About Coca-Cola FEMSA (KOF)
Coca-Cola FEMSA (KOF) is the largest Coca-Cola bottler in Latin America, operating in Mexico, Central and South America. The company’s significance lies in its extensive reach across the region, making it a crucial player in the beverage industry.
Q1 Performance Amidst Challenges
Coca-Cola FEMSA successfully navigated the first quarter of 2025, facing high baseline comparisons and signs of consumption slowdown in Mexico, its most vital market. The company’s performance was further complicated by trade and tariff uncertainties with the United States.
Revenue and EBITDA Growth
The company reported a 10% increase in revenue and an 11% rise in EBITDA for the first quarter compared to the same period last year. These results align with the expectations set by Infosel analysts’ consensus.
Market Performance
- Mexico and Central America: Volume declined by 4.6%, attributed to a slowing consumer environment, unfavorable weather conditions, and high baseline comparisons against the same period last year.
- South America: Volume increased by 1%, driven by growth in Brazil (2.5%), Argentina (9.1%), and Uruguay (6%). However, Colombia experienced an 8.1% volume decrease.
Strategic Measures and Currency Benefits
Coca-Cola FEMSA’s growth in the first quarter can be partly attributed to favorable currency conversion effects and strategic commercial, financial, and supply chain measures implemented by the company’s management to prepare for the current market conditions.
Key Questions and Answers
- What is Coca-Cola FEMSA (KOF)? KOF is the largest Coca-Cola bottler in Latin America, operating in Mexico, Central and South America.
- What challenges did Coca-Cola FEMSA face in Q1 2025? The company faced high baseline comparisons, a consumption slowdown in Mexico (its most important market), and trade and tariff uncertainties with the United States.
- How did Coca-Cola FEMSA perform financially in Q1 2025? The company reported a 10% increase in revenue and an 11% rise in EBITDA for the first quarter compared to the same period last year.
- What factors contributed to the volume changes in different regions? In Mexico and Central America, unfavorable weather conditions and a slowing consumer environment led to a 4.6% volume decline. Meanwhile, South America saw a 1% volume increase, driven by growth in Brazil, Argentina, and Uruguay, but partially offset by an 8.1% volume decrease in Colombia.
