Coca Cola FEMSA (NYSE:KOF) Issues Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Coca Cola FEMSA (NYSE:KOF) posted its quarterly earnings results on Monday. The company reported $1.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.89 by ($0.17), Zacks reports. The company had revenue of $4.41 billion for the quarter, compared to analysts’ expectations of $4.36 billion.

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

• Record third-quarter volumes rose 5.3% year over year to 1.1 billion unit cases, while revenue increased 10.9% to MXN 79.7 billion. Growth was broad-based across all regions, led by Colombia, Guatemala, Brazil, and Mexico.
• Gross margin expanded 140 basis points to 46.5%, supported by lower sweetener and PET costs, hedging benefits, and favorable currency movements. Adjusted EBITDA margin improved to 21.1%, although the reported results included a MXN 1.1 billion non-recurring insurance recovery in Brazil.
• Commercial momentum remained strong, with share gains and portfolio innovation across markets. Mexico benefited from new products such as Coca-Cola Triple Zero and Topo Chico Sparkling beverages, while Brazil saw strong growth in Coca-Cola Zero, flavors, and still beverages; Colombia volumes increased 15.9%.
• Mexico profitability remained pressured despite sequential improvement, as a greater mix of multi-serve products, higher labor and freight costs, marketing expenses, and operating foreign-exchange losses weighed on margins. Management also expects ongoing labor and currency pressures, requiring further revenue-growth-management actions.
• Management highlighted uncertainty around potential Brazilian excise-tax changes and a shorter workweek, as well as weather and capacity risks in Colombia and Venezuela. The company plans to offset industry-wide cost pressures through pricing, productivity initiatives, hedging, and digital tools, and expects to announce a shareholder capital-return mechanism in early 2027.

Coca Cola FEMSA Trading Down 2.0%

Shares of Coca Cola FEMSA stock opened at $113.60 on Wednesday. Coca Cola FEMSA has a 12-month low of $84.93 and a 12-month high of $122.14. The stock has a market cap of $190.92 billion, a PE ratio of 17.34 and a beta of 0.52. The company has a 50-day moving average of $112.24 and a two-hundred day moving average of $106.74.

Coca Cola FEMSA Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 9th were given a dividend of $1.0838 per share. The ex-dividend date was Friday, October 9th. This is a decrease from Coca Cola FEMSA’s previous quarterly dividend of $1.1248. This represents a $4.34 annualized dividend and a yield of 3.8%. Coca Cola FEMSA’s dividend payout ratio (DPR) is currently 57.25%.

Wall Street Analyst Weigh In

KOF has been the topic of several recent analyst reports. The Goldman Sachs Group set a $123.00 target price on Coca Cola FEMSA in a research report on Thursday, October 15th. JPMorgan Chase & Co. raised their price target on Coca Cola FEMSA from $114.00 to $127.00 and gave the company a “neutral” rating in a report on Wednesday, July 15th. Wall Street Zen cut Coca Cola FEMSA from a “strong-buy” rating to a “buy” rating in a report on Saturday, September 12th. HSBC restated a “hold” rating and issued a $116.00 price target (down from $120.00) on shares of Coca Cola FEMSA in a research note on Tuesday, July 28th. Finally, Weiss Ratings raised Coca Cola FEMSA from a “buy (b)” rating to a “buy (b+)” rating in a report on Thursday, October 8th. Four analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $120.83.

Coca Cola FEMSA Company Profile

Coca-Cola FEMSA, SAB. de C.V. is the world’s largest Coca-Cola franchise bottler by sales volume. The company produces, markets, sells and distributes beverages under The Coca-Cola Company’s brands, including Coca-Cola, Sprite, Fanta and Powerade, as well as bottled water, juices, dairy products, sports drinks, energy drinks and other beverage products.

The company serves consumers through a broad distribution network that includes traditional retail stores, supermarkets, convenience stores, restaurants, food-service businesses and other commercial channels.