COCSF · Coca-Cola FEMSA, S.A.B. de C.V.

Coca-Cola FEMSA’s first quarter 2026 results demonstrated the resilience of a diversified geographic footprint, as strong performance in South America offset headwinds in Mexico. Consolidated volume grew 1.2% to 998.4 million unit cases, with record first-quarter volumes in Brazil, Colombia, and Guatemala. Total revenues rose 1.1% to Ps. 70,925 million, or 6.0% on a currency-neutral basis, driven by revenue management initiatives. Gross margin expanded 150 basis points to 46.9%, primarily due to lower sweetener and PET costs and favorable currency translation on U.S. dollar-denominated inputs. However, operating income declined 2.3% to Ps. 9,032 million, impacted by rightsizing initiatives, IT expenses related to SAP4Hana implementation, and higher marketing costs. On a currency-neutral basis, operating income grew 2.6%.

Regional performance diverged significantly. The South America division delivered 18.8% operating income growth (26.9% currency-neutral) on 4.8% volume growth, driven by operating leverage and expense efficiencies. Conversely, the Mexico & Central America division saw a 17.4% drop in operating income, attributed to an excise tax increase, severance costs, and IT expenses, despite a Ps. 95 million net gain from Hurricane John insurance claims. Majority net income fell 15.5% to Ps. 4,342 million, largely due to a increased comprehensive financing expense of Ps. 1,752 million, driven by losses on financial instruments and higher interest expenses from new bond issuances. The effective tax rate rose to 36.6% from 33.4%. Management highlighted plans to leverage the FIFA World Cup platform throughout 2026 to support growth.