Coca-Cola FEMSA (KOF) Q4 2025 earnings summary

Executive summary

• 2025 was a challenging year, but decisive actions led to recovery in competitive position and profitability, especially in Mexico, while South America saw favorable consumer dynamics and record volumes.

• Fourth quarter 2025 saw volume growth of 1.3% and revenue growth of 2.9% (6.0% currency neutral), with operating income up 13.3% (16.7% currency neutral) and majority net income up 3.0%.

• Full year 2025 volume declined 1.8%, but revenue rose 4.3% (6.5% currency neutral), operating income increased 7.0%, and majority net income edged up 0.5%.

• Digital initiatives and capacity investments supported growth and operational efficiency across markets.

• The company remains committed to a sustainable long-term growth model, focusing on affordability, digital transformation, and customer-centric culture.

Financial highlights

• Q4 2025 revenues: Ps. 77,750 million (+2.9% YoY); gross profit: Ps. 36,321 million (+1.8% YoY); operating income: Ps. 13,702 million (+13.3% YoY); net income attributable to equity holders: Ps. 7,501 million (+3.0% YoY).

• FY 2025 revenues: Ps. 291,746 million (+4.3% YoY); gross profit: Ps. 133,176 million (+3.4% YoY); operating income: Ps. 42,937 million (+7.0% YoY); net income attributable to equity holders: Ps. 23,845 million (+0.5% YoY).

• Adjusted EBITDA for Q4: Ps. 18,169 million (+12.8% YoY); for FY: Ps. 59,110 million (+5.2% YoY).

• Q4 gross margin: 46.7% (down 60 bps); operating margin: 17.6% (up 160 bps); Adjusted EBITDA margin: 23.4% (up 210 bps).

• Q4 EPS: Ps. 0.45; FY EPS: Ps. 1.42.

Outlook and guidance

• 2026 guidance for Mexico is a low to mid-single-digit volume decline due to excise tax impact; Brazil expected to see low to mid-single-digit volume growth.

• Consolidated volume for 2026 expected to be flattish to slightly positive, with ongoing focus on affordability and digital initiatives.

• CapEx for 2026 projected at 7–7.5% of revenues, down from 8.2% in 2025.

• Management expects to address the impact of the IEPS tax increase in Mexico and accelerate growth in South America, leveraging revenue management, brand engagement from the FIFA World Cup, and digital initiatives.