Coca Cola Femsa (NYSE:KOF) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Coca Cola Femsa (NYSE:KOF) announced its earnings results on Monday. The company reported $1.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.65 by $0.05, Zacks reports. Coca Cola Femsa had a return on equity of 15.40% and a net margin of 7.84%.The business had revenue of $4.36 billion during the quarter, compared to analyst estimates of $4.33 billion.

Here are the key takeaways from Coca Cola Femsa’s conference call:

• Consolidated profitability improved: Second-quarter volume rose 3.5% and currency-neutral revenue increased 6.6%, while gross margin expanded 180 basis points and adjusted EBITDA margin expanded 130 basis points. Results benefited from lower sweetener and PET costs, hedging, operating leverage, and expense efficiencies, although the company noted a MXN 265 million insurance recovery in Brazil boosted reported earnings.
• Brazil and Colombia remained major growth engines. Brazil volume increased 5.2% and Colombia surged 17.7%, with both markets gaining share and delivering strong operating leverage; management expects Brazil to continue performing well and Colombia to maintain healthy growth despite tougher comparisons in the second half.
• Mexico showed sequential improvement but remains challenging. Management raised its full-year volume outlook from slightly negative to approximately flat, citing improving trends and share gains, but warned that consumer weakness and intense competition persist; the company plans to complete its inflation pass-through in August while maintaining affordability through larger and returnable packages.
• Zero-sugar, energy drinks, and digital execution are gaining momentum. Mexico’s Coca-Cola Zero volume grew 24%, Brazil’s Monster and zero-sugar portfolios posted strong growth, and Juntos+ digital sales reached 19% of total revenue; the company also expects its Juntos+ Advisor platform to improve coverage, assortment, and point-of-sale execution as it expands across operations.
• Brazil faces potential 2027 regulatory and cost risks. Management cited uncertainty around a possible selective tax increase and a proposed shift from a six-days-on/one-day-off labor schedule to five-days-on/two-days-off, both of which could raise costs or create an adjustment year. Argentina also remained weak, with volume down 2.8% amid a truck strike and soft consumer demand.

Coca Cola Femsa Price Performance

Shares of NYSE KOF opened at $108.97 on Tuesday. The stock’s 50-day simple moving average is $106.11 and its two-hundred day simple moving average is $104.47. Coca Cola Femsa has a twelve month low of $80.22 and a twelve month high of $116.36. The firm has a market capitalization of $183.14 billion, a P/E ratio of 18.35, a P/E/G ratio of 1.25 and a beta of 0.53. The company has a quick ratio of 0.91, a current ratio of 1.10 and a debt-to-equity ratio of 0.56.

Coca Cola Femsa Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Monday, July 13th were given a dividend of $1.1248 per share. The ex-dividend date was Monday, July 13th. This is a positive change from Coca Cola Femsa’s previous quarterly dividend of $1.09. This represents a $4.50 annualized dividend and a yield of 4.1%. Coca Cola Femsa’s dividend payout ratio (DPR) is presently 66.33%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on KOF shares. Barclays lifted their price target on shares of Coca Cola Femsa from $112.00 to $115.00 and gave the company an “equal weight” rating in a research report on Monday, May 4th. JPMorgan Chase & Co. lifted their target price on Coca Cola Femsa from $114.00 to $127.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 15th. Weiss Ratings upgraded shares of Coca Cola Femsa from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 29th. Finally, UBS Group decreased their price objective on Coca Cola Femsa from $113.00 to $110.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 14th. Four analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $117.40.

Hedge Funds Weigh In On Coca Cola Femsa

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd grew its position in Coca Cola Femsa by 482.5% in the third quarter. Caitong International Asset Management Co. Ltd now owns 332 shares of the company’s stock worth $28,000 after acquiring an additional 275 shares in the last quarter. Smartleaf Asset Management LLC lifted its holdings in shares of Coca Cola Femsa by 79.3% in the 4th quarter. Smartleaf Asset Management LLC now owns 346 shares of the company’s stock worth $33,000 after acquiring an additional 153 shares during the last quarter. Triumph Capital Management bought a new stake in shares of Coca Cola Femsa in the 3rd quarter worth approximately $49,000. Global Retirement Partners LLC boosted its stake in shares of Coca Cola Femsa by 138.9% in the 4th quarter. Global Retirement Partners LLC now owns 516 shares of the company’s stock valued at $49,000 after purchasing an additional 300 shares in the last quarter. Finally, Parallel Advisors LLC boosted its stake in shares of Coca Cola Femsa by 19.1% in the 4th quarter. Parallel Advisors LLC now owns 616 shares of the company’s stock valued at $58,000 after purchasing an additional 99 shares in the last quarter.

About Coca Cola Femsa

Coca‑Cola FEMSA (NYSE: KOF) is a large multinational beverage bottler and distributor operating primarily in Mexico and across multiple markets in Latin America. As a principal franchise bottler for The Coca‑Cola Company, the firm is responsible for producing, packaging, marketing and distributing Coca‑Cola branded beverages and a wide range of nonalcoholic drinks to retail and foodservice customers throughout its territories.

The company’s product portfolio includes carbonated soft drinks, bottled water, juices, ready‑to‑drink teas and coffees, sports and energy drinks, and other noncarbonated beverages.