Coca-Cola Femsa SAB de CV

Latest Results (21.12.2025):

Coca‑Cola FEMSA, S.A.B. de C.V. — Third Quarter 2025: The company reported a modest volume decline (‑0.6%) while delivering revenue growth and margin protection in 3Q25. Total revenues rose 3.3% to Ps.71,884 million (4.7% currency‑neutral), operating income increased 6.8% to Ps.10,291 million, and net income attributable to equity holders edged up 0.7% to Ps.5,898 million; quarterly EPS was Ps.0.35. For the first nine months of 2025, volume fell 2.8%, revenue rose 5.0% to Ps.213,984 million and YTD net income was Ps.16,343 million (‑0.6% y/y).

Top-line and volume

3Q25 volume: 1,035.0 million unit cases (‑0.6%). Total revenues: Ps.71,884m (+3.3% reported; +4.7% comparable/currency‑neutral). YTD revenues: Ps.213,984m (+5.0% reported; +5.7% comparable).

Profitability

Gross profit 3Q25: Ps.32,391m (+0.9% reported; +2.0% comparable) with gross margin at 45.1% (‑100 bps y/y). Operating income: Ps.10,291m (+6.8% reported; +7.0% comparable) and operating margin expanded to 14.3% (+50 bps). Adjusted EBITDA 3Q25: Ps.14,449m (+3.2%).

Net income, EPS and financing

Net income attributable to shareholders in 3Q25: Ps.5,898m (+0.7%). Quarterly EPS: Ps.0.35 (unit Ps.2.81; ADS Ps.28.07). Comprehensive financing result worsened (expense Ps.1,290m vs Ps.823m in 3Q24), driven by higher net interest expense and FX/financial instrument effects.

Regional performance

Mexico & Central America: volume ‑2.7%, revenues Ps.42,467m (‑0.2%), operating income Ps.6,787m (+1.1%); margins pressured by mix, promotions and higher fixed costs. South America: volume +2.6%, revenues Ps.29,416m (+8.7% reported; +12.5% comparable), operating income Ps.3,505m (+19.7%), helped by revenue management, mix and a Ps.218m one‑time insurance recovery related to 2024 floods in Brazil.

Capital allocation & balance sheet

3Q25 CAPEX: Ps.7,669m (YTD paid fixed‑asset investment ~Ps.15,662m). Net debt (after swaps) at Sept‑30‑2025: Ps.43,947m; net debt / Adj. EBITDA ~0.77x. Third installment of ordinary dividend (Ps.0.23/share) paid Oct 15, 2025 (Ps.3,865.5m total).

Macro, regulatory and operational notes

Management highlighted currency translation headwinds (Argentine peso depreciation) and a softer macro environment in Mexico. The Mexican House approved a proposed increase in excise tax on sugar‑sweetened beverages (Ps.1.64 → Ps.3.08/L) plus a new tax on non‑caloric sweetener beverages (Ps.1.5/L); Senate approval is pending and the company is engaging with authorities. More than 60% of Coca‑Cola FEMSA’s client base are now digital monthly active buyers.