Coca-Cola FEMSA Q2 2026: Net Income Jumps 16.9% on South America Strength
KOF sits 28% above its 52-week low of $80.225.
Summary
Coca-Cola FEMSA reported Q2 2026 earnings with majority net income up 16.9%, driven by a 46.5% operating income jump in South America. The results show a strong recovery from Q1's decline, though Mexico operations remain under pressure.
Key Events · Earnings and Guidance · KOF
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Q2 Net Income Surges 16.9%
Majority net income reached Ps. 6,211 million, up 16.9% year-over-year, driven by a 9.1% increase in operating income and lower effective tax rate.
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South America Operating Income Jumps 46.5%
South America division operating income rose to Ps. 4,303 million, fueled by volume growth of 6.9% and margin expansion from lower raw material costs.
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Mexico & Central America Operating Income Declines 7.0%
Operating income in the Mexico & Central America division fell to Ps. 6,351 million, pressured by higher marketing and freight expenses and a challenging consumer environment.
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Gross Margin Expands 180 bps to 47.1%
Consolidated gross profit increased 8.8% to Ps. 35,938 million, benefiting from lower sweetener and PET costs and favorable currency effects on dollar-denominated inputs.
Analysis · KOF · Manufacturing
A strong second quarter saw majority net income climb 16.9% year-over-year, propelled by a 46.5% surge in South America operating income. Consolidated revenue advanced 4.7% on 3.5% volume growth, while gross margin expanded 180 basis points to 47.1%, helped by lower sweetener and PET costs. The performance marks a sharp sequential rebound from Q1's 15.5% net income decline, though Mexico & Central America operating income fell 7.0% amid a challenging consumer environment and excise tax headwinds. The company also paid its second dividend installment and announced an Investor Relations leadership change. Earnings beat consensus expectations and underscore the benefits of geographic diversification, but the Moody's downgrade to Baa1 with negative outlook from May 2026 remains a key risk to monitor.
At the time of this filing, KOF was trading at $102.70 on NYSE in the Manufacturing sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $80.23 to $116.36. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.