Coca-Cola FEMSA (KOF) Q4 2025 earnings summary

Executive summary

• 2025 was a challenging year, but decisive actions led to recovery in key markets and reinforced a sustainable long-term growth model.

• 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%.

• Management highlighted resilience amid challenging conditions, sequential volume improvements, and record December volumes in the four largest operations.

• Mexico faced a soft consumer environment and tax headwinds, but sequential improvements and affordability initiatives helped regain share.

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 EPS: Ps. 0.45; FY EPS: Ps. 1.42.

• Gross margin Q4: 46.7% (down 60 bps YoY); operating margin Q4: 17.6% (up 160 bps YoY).

Outlook and guidance

• 2026 guidance for Mexico: low to mid-single-digit volume decline due to excise tax impact; other markets expected to grow.

• Consolidated 2026 volume expected to be flattish to slightly positive, with growth in Brazil and other markets offsetting Mexico.

• CapEx for 2026 expected to be at the lower end of 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.

• Cautious approach to further price increases in Mexico; monitoring elasticity and consumer sentiment.