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KOF

Coca-Cola FEMSA, S.A.B. de C.V.

NYSE · Consumer Defensive · Beverages - Non-Alcoholic · MX

$112.00
−0.45%
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Research · Sep 3, 2026

[KOF] Coca-Cola FEMSA Thesis 2026: Latin American Bottler Drives Mexico Plus Brazil Volume Recovery

Coca-Cola FEMSA S.A.B. de C.V. (NYSE: KOF) FY2025 revenue ~Mex$280-300B (~$15-17B; +5-9%) with diluted EPS ~Mex$11-13 reflecting continued ~4.0-4.2 billion unit cases aggregate volume growth (~+2-4% YoY) across Mexico (~50% revenue) + Brazil (~25%) + Argentina + Colombia + Guatemala + Costa Rica + Nicaragua + Panama + Uruguay + Venezuela + selected various LATAM under continued President + CEO Ian Craig (~3-year tenure since June 2023). World's largest publicly-traded Coca-Cola bottler with operations across selected ~10 LATAM countries. Founded 1979 as Coca-Cola FEMSA via FEMSA (Fomento Económico Mexicano S.A.B. de C.V.; founded 1890 as Cervecería Cuauhtémoc Mexican brewery + Cervecería Moctezuma) Mexican holding company subsidiary; selected post-1993 NYSE ADR + Mexican Bolsa listings; selected post-2003 ~$3.6B aggregate Latin American Coca-Cola bottling consolidation; selected post-2013 Coca-Cola FEMSA Philippines acquisition; selected post-2017 ~$2.5B Brazilian + Philippines bottler consolidation; selected post-June 2023 Ian Craig CEO appointment; selected post-December 2024 Philippines divestiture announcement ($1.65B aggregate to TCCC + selected various). Headquartered in Mexico City Mexico; ~80,000+ employees globally with ~Mex$280-300B revenue. Three primary geographic segments: Mexico + Central America (~55% revenue ~Mex$155-165B — Mexico ~50% aggregate + Guatemala + Costa Rica + Nicaragua + Panama; ~125+ million Mexican per-capita consumption — selected highest globally), South America (~40% ~Mex$112-120B — Brazil ~25% + Argentina + Colombia + Uruguay + Venezuela), Other (~5% ~Mex$15B). Latin American Coca-Cola bottler franchise leadership: ~4.0-4.2 billion unit cases aggregate FY2025 (~+2-4% YoY); selected ~10 country LATAM Coca-Cola System franchise. Mexico + Brazil volume recovery: Mexico ~+2-4% volume growth FY2025 (~50% aggregate revenue); Brazil ~+3-5% volume growth FY2025 (~25% aggregate revenue); selected post-December 2024 Philippines divestiture LATAM-focused strategic positioning. Capital return + Philippines divestiture: ~Mex$13.50-14.50 annual dividend FY2025 (~+5-10% growth); modest buybacks; aggregate capital return ~Mex$25-30B; net cash position ~Mex$10-15B (post-Philippines divestiture proceeds); investment-grade A2/A- credit rating. President + CEO Ian Craig since June 2023 (~3-year tenure); CFO Jorge Collazo. FY2026 thesis: Latin American bottler franchise leadership + Mexico + Brazil volume recovery + Philippines divestiture proceeds deployment + ~Mex$25-30B aggregate capital return + selected continued post-2024 LATAM consumer cycle recovery. Risks: Mexican peso + Brazilian real currency volatility, LATAM consumer cycle, PepsiCo + selected various LATAM Coca-Cola bottler competition, Mexican + Brazilian regulatory + tax, ~50% combined TCCC + FEMSA family ownership concentration.

Research · Sep 3, 2026

[FMX] FEMSA Thesis 2026: OXXO Convenience Network Scales Alongside New Bara Format

FEMSA (Fomento Económico Mexicano) FY25 — diversified Mexican consumer + retail conglomerate. Q4 Proximity Americas (OXXO) revenues +5.3% / +6.3% comparable; gross margin 48.1%; operating margin 12%. Added 209 net new OXXO stores Q4. OXXO Mexico same-store sales + traffic improving (recovery from FY24 challenges). OXXO Colombia positive EBITDA full year + nearly breakeven EBIT Q4. OXXO USA 50 converted stores year-end. Bara discount format +63 net new stores Q4 / +157 FY25; ~1/3 store base growth target FY26. Valora (Europe convenience) revenue +2.5% pesos / op income +10.8% / record op income. Health division Q4 revenue +4.6% / +6.7% comparable but underperformance + uncollectible accounts provision. Coca-Cola FEMSA (KOF) revenue +2.9% / op income +13.3%. OXXO GAS same-station +8.7% / margin 4.8%. Spin reduced negative EBIT. Restructuring ~MXN 1B annual run rate savings from 2027. $3.1B total capital returned to shareholders March 2025-March 2026.