Q3 FY2026
Filed Oct 26, 2026Coca-Cola FEMSA reported third-quarter revenue growth of 10.9%, operating income growth of 15.4%, and majority net income growth of 5.5%, supported by 5.3% volume growth and South America operating-income growth of 51.2%.
Consolidated volume, revenue, gross profit, operating income, adjusted EBITDA, and majority net income all increased in the third quarter. South America more than offset a 3.1% decline in Mexico & Central America operating income, while insurance-claim income contributed to consolidated margin expansion.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q 2026 transactionsother | 6,528.4 million transactions | – | 5.4% |
| 3Q 2026 volumeother | 1,089.8 million-unit cases | – | 5.3% |
| 3Q 2026 average price per unit caseother | 70.84 | – | 5.2% |
| 3Q 2026 net revenuesother | 79,360 million Pesos | – | 10.7% |
| 3Q 2026 other operating revenuesother | 358 million Pesos | – | 79.8% |
| 3Q 2026 total revenuesother | Ps. 79,718 million | – | 10.9% |
| 3Q 2026 total revenues, comparableother | 11.3% | – | 11.3% |
| 3Q 2026 gross profitother | Ps. 37,082 million | – | 14.5% |
| 3Q 2026 gross marginother | 46.5% | – | 140 basis points |
| 3Q 2026 operating incomenon-GAAP | Ps. 11,874 million | – | 15.4% |
| 3Q 2026 operating income, comparablenon-GAAP | 16.4% | – | 16.4% |
| 3Q 2026 operating marginnon-GAAP | 14.9% | – | 60 basis points |
| 3Q 2026 adjusted EBITDAnon-GAAP | 16,794 million Pesos | – | 16.2% |
| 3Q 2026 adjusted EBITDA marginnon-GAAP | 21.1% | – | – |
| 3Q 2026 CAPEXother | 4,210 million Pesos | – | -45.1% |
| 3Q 2026 comprehensive financing resultother | Ps. 2,019 million expense | – | 56.6% |
| 3Q 2026 income tax as a percentage of income before taxesother | 33.4% | – | – |
| 3Q 2026 net income attributable to equity holders of the companyother | Ps. 6,223 million | – | 5.5% |
| 3Q 2026 consolidated net incomeother | 6,580 million Pesos | – | 7.2% |
| 3Q 2026 earnings per shareother | Ps. 0.37 | – | – |
| 3Q 2026 earnings per unitother | Ps. 2.96 | – | – |
| 3Q 2026 earnings per ADSother | Ps. 29.62 | – | – |
| First nine months 2026 transactionsother | 18,902.4 million transactions | – | 3.6% |
| First nine months 2026 volumeother | 3,160.0 million-unit cases | – | 3.4% |
| First nine months 2026 total revenuesother | Ps. 227,190 million | – | 6.2% |
| First nine months 2026 total revenues, comparableother | 10.4% | – | 10.4% |
| First nine months 2026 gross profitother | Ps. 106,374 million | – | 9.8% |
| First nine months 2026 gross marginother | 46.8% | – | 150 basis points |
| First nine months 2026 operating incomenon-GAAP | Ps. 31,574 million | – | 8.0% |
| First nine months 2026 operating income, comparablenon-GAAP | 11.9% | – | 11.9% |
| First nine months 2026 operating marginnon-GAAP | 13.9% | – | 20 basis points |
| First nine months 2026 adjusted EBITDAnon-GAAP | 45,213 million Pesos | – | 10.4% |
| First nine months 2026 adjusted EBITDA marginnon-GAAP | 19.9% | – | – |
| First nine months 2026 CAPEXother | 11,384 million Pesos | – | -34.2% |
| First nine months 2026 comprehensive financing resultother | Ps. 5,103 million expense | – | 42.2% |
| First nine months 2026 income tax as a percentage of income before taxesother | 33.2% | – | – |
| First nine months 2026 net income attributable to equity holders of the companyother | Ps. 16,784 million | – | 2.7% |
| First nine months 2026 earnings per shareother | Ps. 1.00 | – | – |
| First nine months 2026 earnings per unitother | Ps. 7.99 | – | – |
| First nine months 2026 earnings per ADSother | Ps. 79.89 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Mexico & Central America Division, 3Q 2026Volume increased 4.8% to 641.5 million-unit cases, driven by volume growth in all territories. Revenue growth reflected volume increases and revenue management initiatives, partially offset by unfavorable mix and currency translation effects. | Ps. 45,976 million | – | 8.3% |
| South America Division, 3Q 2026Volume increased 6.0% to 448.3 million-unit cases, driven mainly by 15.9% growth in Colombia and 3.9% growth in Brazil. Revenue growth reflected volume growth, revenue management initiatives, and a favorable currency translation effect from Colombia. | Ps. 33,742 million | – | 14.7% |
| Mexico & Central America Division, first nine months 2026Volume increased 1.6% to 1,831.9 million-unit cases. | 130,543 million Pesos | – | 2.4% |
| South America Division, first nine months 2026Volume increased 5.9% to 1,328.1 million-unit cases. | 96,647 million Pesos | – | 11.7% |
Capital returns
- On October 13, 2026, Coca-Cola FEMSA paid the third installment of the ordinary dividend approved for Ps. 0.241875 per share, for a total cash distribution of Ps. 4,065.1 million.
What drove it
- Consolidated volume increased 5.3% to 1,089.8 million-unit cases, with volume growth across all operations.
- Total revenues increased 10.9%, driven mainly by volume growth and revenue management initiatives.
- Third-quarter gross margin expanded 140 basis points to 46.5%, driven mainly by lower sweetener and PET costs, raw material hedging initiatives, and appreciation of most operating currencies against U.S. dollar-denominated raw material costs.
- South America operating income increased 51.2% and operating margin expanded 380 basis points to 15.7%, including Ps. 1,055 million in income related to insurance claims in Brazil, net of expenses.
- Consolidated operating margin expanded 60 basis points to 14.9%, aided by Ps. 1,055 million, net of expenses, related to insurance claims in Brazil, operating leverage, and IT and rent efficiencies.
Concerns
- Mexico & Central America operating income decreased 3.1% to Ps. 6,574 million and operating margin contracted 170 basis points to 14.3%, driven mainly by higher marketing, depreciation, maintenance, and freight expenses and an operating foreign-exchange loss.
- Consolidated comprehensive financing expense increased to Ps. 2,019 million from Ps. 1,290 million, driven mainly by higher net interest expense and a Ps. 377 million loss on financial instruments.
- Income tax as a percentage of income before taxes increased to 33.4% from 30.9%, driven mainly by inflationary effects in Mexico.
- Unfavorable mix and negative currency translation effects from most operating currencies into Mexican pesos partially offset revenue growth.
What to watch
- Mexico & Central America operating expenses, particularly marketing, depreciation, maintenance, and freight.
- The persistence of South America volume momentum, including Colombia volume growth of 15.9% and Brazil volume growth of 3.9%.
- The effect of insurance-claim income on reported operating-income growth and margins.
- Interest expense and losses on financial instruments following new debt issuance and higher interest rates in Brazil.
- Raw-material cost trends, including sweetener, PET, and aluminum costs, and the effect of hedging initiatives.
Balance sheet and cash flow
- Cash, cash equivalents and marketable securities were 11,518 million Pesos as of Sep-26, compared with 7,944 million Pesos as of Dec-25.
- Short-term bank loans and notes payable were 46,772 million Pesos as of Sep-26, compared with 28,067 million Pesos as of Dec-25.
- Long-term bank loans and notes payable were 72,852 million Pesos as of Sep-26, compared with 71,834 million Pesos as of Dec-25.
- Net debt including effect of hedges was 39,892 million Pesos as of Sep 30, 2026, compared with 52,846 million Pesos as of Dec 31, 2025.
- Net debt including effect of hedges / Adj. EBITDA was 0.63 as of Sep 30, 2026, compared with 0.89 as of Dec 31, 2025.
- As of September 30, 2026, the investment in fixed assets effectively paid was equivalent to Ps. 9,902 million.
Analysis
Coca-Cola FEMSA delivered broad third-quarter top-line growth, with volume increasing 5.3% to 1,089.8 million-unit cases and total revenues rising 10.9% to Ps. 79,718 million. Comparable revenue growth was 11.3%, as reported growth was partially reduced by unfavorable currency translation effects. Transactions increased 5.4%, while average price per unit case increased 5.2%, showing that both volume and revenue management contributed to revenue growth.
Gross profit increased 14.5% to Ps. 37,082 million and gross margin expanded 140 basis points to 46.5%. Management attributed the margin gain mainly to lower sweetener and PET costs, raw-material hedges, and appreciation of most operating currencies as applied to U.S. dollar-denominated raw-material costs. Higher aluminum costs and unfavorable mix were offsets. Operating income increased 15.4% to Ps. 11,874 million, with operating margin expanding 60 basis points to 14.9%.
The segment mix was important. Mexico & Central America generated 8.3% revenue growth and 4.8% volume growth, but operating income decreased 3.1% to Ps. 6,574 million as higher marketing, depreciation, maintenance, and freight costs, together with an operating foreign-exchange loss, reduced profitability. South America produced 14.7% revenue growth, 6.0% volume growth, and a 51.2% increase in operating income to Ps. 5,300 million. Its 380-basis-point operating-margin expansion to 15.7% included Ps. 1,055 million in insurance-claim income in Brazil, net of expenses.
Below operating income, financing costs constrained earnings conversion. Comprehensive financing expense rose to Ps. 2,019 million from Ps. 1,290 million, reflecting higher net interest expense, a larger loss on financial instruments, and lower gains in monetary positions in inflationary subsidiaries. The tax rate as a percentage of income before taxes rose to 33.4% from 30.9%. Consequently, net income attributable to equity holders increased 5.5% to Ps. 6,223 million, slower than revenue and operating income growth.
For the first nine months, total revenues increased 6.2% to Ps. 227,190 million, operating income increased 8.0% to Ps. 31,574 million, and majority net income increased 2.7% to Ps. 16,784 million. The company paid an ordinary-dividend installment totaling Ps. 4,065.1 million on October 13, 2026. Net debt including the effect of hedges was 39,892 million Pesos as of September 30, 2026, compared with 52,846 million Pesos as of December 31, 2025. The release provided no forward financial guidance.
Management, verbatim
During the third quarter, we delivered volume growth across all our operations, achieved a record third-quarter consolidated volume, and continued to gain market share.
Ian Craig, Coca-Cola FEMSA’s CEO
In Mexico, our revenue growth management strategy enabled us to sustain a strong competitive position and drive sequential improvement in our results, despite consumer conditions that remained challenging throughout the quarter.
Ian Craig, Coca-Cola FEMSA’s CEO
South America delivered strong performance, with double-digit operating income growth in Brazil and Colombia driving the results.
Ian Craig, Coca-Cola FEMSA’s CEO
Not in the filing
stated, not guessed- Forward revenue, gross-margin, operating-expense, tax-rate, or other financial guidance.
- Comparison against prior guidance, as no previous outlook was provided.
- Operating cash flow.
- Free cash flow.
- Share repurchases.
- Prior-year earnings per share, earnings per unit, and earnings per ADS.
- Prior-quarter comparisons for reported operating metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.