COCA COLA FEMSA SAB DE CV (KOF) Company Report

Coca-Cola FEMSA reported Q3 2025 consolidated revenues grew 3.3% to MXN 71.9 billion (4.7% currency-neutral), with operating income increasing 6.8% to MXN 10.3 billion and adjusted EBITDA up 3.2% to MXN 14.4 billion. Consolidated volume declined 0.6% to 1,040 million unit cases.
Mexico's volumes declined 3.7% in Q3 2025, and the company anticipates a challenging 2026 for volume performance in Mexico due to an approved 87% increase in the excise tax on soft drinks and a new tax on non-caloric formulas, effective January 2026.
In response to the expected volume decline in Mexico and to navigate challenging conditions, Coca-Cola FEMSA is revising its CapEx investment levels, specifically pushing out some projects like new distribution centers by two years.
The company has proactively hedged over 90% of its sweetener needs and 40% of PET for 2026, and has also hedged currencies in Colombia (70%), Mexico (40%), and Brazil (20%) for the same period.

Oct 24, 2025, 3:00 PM

Transcript

Coca-Cola FEMSA Reports Q3 2025 Results and Anticipates Challenging Mexico Volumes in 2026

KOF

Guidance Update

Demand Weakening

New Projects/Investments

Coca-Cola FEMSA reported Q3 2025 adjusted EBITDA increased 3.2% to MXN 14.4 billion, with majority net income rising to MXN 5.9 billion.
In Mexico, Q3 2025 volumes declined 2.7% to 612.1 million unit cases and revenues decreased 0.2% to MXN 42.5 billion, attributed to a soft macroeconomic backdrop.
The Mexican House of Representatives approved an 87% increase in the excise tax on sugary soft drinks (from MXN 1.64 to MXN 3.08 per liter) and a new MXN 1.50 per liter tax on non-caloric formulas, effective January 2026, which is expected to lead to a challenging year for volume performance in Mexico in 2026.
South America volumes grew 2.6% to 423 million unit cases in Q3 2025, with revenues increasing 8.7% to MXN 29.4 billion.
The company is delaying CapEx for distribution centers in Mexico by two years due to the anticipated volume contraction from the new excise tax.

Oct 24, 2025, 3:00 PM

Transcript

Coca-Cola FEMSA Reports Q3 2025 Results, Anticipates Mexico Excise Tax Impact

KOF

Earnings

Guidance Update

Demand Weakening

For Q3 2025, Coca-Cola FEMSA's Adjusted EBITDA increased 3.2% to $14.4 billion pesos, with the EBITDA margin remaining flat at 20.1%. Majority net income slightly increased to $5.9 billion pesos, partially driven by a one-time income of $218 million pesos from insurance claims recovered in Brazil.
The Mexican House of Representatives approved an 87% increase in the excise tax on soft drinks (from $1.64 to $3.08 per liter) and a new excise tax on non-caloric formulas of $1.50 per liter, effective January 2026, pending Senate approval. This is expected to result in a low to mid-single-digit volume decline in Mexico for 2026, even after accounting for factors like the World Cup.
While Mexico volumes declined 3.7% , other key markets showed growth: Guatemala volumes increased 3.2% , Brazil volumes grew 2.6% , Colombia volumes grew 2.9% , and Argentina volumes increased 2.9%. The company is leveraging affordability initiatives, price-pack architecture adjustments, and digital enablers like Juntos Plus to drive share and volume, particularly for non-caloric options such as Coca-Cola Zero, which saw significant growth across regions.
Coca-Cola FEMSA is rethinking its CAPEX for 2026, delaying some investments, particularly in Mexico, due to anticipated volume declines from the new excise tax. The company also plans to address its inefficient capital structure in 2026, evaluating the tax's implications on cash flow projections.

Oct 24, 2025, 3:00 PM

Transcript

KOF Reports Q3 2025 Results, Addresses Mexico Excise Tax Increase

KOF

Earnings

Demand Weakening

Guidance Update

Coca-Cola FEMSA reported a 3.2% increase in adjusted EBITDA to $14.4 billion pesos and a slight increase in majority net income to $5.9 billion pesos for Q3 2025, which included a $218 million pesos one-time income from insurance claims recovered in Brazil.
In Mexico, volumes declined 3.7% in Q3 2025, contributing to a 0.2% decrease in revenues to $42.5 billion pesos and a 1.4% decline in adjusted EBITDA for the division.
South America volumes increased 2.6% to 423 million unit cases, with revenues growing 8.7% to $29.4 billion pesos and adjusted EBITDA increasing 12.6%.
The Mexican House of Representatives approved an 87% increase in the excise tax on soft drinks and a new excise tax on non-caloric formulas, effective January 2026, which is expected to lead to a low to mid-single-digit volume decline in Mexico for 2026.
In response to the anticipated volume decline, the company is adjusting its CAPEX investment levels, delaying projects like new distribution centers, and expects a 5% uplift in relative volumes during the 2026 World Cup months.

Oct 24, 2025, 3:00 PM

Transcript

Coca-Cola FEMSA Announces Q3 2025 Results

KOF

Earnings

Dividends

Demand Weakening

For the third quarter of 2025, Coca-Cola FEMSA reported a 3.3% increase in total revenues to Ps. 71,884 million and a 6.8% increase in operating income to Ps. 10,291 million. Majority net income grew by 0.7%, resulting in Ps. 0.35 earnings per share.
Volume declined 0.6% to 1,035.0 million unit cases in Q3 2025, primarily driven by decreases in Mexico and Panama, though partially offset by growth in several South American and Central American territories.
The company highlighted a challenging operating environment, particularly in Mexico, and noted the Mexican House of Representatives' approval of an increase in the excise tax on sugar-sweetened beverages and a new tax on non-caloric sweeteners, which is awaiting Senate approval.
On October 15, 2025, Coca-Cola FEMSA paid the third installment of its ordinary dividend, totaling Ps. 0.23 per share.

Oct 24, 2025, 1:04 PM

6-K

Earnings Transcripts

Quarterly earnings call transcripts for COCA COLA FEMSA SAB DE CV.

Q3 2025

Oct 24, 2025

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Q2 2025

Jul 23, 2025

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