KOF

Coca-Cola FEMSA demonstrates resilient revenue and margin growth despite significant tax headwinds in Mexico, with an 18% upside to the current share price estimated. KOF's Q2'26 operating income rose 9.1% to MX$10.65 billion (14% margin), offsetting Mexican softness with record volumes in Colombia, Guatemala, and Brazil. Management remains conservative on guidance due to Mexico's excise tax impact, but price increases are expected to be absorbed by culturally ingrained demand.

Coca-Cola Femsa delivered solid Q2 results, with revenues up 4.7% and net income surging 16.9%. KOF offset flat Mexican sales with record volumes in Colombia, Guatemala, and Brazil, benefiting from favorable LatAm macro trends. Premiumization and strong energy drink growth, especially Monster in Brazil, provide upside beyond traditional soda volumes.

Coca-Cola FEMSA, S.A.B. de C.V. (KOF) Q2 2026 Earnings Call Transcript

Coca-Cola FEMSA, S.A.B. de C.V. remains a Buy, supported by high-quality operations and reasonable LATAM valuation, even after solid Q2 results. Q2 showed strong South American growth and efficiency gains, offsetting mixed signals in Mexico and Argentina, with consolidated revenue and operating income outpacing volume. KOF continues to benefit from organic growth, M&A, and ecosystem initiatives like Juntos+, while demographic trends and category expansion provide further upside.

Coca Cola Femsa NYSE: KOF reported second-quarter 2026 volume, revenue and profit growth, supported by record quarterly volumes in Brazil, Colombia and Guatemala, while Mexico continued to contend with an excise-tax increase and softer consumer demand.