The Q1 print shows a clear divergence between a strong South America (+18.8% operating income) and a weak Mexico/Central America (-17.4% operating income). Monitor the April-July period for whether the Mexico excise tax headwind stabilizes and whether the FIFA World Cup catalyst materializes as management expects. The 15.5% net income decline is a negative signal, but the stable gross margin and currency-neutral operating income growth (+2.6%) suggest underlying operational resilience.
Price Chart
Executive Summary
Coca-Cola FEMSA reported Q1 2026 results with consolidated revenue up 1.1% to Ps. 70,925 million and volume up 1.2%, but operating income fell 2.3% and majority net income dropped 15.5% due to higher financing costs. The Mexico & Central America division saw a 17.4% operating income decline from excise tax and restructuring costs, partially offset by 18.8% operating income growth in South America.
Key Facts
- Consolidated total revenues increased 1.1% to Ps. 70,925 million in Q1 2026 from Ps. 70,157 million in Q1 2025
- Consolidated operating income decreased 2.3% to Ps. 9,032 million from Ps. 9,248 million
- Majority net income decreased 15.5% to Ps. 4,342 million from Ps. 5,139 million
- Total volume increased 1.2% to 998.4 million unit cases
- Mexico & Central America division operating income fell 17.4% to Ps. 4,461 million
- South America division operating income rose 18.8% to Ps. 4,571 million
- Gross margin expanded 150 bps to 46.9% on lower sweetener and PET costs
- Comprehensive financing result expense increased 55.7% to Ps. 1,752 million from Ps. 1,126 million
- Earnings per share were Ps. 0.26; earnings per ADS were Ps. 20.67
- Dividend of Ps. 7.74 per KOFUBL unit approved for 2026, first installment of Ps. 4,065.1 million paid on April 21
Financial Impact
Operating income declined Ps. 216 million YoY; net income attributable to equity holders fell Ps. 797 million YoY
Risk Factors
- Mexico excise tax increase and softer consumer backdrop continue pressuring volumes and margins in the largest division
- Higher comprehensive financing costs from new bond issuances and FX losses could further pressure net income
- Currency translation headwinds from Argentine peso and other operating currencies may persist
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001292814-26-002657 |
| Document: 0001292814-26-002657-index-headers.html | 0001292814-26-002657 |
| Document: 0001292814-26-002657-index.html | 0001292814-26-002657 |
| Document: 0001292814-26-002657.txt | 0001292814-26-002657 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 1, 2026 21w ago | 6-K | $10.90 $10.53 | ▼ −3.39% | ▼ −2.10% | $11.30 (+3.67%) |
Apr 29, 2026 25w ago | 6-K | $9.84 $10.88 | ▲ +10.57% | ▲ +5.11% | $11.30 (+14.90%) |
Apr 16, 2026 27w ago | 6-K | $10.18 $10.92 | ▲ +7.27% | ▲ +1.45% | $11.30 (+11.00%) |
US Market Status
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