Contradictions in Mexico: Pricing Elasticity, Market Share, and Sugar Cost Pressures Unveiled in Q1 2025 Call

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Volume and Revenue Trends:
- Coca-Cola FEMSA reported a 2.2% year-on-year decline in consolidated volume to 986.5 million unit cases in Q1 2025, driven by contractions in Mexico and Colombia.
- Despite this, total revenues grew 10% to MXN70.2 billion, supported by favorable currency translation effects and revenue management initiatives.

Regional Performance Variability:
- Mexico's volume decline was significant, with a 5.4% decrease, while Brazil experienced 2.5% growth.
- The differing regional performance was attributed to macroeconomic factors, geopolitical tensions, and promotional activities across various markets.

Sparkling Beverage and Steel Beverage Dynamics:
- Sparkling beverages volume declined 3.3%, while steel beverages grew 3.9% in Q1.
- The decline in sparkling beverages was primarily due to contractions in Mexico and Colombia, while growth in steel beverages was driven by Mexico and Brazil.

Margin and Cost Management:
- Gross profit increased 12% to MXN31.8 billion, leading to a margin expansion of 80 basis points.
- This was due to lower sweetener costs, top-line growth, and raw material hedging initiatives, partially offset by higher fixed costs and currency depreciation.