Financial Data and Key Metrics Changes - Consolidated volume declined 5.5% to 1,035,000 unit cases, driven by declines in Mexico, Brazil, Colombia, and Panama, partially offset by growth in Argentina, Uruguay, Guatemala, and other Central American territories [8] - Total revenues grew 5% to COP72.9 billion, with a 2.4% increase on a neutral currency basis [9] - Gross profit increased 3.4% to MXN33 billion, with a margin contraction of 70 basis points to 45.3% [9] - Operating income remained flat at COP9.7 billion, with an OI margin contracting 60 basis points to 13.4% [10] - Adjusted EBITDA decreased 3.8% to MXN13.4 billion, with an EBITDA margin contraction of 160 basis points to 18.4% [10] - Majority net income decreased 5.3% to MXN5.3 billion, primarily due to increased comprehensive financial results from higher interest expenses and a lower foreign exchange gain [11] Business Line Data and Key Metrics Changes - In Mexico, volume declined 10%, cycling a historic second quarter from the previous year that grew 7.9% [11] - In Guatemala, volumes increased 1.6% to 51.3 million unit cases, with a 10,000 new customer increase [17] - In Brazil, volumes declined 1.5% year on year, cycling strong 12.1% growth from last year [19] - In Colombia, volumes declined 2.8% year on year, while in Argentina, volumes increased 11.9% [22][24] Market Data and Key Metrics Changes - Mexico faced a softer macroeconomic backdrop and adverse weather, impacting consumer behavior [7] - Brazil's volume performance was affected by colder temperatures, particularly in June [19] - Argentina's macro indicators improved, with monthly inflation below 2%, fostering a disciplined financial surplus policy [23] Company Strategy and Development Direction - The company remains focused on long-term sustainable growth, with investments in capacity expansions [7] - Key initiatives include improving customer service metrics and enhancing productivity [14][15] - The company is leveraging affordability initiatives in response to negative consumer sentiment in Mexico [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging first half of the year but remains optimistic about long-term perspectives [7] - The outlook for the second half of the year is cautious, with expectations of a more complex scenario due to economic factors [41] - Management is focused on leveraging local initiatives to recover momentum in the second half of 2025 [24] Other Important Information - The company completed key projects and began additional capacity initiatives during the first half of the year [15] - The Porto Alegre plant has returned to 100% capacity, with a full portfolio of SKUs restored [67][69] Q&A Session Summary Question: Expectations for the second half of the year and market share in Mexico - Management discussed a cautious outlook for the second half, with market share in modern trade above last year but below in traditional trade [41][43] Question: Performance in Brazil and channel specifics - Management indicated that weather was a key driver of performance in Brazil, with expectations for a rebound in volumes [44][45] Question: Pricing mix in Mexico and Brazil - Management noted that pricing held well in Mexico despite promotional spending, with a cautious pricing stance expected for the end of the year [49][54] Question: CapEx investments and updates on the Porto Alegre plant - Management confirmed commitment to structural capacity investments while adjusting volume-linked CapEx as needed [62][66] Question: Interest expense and leverage position - Management acknowledged higher interest expenses due to new financing and higher rates in Brazil, with expectations for balance sheet adjustments in the future [92][95]

Financial Data and Key Metrics Changes - Consolidated volume declined 5.5% to 1,035,000 unit cases, driven by declines in Mexico, Brazil, Colombia, and Panama, partially offset by growth in Argentina, Uruguay, Guatemala, and other Central American territories [6] - Total revenues grew 5% to COP72.9 billion, with a 2.4% increase on a neutral currency basis [7] - Gross profit increased 3.4% to MXN33 billion, with a margin contraction of 70 basis points to 45.3% [7] - Operating income remained flat at COP9.7 billion, with an operating income margin contracting 60 basis points to 13.4% [8] - Adjusted EBITDA decreased 3.8% to MXN13.4 billion, with an EBITDA margin contraction of 160 basis points to 18.4% [9] - Majority net income decreased 5.3% to MXN5.3 billion, primarily due to increased comprehensive financial results from higher interest expenses and a lower foreign exchange gain [10] Business Line Data and Key Metrics Changes - In Mexico, volume declined 10%, cycling a historic second quarter from the previous year, which grew 7.9% [10] - In Guatemala, volumes increased 1.6% to 51.3 million unit cases, with a 10,000 new customer increase [15] - In Brazil, volumes declined 1.5% year on year, cycling strong 12.1% growth from the previous year [17] - In Colombia, volumes declined 2.8% year on year, while in Argentina, volumes increased 11.9% [20][21] Market Data and Key Metrics Changes - Mexico faced a softer macroeconomic backdrop and adverse weather, impacting consumer behavior [5] - Brazil's volume performance was affected by colder temperatures, particularly in June [17] - In Argentina, macro indicators improved, with monthly inflation below 2% [21] Company Strategy and Development Direction - The company remains focused on long-term sustainable growth, with investments in capacity expansions [5] - Key initiatives include improving customer service metrics and enhancing productivity [13][14] - The company is leveraging affordability initiatives to address consumer sentiment in Mexico [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging first half of the year but remains optimistic about long-term perspectives [5] - The outlook for the second half of the year is cautious, considering declining personal consumption expenditures and remittances [39] - Management is focused on maintaining market share and addressing pricing gaps in the traditional channel [40] Other Important Information - The company completed key projects and began additional capacity initiatives during the first half of the year [14] - The Porto Alegre plant in Brazil is back to 100% capacity, with a full portfolio of SKUs restored [63][66] Q&A Session Summary Question: Expectations for the second half of the year and market share in Mexico - Management discussed a cautious outlook for the second half, planning for a more complex scenario due to economic impacts and weather [39][41] Question: Performance in Brazil and channel specifics - Management indicated that weather was a key driver of performance in Brazil, with expectations for recovery as conditions improve [42] Question: Pricing mix in Mexico and Brazil - Management noted that pricing strategies in Mexico are cautious, while Brazil's pricing reflects a mix effect rather than inflation-driven increases [51][52] Question: CapEx investments and updates on the Porto Alegre plant - Management confirmed commitment to structural capacity investments while adjusting volume-linked CapEx based on market conditions [60][63] Question: Interest expense and leverage position - Management acknowledged higher interest expenses due to increased rates in Brazil but indicated a stable raw material environment overall [84][90]

Financial Performance - Total revenues for Q2 2025 increased by 5.0% to Ps. 72,917 million, with a currency-neutral growth of 2.4%[19] - Majority net income decreased by 5.3% to Ps. 5,312 million, compared to Ps. 5,608 million in the same period last year[28] - Earnings per share (EPS) were Ps. 0.32, with earnings per unit at Ps. 2.53 and per ADS at Ps. 25.29[28] - Operating income remained flat at Ps. 9,767 million, with a currency-neutral decrease of 2.6%[22] - Gross profit increased by 3.4% to Ps. 33,042 million, while gross margin contracted by 70 basis points to 45.3%[21] - For the first six months of 2025, total revenues increased by 6.7% to Ps. 142,703 million, with a currency-neutral growth of 5.4%[32] - Total revenues increased by 0.5% to Ps. 45,306 million, driven mainly by revenue management initiatives and favorable currency translation effects, but offset by a volume decline of 8.4%[46][45] - Gross profit decreased by 2.5% to Ps. 21,404 million, with a gross margin contraction of 150 basis points to 47.2%, primarily due to unfavorable mix effects and higher fixed costs[47] - Operating income decreased by 6.3% to Ps. 6,829 million, resulting in an operating margin contraction of 110 basis points to 15.1%[48] - Net income attributable to equity holders was Ps. 10,450 million, a decrease from Ps. 10,598 million in the previous year, influenced by higher financing costs and income taxes[41] - Earnings per share (EPS) were Ps. 0.62, calculated using 16,806.7 million shares outstanding[42] Regional Performance - South America division total revenues increased by 13.2% to Ps. 27,611 million, driven by revenue management initiatives and favorable currency translation effects[52] - South America division gross profit increased by 16.2% to Ps. 11,639 million, with a gross margin expansion of 110 basis points to 42.2%[53] - Operating income in the South America division increased by 19.6% to Ps. 2,937 million, resulting in an operating margin expansion of 50 basis points to 10.6%[54] - In Mexico, revenues decreased by 2.3% to 36,629 million Mexican Pesos compared to 37,474 million Mexican Pesos in the previous year[92] - Guatemala saw a revenue increase of 15.9%, reaching 4,458 million Mexican Pesos, up from 3,846 million Mexican Pesos[92] - Brazil's revenues increased by 11.7% to 18,359 million Mexican Pesos, compared to 16,443 million Mexican Pesos in the same period last year[92] - In Colombia, revenues increased by 11.2% to 10,748 million Mexican Pesos, up from 9,668 million Mexican Pesos[92] - Argentina's revenues grew by 20.8% to 5,716 million Mexican Pesos, compared to 4,730 million Mexican Pesos in YTD 2024[92] Operational Metrics - Volume declined by 5.5% to 1,035.3 million unit cases, primarily due to decreases in Mexico, Brazil, Colombia, and Panama[19] - Average price per unit case rose by 10.9% to Ps. 68.65 in Q2 2025, compared to Ps. 61.89 in Q2 2024[67] - Total volume for YTD 2025 was 9,401.2 million unit cases, a decrease of 2.2% from 9,658.3 million unit cases in YTD 2024[92] - The overall volume in Mexico and Central America decreased by 6.1% to 4,901.0 million unit cases in YTD 2025[92] - Transactions decreased by 3.8% to 6,131.9 million in Q2 2025, compared to 6,372.8 million in Q2 2024[67] - The total volume of transactions in Q2 2025 was 2,852.1 million, a 1.6% increase from 2,807.5 million in Q2 2024[74] Cost and Expenses - Cost of goods sold increased by 6.3% to Ps. 39,875 million in Q2 2025, compared to Ps. 37,495 million in Q2 2024[67] - Operating expenses rose by 9.5% to Ps. 23,679 million in Q2 2025 from Ps. 21,621 million in Q2 2024[67] - Interest expense increased by 14.5% to Ps. 2,101 million in Q2 2025, compared to Ps. 1,836 million in Q2 2024[67] Financial Position - Total current assets increased by 5% to 78,531 million Pesos as of June 2025, compared to 75,132 million Pesos in December 2024[78] - Total liabilities rose by 7% to 169,116 million Pesos in June 2025, up from 157,445 million Pesos in December 2024[78] - Net debt including the effect of hedges increased by 16.9% to 44,824 million Pesos in Q2 2025, compared to 38,329 million Pesos in FY 2024[80] - The company reported a 10% increase in cash and cash equivalents to 37,139 million Pesos as of June 2025, from 32,779 million Pesos in December 2024[78] Exchange Rates - In 2Q25, Coca-Cola FEMSA reported an average exchange rate of 19.55 MXN per USD, a 13.6% increase compared to 2Q24[99] - The end-of-period exchange rate for Mexico was 18.89 MXN per USD, reflecting a 2.8% increase from June 2024[99] - The average exchange rate for Argentina rose to 1,151.04 ARS per USD, marking a significant 29.8% increase year-over-year[99] - The closing exchange rate for Argentina in June 2025 was 1,205.00 ARS per USD, a 32.1% increase from June 2024[99] - The average exchange rate for Brazil in 2Q25 was 5.67 BRL per USD, an 8.6% increase compared to the previous year[99] - The closing exchange rate for Brazil was 5.46 BRL per USD in June 2025, a decrease of 1.8% from June 2024[99] - The average exchange rate for Colombia increased by 6.8% to 4,197.35 COP per USD in 2Q25[99] - The closing exchange rate for Colombia was 4,069.67 COP per USD in June 2025, a decrease of 1.9% from the previous year[99] - The average exchange rate for Uruguay was 41.61 UYU per USD in 2Q25, a 7.4% increase year-over-year[99] - The closing exchange rate for Uruguay was 39.55 UYU per USD in June 2025, a decrease of 1.1% from June 2024[99] Sustainability and Investment - The company issued senior notes totaling US$500 million due in 2035, reflecting strong investor demand and confirming its financial discipline[13] - Coca-Cola FEMSA was included in the FTSE4Good sustainability indices for the tenth consecutive year, achieving a score of 3.9 out of 5.0[16] - The company plans to continue investing in capacity and capabilities to support future growth despite a challenging operating environment[11]

Group 1 - The individual has over five years of cumulative experience in Consulting & Audit Firms, including roles in professional Valuation, FP&A, and Controlling [1] - The approach is primarily value-oriented, emphasizing long-term opportunities or risks rather than short- to mid-term timing indicators [1] - The written word and data presented are valued more than a simple rating system, which does not account for time horizons or investment strategies [1] Group 2 - The analyst has a beneficial long position in the shares of KO, indicating a personal investment interest [2] - The article expresses the author's own opinions and is not influenced by compensation from any company mentioned [2] - There is no business relationship with any company whose stock is mentioned in the article, ensuring independence in analysis [2]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stocks [1]. Group 1: Recent Price Strength Screen - The "Recent Price Strength" screen is a unique short-term trading strategy that helps investors shortlist stocks with strong fundamentals capable of maintaining an uptrend [2]. - Stocks that pass this screen are typically trading in the upper portion of their 52-week high-low range, indicating bullish sentiment [2]. Group 2: Coca-Cola FEMSA (KOF) Analysis - Coca-Cola FEMSA (KOF) has shown a solid price increase of 9.4% over the past 12 weeks, indicating investor confidence in its potential upside [3]. - KOF has also maintained a price increase of 3.1% over the last four weeks, suggesting that the upward trend is still intact [4]. - Currently, KOF is trading at 85.2% of its 52-week high-low range, indicating a potential breakout [4]. Group 3: Fundamental Strength - KOF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [6]. - KOF also has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 4: Additional Investment Opportunities - Besides KOF, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [7]. - The article encourages exploring over 45 Zacks Premium Screens tailored to different investing styles for identifying potential winning stocks [7].

Financial Data and Key Metrics Changes - Consolidated volume declined 2.2% year-on-year to 986.5 million unit cases, primarily due to declines in Mexico and Colombia, partially offset by growth in Brazil, Argentina, Uruguay, and Guatemala [10] - Total revenues grew 10% to MXN 70.2 billion, with a currency neutral increase of 5.9% [11] - Gross profit increased 12% to MXN 31.8 billion, leading to a margin expansion of 80 basis points to 45.4% [11] - Operating income rose 7.3% to MXN 9.2 billion, with operating margin contracting 30 basis points to 13.2% [12] - Adjusted EBITDA increased 11% to MXN 13.3 billion, with EBITDA margin expanding 20 basis points to 18.9% [13] - Majority net income increased by 2.7% to MXN 5.1 billion [14] Business Line Data and Key Metrics Changes - In Mexico, volumes declined 5.4%, influenced by economic deceleration and geopolitical tensions [15] - Sparkling beverage volume declined 3.3%, while steel beverages grew 3.9% and bottled water grew 4.6% [10] - In Guatemala, volumes increased 1.9% despite high inflation affecting consumer sentiment [18] - Brazil saw a 2.5% volume growth, with Coca-Cola Zero Sugar growing 65% year-on-year [24] - Colombia experienced an 8.1% volume decline due to a challenging macro and sociopolitical context [27] - Argentina and Uruguay volumes increased by 9.1% and 6% respectively, with Argentina showing signs of gradual recovery [29] Market Data and Key Metrics Changes - Mexico and Central America volumes declined 4.6% to 553.3 million unit cases, while revenues increased 4.8% to MXN 39.7 billion [36] - South America volumes increased 1% to 433.2 million unit cases, with revenues rising 17.4% to MXN 30.5 million [40] - Gross profit in South America increased 22.8%, leading to a margin expansion of 190 basis points to 42.5% [41] Company Strategy and Development Direction - The strategic focus for 2025 includes growing the core business, enhancing the Juntos+ initiative, and fostering a customer-centric culture [8] - The company aims to navigate the current operating environment through tactical adjustments and promotional activities [7] - Sustainability remains a priority, with significant progress reported in renewable energy use and waste management [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to external challenges and maintain long-term objectives [7] - The macroeconomic backdrop remains uncertain, with increased competitive intensity noted in the beverage industry [104] - Management anticipates a gradual recovery in consumer sentiment and volume growth in the second half of 2025 [113] Other Important Information - The company identified approximately $90 million in savings initiatives across all operations, focusing on Mexico and Colombia [60] - The company reported a net effect of MXN 65 million from insurance payments in Mexico for the quarter [141] Q&A Session Summary Question: Insights on adjusting to the uncertain environment in Mexico - Management highlighted the need for accessible pricing and an intense promotional calendar to remain competitive in the market [58] Question: Cost savings projections for 2025 - Management identified $90 million in savings, distributed across various operational areas, with a significant portion expected from Mexico [60] Question: Profitability by country in Latin America - Management noted that margin expansion was observed across all operations, particularly in Brazil and Argentina [70] Question: Market share trends in Mexico - Management acknowledged a decline in market share due to competitive pressures but indicated recovery efforts were underway [81] Question: Updates on working capital dynamics - Management explained that working capital changes were driven by inventory replenishment and ERP migration processes [96] Question: Impact of promotional strategies in April - Management indicated that adjustments made in February were starting to yield positive results by April [104] Question: Outlook for cost of goods sold - Management expects continued relief from lower sweetener prices and stable PET costs for the remainder of the year [136]

Financial Data and Key Metrics Changes - Consolidated volume declined 2.2% year-on-year to 986.5 million unit cases, primarily due to declines in Mexico and Colombia, partially offset by growth in Brazil, Argentina, Uruguay, and Guatemala [10] - Total revenues grew 10% to MXN 70.2 billion, with a currency neutral increase of 5.9% [11] - Gross profit increased 12% to MXN 31.8 billion, leading to a margin expansion of 80 basis points to 45.4% [11] - Operating income rose 7.3% to MXN 9.2 billion, with an operating margin contraction of 30 basis points to 13.2% [12] - Adjusted EBITDA increased 11% to MXN 13.3 billion, with an EBITDA margin expansion of 20 basis points to 18.9% [13] - Majority net income increased by 2.7% to MXN 5.1 billion [14] Business Line Data and Key Metrics Changes - In Mexico, volumes declined 5.4%, influenced by economic deceleration and geopolitical tensions [15] - Sparkling beverage volume declined 3.3%, while steel beverages grew 3.9% and bottled water grew 4.6% [10] - In Guatemala, volumes increased 1.9% despite high inflation affecting consumer sentiment [18] - Brazil saw a 2.5% volume growth, with Coca-Cola Zero Sugar growing 65% year-on-year [24] - Colombia experienced an 8.1% volume decline due to a challenging macro and sociopolitical context [27] - Argentina and Uruguay volumes increased by 9.1% and 6% respectively, with Argentina showing signs of gradual recovery [29] Market Data and Key Metrics Changes - Mexico's volume decline was attributed to a high comparison base from the previous year and a deceleration in economic activity [15] - In Guatemala, despite a 10% increase in remittances, consumer sentiment remained cautious, leading to a higher propensity to save [20] - Brazil's resilient consumer environment contributed to volume growth, despite a challenging comparison base [23] - Colombia's inflation and deteriorating consumer confidence negatively impacted volumes [27] Company Strategy and Development Direction - The strategic focus for 2025 includes growing the core business, enhancing the Juntos+ initiative, and fostering a customer-centric culture [8] - The company aims to navigate the current operating environment through tactical adjustments and promotional activities [7] - Sustainability remains a priority, with significant progress reported in renewable energy use and waste management [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to external challenges and maintain long-term objectives [7] - The competitive environment in Mexico has intensified, necessitating rapid adjustments in pricing and promotional strategies [58] - Management remains cautiously optimistic about the budget, anticipating a recovery in the second half of the year [113] Other Important Information - The company identified approximately $90 million in savings initiatives across all operations, with a focus on Mexico and Colombia [60] - The company reported a net effect of MXN 65 million from insurance payments in Mexico for the quarter [141] Q&A Session Summary Question: Insights on adjusting to the uncertain environment in Mexico - Management highlighted the need for accessible pricing and an intense promotional calendar to remain competitive in the current market [58] Question: Cost savings projections for 2025 - Management identified $90 million in savings initiatives, distributed across various operational areas [60] Question: Profitability by country in Latin America - Management noted margin expansion across all operations, particularly in Brazil and Argentina [70] Question: Market share trends in Mexico - Management acknowledged a decline in market share due to competitive pressures but indicated recovery efforts are underway [81] Question: Updates on the rollout of Juntos+ in Mexico - Management confirmed plans to start the rollout in Mexico around June or July, following successful implementation in Brazil [93] Question: Outlook for cost of goods sold - Management expects continued relief from lower sweetener prices and stable PET costs for the remainder of the year [136]

Financial Performance - Total revenues increased by 10.0% to Ps. 70,157 million, with a currency-neutral growth of 5.9%[24] - Gross profit rose by 12.0% to Ps. 31,832 million, with a gross margin expansion of 80 basis points to 45.4%[25] - Operating income grew by 7.3% to Ps. 9,248 million, while the operating margin contracted by 30 basis points to 13.2%[26] - Majority net income increased by 2.7% to Ps. 5,139 million, with earnings per share at Ps. 0.31[33] - Total revenues increased by 17.4% to Ps. 30,488 million, driven mainly by volume growth and revenue management initiatives[49] - Gross profit rose by 22.8% to Ps. 12,947 million, with a gross margin expansion of 190 basis points to 42.5%[50] - Operating income increased by 31.1% to Ps. 3,848 million, resulting in an operating margin expansion of 130 basis points to 12.6%[51] - Adjusted EBITDA grew by 11.0% to Ps. 13,254 million, with a margin of 18.9%[68] - Adjusted EBITDA for Q1 2025 was 5,346 million Pesos, up 27.3% from 4,200 million Pesos in Q1 2024[76] Volume and Sales - Volume declined by 2.2% to 986.5 million unit cases, primarily due to decreases in Mexico and Colombia[23] - Volume increased by 1.0% to 433.2 million unit cases, primarily due to growth in Brazil (2.5%), Argentina (9.1%), and Uruguay (6.0%), despite an 8.1% decline in Colombia[48] - The number of transactions increased to 3,018.7 million, a growth of 2.7% from 2,938.9 million transactions in the same quarter last year[76] - Volume of sales reached 433.2 million unit cases, a slight increase of 1.0% from 428.8 million unit cases in Q1 2024[76] Expenses and Liabilities - Operating expenses rose by 14.3% to Ps. 22,478 million, impacting operating income growth[64] - The comprehensive financing result recorded an expense of Ps. 1,126 million, a decrease from Ps. 1,188 million in the previous year[29] - The company’s net debt rose to 42,552 million Pesos, an 11.0% increase from 38,329 million Pesos[83] - Total current liabilities decreased by 10% to 60,160 million Pesos from 67,171 million Pesos[81] Market and Economic Conditions - The company continues to monitor macroeconomic conditions across its operating regions, including inflation and currency fluctuations[94] - Inflation rates in key markets for 1Q25: Mexico at 0.26%, Colombia at 2.30%, and Argentina at 7.40%[94] - The average exchange rate for the Mexican Peso in 1Q25 was 20.42, a 20.2% increase from 1Q24[95] - The closing exchange rate for the Argentine Peso was 1,074.00 in March 2025, reflecting a 25.2% increase from March 2024[95] - Coca-Cola FEMSA's financial performance is influenced by regional economic factors, including inflation and exchange rates[94] Strategic Initiatives - The company is focused on long-term strategies while addressing short-term challenges through various initiatives[12] - The company enrolled over 1.3 million customers in the Premia Juntos loyalty program, achieving a redemption rate of 75%[15] - Future outlook includes potential strategies for market expansion and product innovation, although specific details were not disclosed in the call[96] - The company emphasizes the importance of adapting to local market conditions and consumer preferences in its operational strategies[96] Reporting and Compliance - Coca-Cola FEMSA reported 1Q25 results on April 25, 2025[96] - The CFO, Gerardo Cruz Celaya, signed the report, indicating the company's commitment to transparency and regulatory compliance[99]

Financial Reporting - Coca-Cola FEMSA filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission[5] Consumer Reach - The company serves over 276 million consumers and sells approximately 4.2 billion-unit cases annually through more than 2.2 million points of sale[6] Operations and Infrastructure - Coca-Cola FEMSA operates 56 manufacturing plants and 256 distribution centers across various countries including Mexico, Brazil, and Argentina[6] Sustainability Commitment - The company is committed to generating economic, social, and environmental value for stakeholders across the value chain[6] - Coca-Cola FEMSA is a member of several sustainability indices, including the Dow Jones Sustainability MILA Pacific Alliance Index and the FTSE4Good Emerging Index[6]

Financial Risks - As of December 31, 2024, approximately 28.6% of the company's total debt was variable rate funding, which could increase costs if interest rates rise[1] - Argentina's cumulative inflation over the past three years exceeded 100.0%, categorizing it as a hyperinflationary economy, which may adversely affect the company's financial position[2] - Depreciation of local currencies relative to the U.S. dollar increases costs for raw materials and debt obligations, negatively impacting financial results[3] - Significant fluctuations in local currencies may continue to affect the company's results and financial condition[4] Political and Social Risks - Political and social events, including upcoming elections in 2024 and 2025 in several countries, may introduce risks associated with changes in government and public policies[5] - Recent constitutional reforms in Mexico could create operational risks and affect the company's ability to conduct business[6] - The new U.S. administration's policies may lead to economic slowdown and increased operational costs, impacting demand for the company's products[7] Market and Economic Influences - The market value of the company's securities may be influenced by economic conditions in other countries, including the ongoing military conflict involving Russia and Ukraine[8] Equity and Capital Concerns - Holders of units and ADSs in the U.S. may face dilution of equity interests due to restrictions on preemptive rights in capital offerings[9] - The company may not file a registration statement with the SEC, limiting U.S. holders' ability to participate in future capital increases[10]