Coca Cola Femsa NYSE: KOF reported second-quarter 2026 volume, revenue and profit growth, supported by record quarterly volumes in Brazil, Colombia and Guatemala, while Mexico continued to contend with an excise-tax increase and softer consumer demand.
Chief Executive Officer Ian Craig said consolidated volume rose 3.5% to 1.1 billion unit cases. Revenue increased 4.7% to MXN 76.3 billion, or 6.6% on a currency-neutral basis, as volume growth and revenue-management actions more than offset unfavorable product mix and currency translation effects.
Gross profit increased 8.8% to MXN 35.9 billion, with gross margin expanding 180 basis points to 47.1%. Craig attributed the improvement primarily to lower sweetener and PET costs, aided by the company’s hedging strategy and the appreciation of most operating currencies against U.S. dollar-denominated input costs. Higher aluminum costs partially offset those benefits.
Operating income increased 9.1% to MXN 10.7 billion, while adjusted EBITDA grew 12.1% to MXN 15 billion. The company’s operating results included MXN 265 million in recovered insurance claims in Brazil. Excluding that item, operating income would have increased 6.4% and adjusted EBITDA would have risen 10.1%, according to management. Majority net income increased 16.9% to MXN 6.2 billion, reflecting higher operating income and a lower effective tax rate.
Mexico faces demand pressure but gains share
Mexico’s volume grew 1% from a year earlier, though Craig said the business remained affected by the excise-tax increase and subdued consumer conditions. Management said it gained share across markets and categories during the quarter and expects to use that improved competitive position to gradually close the remaining gap between pricing and inflation.
Craig told analysts that volumes in Mexico were slightly negative during the first two months of the quarter, at roughly a 3.5% decline, before rising more than 12% in June, largely due to easier comparisons. The company now expects full-year Mexican volumes to be approximately flat, rather than slightly negative, though it wants to evaluate consumer response after an expected August pricing adjustment.
Source: MarketBeat
