La Jornada: Femsa’s net profit fell 15.5% in the first quarter

Coca-Cola Femsa, the largest public bottler in the world in terms of sales volume, reported that its majority net profit decreased 15.5 percent annually in the first quarter of 2026, to reach 4,342 million pesos, amid weaker consumption in Mexico, pressured in turn by the increase in the special tax on production and services (IEPS) on soft drinks and sugary drinks.

This decrease was mainly driven by the increase in the comprehensive financing result, accompanied by a decrease in operating profit, mainly in Mexico and Central America, according to the issuer’s financial results report.

However, Femsa achieved a slight increase in its income of 1.1 percent annually in the January-March period of this year, to total 70,925 million pesos.

“Our first quarter results reflected the resilience of our business and the advantages offered by geographic diversification. Consolidated volume growth was driven by the majority of our operations, including strong performance in Argentina, Brazil, Colombia and Guatemala, which helped offset a decline in volume in Mexico,” said Ian Craig, CEO of Coca-Cola Femsa.

He explained that as anticipated, a weaker consumer environment was faced in Mexico, pressured in turn by the increase in the IEPS. Although the company gained share in most of its markets and categories, achieving record volumes for a first quarter in key markets such as Brazil, Colombia and Guatemala, its consolidated margins remained stable, supported by strong performance in South America, which offset pressures in Mexico and Central America.

In particular, lower volumes in Mexico, an unfavorable mix, as well as severance expenses, resulted in a 17.4 percent drop in operating income in Mexico and Central America, which was partially offset by an 18.8 percent growth in South America, driven by volume growth and the absorption of fixed costs and expenses, resulting in a 2.3 percent decrease in consolidated operating income for the quarter.

Throughout 2026, Coca-Cola Femsa will leverage the platform that the FIFA World Cup will provide in its markets, while continuing to capture efficiencies and savings to protect profitability and prioritize long-term sustainable growth of the business, Craig estimated.