From The Motley Fool · Motley Fool Transcribing · · 2m
Coca-Cola FEMSA Q3 2026 Earnings Results
Coca-Cola FEMSA reports record Q3 volumes and margin expansion amid regional growth and hedging strategies.
In brief
Coca-Cola FEMSA reports record Q3 volumes and margin expansion amid regional growth and hedging strategies. Coca-Cola FEMSA achieved record Q3 consolidated volumes of 1.1 billion unit cases with 10.9% revenue growth and 46.5% gross margin expansion. Originally reported by The Motley Fool.
Q3 2026 Results
Coca-Cola FEMSA reported record third-quarter consolidated volumes of 1.1 billion unit cases, a 5.3% increase.
Revenue Growth
Total revenue reached MXN 79.7 billion, a 10.9% increase driven by record volumes and revenue growth management.
Gross Margin Expansion
Gross profit increased to MXN 37 billion, yielding a 46.5% margin that expanded 140 basis points due to lower sweetener and PET costs.
Operating Income
Operating income rose to MXN 11.9 billion, including a MXN 1.1 billion nonrecurring benefit from recovered insurance claims in Brazil.
Adjusted EBITDA
Adjusted EBITDA grew to MXN 16.8 billion, a 16.2% increase with a 21.1% margin.
Mexico Performance
Mexico volumes grew 4.2% with a 70-basis-point value share gain in sparkling beverages and 14.3% operating margin.
South America
South America revenue reached MXN 33 billion, a 14.7% increase driven by volume growth and favorable currency translation.
Colombia Growth
Colombia volumes grew 15.9% reflecting higher household purchasing power and regional GDP growth of approximately 3.5%.
Brazil Performance
Brazil volumes grew 3.9% with Coca-Cola Zero volumes rising 15% versus the prior year.
Digital Revenue
Digital revenue in Brazil reached 42% of traditional trade revenues with an 18% increase in average ticket size.
Guatemala Growth
Guatemala volumes grew 8% outperforming the nonalcoholic ready-to-drink industry which grew approximately 5.5%.
Commodity Hedging
2026 raw material hedges covered 65% for PET, 88% for sugar, 98% for high-fructose corn syrup, and 74% for aluminum.
2027 Hedging Strategy
2027 raw material hedges target 16% for PET, 85% for sugar, 94% for high-fructose corn syrup, and 54% for aluminum.
Net Income
Majority net income increased to MXN 6.2 billion, a 5.5% rise reflecting higher operating income partially offset by financing expenses.
Argentina Performance
Argentina volumes remained flat year over year with inflation moderating to 33.4% and sparkling beverage volumes up 3.9%.
Digital Engagement
Mexico digital engagement reached 81% customer coverage, resulting in a 19% increase in client interaction quality.
The one thing
Coca-Cola FEMSA achieved record Q3 consolidated volumes of 1.1 billion unit cases with 10.9% revenue growth and 46.5% gross margin expansion.
