Coca-Cola FEMSA (KOF) Q1 2026 earnings summary

Executive summary

• Consolidated volume grew 1.2% to 998 million unit cases, with strong South America performance offsetting a contraction in Mexico due to excise tax increases and softer consumer demand.

• Total revenues increased 1.1% to MXN 70.9 billion (6.0% currency neutral), with gross profit up 4.5% to MXN 33.3 billion and margin expansion of 150 bps to 46.9%.

• Net income attributable to equity holders declined 15.5% to MXN 4.3 billion, mainly due to higher comprehensive financial expenses.

• Strategic focus on digital enablers, portfolio breadth, and execution drove share gains in key markets.

• Gross margin expansion was driven by lower sweetener and PET costs.

Financial highlights

• Excluding currency headwinds, total revenues increased 6.0% and gross profit rose 9.5%.

• Operating income declined 2.3% to MXN 9 billion, with a 50 bps margin contraction to 12.7%.

• Adjusted EBITDA increased 0.9% to MXN 13.4 billion; margin steady at 18.9%.

• Mexico and Central America: volumes down 1.6%, revenues down 1.4%, operating income down 17.4%.

• South America: volumes up 4.8%, revenues up 4.3%, operating income up 18.8%.

Outlook and guidance

• Management expects the toughest quarter for Mexico is over, but maintains full-year guidance due to ongoing uncertainties.

• Marketing and IT expenses are expected to normalize over the year; severance costs were extraordinary in Q1.

• Commodity and input costs expected to remain volatile, but hedging and supplier diversification mitigate risks.

• Focus remains on targeted revenue management and leveraging the FIFA World Cup platform for growth.

• Continued emphasis on efficiency and savings to protect profitability and support long-term sustainable growth.