Coca-Cola FEMSA(KOF) - 2025 Q4 - Annual Report

Financial Performance - Total revenues for Q4 2025 increased by 2.9% to Ps. 77,750 million, with a 6.0% growth on a currency neutral basis [21]. - Operating income rose by 13.3% to Ps. 13,702 million, with an operating margin expansion of 160 basis points to 17.6% [24]. - Majority net income increased by 3.0% to Ps. 7,501 million, with earnings per share at Ps. 0.45 [31]. - Full year total revenues for 2025 increased by 4.3% to Ps. 291,746 million, with a 6.5% growth on a currency neutral basis [36]. - Full year operating income grew by 7.0% to Ps. 42,937 million, maintaining a consistent operating margin [36]. - Consolidated net income for Q4 2025 was 7,890 million Pesos, a 5.2% increase from 7,499 million Pesos in Q4 2024 [74]. - Net income attributable to equity holders was Ps. 23,845 million, a 0.5% increase compared to Ps. 23,729 million in the previous year [46]. Revenue Breakdown - Total revenues for the Mexico & Central America division increased by 1.6% to Ps. 42,199 million, with a comparable increase of 3.3% excluding currency translation effects [51]. - Total revenues for the South America division increased by 4.6% to Ps. 35,551 million, with a comparable increase of 9.5% excluding currency translation effects [59]. - In Brazil, revenues increased by 11.2% to 82,436 million Pesos in FY 2025, compared to 74,126 million Pesos in FY 2024 [101]. - Mexico's revenues showed a slight increase of 0.2%, totaling 136,193 million Pesos in FY 2025, up from 135,906 million Pesos in FY 2024 [101]. - In Colombia, revenues grew by 9.4% to 22,975 million Pesos in FY 2025, compared to 20,994 million Pesos in FY 2024 [101]. - Argentina's revenues decreased by 12.3% to 11,009 million Pesos in FY 2025, down from 12,557 million Pesos in FY 2024 [101]. Volume and Transactions - Volume for Q4 2025 increased by 1.3% to 1,093.6 million-unit cases, driven by growth in most operations [21]. - The total volume for FY 2025 was 24,812.9 million unit cases, a decrease of 0.5% from 24,929.2 million unit cases in FY 2024 [100]. - The total volume for Mexico and Central America was 12,411.4 million unit cases in FY 2025, down 4.0% from 12,926.6 million unit cases in FY 2024 [100]. - The overall volume in South America increased by 3.3% to 12,401.5 million unit cases in FY 2025, compared to 12,002.6 million unit cases in FY 2024 [100]. - The number of transactions increased to 3,500.9 million in Q4 2025, representing a 4.4% growth year-over-year [82]. - The total transactions in Mexico for FY 2025 were 9,553.8 million, a decline of 5.7% from 10,131.9 million in FY 2024 [100]. Cost and Expenses - The comprehensive financing result recorded an expense of Ps. 1,357 million, up from Ps. 980 million in the previous year, primarily due to higher interest expenses [27]. - The comprehensive financing result recorded an expense of Ps. 4,945 million, up from Ps. 3,906 million in the same period last year, primarily due to higher interest expenses [42]. - The cost of goods sold in Q4 2025 was 41,429 million Pesos, representing 53.3% of total revenues, compared to 52.7% in Q4 2024 [74]. - The company reported a 60.6% increase in net interest expense in Q4 2025, totaling 1,711 million Pesos compared to 1,065 million Pesos in Q4 2024 [74]. EBITDA and Margins - Adjusted EBITDA increased by 2.7%, while the adjusted EBITDA margin contracted by 30 basis points, excluding insurance recoveries and related expenses [39]. - Adjusted EBITDA for Q4 2025 was 18,169 million Pesos, up 12.8% from 16,104 million Pesos in Q4 2024 [74]. - Operating income increased by 7.0% to Ps. 42,937 million, with an operating margin expansion of 40 basis points to 14.7% [39]. - Operating income for Q4 2025 was 6,834 million Pesos, a significant increase of 32.8% compared to 5,145 million Pesos in Q4 2024 [82]. - Adjusted EBITDA for Q4 2025 was 8,510 million Pesos, reflecting a 29.5% increase from 6,572 million Pesos in Q4 2024 [82]. Debt and Assets - The company's net debt increased to 52,846 million Pesos in FY 2025, a 37.9% rise from 38,329 million Pesos in FY 2024 [88]. - Total assets as of December 31, 2025, were 314,539 million Pesos, a 2% increase from 307,986 million Pesos in December 2024 [86]. - The debt mix showed that 60.7% of total debt was in Mexican Pesos, with an average interest rate of 2.8% [86]. Exchange Rates - Average exchange rate for 4Q25 in Mexico was 18.32 MXN per USD, a decrease of 8.7% compared to 4Q24 [108]. - The end-of-period exchange rate for Argentina in Dec-25 was 1,455.00 ARS per USD, reflecting a 41.0% increase from Dec-24 [108]. - The average exchange rate for Colombia in FY 25 was 4,053.13 COP per USD, showing a slight decrease of 0.5% from FY 24 [108]. - The end-of-period exchange rate for Brazil in Dec-25 was 5.50 BRL per USD, down 11.1% from Dec-24 [108]. - The average exchange rate for Uruguay in FY 25 was 41.08 UYU per USD, an increase of 2.2% from FY 24 [108]. - The end-of-period exchange rate for Costa Rica in Dec-25 was 501.42 CRC per USD, a decrease of 2.2% from Dec-24 [108]. - The average exchange rate for Nicaragua remained stable at 36.62 NIO per USD for both Dec-25 and Dec-24 [108]. - The average exchange rate for Guatemala in FY 25 was 7.68 GTQ per USD, a decrease of 1.0% from FY 24 [108]. - The end-of-period exchange rate for Panama remained unchanged at 1.00 PAB per USD for both Dec-25 and Dec-24 [108]. - The average exchange rate for Costa Rica in 4Q25 was 502.06 CRC per USD, a decrease of 2.3% from 4Q24 [108]. Sustainability and Future Plans - Coca-Cola FEMSA achieved a record S&P Global Corporate Sustainability Assessment score of 81, reflecting significant ESG improvements [18]. - The company plans to leverage revenue-growth-management initiatives and digital capabilities to accelerate growth in South America in 2026 [14].