Coca-Cola Femsa stock holds recent gains as revenue grows and margins expand

Coca-Cola Femsa stock is underpinned by a larger franchise footprint and higher earnings after the Latin American bottler reported double-digit profit growth for fiscal 2024, with investors now weighing the companys current valuation against its recent margin expansion and dividend increase.

Revenue up 5.5 percent in 2024

According to the companys own annual report for fiscal 2024, Coca-Cola Femsa S.A.B. de C.V. generated total revenue of roughly MXN 229 billion in 2024, an increase of about 5.5% compared with just under MXN 217 billion in 2023.

Management highlighted that this revenue growth was driven by higher average prices per unit case as well as continued volume strength in key markets such as Mexico and Brazil, while currency effects and portfolio mix also contributed to the top-line expansion over the period.

For investors, the combination of price realization and volume growth suggests that the Coca-Cola beverage portfolio continues to show pricing power in its core markets, which can be important in an environment of fluctuating input costs.

Operating income margins improve

On the profitability side, Coca-Cola Femsa reported operating income of around MXN 30 billion for 2024, compared with roughly MXN 26 billion in 2023, implying an increase of about 15% year over year.

This translated into an expansion of the operating margin from approximately 12% in 2023 to close to 13% in 2024, as the bottler benefited from a combination of better pricing, product mix, and cost efficiencies in areas such as logistics and packaging.

Net income available to shareholders rose to around MXN 19 billion in 2024, versus approximately MXN 16 billion in the prior year, representing growth of close to 20% and reflecting both the stronger operating performance and a favorable financial result.

In addition, the company reported that earnings per share, measured in Mexican pesos, increased at a low double-digit percentage rate, broadly in line with the rise in net profit, which underscores that the earnings growth was not diluted by a significant change in the share count.

Dividend and cash generation support Coca-Cola Femsa stock

Coca-Cola Femsa also provided more generous cash returns to shareholders on the back of its higher earnings. For fiscal 2024, the company approved a cash dividend of roughly MXN 7.60 per share, up from around MXN 6.80 per share paid out on fiscal 2023 results, which corresponds to an increase of about 12%.

Based on the number of outstanding shares, this meant a total dividend payment on the order of MXN 13 billion for 2024, compared with approximately MXN 11.5 billion a year earlier, leaving the payout ratio in a range that management described as consistent with its long-term capital allocation policy.

Free cash flow from operations remained solid as well, with Coca-Cola Femsa reporting operating cash flow in excess of MXN 40 billion in 2024, versus a figure in the mid-MXN 30 billion range in 2023, helping to fund both capital expenditures for capacity and technology and the increased shareholder distributions.

The company indicated that capital expenditures for 2024 were in the mid-teens in billions of pesos, focused mainly on production capacity, returnable packaging, digital tools for commercial execution, and sustainability projects, while still allowing net debt to remain at a modest multiple of EBITDA.

Geographic scale underpins growth

As outlined in its investor materials, Coca-Cola Femsa is the largest Coca-Cola bottler in terms of volume in the world, serving more than 270 million consumers through operations in Mexico, Brazil, Colombia, Argentina, and several Central American countries.

In 2024 the company sold on the order of 4.2 billion unit cases, which marked a low single-digit percentage increase compared with 2023 and reflected both the maturation of some core markets and growth in categories such as still beverages and low-calorie offerings.

Management noted that Mexico, the companys largest market, accounted for roughly half of total revenue, while operations in Brazil contributed a little more than a quarter, giving Coca-Cola Femsa a relatively diversified revenue base within Latin America.

This geographic spread means that macroeconomic conditions, currency movements, and regulatory developments in multiple countries can influence results, but it also provides a range of growth opportunities as per capita consumption of Coca-Cola system beverages in some of these markets still has room to increase over time.

Ciel and other brands support still beverage volumes

Beyond its core sparkling soft drinks, Coca-Cola Femsa generates part of its revenue from still beverages and water brands such as Ciel, Del Valle, and AdeS, which help the company address changing consumer preferences and broaden its portfolio.

In 2024, the still beverages category, which includes juices, teas, and plant-based drinks, contributed a high single-digit percentage share of total volume and posted a mid-single-digit volume increase over 2023, according to the companys segment disclosures.

Packaged water, including the Ciel brand in Mexico and other local brands in South America, represented another meaningful slice of the portfolio, with volumes broadly stable to slightly higher year over year as growth in single-serve formats offset more muted trends in larger returnable presentations.

Coca-Cola Femsa stock and market context

Coca-Cola Femsa has its primary listing on the Mexican Stock Exchange under the ticker KOF, with an additional listing on the New York Stock Exchange in the form of American Depositary Shares, each representing a number of local shares.

As of 18 July 2026, the New York-listed Coca-Cola Femsa ADS closed at $89.50, compared with around $79.00 at the start of 2026, which corresponds to a year-to-date gain of roughly 13% and places the price closer to the upper half of its 52-week range between approximately $72.00 and $94.00.

Based on this share price and the number of shares outstanding, the companys equity market capitalization stands in the area of $18 billion as of mid-July 2026, which positions Coca-Cola Femsa among the larger consumer staples companies in Latin America by stock market value.

At the current level, the trailing price-to-earnings multiple implied by the latest annual earnings works out to the mid-teens, a valuation that reflects the companys combination of defensive beverage demand characteristics and its demonstrated ability to grow earnings and dividends in recent years.