expenses related to improving our go-to-market management and execution, reconfiguring our distribution network and expenses related to product introductions.

February 19, 2008   
  Page 7 



SUMMARY OF FULL YEAR RESULTS

Our consolidated total revenues increased 8.1% to Ps. 69,251 million in 2007, as compared to 2006, as a result of growth in all of our territories, with Mexico, Brazil and Venezuela representing more than 75% of this growth. Consolidated average price per unit case increased 1.9% to Ps. 32.15 (US$ 2.95) in 2007. Higher average prices per unit case for the sparkling beverages portfolio in most of our operations, more than offset incremental volumes of bulk water in Mexico, which carry lower average unit price per unit case. In 2007, the operations outside Mexico contributed 53% of consolidated revenues.

Total sales volume increased 6.1% to 2,120.8 million unit cases in 2007, as compared to the previous year. Sales volume growth in Mexico, Brazil and Venezuela accounted for more than 75% of our incremental volumes. Sparkling beverages sales volume grew 5.7% to 1,791.0 million cases, driven by incremental volume across all of our territories. In 2007, the operations outside Mexico contributed 51% of consolidated sparkling beverage volumes.

Our gross profit increased 10.1% to Ps. 33,370 million in 2007, as compared to the previous year, driven by revenue growth across all of our territories. Gross margin increased to 48.2% in 2007 from 47.3% in 2006, driven by revenue growth, which more than compensated for higher sweetener costs in Mexico.

Our consolidated operating income increased 11.7% to Ps. 11,447 million in 2007, as compared to 2006. Brazil, Colombia and Venezuela accounted for the majority of the incremental growth and more than offset a slight operating income decline in Mexico. Our consolidated operating margin grew 50 basis points to 16.5% in 2007, mainly driven by the improved operating leverage that resulted from higher revenues.

Our consolidated majority net income was Ps. 6,908 million in 2007 an increase of 30.5% compared to 2006, resulting from an increase in operating income combined with a decline in our integral cost of financing. EPS were Ps. 3.74 (US$ 3.42 per ADR) in 2007, computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).

RECENT DEVELOPMENTS

February 19, 2008   
  Page 8 



CONFERENCE CALL INFORMATION

Our fourth-quarter 2007 Conference Call will be held on: February 19, 2007, at 10:30 A.M. Eastern Time (09:30 A.M. Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: 866-700-7477 or International: 617-213-8840. 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 February 26, 2007. 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.B. 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 over 1,500,000 retailers in the region. The Coca-Cola Company owns a 31.6% 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 financial reporting standards (Mexican FRS). All figures are expressed in constant Mexican pesos with purchasing power as of December 31, 2007. For comparison purposes, 2006 and 2007 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 official exchange rate at the end of the period published by the local central bank of each country. In addition, all comparisons in this report for the fourth quarter of 2007, which ended on December 31, 2007, are made against the figures for the comparable period in 2006, 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.

U.S. dollar amounts in this report solely for the convenience of the reader have been translated from Mexican pesos at the noon day buying rate for pesos as published by the Federal Reserve Bank of New York at December 31, 2007, which exchange rate was Ps. 10.9169 to US $ 1.00.

(7 pages of tables to follow)

February 19, 2008   
  Page 9 




Consolidated Balance Sheet

Expressed in million of Mexican pesos with purchasing power as of December 31, 2007

Assets        Dec 07        Dec 06 
 
Current Assets                 
Cash and cash equivalents    Ps.    7,542    Ps.    5,074 
Total accounts receivable        4,512        3,061 
Inventories        3,418        2,926 
Prepaid expenses and other        1,302        1,443 
Shares availables for sale        684       
 
Total current assets        17,458        12,504 
 
Property, plant and equipment                 
Property, plant and equipment        37,420        37,272 
Accumulated depreciation        -16,672        -16,769 
Bottles and cases        1,175        1,295 
 
Total property, plant and equipment, net        21,923        21,798 
 
Investment in non-consolidated companies and other        1,492        476 
Deferred charges, net        1,255        2,041 
Intangibles assets and other assets        45,050        43,607 
 
Total Assets    Ps.    87,178    Ps.    80,426 
 
 
 
Liabilities and Stockholders' Equity        Dec 07        Dec 06 
 
Current Liabilities                 
Short-term bank loans and notes    Ps.    4,814    Ps.    3,419 
Interest payable        274        281 
Suppliers        6,100        5,766 
Other current liabilities        5,009        3,857 
 
Total Current Liabilities        16,197        13,323 
 
Long-term bank loans        14,102        16,799 
Pension plan and seniority premium        993        925 
Other liabilities        5,105        4,924 
 
Total Liabilities        36,397        35,971 
 
Stockholders' Equity                 
Minority interest        1,641        1,475 
Majority interest                 
Capital stock        3,116        3,116 
Additional paid in capital        13,333        13,333 
Retained earnings of prior years        27,930        23,469 
Net income for the period        6,908        5,292 
Cumulative results of holding non-monetary assets        -2,147        -2,230 
 
Total majority interest        49,140        42,980 
 
Total stockholders' equity        50,781        44,455 
 
Total Liabilities and Equity    Ps.    87,178    Ps.    80,426 
 

February 19, 2008   
  Page 10 



Consolidated Income Statement
Expressed in millions of Mexican pesos(1) with purchasing power as of December 31, 2007

   
    4Q 07    % Rev    4Q 06   % Rev    D   YTD 07   % Rev    YTD 06   % Rev    D
             
Sales Volume (million unit cases)   558.4        523.2        6.7%    2,120.8        1,998.1        6.1% 
Average price per unit case    31.94        31.53        1.3%    32.15        31.56        1.9% 
             
Net revenues    18,263        16,841        8.4%    68,969        63,820        8.1% 
Other operating revenues    98        67        46.3%    282        226        24.8% 
             
Total revenues    18,361    100%    16,908    100%    8.6%    69,251    100%    64,046    100%    8.1% 
Cost of sales    9,350    50.9%    8,995    53.2%    3.9%    35,881    51.8%    33,745    52.7%    6.3% 
             
Gross profit    9,011    49.1%    7,913    46.8%    13.9%    33,370    48.2%    30,301    47.3%    10.1% 
             
Operating expenses    5,787    31.5%    5,051    29.9%    14.6%    21,923    31.7%    20,050    31.3%    9.3% 
             
Operating income    3,224    17.6%    2,862    16.9%    12.6%    11,447    16.5%    10,251    16.0%    11.7% 
             
Other expenses, net    178        336        -47.0%    701        1,046        -33.0% 
             
   Interest expense    485        546        -11.2%    2,139        2,252        -5.0% 
   Interest income    152        82        85.4%    613        383        60.1% 
                     
   Interest expense, net    333        464        -28.2%    1,526        1,869        -18.4% 
   Foreign exchange (gain) loss    (27)       57        -147.4%    (99)       237        -141.8% 
   (Gain) Loss on monetary position    (423)       (412)       2.7%    (1,007)       (1,071)       -6.0% 
   Unhedged derivative instrument (gain) loss    (45)       (24)       87.5%    (114)       118        -196.6% 
             
Integral cost of financing    (162)       85        -290.6%    306        1,153        -73.5% 
Income before taxes    3,208        2,441        31.4%    10,440        8,052        29.7% 
                 
Taxes    1,228        748        64.2%    3,335        2,555        30.5% 
             
Consolidated net income    1,980        1,693        17.0%    7,105        5,497        29.3% 
             
Majority net income    1,932    10.5%    1,625    9.6%    18.9%    6,908    10.0%    5,292    8.3%    30.5% 
             
Minority net income    48        68        -29.4%    197        205        -3.9% 
             
Operating income    3,224    17.6%    2,862    16.9%    12.6%    11,447    16.5%    10,251    16.0%    11.7% 
Depreciation    399        393        1.5%    1,645        1,656        -0.7% 
Amortization and Other non-cash charges (2)   307        220        39.5%    1,342        1,371        -2.1% 
             
EBITDA (3)   3,930    21.4%    3,475    20.6%    13.1%    14,434    20.8%    13,278    20.7%    8.7% 
             

(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.
 

February 19, 2008    1   Page 11  



Mexican operations
Expressed in millions of Mexican pesos(1) with purchasing power as of December 31, 2007

   
    4Q 07   % Rev    4Q 06     % Rev    D   YTD 07   % Rev    YTD 06   % Rev    D
             
Sales Volume (million unit cases)   272.2        262.4        3.7%    1,110.4        1,070.7        3.7% 
Average price per unit case    29.57        29.33        0.8%    29.18        29.36        -0.6% 
                     
Net revenues    8,048        7,695        4.6%    32,398        31,431        3.1% 
Other operating revenues    41        50        -18.0%    152        109        39.4% 
             
Total revenues    8,089    100.0%    7,745    100.0%    4.4%    32,550    100.0%    31,540    100.0%    3.2% 
Cost of sales    3,734    46.2%    3,621    46.8%    3.1%    15,537    47.7%    14,837    47.0%    4.7% 
             
Gross profit    4,355    53.8%    4,124    53.2%    5.6%    17,013    52.3%    16,703    53.0%    1.9% 
             
Operating expenses    2,636    32.6%    2,467    31.9%    6.9%    10,444    32.1%    10,077    31.9%    3.6% 
             
Operating income    1,719    21.3%    1,657    21.4%    3.7%    6,569    20.2%    6,626    21.0%    -0.9% 
Depreciation, Amortization & Other non-cash charges (2)   365    4.5%    241    3.1%    51.5%    1,649    5.1%    1,623    5.1%    1.6% 
             
EBITDA (3)   2,084    25.8%    1,898    24.5%    9.8%    8,218    25.2%    8,249    26.2%    -0.4% 
             

(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 millions of Mexican pesos(1) with purchasing power as of December 31, 2007

   
    4Q 07   % Rev    4Q 06   % Rev    D   YTD 07   % Rev    YTD 06   % Rev    D
           
Sales Volume (million unit cases)   33.9        32.7        3.7%    128.1        120.3        6.5% 
Average price per unit case    36.19        37.25        -2.8%    37.40        37.79        -1.0% 
                     
Net revenues    1,227        1,218        0.7%    4,791        4,546        5.4% 
Other operating revenues     -         -        N.A.    17        13        30.8% 
             
Total revenues    1,227    100.0%    1,218    100.0%    0.7%    4,808    100.0%    4,559    100.0%    5.5% 
Cost of sales    659    53.7%    654    53.7%    0.8%    2,560    53.2%    2,448    53.7%    4.6% 
             
Gross profit    568    46.3%    564    46.3%    0.7%    2,248    46.8%    2,111    46.3%    6.5% 
             
Operating expenses    363    29.6%    377    31.0%    -3.7%    1,533    31.9%    1,470    32.2%    4.3% 
             
Operating income    205    16.7%    187    15.4%    9.6%    715    14.9%    641    14.1%    11.5% 
Depreciation, Amortization & Other non-cash charges (2)   57    4.6%    61    5.0%    -6.6%    233    4.8%    241    5.3%    -3.3% 
             
EBITDA (3)   262    21.4%    248    20.4%    5.6%    948    19.7%    882    19.3%    7.5% 
             

(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.
 

February 19, 2008    1   Page 12  



Colombian operations
Expressed in millions of Mexican pesos(1) with purchasing power as of December 31, 2007

   
    4Q 07   % Rev    4Q 06   % Rev    D   YTD 07   % Rev    YTD 06   % Rev    D
           
Sales Volume (million unit cases)   52.7        53.7        -1.9%    197.8        190.9        3.6% 
Average price per unit case    33.81        34.23        -1.2%    35.05        33.83        3.6% 
                     
Net revenues    1,782        1,838        -3.0%    6,933        6,459        7.3% 
Other operating revenues     -         -        N.M.                N.M. 
             
Total revenues    1,782    100.0%    1,838    100.0%    -3.0%    6,933    100.0%    6,459    100.0%    7.3% 
Cost of sales    869    48.8%    1,014    55.2%    -14.3%    3,515    50.7%    3,597    55.7%    -2.3% 
             
Gross profit    913    51.2%    824    44.8%    10.8%    3,418    49.3%    2,862    44.3%    19.4% 
             
Operating expenses    603    33.8%    492    26.8%    22.6%    2,176    31.4%    1,969    30.5%    10.5% 
             
Operating income    310    17.4%    332    18.1%    -6.6%    1,242    17.9%    893    13.8%    39.1% 
Depreciation, Amortization & Other non-cash charges (2)   99    5.6%    91    5.0%    8.8%    337    4.9%    346    5.4%    -2.6% 
             
EBITDA (3)   409    23.0%    423    23.0%    -3.3%    1,579    22.8%    1,239    19.2%    27.4% 
             

(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.
 

Venezuelan operations
Expressed in millions of Mexican pesos(1) with purchasing power as of December 31, 2007

   
    4Q 07   % Rev    4Q 06   % Rev    D   YTD 07   % Rev    YTD 06   % Rev    D
           
Sales Volume (million unit cases)   57.0        49.8        14.5%    209.0        182.6        14.5% 
Average price per unit case    46.00        43.17        6.5%    46.74        43.66        7.0% 
                     
Net revenues    2,622        2,150        22.0%    9,768        7,973        22.5% 
Other operating revenues                0.0%    17        20        -15.0% 
             
Total revenues    2,627    100.0%    2,155    100.0%    21.9%    9,785    100.0%    7,993    100.0%    22.4% 
Cost of sales    1,576    60.0%    1,374    63.8%    14.7%    5,783    59.1%    4,961    62.1%    16.6% 
             
Gross profit    1,051    40.0%    781    36.2%    34.6%    4,002    40.9%    3,032    37.9%    32.0% 
             
Operating expenses    879    33.5%    681    31.6%    29.1%    3,430    35.1%    2,825    35.3%    21.4% 
             
Operating income    172    6.5%    100    4.6%    72.0%    572    5.8%    207    2.6%    176.3% 
Depreciation, Amortization & Other non-cash charges (2)   70    2.7%    92    4.3%    -23.9%    329    3.4%    407    5.1%    -19.2% 
             
EBITDA (3)   242    9.2%    192    8.9%    26.0%    901    9.2%    614    7.7%    46.7% 
             

(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.
 

February 19, 2008    1   Page 13  



Argentine operations
Expressed in millions of Mexican pesos(1) with purchasing power as of December 31, 2007

   
    4Q 07   % Rev    4Q 06   % Rev    D   YTD 07   % Rev    YTD 06   % Rev    D
           
Sales Volume (million unit cases)   54.9        48.0        14.4%    179.4        164.9        8.8% 
Average price per unit case    22.48        21.60        4.0%    22.11        20.75        6.6% 
                     
Net revenues    1,234        1,037        19.0%    3,967        3,421        16.0% 
Other operating revenues    43              760.0%    67        37        81.1% 
             
Total revenues    1,277    100.0%    1,042    100.0%    22.6%    4,034    100.0%    3,458    100.0%    16.7% 
Cost of sales    773    60.5%    640    61.4%    20.8%    2,435    60.4%    2,096    60.6%    16.2% 
             
Gross profit    504    39.5%    402    38.6%    25.4%    1,599    39.6%    1,362    39.4%    17.4% 
             
Operating expenses    344    26.9%    261    25.0%    31.8%    1,107    27.4%    920    26.6%    20.3% 
             
Operating income    160    12.5%    141    13.5%    13.5%    492    12.2%    442    12.8%    11.3% 
Depreciation, Amortization & Other non-cash charges (2)   56    4.4%    58    5.6%    -3.4%    209    5.2%    189    5.5%    10.6% 
             
EBITDA (3)   216    16.9%    199    19.1%    8.5%    701    17.4%    631    18.2%    11.1% 
             

(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.
 

Brazilian operations
Expressed in millions of Mexican pesos(1) with purchasing power as of December 31, 2007
Financial figures include beer results

   
    4Q 07   % Rev    4Q 06   % Rev    D   YTD 07   % Rev    YTD 06   % Rev    D
           
Sales Volume (million unit cases) (2)   87.7        76.6        14.5%    296.1        268.7        10.2% 
Average price per unit case (2)   33.30        33.38        -0.3%    34.89        34.38        1.5% 
                     
Net revenues    3,350        2,903        15.4%    11,112        9,990        11.2% 
Other operating revenues                28.6%    29        47        -38.3% 
             
Total revenues    3,359    100.0%    2,910    100.0%    15.4%    11,141    100.0%    10,037    100.0%    11.0% 
Cost of sales    1,739    51.8%    1,692    58.1%    2.8%    6,051    54.3%    5,806    57.8%    4.2% 
             
Gross profit    1,620    48.2%    1,218    41.9%    33.0%    5,090    45.7%    4,231    42.2%    20.3% 
             
Operating expenses    962    28.6%    773    26.6%    24.5%    3,233    29.0%    2,789    27.8%    15.9% 
             
Operating income    658    19.6%    445    15.3%    47.9%    1,857    16.7%    1,442    14.4%    28.8% 
Depreciation, Amortization & Other non-cash charges (3)   59    1.8%    70    2.4%    -15.7%    230    2.1%    221    2.2%    4.1% 
             
EBITDA (4)   717    21.3%    515    17.7%    39.2%    2,087    18.7%    1,663    16.6%    25.5% 
             

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

February 19, 2008    1   Page 14  



SELECTED INFORMATION
 

For the three months ended December 31, 2007 and 2006

Expressed in millions of Mexican pesos as of December 31, 2007

       
    4Q 07        4Q 06 
       
Capex    1,297.2    Capex       817.8 
       
Depreciation    399.4    Depreciation       392.8 
       
Amortization & Other non-cash charges    306.9    Amortization & Other non-cash charges       220.1 
       

VOLUME
Expressed in millions of unit cases

     
    4Q 07    4Q 06 
     
    Sparkling    Water (1)   Bulk Water (2)   Still (3)   Total    Sparkling    Water (1)   Bulk Water    Still (3)   Total 
                     
Mexico    216.2    10.4    43.0    2.6    272.2    210.7    9.6    39.6    2.5    262.4 
Central America    30.6    1.4    0.0    1.9    33.9    29.7    1.4    0.0    1.6    32.7 
Colombia    46.4    2.9    2.6    0.8    52.7    47.5    2.9    2.6    0.7    53.7 
Venezuela    51.8    3.2    0.0    2.0    57.0    44.3    3.1    0.0    2.4    49.8 
Brazil    80.8    5.6    0.0    1.3    87.7    70.1    5.6    0.0    0.9    76.6 
Argentina    52.6    0.7    0.0    1.6    54.9    46.0    0.4    0.0    1.6    48.0 
                     
Total    478.4    24.2    45.6    10.2    558.4    448.3    23.0    42.2    9.7    523.2 
                     

(1)  Excludes still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations
(2)  Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations
(3)  Still Beverages include flavored water
 

SELECTED INFORMATION

For the twelve months ended December 31, 2007 and 2006

Expressed in millions of Mexican pesos as of December 31, 2007

       
    YTD 07        YTD 06 
       
Capex       3,682.1    Capex     2,863.0 
       
Depreciation       1,645.0    Depreciation    1,655.8 
       
Amortization & Other non-cash charges       1,341.7    Amortization & Other non-cash charges    1,371.4 
       

VOLUME
Expressed in millions of unit cases

     
    YTD 07    YTD 06 
     
    Sparkling    Water (1)   Bulk Water (2)   Still (3)   Total    Sparkling    Water (1)   Bulk Water    Still (3)   Total 
             
Mexico    869.5    47.0    182.4    11.5    1,110.4    852.0    42.7    166.6    9.4    1,070.7 
Central America    115.0    5.5    0.0    7.6    128.1    109.4    5.2    0.0    5.7    120.3 
Colombia    173.3    11.0    10.8    2.7    197.8    167.7    10.8    10.1    2.3    190.9 
Venezuela    189.0    11.8    0.0    8.2    209.0    160.1    11.5    2.2    8.8    182.6 
Brazil    271.6    19.9    0.0    4.6    296.1    246.3    19.6    0.0    2.8    268.7 
Argentina    172.6    1.7    0.0    5.1    179.4    159.2    2.1    0.0    3.6    164.9 
             
Total    1,791.0    96.9    193.2    39.7    2,120.8    1,694.7    91.9    178.9    32.6    1,998.1 
             

(1)  Excludes still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations
(2)  Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations
(3)  Still Beverages include flavored water
 

February 19, 2008    1   Page 15  



December 2007
Macroeconomic Information

     
        Foreign Exchange Rate 
    Inflation (1)   (local currency per US Dollar) (2)
    LTM    4Q 2007    Dec 07    Dec 06 
     
Mexico    3.76%    1.52%    10.8662    10.876 
Colombia    5.70%    0.98%    2014.76    2238.79 
Venezuela    22.46%    10.43%    2150    2150 
Argentina    8.47%    2.49%    3.149    3.062 
Brazil    5.13%    1.71%    1.7713    2.138 
     

(1)  Source: Mexican inflation is published by Banco de México (Mexican Central Bank).
(2)  Exchange rates at the end of period are the official exchange rates published by Central Banks in each country.
 

February 19, 2008    1   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.B. DE C.V.
  (Registrant)
 
 
 
Date: February 19 , 2008 By: /s/ HÉCTOR TREVIÑO GUTIÉRREZ
  Name:  Héctor Treviño Gutiérrez
  Title:    Chief Financial Officer