Coca-Cola FEMSA (KOF) Q4 2024 earnings summary

Executive summary

• Achieved strong full-year and Q4 2024 results, with Q4 volume up 2.2%, revenue up 14.3%, operating income up 25%, and majority net income up 35.1% year-over-year, reflecting progress in sustainable growth and digital transformation despite macroeconomic and weather-related challenges.

• Full year 2024: volume up 4.4%, revenue up 14.2%, operating income up 17.4%, and majority net income up 21.5% year-over-year.

• Expanded customer base and digital engagement, with Juntos+ reaching 1.3 million monthly active users and loyalty program enrollment quadrupling to 1.1 million; new AI-driven salesforce tools deployed.

• Record CapEx of MXN 25.3 billion (9% of revenues) invested in capacity expansion and digitalization to support long-term growth.

• Sustainability achievements include improved ratings in S&P Global CSA, DJSI MILA, FTSE4Good, ISS-ESG, Sustainalytics, and CDP, and a water efficiency rate of 1.36 liters per liter produced.

Financial highlights

• Q4 revenues rose 14.3% to MXN 75.5 billion; full-year revenues up 14.2% to MXN 279.8 billion.

• Q4 gross profit increased 17.1% to MXN 35.7 billion, with gross margin up 120 bps to 47.3%.

• Q4 operating income up 25% to MXN 12.1 billion; operating margin expanded 140 bps to 16%.

• Adjusted Q4 EBITDA rose 22.5% to MXN 16.1 billion; margin expanded 140 bps to 21.3%.

• Majority net income for Q4 increased 35.1% to MXN 7.3 billion; FY24 net income attributable to equity holders: MXN 23.7 billion (+21.5% YoY).

Outlook and guidance

• Expect mid-single-digit volume growth in Mexico for 2025, with mixed consumer signals and tougher comps in H1, but improved capacity and product alignment.

• Brazil expected to benefit from favorable comps post-Porto Alegre recovery; Argentina anticipated to continue gradual recovery.

• Continued focus on digital expansion, AI-driven sales tools, and customer-centric culture.

• Management remains optimistic about opportunities in core markets and aims to continue value generation through adaptability and digital transformation.

• Focus on capturing growth in a vibrant beverage industry within a growing region.