Coca-Cola FEMSA (KOF) Q3 2025 earnings summary

Executive summary

• Consolidated volume declined 0.6% to 1.04 billion unit cases, a sequential improvement, with Mexico and Panama contracting but offset by growth elsewhere; South America showed resilient performance and margin protection through expense control and efficiency initiatives.

• Total revenues grew 3.3% to MXN 71.9 billion, led by revenue management, despite volume decline and currency headwinds.

• Operating income rose 6.8% to MXN 10.3 billion, with margin expansion due to expense efficiencies and FX gains.

• Adjusted EBITDA increased 3.2% to MXN 14.4 billion; EBITDA margin flat at 20.1%.

• Over 60% of the client base are now digital monthly active buyers, reflecting ongoing digital transformation.

Financial highlights

• Gross profit up 0.9% to MXN 32.4 billion; gross margin contracted 100 bps to 45.1%.

• Operating margin expanded 50 bps to 14.3%.

• One-time income of MXN 218 million from insurance claims in Brazil recognized.

• Comprehensive financial results showed an expense of MXN 1.2 billion, up from MXN 823 million YoY, due to lower interest income and FX losses.

• Earnings per share for the quarter were Ps. 0.35.

Outlook and guidance

• Expect low to mid-single-digit volume decline in Mexico in 2026 due to excise tax increase and soft macro; management to focus on sustainable growth, revenue management, affordability, productivity, and cost control.

• Anticipate positive brand equity impact from the 2026 World Cup.

• CapEx investments in Mexico delayed, with some projects pushed out two years due to expected volume contraction.

• Cost control, productivity, and RGM initiatives to address short-term headwinds.