Q4 2025 Coca-Cola Femsa SAB de CV Earnings Call Transcript
Key Points
- Coca-Cola Femsa SAB de CV (KOF) achieved consolidated volume growth year-on-year, with December marking the strongest month in the company's history.
- The company reported top and bottom line growth for the full year 2025, with resilient operating and adjusted EBITDA margins.
- In South America, particularly Brazil, KOF experienced volume growth driven by favorable consumer dynamics and market execution.
- Coke Zero and Sprite Zero showed significant growth, with Coke Zero achieving 14% volume growth in Mexico and Sprite Zero growing 93% in Brazil.
- KOF's digital initiatives, such as Juntos+ Advisor, have improved sales force efficiency and customer relationships, contributing to positive share performance.
- KOF faced a weaker-than-expected consumer environment in Mexico, leading to a 0.9% contraction in volumes year-on-year.
- The company had to navigate the impact of an excise tax increase in Mexico, which is expected to result in a low to mid-single-digit volume decline in 2026.
- Gross margin contracted by 60 basis points to 46.7% in the fourth quarter, driven by unfavorable mix and hedging positions.
- Operating income, excluding insurance recoveries, would have declined by 2.1%, indicating underlying challenges in profitability.
- KOF experienced a significant outflow in working capital due to a reduction in accounts payable, impacting cash flow.
Hello, and welcome to the Coca-Cola FEMSA fourth-quarter 2025 conference call. My name is Sophia, and I'll be your moderator for today's event. Please note that this conference is being recorded. (Operator Instructions)
I would now like to hand the call over to Jorge Collazo, Investor Relations Director at Coca-Cola FEMSA. Jorge, please go ahead.
Thank you, Sofia. Good morning, and welcome to this conference call to review our fourth quarter and full year 2025 results. Before we begin, let me remind all participants that today's conference call may include forward-looking statements and should be considered as good faith estimates made by the company. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties that can materially impact the company's performance.
For more details, please refer to the full disclaimer in the earnings release that was published
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