Stronger South American Growth and Revenue Strategies Might Change the Case for Investing in Coca-Cola FEMSA (KOF)

• Earlier this month, Coca-Cola FEMSA reported third quarter 2025 results with earnings per share and revenue slightly above analyst estimates, crediting revenue management strategies and strong performance in South America for the outperformance.
• This highlights the company’s ability to drive growth despite challenges like soft volume in other regions and adverse currency movements.
• We’ll assess how the company’s stronger South American growth and pricing initiatives may shape its longer-term investment narrative.

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Coca-Cola FEMSA. de Investment Narrative Recap

To be a shareholder in Coca-Cola FEMSA, you need to believe in the company's ability to expand earnings and revenue through operational efficiency, pricing power, and steady demand for its beverage portfolio despite economic and currency headwinds in key Latin American markets. The recent news of slightly better-than-expected third quarter results, credited to revenue management strategies and growth in South America, doesn't materially alter the main short-term catalyst: continued success in offsetting volume softness and currency pressure with strong execution in South America. The biggest risk remains heightened exposure to the economic cycles and currency swings in Mexico and Brazil. Of the company's recent announcements, the board changes in early November stand out, reflecting stable governance even as leadership transitions occur. While not directly tied to near-term business drivers, consistent board oversight could play a role in supporting longer-term catalysts, particularly as the company builds on its revenue strategies and manages regional economic uncertainty. However, it's important for investors to keep in mind that despite progress in South America, risks like exposure to adverse currency movements in core markets remain...

Read the full narrative on Coca-Cola FEMSA. de (it's free!)

Coca-Cola FEMSA. de's narrative projects MX$349.2 billion in revenue and MX$29.6 billion in earnings by 2028. This requires 6.5% yearly revenue growth and a MX$6.0 billion earnings increase from the current earnings of MX$23.6 billion.

Uncover how Coca-Cola FEMSA. de's forecasts yield a $109.95 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided nine fair value estimates for Coca-Cola FEMSA, spanning from US$85.72 to US$181.15 per share. With currency risks still front and center, these varied opinions show just how differently the company's future can be viewed depending on expectations for economic and trading conditions in core markets.

Explore 9 other fair value estimates on Coca-Cola FEMSA. de - why the stock might be worth just $85.72!

Build Your Own Coca-Cola FEMSA. de Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Coca-Cola FEMSA. de research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Coca-Cola FEMSA. de research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Coca-Cola FEMSA. de's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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