Coca-Cola FEMSA, S.A.B DE C.V (KOF)

Coca-Cola FEMSA reported third-quarter 2026 revenue of 79,718 million pesos on 26 October, up 10.9 percent from a year earlier 1. Volume rose 5.3 percent to 1,089.8 million unit cases, and a unit case is 24 eight-ounce servings 1. Operating income rose 15.4 percent to 11,874 million pesos 1.

The company said revenue rose mainly on volume growth and revenue management initiatives, partly offset by unfavorable mix and currency translation 1. South America led the quarter 1. Revenue there rose 14.7 percent, against 8.3 percent in Mexico and Central America, where operating income fell 3.1 percent 1.

South America's operating income of 5,300 million pesos includes 1,055 million pesos of income from insurance claims in Brazil, net of expenses 1. Chief executive Ian Craig said consumer conditions in Mexico remained challenging through the quarter 1.

On 13 October the company paid the third installment of its ordinary dividend, 4,065.1 million pesos in all 1.

Coca-Cola FEMSA began in 1979, when a subsidiary of FEMSA acquired certain sparkling beverage bottlers in Mexico City and surrounding areas 2. In 1993 a subsidiary of The Coca-Cola Company took 30.0 percent of the capital stock, and Series L shares reached the public on the Mexican Stock Exchange and, as ADSs, the NYSE 2.

The big step came in May 2003 with the purchase of Panamerican Beverages, which added territories in central, southeastern and northeastern Mexico, Central America, Colombia, Venezuela and Brazil 2.

Mexican bottler mergers followed in 2011 and 2012 2. Brazil then grew through Companhia Fluminense in August 2013, Spaipa in October 2013 and Vonpar in December 2016 2.

The company also stepped back from some ventures 2. It took a 51.0 percent stake in a Philippine bottler in January 2013 and returned it to The Coca-Cola Company in December 2018 2. A Panamanian dairy and juice business acquired in March 2011 went to another owner in September 2020 2.

Recent growth has come from price more than volume 2. In 2025 revenue rose 4.3 percent to 291,746 million pesos, while volume fell 1.8 percent 2. Average price per unit case rose 6.0 percent to 68.09 pesos from 64.23 pesos 2.

Mexico was the weak spot 2. Volume there fell 5.2 percent in 2025, which the annual report ties to macroeconomic deceleration and temporary negative brand sentiment early in the year 2.

Net income to equity holders was 23,845 million pesos in 2025, up 0.5 percent, as operating income growth outweighed a higher financing cost and tax rate 2.

The business and its brands

Substantially all of the company's sales come from Coca-Cola trademark beverages, which it produces and distributes under standard bottler agreements 2. It is the largest franchise bottler of Coca-Cola products in the world by sales volume, at about 12.3 percent of the Coca-Cola system's volume in 2025 2.

The range runs from colas and flavored sparkling drinks to waters, tea, juice, coffee, milk and plant-based drinks 2. It also distributes Monster energy drinks everywhere it operates, and Heineken-owned and other beers in some markets 2.

Coca-Cola and its reduced or no-sugar versions made up 60.3 percent of 2025 volume 2. By category, sparkling drinks were 74.7 percent of unit cases, still drinks 8.3 percent and water 17.0 percent 2.

Where it operates

It serves Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil, Argentina and Uruguay, and Venezuela through an investment 2. Mexico and Central America brought in 169,641 million pesos in 2025, 58.1 percent of revenue, and South America 122,105 million pesos, 41.9 percent 2.

Mexico and Brazil together gave 74.9 percent of 2025 revenue 2. In Brazil volume rose 1.6 percent to 1,178.0 million unit cases in 2025 2.

In the latest quarter volume grew in every operation, with Colombia up 15.9 percent and Brazil up 3.9 percent 1.

Plants and people

The company operates 55 bottling plants and 256 distribution centers, has more than 90,200 employees and reaches about 2.1 million points of sale 2. Mexico has the largest installed capacity, at 3,168,044 thousand unit cases a year and 61.3 percent average utilization 2.

Main plants include Toluca, León, Morelia and Altamira in Mexico, and Jundiaí, Curitiba and Itabirito in Brazil 2. Ian Craig is chief executive and Gerardo Cruz chief financial officer 4.

Rivals and problems

The company says it continued to gain market share in the latest quarter 1. Its annual report names dependence on The Coca-Cola Company as a risk, since concentrate prices for all its territories may be set by the franchisor 2.

In October 2025 Brazil enacted Decree 12.688, a mandatory reverse logistics system for plastic packaging, effective January 2026 2. The company is also in legal proceedings in Mexico over property rights to land under some of its facilities, including claims that the land is ejido land 2.

The umbrella, in words

FEMSA indirectly owns 47.2 percent of the capital stock, 56.0 percent of the shares with full voting rights, and may appoint up to 13 of 21 directors and all senior management 2. The Coca-Cola Company indirectly owns 27.8 percent, or 32.9 percent of the full-vote shares, and may appoint up to five directors 2.

Series L shares with limited votes are 15.6 percent of the capital stock and Series B shares 9.4 percent 2. The bottler agreements renew automatically for ten-year terms unless either side gives notice, and the franchisor must consent to any transfer of control of a territory 2.

Its significant subsidiaries include Propimex, a wholly owned Mexican distributor of bottled beverages, and Spal, a Brazilian producer and distributor that is 84.4 percent owned 2. Controladora Interamericana de Bebidas, wholly owned, is the Mexican parent of its manufacturers and distributors 2.

Jugos del Valle, a juice maker acquired jointly with The Coca-Cola Company in November 2007, and the Fountain Água Mineral water venture add to profit as equity accounted investees 2. The largest plant by built area is Toluca in the State of Mexico, at 131 thousand square meters 2.

The company budgeted capital spending of 7.0 to 7.5 percent of total revenues for 2026 2. The money is aimed mainly at manufacturing, distribution, coolers, returnable bottles and information technology 2.

The annual report names six strategic priorities: grow the core, be the preferred commercial platform, strategic M&A, de-bottleneck infrastructure, build a customer-centric culture and foster a sustainable future 2. It says it aims to increase manufacturing and distribution capacity 2.

The company aims to use the AI capabilities of Juntos +, its omnichannel commercial platform, and to roll out Juntos + Advisor, a sales force tool, across its markets 2.

On 3 September 2026 the company said it met the water target on its KOF 21L sustainability-linked bonds, at 1.26 liters of water per liter of beverage produced 3. It confirmed that the bonds' rate does not change for the interest period beginning 17 September 2026 3.

Under the 2021 update of its cooperation framework with The Coca-Cola Company, the bottler may be allowed to distribute new businesses such as beer, spirits and other consumer goods 2.