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

Coca‑Cola FEMSA reported sequentially improved Q2 2026 results with consolidated volumes up 3.5% to 1.1 billion unit cases and total revenues +4.7% (currency‑neutral +6.6%). Gross profit rose 8.8% with a 180 bp margin expansion to 47.1%; adjusted EBITDA grew 12.1% and EBITDA margin expanded 130 bp to 19.7%. Majority net income increased 16.9% to MXN 6.2 billion. Performance was driven by strong volume and share gains in Brazil and Colombia (Brazil +5.2%, Colombia +17.7%), solid FIFA World Cup brand activation benefits, and favorable raw‑material dynamics partly due to disciplined hedging. Mexico showed only modest volume growth (+1%) and remains affected by the excise tax increase and soft consumer demand, but management says their conservative pricing approach has built a share cushion and they expect to “catch up” pricing (August) while preserving household penetration. Guatemala grew volumes; Argentina declined ~2.8% due to strikes and weak consumption. Divisionally, Mexico & Central America saw flat revenues (currency impacts) and margin pressure from higher freight/marketing; South America delivered double‑digit revenue and margin expansion (note: Brazil included MXN 265m insurance recovery). Capital allocation: 2026 CapEx guidance 7–7.5% of revenues, selective M&A discipline, and management is reviewing options to return capital to shareholders. Hedging: sizeable coverage across inputs (notably sugar/HFCS); management expects improved visibility on input costs but cautions on geopolitical/commodity volatility. Outlook: consolidated volumes expected roughly flattish for the year (improved from prior slightly negative view), continued focus on market development, digital execution (Juntos+ / Juntos Adviser) and innovation, while monitoring Mexico consumption and potential Brazil regulatory risks for 2027.