Tear Sheet: Controladora Mabe S.A. de C.V.

Despite difficult economic conditions in some of Mabe?s key markets, the company's sales and EBITDA margin trajectory have outpaced our prior expectation during the first half of 2023, at $2.3 billion and 11.6%, respectively. We now expect sales to grow near 3.2% in 2023 versus last year, from no growth previously projected, and its EBITDA margin to be close to 11% versus 10% in our prior forecast. This primarily comes from our current expectation of resilient consumption trends, coupled with a market share gain in Mexico, while we forecast Mabe to maintain at least flat prices in local currency. In North America, we forecast tepid consumption trends, but we believe that market contraction in Canada will remain offset by the

...August 29, 2023 Controladora Mabe S.A. de C.V. (Mabe) continues to outperform growth expectations in key markets. Despite difficult economic conditions in some of Mabe's key markets, the company's sales and EBITDA margin trajectory have outpaced our prior expectation during the first half of 2023, at $2.3 billion and 11.6%, respectively. We now expect sales to grow near 3.2% in 2023 versus last year, from no growth previously projected, and its EBITDA margin to be close to 11% versus 10% in our prior forecast. This primarily comes from our current expectation of resilient consumption trends, coupled with a market share gain in Mexico, while we forecast Mabe to maintain at least flat prices in local currency. In North America, we forecast tepid consumption trends, but we believe that market contraction in Canada will remain offset by the U.S. market where Mabe remains strategically well positioned to supply demand from General Electric (GE) given its lower production costs, favoring its...

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