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 volume growth in December.

• 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%.

• The company maintained its sustainable long-term growth model, focusing on affordability, digital initiatives, and operational excellence across all markets.

• Strategic priorities for 2026 include growing the core business, accelerating Coke Zero, leveraging digital tools like Juntos+ Advisor, and fostering a 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).

• Gross margin Q4: 46.7% (down 60 bps YoY); operating margin Q4: 17.6% (up 160 bps YoY), aided by insurance recoveries.

• Q4 EPS: Ps. 0.45; FY EPS: Ps. 1.42.

Outlook and guidance

• For 2026, expect low to mid-single-digit volume decline in Mexico due to excise tax impact, with consolidated volumes projected to be flat to slightly positive.

• Brazil expected to deliver low to mid-single-digit volume growth, supported by favorable tailwinds and digital execution.

• CapEx as a percentage of revenue to decrease to 7–7.5% in 2026, with further reduction expected until 2029.

• 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.