Resilient Demand in South America and Soft Conditions in Mexico Sum Up Coca-Cola FEMSA (KOF)’s Q3 Results

Core Insights - Coca-Cola FEMSA, S.A.B. de C.V. (KOF) reported Q3 results that exceeded analyst expectations, with an EPS of MXN 28.07 against a consensus estimate of MXN 27.60, driven by resilient demand in South America despite soft conditions in Mexico [2][3] Financial Performance - The company achieved a 3.3% year-over-year growth in total revenue, reaching MXN 71.9 billion, while operating income increased by 6.8% to MXN 10.3 billion, resulting in a margin expansion of 50 basis points to 14.3% [3] - Adjusted EBITDA also saw a growth of 3.7%, indicating strong operational performance supported by cost controls and productivity gains [3] Regional Performance - In Mexico, volumes declined by 3.7% due to weaker consumer spending and pending excise tax hikes, contrasting with a 2.6% volume growth in South America, primarily driven by Brazil's strong performance and the success of Coca-Cola Zero [4] - The company is implementing affordability initiatives, digital rollouts like Juntos+ Advisor, and disciplined commodity hedging to mitigate tax and cost pressures, positioning itself for long-term growth amid macroeconomic volatility [4]