Coca-cola Femsa S.a.b De Cv Stock Earnings Reports

Coca-Cola FEMSA reported Q1 2026 volumes up 1.2% to 998 million unit cases and total revenue up 1.1% to MXN 70.9 billion (≈ +6.0% ex-currency translation). Gross profit rose 4.5% (margin +150 bps to 46.9%) driven by lower PET/sweetener costs and currency movements. Operating income fell 2.3% to MXN 9.0 billion (operating margin -50 bps) mainly due to severance from rightsizing, elevated IT expenses related to a SAP S/4HANA rollout, higher marketing (World Cup-related) and depreciation; adjusted EBITDA was largely stable (+0.9%) with margin steady at 18.9% (≈ +6.1% on a currency-neutral basis). Majority net income declined 15.5% to MXN 4.3 billion due primarily to a weaker comprehensive financial result (higher interest expense, losses in financial instruments, and FX effects). Mexico faced expected near‑term headwinds from an excise tax increase and softer consumption (Mexico volumes -2.6%); management emphasized tactical RGM actions, affordability initiatives, one-way/refillable expansion and digital tools (Juntos+ / Juntos+ Advisor) that produced share gains in CSDs and NARTDs. South America (Brazil, Colombia, Argentina, Guatemala) was strong: record/robust volumes in Guatemala, Colombia and Brazil; South America revenues +4.3% (≈ +12.3% currency-neutral) and adjusted EBITDA +16.8% with margin expansion. Management highlighted FIFA World Cup tailwinds, sustained investment in digital commercial capabilities (Juntos+), broad hedging coverage for key inputs (notably PET, sugar, HFCS, aluminum), and ongoing sustainability progress (2025 integrated report aligned to IFRS S1/S2 and TNFD adoption). Near-term items to watch: Mexico volume recovery trajectory and pricing execution, MXN ~600 million Q1 operating income headwind in Mexico & Central America (severance, IT, currency translation), elevated financing costs from incremental debt issuances, and commodity/energy cost volatility despite hedges.