Coca-Cola FEMSA beats Q2 estimates as volume growth, revenue, margins, and operating income improve.
Stock Earnings Results
July 27, 2026
Table of Contents
July 27, 2026
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE: KOF) reported second-quarter 2026 results above expectations, supported by volume growth, higher revenue, margin expansion, stronger operating income, and double-digit growth in South America.
Coca-Cola FEMSA is the largest Coca-Cola franchise bottler in the world by sales volume. The company produces and distributes beverages from The Coca-Cola Company across Mexico, Brazil, Guatemala, Colombia, Argentina, Costa Rica, Nicaragua, Panama, Uruguay, and Venezuela through an investment.
The dashboard showed EPS of $1.70, above estimates of $1.65, representing a 3.0% earnings surprise. Revenue came in at $4.39 billion, above estimates of $4.35 billion, with revenue growth of 17.3%.
Volume increased 3.5% year-over-year to 1.07 billion unit cases.
Total revenue increased 4.7% to Ps. 76.32 billion.
On a currency-neutral basis, revenue increased 6.6%.
Gross profit increased 8.8% to Ps. 35.94 billion.
Gross margin expanded 180 basis points to 47.1%.
Operating income increased 9.1% to Ps. 10.65 billion.
Operating margin expanded 60 basis points to 14.0%.
Net income attributable to equity holders increased 16.9% to Ps. 6.21 billion.
Coca-Cola FEMSA said gross margin improved mainly because of lower sweetener and PET costs.
Raw material hedging initiatives also helped.
The appreciation of most operating currencies against U.S. dollar-denominated raw material costs supported profitability.
Those benefits were partly offset by higher aluminum costs and unfavorable mix.
Operating income growth was helped by operating leverage and expense efficiencies in labor and rent, partly offset by higher freight, marketing, and depreciation costs.
Mexico and Central America volume increased 1.4% to 645.9 million unit cases.
Revenue increased 0.3% to Ps. 45.45 billion.
Operating income declined 7.0% to Ps. 6.35 billion.
Operating margin contracted 110 basis points to 14.0%.
The company said Mexico continued to face a challenging consumer environment and the impact of an excise tax increase.
Management said affordability strategy, segmentation, and disciplined commercial execution helped strengthen the company’s competitive position.
South America volume increased 6.9% to 425.9 million unit cases.
Revenue increased 11.8% to Ps. 30.87 billion.
Operating income increased 46.5% to Ps. 4.30 billion.
Operating margin expanded 330 basis points to 13.9%.
Colombia volume increased 17.7%, while Brazil volume increased 5.2%.
Argentina volume declined, partially offsetting gains across the division.
South America also benefited from Ps. 265 million of income related to insurance claims in Brazil, net of expenses.
For the first six months of 2026, volume increased 2.4% to 2.07 billion unit cases.
Total revenue increased 3.1% to Ps. 147.15 billion.
On a currency-neutral basis, revenue increased 8.1%.
Operating income increased 3.6% to Ps. 19.68 billion.
Adjusted EBITDA increased 6.7% to Ps. 28.37 billion.
Net income attributable to equity holders increased 1.0% to Ps. 10.55 billion.
On July 16, Coca-Cola FEMSA paid the second installment of its ordinary dividend.
The dividend installment totaled Ps. 4.07 billion.
The company also announced Pamela Ortiz as Investor Relations Director, effective August 1, 2026.
Coca-Cola FEMSA received sustainability recognition from the Mexican Stock Exchange, including Best Total Score in Mexico CSA 2025.
Coca-Cola FEMSA delivered a stronger quarter despite pressure in Mexico.
Revenue beat expectations, volume increased, margins expanded, and net income rose nearly 17%. South America was the standout region, led by Colombia and Brazil, while Mexico and Central America remained pressured by weaker consumer conditions, taxes, and higher operating expenses.
The key question is whether Coca-Cola FEMSA can keep using pricing, affordability, segmentation, and cost discipline to protect margins while volume growth varies by region.
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