Coca-Cola Femsa (KOF.N): 2Q26 Review: Beat. Resilient Volumes in Mexico Volumes, South America in the Spotlight

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Coca-Cola Femsa (KOF.N): 2Q26 Review: Beat. Resilient Volumes in Mexico Volumes, South America in the Spotlight

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27 Jul 2026 11:14:48 ET │ 12 pages

Coca-Cola Femsa (KOF.N)

2Q26 Review: Beat. Resilient Volumes in Mexico Volumes, South

America in the Spotlight

CITI'S TAKE Buy

Price (24 Jul 26 16:00) US$102.71 KOF delivered a solid 2Q26, beating consensus and coming broadly in line

Target price US$125.00 with CitiE. The key highlight was Mexico, with volumes growing +1.0%YoY

despite a still-challenging consumer environment and IEPS-related Expected share price return 21.7%

affordability pressure. Despite some comps support (2Q25 volumes Expected dividend yield 4.4%

declined -10%YoY), in our view Mexico’s solid volume performance Expected total return 26.1%

demonstrates the resilience of KOF’s execution and commercial strategy Market Cap US$21,578M

in the country. Geographic diversification was another key positive, with

consolidated Adj. EBITDA excluding the Ps.265mn insurance gain

increasing 10%YoY and margin expanding ~100bpsYoY, reflecting solid

performance in South America with Brazil as a highlight (EBITDA mg. ex. Renata CabralAC

insurance gains +260bpsYoY), while Mexico & Central America’s margin +55-11-4009-7561

remained flat. With Mexico volumes down only -0.7% in 1H26, FY26 renata.cabral@citi.com

expectations for a low-single-digit decline might be conservative. We Luis Felipe Terzariol

reiterate Buy. +55-11-4009-3564

luis.terzariol@citi.com

P&L: Solid Margin Expansion — Consolidated volumes increased 3.5%YoY, while

revenues grew 4.7%YoY to Ps.76.3bn, or 6.6%YoY FX-neutral. Gross margin

expanded 180bpsYoY to 47.1%, supported by lower sweetener and PET costs,

hedging initiatives, and favorable currency effects on dollar-denominated inputs.

Reported Adj.