Tear Sheet: Coca-Cola FEMSA, S.A.B. de C.V.

Effective revenue management initiatives, including improved product mix and depreciation of the Mexican peso (MXN), along with volume resiliency, mean we now expect revenue growth in the low teens for 2024. Moreover, we contemplate slightly higher revenue growth for 2025-2026, given revised assumptions on foreign exchange rates and volume expectations for South America, mostly in Brazil and Argentina, partially offsetting macroeconomic assumptions that should somewhat hit consumption. In addition, we?ve revised up our forecast for the company?s S&P Global Ratings-adjusted EBITDA margins by about 60 basis points (bps) in 2024 and 10 bps in 2025, reflecting its price strategy and expense dilution in several geographies. In our view, costs of key inputs such as sweeteners and packaging should remain behind

...November 14, 2024 S&P Global Ratings has revised up its expectations for Coca-Cola FEMSA S.A.B. de C.V.'s financial performance in 2024 and 2025. Effective revenue management initiatives, including improved product mix and depreciation of the Mexican peso (MXN), along with volume resiliency, mean we now expect revenue growth in the low teens for 2024. Moreover, we contemplate slightly higher revenue growth for 2025-2026, given revised assumptions on foreign exchange rates and volume expectations for South America, mostly in Brazil and Argentina, partially offsetting macroeconomic assumptions that should somewhat hit consumption. In addition, we've revised up our forecast for the company's S&P Global Ratings- adjusted EBITDA margins by about 60 basis points (bps) in 2024 and 10 bps in 2025, reflecting its price strategy and expense dilution in several geographies. In our view, costs of key inputs such as sweeteners and packaging should remain behind topline growth, benefitting consolidated...

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