Coca-Cola FEMSA SAB de CV Q1 FY2026 earnings call

In Mexico, faced excise tax increase and soft consumer backdrop, but had strong value share gains in CSDs and NARTDs, leveraging portfolio, scale, etc. Central and South America operations performed well. In Mexico, execution was strong with value and volume share gains, accelerated initiatives in portfolio, focused on noncarbonated beverages, made progress in channels with Juntos+ Advisor adoption. Guatemala had a challenging start but recovered, with volume growth and leveraging World Cup. Brazil had volume growth, used digital capabilities. Colombia had volume growth, used loyalty program. Argentina had volume growth, used promotions and digital initiatives

During the first quarter, volume increased 1.2% to 998 million unit cases. Total revenue grew 1.1% to MXN 70.9 billion, excluding currency headwinds, total revenues increased 6.0%. Gross profit increased 4.5% to MXN 33.3 billion with a margin expansion of 150 basis points to 46.9%. In Mexico, volume declined 2.6% year - on - year, but had a strong value share gain in CSDs and NARTDs. Central and South America operations delivered solid performance, with record volumes in Guatemala, Colombia and Brazil. For Mexico and Central America division: volumes declined 1.6%, revenues decreased 1.4%, gross profit increased 0.7% with a 100 basis point margin expansion, operating income declined 17.4% with a 120 basis point margin contraction, adjusted EBITDA decreased 9.9% with a 170 basis point margin decline. For South America division: volumes increased 4.8%, revenues increased 4.3%, gross profit increased 10% with a 230 basis point margin expansion, operating income rose 18.8% with a 180 basis point margin increase, adjusted EBITDA increased 16.8% with a 210 basis point margin expansion

Mexico has plans to capitalize on current environment to strengthen competitive position, expect to continue executing strategic imperatives. For Mexico full - year volume guidance, it's too early to adjust. Regarding hedging, have a disciplined strategy, currently hedged certain proportions of PET, sugar, HFCS and aluminum requirements

Raw material price volatility, including PET, aluminum, sweeteners price fluctuations; exchange rate fluctuations affecting financial performance; market competition challenges

Q: Ben Theurer wanted to dig deeper into costs and expenses in Mexico driving margin contraction.

A: Gerardo Celaya and Jorge Alejandro Pereda answered about marketing spend being brought forward for World Cup, IT expense timing, and severance - related expenses.

Q: Thiago Bortoluci asked about Mexico volume performance by subsegments, channel performance, and affordability.

A: Ian Marcel Craig García and Gerardo Celaya answered about stills issue, channel performance, and mix effect.

Q: Ulises Argote asked about Mexico regional performance and competition.

A: Ian Marcel Craig García answered about regional performance and competition strategy.

Q: Alejandro Fuchs asked about Mexico volume guidance and 2027 hedges.

A: Ian Marcel Craig García and Gerardo Celaya answered about volume guidance and hedging plans.

Q: Enrique Morillo asked about hedging levels and logistics expenses.

A: Gerardo Celaya and Ian Marcel Craig García answered about hedging levels and related expenses.

Q: Carlos Laboy asked about Juntos+ in Colombia.

A: Ian Marcel Craig García answered about Juntos+ in Colombia.

Q: Renata Cabral asked about Brazil price gap and portfolio.

A: Ian Marcel Craig García and Gerardo Celaya answered about Brazil price gap and portfolio.

Q: Antonio Hernandez asked about Mexico pricing plans.

A: Ian Marcel Craig García answered about Mexico pricing plans.

Q: Rodrigo Alcantara asked about South America margins and Colombia water license.

A: Gerardo Celaya and Jorge Alejandro Pereda answered about South America margins and Colombia water license.

Q: Lucas Ferreira asked about Mexico OpEx and Coke Zero growth.

A: Ian Marcel Craig García answered about Mexico OpEx and Coke Zero growth.

Q: Alvaro Garcia asked about Venezuela and capital allocation.

A: Ian Marcel Craig García and Gerardo Celaya answered about Venezuela and capital allocation