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

As we expected, KOF posted strong results during the first nine months of 2023, with revenues growing 9.2% to MXN181.4 billion and EBITDA margin reaching 18.7%. Our updated projections remain broadly unchanged since our June 2023 review. We still project solid operating performance for the rest of 2023 and 2024, despite sticky inflation and foreign exchange rate volatility across KOF's markets. We now expect revenue to grow near 9% in 2023 and to moderate to 6% in 2024. Volumes should continue driving top-line growth in 2024, although moderating to 4%-6% after reaching record levels this year. KOF?s pricing strategy will be near inflation levels, as the company aims to focus on sustainable growth across its territories and recover market share

...November 28, 2023 We continue forecasting Coca-Cola Femsa S.A.B. de C.V. (KOF) to deliver strong operating results in 2023 and 2024, despite sticky inflationary conditions. As we expected, KOF posted strong results during the first nine months of 2023, with revenues growing 9.2% to MXN181.4 billion and EBITDA margin reaching 18.7%. Our updated projections remain broadly unchanged since our June 2023 review. We still project solid operating performance for the rest of 2023 and 2024, despite sticky inflation and foreign exchange rate volatility across KOF's markets. We now expect revenue to grow near 9% in 2023 and to moderate to 6% in 2024. Volumes should continue driving top-line growth in 2024, although moderating to 4%-6% after reaching record levels this year. KOF's pricing strategy will be near inflation levels, as the company aims to focus on sustainable growth across its territories and recover market share in Mexico. As a result, we've modestly cut our forecast EBITDA margin for...

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