Recovery Delayed, Fundamentals Intact

Research evidence excerpt

Recovery Delayed, Fundamentals Intact

Equity Research

29 July 2026

Mexico Consumer

Recovery Delayed, Fundamentals

Intact

2Q26 earnings confirmed a softer consumer backdrop, but Mexico Consumer

improving trends exiting the quarter and continued margin NEUTRAL Unchanged

resilience suggest the slowdown is stabilizing. Across our Mexico Consumer

Benjamin M. Theurercoverage, productivity and execution rather than demand

recovery, have become the primary drivers of earnings +52benjamin.theurer@barclays.com55 5241 3322

growth. BCCB, Mexico

Rahi Parikh

+1 212 526 0150We remain Neutral on the Mexico Consumer sector as management teams continue to navigate

rahi.parikh@barclays.com

a slower consumer environment - although with sequential trends improving exiting the BCI, US

quarter. Across the sector, profitability is increasingly being driven by productivity, pricing

discipline, and operating efficiencies rather than a meaningful demand recovery, supporting Ryan Lavin

+1 212 526 8713selective opportunities despite a more cautious outlook.

ryan.lavin1@barclays.com

BCI, USThe Mexican consumer environment remained challenging through 2Q26, with management

teams broadly pointing to softer traffic, greater consumer caution, tighter household budgets, Reid Monahan

and a slower-than-expected recovery in discretionary spending. While underlying demand +1 212 526 7506

trends remain generally stable across staple-oriented categories, several companies revised reid.monahan@barclays.com

BCI, USexpectations lower for the remainder of the year, particularly in businesses with greater

exposure to discretionary consumption and lower-income consumers. Encouragingly,

commentary across the sector suggests conditions improved sequentially toward the end of the