• Name: Coca-Cola FEMSA, S.A.B. de C.V. $KOF (-0.68%)
• 
  Ticker: KOF (NYSE)
• Headquarters: Mexico City
• Industry: Beverages / Bottling
• Employees: ~80,000
• Markets: Mexico, Colombia, Brazil, Argentina, Uruguay, Central America, Philippines

Fundamental key figures (as at: Q2 2025)

• Market capitalization: ~$14 billion
• Sales (TTM): ~$13.5 bn
• EBITDA margin: ~18
• Net profit margin: ~7.5 %
• Dividend per share (2025e): ~$2,35
• P/E ratio (2025e): ~14
• P/E ratio (2025e): ~1,0
• Leverage ratio (net): Low - solid balance sheet protection

🌎 Investment case - 5 strong arguments

Focus on growth regions

• Emerging markets such as Mexico, Colombia, Brazil = population growth & increasing consumption
• Per capita consumption of soft drinks still rising in many markets

• Attractive valuation compared to .KO $KO (+0.32%)
  KO is defensive but expensive (P/E > 23)
• KOF offers similar business model with significantly lower valuation

Strong partnership with The Coca-Cola Company

• KO holds around 28% of KOF
• Stable supply of Coca-Cola products, long-term contracts

Healthy balance sheet & attractive dividend

• Solid equity ratio, stable free cash flow generation
• Dividend yield currently over 4 %, payout well covered

Hedging against dollar strength / diversification

• KOF earns in local currencies (e.g. Mexican peso, Brazilian real)
• May perform better than KO in a weaker USD scenario

⚠️ Risks

• Currency risks (local currencies against the USD)
• Political risks in LATAM (e.g. Argentina, Colombia)
• Inflation in operating markets can burden cost structure
• Less pricing power than KO (brand owner)

📊 Conclusion

Coca-Cola FEMSA is an often overlooked value pearl in the beverage sector.

While KO convinces with its brand power, KOF offers significantly more growth potential, a better valuation and a higher dividend yield - with a solid balance sheet structure at the same time.

Would the share be an alternative for you?