$KOF · COCA COLA FEMSA SAB DE CV
Coca-Cola FEMSA reported Q3 2026 results with consolidated revenue of Ps. 79,718 million (+10.9% reported, +11.3% currency-neutral) and operating income of Ps. 11,874 million (+15.4% reported, +16.4% currency-neutral). Volume grew 5.3% to a record third-quarter 1,089.8 million unit cases. Majority net income rose 5.5% to Ps. 6,223 million, with EPS of Ps. 0.37. The quarter was marked by a sharp divergence between divisions: South America operating income jumped 51.2% (aided by Ps. 1,055 million in Brazil insurance recoveries), while Mexico & Central America operating income declined 3.1% on higher operating expenses and an unfavorable FX swing.
- Consolidated Q3 revenue rose 10.9% to Ps. 79,718 million, with volume up 5.3% to 1,089.8 million unit cases.
- Gross margin expanded 140 bps to 46.5%, driven by lower sweetener and PET costs and hedging initiatives.
- Mexico & Central America operating income fell 3.1% to Ps. 6,574 million, with operating margin contracting 170 bps to 14.3%.
- South America operating income surged 51.2% to Ps. 5,300 million, boosted by Ps. 1,055 million in Brazil insurance claim recoveries.
- Comprehensive financing result worsened to a Ps. 2,019 million expense vs. Ps. 1,290 million a year ago, driven by higher net interest expense.
Extended-hours trading shows KOF at $113.49, down 3.91% from the regular close of $118.11, suggesting the market is reacting negatively despite strong consolidated top-line growth — likely focused on the Mexico division's operating income decline and higher financing costs.
The 3.91% after-hours drop signals investor concern that Mexico's margin erosion and rising financing costs are overshadowing strong South American results and record consolidated volume.
Coca-Cola FEMSA's results highlight a bifurcated Latin American consumer landscape: South America (Brazil, Colombia) delivered strong double-digit operating income growth, while Mexico — the company's largest market — saw margin pressure from rising operating costs despite volume gains.
Mexico & Central America division operating income contracted 3.1% with margin compression of 170 bps, driven by higher marketing, freight, maintenance, and depreciation expenses. Comprehensive financing result deteriorated 56.6% YoY to Ps. 2,019 million due to new debt issuance and mark-to-market losses on financial instruments in Brazil.