Coca-Cola Femsa Reports Mixed Q3 Growth Amid Mexico Tax, Currency Pressures

Coca-Cola Femsa, the largest Coca-Cola bottler primarily operating in Mexico and Brazil, reported a mixed third quarter with revenue growth driven by digital engagement and strong sales of Coca-Cola Zero, but faced volume declines in key markets and increased excise taxes in Mexico. The company achieved a 3.3% revenue increase to MXN 71.9 billion and improved operating margins, alongside notable supply chain savings and a growing digital user base, highlighting its ongoing transformation efforts. Meanwhile, The Coca-Cola Company posted strong third-quarter earnings with 6% organic revenue growth and maintained its 63rd consecutive annual dividend increase, underscoring robust cash flow and shareholder commitment despite regulatory and health-conscious consumer challenges. Coca-Cola's global growth was supported by innovative product launches and marketing campaigns, with gains in value share across most regions, though challenges persisted in Asia-Pacific and Mexico due to economic pressures and currency impacts. Both Coca-Cola Femsa and The Coca-Cola Company are navigating evolving consumer preferences and regulatory environments while leveraging strategic initiatives to sustain growth and profitability. Investor sentiment remains positive, with Coca-Cola Femsa shares trading below analyst price targets, reflecting confidence in future growth potential despite risks such as competition and market conditions.