Coca-Cola FEMSA (KOF) investor relations material

Executive summary

• Revenue grew 5% year-over-year in Q2 2025 to MXN 72.9 billion, despite a 5.5% decline in consolidated volume, with majority net income down 5.3% to MXN 5.3 billion.

• Operating income remained flat at MXN 9.7 billion, with margin down 60 bps to 13.4%; adjusted EBITDA fell 3.8% to MXN 13.4 billion, and EBITDA margin contracted 160 bps to 18.4%.

• The company issued $500 million in senior notes due 2035 and paid a Ps. 3,865.5 million dividend installment.

• Included in FTSE4Good sustainability indices for the tenth consecutive year, with improved ESG score.

Financial highlights

• Q2 2025 revenues: MXN 72.9 billion (+5.0% YoY); gross profit: MXN 33 billion (+3.4% YoY); operating income: MXN 9.7 billion (+0.2% YoY).

• Consolidated volume down 5.5% year-over-year; Mexico volume declined 10%, Brazil down 1.5%, Colombia down 2.8%, Argentina up 11.9%, Guatemala up 1.6%.

• Gross margin contracted 70 bps to 45.3%; operating margin contracted 60 bps to 13.4%.

• Adjusted EBITDA for Q2: MXN 13.4 billion (-3.8% YoY); for six months: MXN 26.6 billion (+2.4% YoY).

• Net income attributable to equity holders: MXN 5.3 billion (-5.3% YoY); EPS: MXN 0.32.

Outlook and guidance

• Cautiously optimistic for Mexico in the second half, planning for a conservative scenario due to declining personal consumption and remittances.

• Expect sequential improvements in South America margins, especially with the full recovery of the Porto Alegre plant in Brazil.

• CapEx to remain at 8–9% of net sales, with structural capacity investments continuing, while volume-linked CapEx is adjusted downward as needed.

• FX hedging for 2025 covers 50–80% of dollarized raw material needs, with Mexico and Colombia at the higher end.

• Management remains confident in long-term perspectives and plans to continue investing in capacity and capabilities.