- **Mexico Resilience**: 3.7% volume decline offset by 2.6% South America growth, 3.3% revenue rise.
- **Coke Zero Surge**: 23% YoY growth, Brazil recovery to 28% mix.
- **Cost Efficiency**: $90M savings, 1.1% operating income growth in Mexico.
- **Tax Headwind**: 87% excise tax hike in Mexico, 2026 volume decline expected.
- **Digital Success**: Juntos+ adoption drives 25k+ monthly users in Brazil.

**【CEO Summary Section】**
- **Mexico Volume Decline**: 3.7% YoY due to macroeconomic challenges, partially offset by 2.6% growth in South America. Total revenue up 3.3% to MXN 71.9 billion.
- **Strategic Initiatives**: Focus on affordability, multi-serve refillables, and Coke Zero growth (23% YoY). Brazil plant recovery supports 2.6% volume growth.
- **Excise Tax Impact**: 87% increase in Mexico effective Jan 2026, expected low to mid-single-digit volume decline in 2026.
- **Digital Tools**: Juntos+ Advisor adoption in Mexico and Brazil drives share gains.

**【CFO Financial Commentary】**
- **Mexico & Central America**: Gross profit down 2.6%, operating income up 1.1% due to cost control. South America: Gross profit up 7.2%, EBITDA up 12.6%.
- **Cost Savings**: $90 million year-to-date, including $43M from distribution and $32.5M from cost-to-serve.
- **Commodity Hedging**: 90%+ of sweeteners, 75% PET, 65% aluminum locked in for 2025.

**【Q&A Highlights】**
- **Mexico Profitability**: 50-60 bps margin improvement from cost-cutting, not volume recovery.
- **CapEx Adjustment**: Delaying 2026 investments in Mexico due to volume decline expectations.
- **Argentina Outperformance**: 2.9% volume growth via affordability and single-serve mix.
- **World Cup Impact**: 5% volume uplift, Coke Zero as hero product.

Coca-Cola FEMSA, S.A.B. de C.V. (KOF) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: 5% revenue growth (2.4% on neutral currency) despite 5.5% volume decline, driven by pricing and currency effects.
- **Mexico Challenges**: 10% volume decline vs. record 2024, but share recovery in modern trade and Coke Zero growth of 27%.
- **Brazil Recovery**: Q2 weather impact expected to reverse, with Juntos+ Advisor boosting volume 1-2%.
- **Cost Savings**: MXN 60 million (67% of target) achieved, with 9 new bottling lines progressing.
- **Balance Sheet**: Leverage below 1x, no dividend changes, but potential updates in H2.
- **Long-Term Growth**: CapEx investments in Mexico, Brazil, and South America to support capacity and productivity.


**【CEO Summary Section】**
- Consolidated volume declined 5.5% to 1.035 million unit cases, driven by challenges in Mexico, Brazil, Colombia, and Panama, but offset by growth in Argentina, Uruguay, Guatemala, and Central America.
- Revenue grew 5% to MXN 72.9 billion (2.4% on neutral currency), supported by revenue management and currency effects.
- Gross profit increased 3.4% to MXN 33 billion, but margin contracted 70 bps to 45.3% due to lower leverage, mix effects, and currency depreciation.
- Operating income remained flat at MXN 9.7 billion, with OI margin down 60 bps to 13.4%.
- Adjusted EBITDA decreased 3.8% to MXN 13.4 billion, margin down 160 bps to 18.4%.
- Mexico volume declined 10% YoY, facing macroeconomic and weather challenges, but share recovery in modern and traditional channels.
- Brazil volumes down 1.5% YoY, with gains in nonalcoholic ready-to-drink (NARTD) and Coke Zero growth of 56%.
- Argentina volumes up 11.9% YoY, driven by macro improvement and single-serve growth.
- Long-term investments in capacity expansion (e.g., Toluca PET line, San Juan del Río expansion) and productivity initiatives.

**【CFO Financial Commentary】**
- Mexico and Central America: Volumes down 8.4% to 636.9 million unit cases, revenue up 0.5% to MXN 45.3 billion (down 1.9% on neutral currency). Gross profit down 2.5% to MXN 21.4 billion, margin down 150 bps to 47.2%. Operating income down 6.3% to MXN 6.8 billion, margin down 110 bps to 15.1%.
- South America: Volumes down 0.5% to 398.4 million unit cases, revenue up 13.2% to MXN 27.6 billion (10.3% on neutral currency). Gross profit up 16.2% to MXN 15.4 billion, margin up 110 bps to 42.2%. Operating income up 19.6% to MXN 2.9 billion, margin up 50 bps to 10.6%.
- Comprehensive financial expense up 34.4% to MXN 1.2 billion due to higher interest and lower FX gains.
- Supply chain savings of MXN 60 million (67% of MXN 90 million target), with MXN 30 million from distribution, MXN 20 million from cost-to-serve, and MXN 10 million from cost-to-make.
- 9 new bottling lines planned for 2025, with 3 started and 4 to begin in H2.

**【Q&A Highlights】**
- **Mexico Outlook**: Cautious due to macroeconomic weakness, but initiatives to address MXN 20 price point gap and affordability mix. Coke Zero growth of 27% in Mexico.
- **Brazil Recovery**: Weather-driven Q2 decline expected to reverse in Q3. Juntos+ Advisor tool boosting volume by 1-2%.
- **CapEx**: 8-9% of net sales target maintained, with focus on structural capacity (e.g., Toluca, San Juan del Río) over volume-driven projects.
- **Porto Alegre Plant**: Fully operational with 180 SKUs (95% of pre-flood volume), targeting full portfolio by Q3.
- **Balance Sheet**: Leverage below 1x, no immediate dividend changes, but potential updates in H2 2025.
- **Interest Expense**: Higher due to new debt issuance, Brazil rate hikes, and lower cash investment yields.
- **Competitive Response**: Addressing MXN 20 price point gap in Mexico and sports drink category in Brazil.
- **Supply Chain Savings**: On track to meet MXN 90 million target, with opportunities in distribution and procurement.


Coca-Cola FEMSA, S.A.B. de C.V. (KOF) Q2 2025 Earnings Conference Call Transcript

- **Revenue Growth**: Q1 2025 revenue up 10% to MXN70.2 billion, with gross margin expanding 80bps to 45.4%.
- **Mexico Resilience**: Volumes down 5.4% YoY, but share recovery in modern trade and 8% Coca-Cola brand coverage improvement.
- **South America Momentum**: Brazil CSDs +65%, Argentina volumes +9.1%, and Uruguay single-serve mix +13.4%.
- **Cost Efficiency**: $90 million 2025 savings plan, with Brazil and Argentina margins expanding 100bps+.
- **Sustainability**: 84% renewable energy, 99% waste diversion, and 1.36 water efficiency ratio.

**【CEO Summary Section】**
- **Consolidated Results**: Q1 2025 revenue grew 10% to MXN70.2 billion (MXN70.2 billion), driven by revenue management initiatives and favorable currency effects. Gross profit increased 12% to MXN31.8 billion, with margin expanding 80bps to 45.4% due to lower sweetener costs and raw material hedging.
- **Mexico Performance**: Volumes declined 5.4% YoY, but initiatives like targeted promotions and exhibition coverage improvements (e.g., 8% increase in Coca-Cola brand coverage) mitigated the impact. Cost-saving measures in supply chain and IT were identified.
- **South America Growth**: Brazil volumes rose 2.5% YoY, with strong growth in Coca-Cola Zero Sugar (+65%), Powerade (+36%), and Monster (+17.6%). Argentina and Uruguay volumes increased 9.1% and 6% YoY, respectively, driven by affordability and single-serve focus.
- **Strategic Pillars**: Emphasis on core business growth, Juntos+ digital platform expansion (e.g., Brazil added 10,000 monthly active users), and customer-centric culture.

**【CFO Financial Commentary】**
- **Mexico & Central America**: Revenues grew 4.8% to MXN39.7 billion, with gross margin expanding 30bps to 47.6%. Operating income decreased 5% to MXN5.4 billion due to higher expenses (maintenance, depreciation).
- **South America**: Revenues increased 17.4% to MXN30.5 billion, driven by Brazil and Argentina. Gross margin expanded 190bps to 42.5%, and operating margin grew 130bps to 12.6%.
- **Sustainability Progress**: 84% renewable energy use, 99% operational waste diversion, and 1.36 liters water efficiency ratio.

**【Q&A Highlights】**
- **Mexico Adjustments**: CEO Ian Craig noted price elasticity in a competitive environment, with promotions and multi-serve focus. March volumes were softer but share recovery underway in modern trade.
- **Cost Savings**: CFO Gerry Cruz revealed $90 million in 2025 savings (split across cost to make, serve, and T1), with Mexico and Colombia as key focus areas.
- **Brazil Margin Expansion**: Driven by operating leverage, fixed cost absorption, and capacity additions in profitable segments like CSDs.
- **Working Capital Dynamics**: Inventory replenishment and ERP migration impacting payables, expected to continue through 2025.

Coca-Cola FEMSA, S.A.B. de C.V. (KOF) Q1 2025 Earnings Call Transcript

- **Revenue Growth**: Full-year revenue up 14.2% to MXN 279.8 billion, driven by Brazil's Coke Zero Sugar (+63% YoY) and Mexico's multi-serve expansion (+4.8%).
- **Digital Success**: Juntos+ monthly active users hit 1.3M (60% of base), with Brazil's Juntos+ Advisor adoption >40%.
- **Operational Efficiency**: 2024 savings exceeded $60M target by $11.5M; 2025 target >$90M. Mexico added $290M in distribution capacity.
- **2025 Outlook**: Mid-single-digit Mexico volume growth, Coke Zero Sugar acceleration, and Juntos+ rollout in key markets.
- **Risk Management**: 2024 one-time costs MXN 730M, partially offset by insurance. 2025 CapEx MXN 29B to address capacity gaps.


**【CEO Summary Section】**
- **2024 Yearly Performance**: Full-year revenue grew 14.2% to MXN 279.8 billion, with operating income up 17.4% to MXN 40.1 billion. Brazil's Coke Zero Sugar volumes surged 63% YoY, while Mexico's multi-serve one-way presentations expanded 4.8%.
- **Digital Transformation**: Juntos+ monthly active users reached 1.3 million (60% of customer base), up from 4% in September. Brazil's Juntos+ Advisor tool adoption exceeded 40%, improving salesforce efficiency.
- **Market Highlights**: 
  - **Mexico**: Volumes grew 0.8% YoY, with Coke Zero Sugar outperforming double digits. New distribution centers and routing improvements added $290M in capacity.
  - **Brazil**: Volumes rose 3.7% YoY despite Porto Alegre plant closure. Single-serve mixes expanded 2ppt to 26%, and Powerade/Monster grew 12-21%.
  - **Argentina**: Volumes increased 2.9% YoY, with cost reductions of 6% YoY.
- **2025 Outlook**: Target mid-single-digit volume growth in Mexico, with focus on Coke Zero Sugar, infrastructure expansion, and Juntos+ rollout in Mexico and Brazil.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: 
  - Revenue: MXN 75.5 billion (+14.3% YoY), driven by revenue management and currency effects.
  - Gross Profit: MXN 35.7 billion (+17.1%), margin +120bps to 47.3%.
  - Operating Income: MXN 12.1 billion (+25%), margin +140bps to 16%.
  - Net Income: MXN 7.3 billion (+35.1%).
- **One-Time Impacts**: Net unfavorable expenses of MXN 730 million (Hurricane John and Brazil floods), partially offset by insurance claims.
- **CapEx & Savings**: 2024 CapEx MXN 25.3 billion (9% of revenue), with 2025 plan to install 9 new bottling lines. 2024 savings exceeded $60M target by $11.5M, 2025 target >$90M.
- **FX Hedging**: 35% of 2025 FX exposure hedged (35-70% per region), with Brazil sugar 90% hedged.

**【Q&A Key Takeaways】**
- **Mexico Volumes 2025**: Mid-single-digit growth expected, despite 40M unit case unavailability in 2024. New lines and inventory planning to mitigate capacity constraints.
- **Digital Impact**: Juntos+ users drive 2% incremental revenue. Brazil's Juntos+ Advisor improved coverage by 4ppt and SKUs per store.
- **Brazil Recovery**: Porto Alegre plant to resume full capacity Q2 2025. 2024 flood-related costs MXN 331M, partially offset by insurance.
- **ROIC & CapEx**: 2024 ROIC 15.1%, 2025 expected flat. CapEx MXN 29B (cash flow MXN 25B) to address unserved demand and logistics efficiency.
- **Beer Strategy**: Focus on distribution partnerships (e.g., Cerpa) rather than production, complementing premium portfolio.


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