KOF Filings — Coca Cola Femsa Sab De Cv - FilingSpy
KOF
Coca Cola Femsa Sab De Cv
A Mexican company that bottles and distributes Coca-Cola products across Latin America, making it the world's largest Coca-Cola bottler by sales volume. Its parent FEMSA traces its roots to the Cuauhtémoc Brewery founded in Monterrey in 1890, and the bottling arm was formally created in 1991 as a joint venture with The Coca-Cola Company. The name FEMSA is short for Fomento Económico Mexicano, and its portfolio spans sodas, bottled water, and dairy.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Volume fell 1.8% and gross margin contracted 40 bps, reversing two years of expansion, as Mexico volume dropped 5.2%.
Two years of ended as volume declined and costs rose. grew 4.3% to Ps. 291.7 billion on higher pricing, but contracted 40 to 45.6% and net controlling income edged up just 0.5% to Ps. 23.8 billion, held back by a 1.8% volume drop in Mexico and a higher tax rate. The company enters 2026 with rising debt, a in IT controls, and its highest-ever budget as a share of revenue.
Key takeaways
Total sales volume fell 1.8% to 4.15 billion unit cases, the first decline since at least 2020, driven by a 5.2% drop in Mexico that management attributed to macroeconomic deceleration and temporary negative brand sentiment.
contracted 40 to 45.6%, reversing two consecutive years of expansion, as higher promotional discounts, unfavorable mix, and increased labor costs outweighed lower sweetener costs.
The South America grew 8.3% on 1.6% volume growth, with Brazil up 1.6% and Argentina up 6.3%, partially offset by a 0.8% decline in Colombia.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
The company uses derivatives solely to hedge interest rate, FX, and commodity exposures, not for speculation.
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91% of total debt (Ps. 79,778 million) is fixed-rate, but after swaps 26.1% is effectively variable, exposing the company to rate increases.
A hypothetical 100 rise in variable rates would have increased 2025 by Ps. 211 million (3.1%).
is diversified across currencies (46.7% MXN, 28.2% BRL), while 18.3% of COGS is USD-linked, creating FX risk.
Net fell 27.5% to Ps. 30,773 million due to higher supplier payments, while total indebtedness rose to Ps. 79,778 million following a US$500 million bond issuance.
The rose to 34.1% from 32.7%, driven by non-recurring effects and inflationary impacts from prior fiscal years, limiting net controlling income growth to 0.5%.
Management identified a in IT general controls over financial accounting, though no material errors were found in the 2025 consolidated financial statements.
What changed
The 2024 filing flagged whether the 2025 budget of 8.5%–9.5% of revenues would translate into volume growth above 4.4% or primarily add pressure. Volume instead fell 1.8%, the first decline in at least five years, while capex reached a new high as a share of .
The 2024 filing flagged whether the 28.6% exposure would lead to higher if benchmark rates did not decline. Post-swap variable-rate exposure edged down to 26.1%, and a hypothetical 100 rate rise would increase interest expense by Ps. 211 million, or 3.1%.
The 2024 filing flagged whether the in IT general controls would be remediated in 2025. It was not; the same material weakness is disclosed again in the 2025 filing, though no material errors were found.
The 2024 filing flagged the impact of new U.S. tariffs and potential USMCA renegotiation on COGS, given 20.9% USD-linked costs. The 2025 filing notes that 18.3% of COGS is USD-linked and that potential U.S. trade tariffs remain a risk, but no tariff impact has yet materialized in the reported figures.
The sustainability-linked bond water use ratio target of 1.36 by 2024, flagged in every filing since 2021, is not addressed in the 2025 filing sections provided; its status remains unreported.
What to watch
Whether Mexico volume stabilizes or the 5.2% decline extends into 2026, given management's attribution to macroeconomic deceleration and brand sentiment.
Whether the in IT general controls is remediated in 2026, or if its persistence across two consecutive filings signals broader control issues.
Whether the 2026 budget, if sustained at 8.5%–9.5% of revenues, begins to generate volume growth or continues to add pressure without a volume response.
Whether the 26.1% exposure leads to higher if benchmark rates in Mexico, Brazil, or Colombia do not decline.
A hypothetical 10% of all local currencies vs. USD would result in a Ps. 42 million FX loss on net USD exposure.
A 10% devaluation of local currencies vs. MXN would reduce equity by up to Ps. 5,069 million (Brazil) and Ps. 1,550 million (Central America).
Commodity hedges cover sugar, aluminum, diesel, and PET resin; sugar hedges had a negative fair value of Ps. 467 million.
Business depends heavily on The Coca-Cola Company relationship and faces material risks from raw material costs, economic conditions, and a newly disclosed IT control weakness.
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Substantially all sales derive from Coca-Cola trademark beverages, and termination or adverse changes in bottler agreements with The Coca-Cola Company could severely harm the business.
A in IT general controls over financial accounting was identified, though no material errors were found in the 2025 consolidated financial statements.
Increases in raw material costs—particularly PET resin, sweeteners, and concentrate—and supply chain disruptions could raise cost of goods sold and pressure margins.
Adverse economic conditions in Mexico and Brazil, which generated 74.9% of 2025 revenues, along with currency and potential U.S. trade tariffs, may materially affect financial results.
Evolving consumer preferences, health-related taxes, and packaging regulations (e.g., single-use plastic restrictions) could reduce demand or increase compliance costs.
The Coca-Cola Company and FEMSA together hold substantial voting power (32.9% and 56.0% of full voting rights, respectively), which may lead to actions contrary to other shareholders' interests.
Coca-Cola FEMSA is the world's largest Coca-Cola franchise bottler by volume, operating in 9 Latin American countries across two segments.
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The company operates through two reporting segments: Mexico & Central America and South America, generating Ps. 291.7 billion in total revenues in 2025.
Its portfolio consists primarily of Coca-Cola trademark beverages (colas, flavored sparkling, water, stills) and also includes distributed third-party brands like Monster and Heineken.
The core brand Coca-Cola and its no-sugar variants accounted for 60.3% of total sales volume of 4.15 billion unit cases in 2025.
A key strategic priority is to 'Grow the core' by accelerating Coca-Cola Zero and non-carbonated beverages, while leveraging the 'Juntos+' omnichannel commercial platform.
The company operates 55 bottling plants and 256 distribution centers, serving approximately 2.1 million points of sale.
It is a subsidiary of FEMSA, which owns 47.2% of its capital stock, while The Coca-Cola Company owns 27.8%.
Consolidated revenue rose 4.3% to Ps. 291.7B on pricing, while net controlling income edged up 0.5% to Ps. 23.8B amid volume declines and higher taxes.
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Total revenues grew 4.3% to Ps. 291,746 million, driven by a 6.0% increase in average price per unit case from management, partially offset by a 1.8% decline in total sales volume.
contracted 40 to 45.6% as higher promotional discounts, unfavorable mix, and increased fixed costs like labor outweighed lower sweetener costs.
Mexico & Central America rose 1.6% but volume fell 4.1%, with Mexico specifically down 5.2% due to macroeconomic deceleration and temporary negative brand sentiment.
South America increased 8.3% on volume growth of 1.6% and favorable mix, with Brazil volume up 1.6% and Argentina up 6.3%, partially offset by a 0.8% decline in Colombia.
Net decreased to Ps. 30,773 million from Ps. 42,442 million, mainly due to higher supplier payments, while total indebtedness rose to Ps. 79,778 million following a US$500 million bond issuance.
The increased to 34.1% from 32.7%, driven by non-recurring effects and inflationary impacts from prior fiscal years, contributing to net controlling income growth of only 0.5%.