KOF changes
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- Price
- $118.41
- Discount category
- Pricey
- Next earnings
- Feb 23, 2027
- Next earnings is estimate
- Yes
- Company name
- added: Coca-Cola FEMSA
- Sector
- added: Coca-Cola bottling and beverages
- About
- added: Coca-Cola FEMSA, S.A.B. de C.V. (Coca-Cola FEMSA) is based in Mexico City. It is the largest Coca-Cola franchise bottler in the world by sales volume. It makes, sells and distributes beverages of the Coca-Cola system in Mexico, Central America, Colombia, Brazil, Argentina and other countries in South America. FEMSA owns 47.2% of the capital stock and The Coca-Cola Company owns 27.8%. Volume was 1,089.8 million unit cases in Q3 2026, and total revenues were Ps. 79,718 million. The American Depositary Shares (ADSs) trade on the NYSE in US dollars. Each ADS represents 10 units, and each unit has three Series B shares and five Series L shares. Coca-Cola FEMSA reports in Mexican pesos under IFRS. It files a 20-F each year and furnishes quarterly results on Form 6-K.
- Thesis
- added: The price of Coca-Cola FEMSA depends on whether it can keep earnings growing in Mexico while a much higher excise tax weighs on demand, and on Latin American currencies. From January 1, 2026, the Mexican excise tax on beverages with added sugar rose to Ps. 3.0818 per liter from Ps. 1.6451. In Q3 2026, operating income in Mexico and Central America fell 3.1%, while operating income in South America rose 51.2% on growth in Brazil and Colombia and insurance income in Brazil. Majority net income was Ps. 16,784 million for nine months, up 2.7%. For the price to hold or rise, three things must be true. Volume and prices in Mexico must hold after the tax increase. Brazil and Colombia must keep their growth. The peso and the other currencies must not weaken a lot against the US dollar, because the ADS trades in dollars. The Q4 2026 report, expected in late February 2027, is the next test. If demand in Mexico weakens further, the price can fall.
- Risks
- added: The Mexican excise tax on sugary beverages almost doubled in 2026, and a new tax applies to beverages with non-caloric sweeteners. Higher prices can lower volume in Mexico, the largest market. Currency changes affect results. Most revenue is in local currencies and the ADS trades in US dollars, so a weaker Mexican peso, Brazilian real or Colombian peso lowers the dollar value. Margins fell in Mexico. Operating income in Mexico and Central America fell 3.1% in Q3 2026, with higher marketing, depreciation, maintenance and freight costs. FEMSA controls the company with 56.0% of the capital stock with full voting rights, and The Coca-Cola Company has substantial influence. Series L shares vote only on certain matters. Moody's lowered the rating to Baa1 with a negative outlook in May 2026, after it lowered the rating of Mexico.
- Balance sheet
- added: Cash: MX$46.8B Debt: MX$84.4B Net debt: MX$37.6B Debt due within 12 months: MX$11.5B Ratings: Moody's Baa1 (negative outlook) At September 30, 2026, Coca-Cola FEMSA had cash, cash equivalents and marketable securities of Ps. 46,772 million. Short-term bank loans and notes payable were Ps. 11,518 million and long-term bank loans and notes payable were Ps. 72,852 million, so debt was Ps. 84,370 million. Lease liabilities were Ps. 3,978 million. Net debt including the effect of hedges was Ps. 39,892 million, or 0.63 times adjusted EBITDA, against Ps. 52,846 million at December 31, 2025. After swaps, 62.0% of total debt is in Mexican pesos, 20.8% in Brazilian reais and 14.4% in US dollars. As of Sep 30, 2026.
- Checkpoints
- added: Feb 23, 2027 (estimate): Q4 2026 results. Pending. Watch: Volume in Mexico grows and majority net income for 2026 is above the Ps. 23,845 million of 2025, and this passes; lower volume in Mexico or lower full-year income fails.
- Recent events
- added: Oct 26, 2026: Coca-Cola FEMSA reported Q3 2026 results. Volume rose 5.3%, total revenues rose 10.9% to Ps. 79,718 million and operating income rose 15.4% to Ps. 11,874 million, with Ps. 1,055 million of net insurance income in Brazil. Majority net income rose 5.5% to Ps. 6,223 million. Oct 13, 2026: Coca-Cola FEMSA paid the third installment of its ordinary dividend, Ps. 0.241875 per share, or Ps. 4,065.1 million in all. Sep 3, 2026: Coca-Cola FEMSA said that it met the water use target of its sustainability-linked bonds KOF 21L, with 1.26 liters of water per liter of beverage, so their interest rate does not change. May 22, 2026: Moody's adjusted the rating of Coca-Cola FEMSA to Baa1 from A3 with a negative outlook, after it lowered the rating of Mexico to Baa3. Jan 1, 2026: The Mexican excise tax on beverages with added sugar rose to Ps. 3.0818 per liter from Ps. 1.6451, and a new tax of Ps. 1.50 per liter started for beverages with non-caloric sweeteners.