Company Overview

Coca-Cola FEMSA, S.A.B. de C.V. (KOF) stands as the world's largest Coca-Cola franchise bottler by sales volume, playing a crucial role in The Coca-Cola Company's extensive global distribution network. The company reliably serves an immense consumer base exceeding 276 million individuals. Its operations are anchored by 56 state-of-the-art manufacturing plants and a vast network of 256 distribution centers strategically located across various territories in Latin America.

Founded in 1979 and headquartered in Mexico City, Mexico, Coca-Cola FEMSA has cemented its position as the dominant beverage distribution platform throughout Latin America. The company operates primarily as a franchise bottler, responsible for the production, marketing, sales, and distribution of Coca-Cola trademark beverages across its operational territories, which include Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil, Argentina, and Uruguay.

Business Operations and Geographic Presence

The company's operational backbone is heavily concentrated in Mexico and Brazil, which together account for approximately 80% of its total volume and sales. The remaining portion is distributed across other Central and South American countries, underscoring the strategic importance of these key markets. Coca-Cola FEMSA sources beverage concentrates and syrups directly from The Coca-Cola Company, transforming these inputs into finished products for distribution across diverse sales channels, including modern retail, traditional trade outlets, and the on-premises (food service) sector.

Beyond its core carbonated soft drink offerings, Coca-Cola FEMSA boasts a diversified product portfolio. This includes a wide array of sparkling beverages (such as colas and flavored options), various types of water, and an extensive range of non-carbonated beverages. This broader category encompasses teas, sports drinks, energy drinks, fruit-based beverages, juices, coffee, milk, value-added dairy products, and plant-based drinks. Furthermore, the company strategically distributes and sells beer products from renowned brands like Heineken, Estrella Galicia, and Therezópolis, alongside alcoholic beverages from Campari, confectionary and chewing gum products from Perfetti, and energy drinks from Monster.

Financial Performance and Market Position

#### Recent Financial Results

Full Year 2024 Performance:

- Revenue reached Mex$279.8 billion, marking a significant 14% increase year-over-year.

- Volume experienced robust growth of 4.4%.

- Operating income saw a healthy increase of 17.4%.

- Earnings showed substantial growth, increasing by 21.46% to reach 23.73 billion.

First Quarter 2025 Results:

- Revenues saw a solid increase of 10.0%.

- Operating income rose by 7.3%.

- Earnings per share (EPS) were reported at Ps. 0.31, with Earnings per Unit (EPU) at Ps. 2.45 and Earnings per ADS (American Depositary Share) at Ps. 24.46.

#### Key Financial Metrics

- Market Capitalization: $17.91 billion (as of September 2025)

- Dividend Yield: 4.13%

- EPS (TTM): 112.25

- Employee Count: 117,702

Strategic Initiatives and Market Position

#### Digital Transformation and Loyalty Programs

Coca-Cola FEMSA has made significant strides in its digital transformation efforts. The company has successfully enrolled over 1.3 million customers into its Premia Juntos+ loyalty program, achieving an impressive redemption rate of 75%. On the business-to-business (B2B) front, the Juntos+ platform now engages 1.2 million monthly active buyers across Latin America, demonstrating the effectiveness of its digital strategies in enhancing customer engagement and loyalty.

For 2025, the company's strategic priorities are firmly focused on continued digitalization and enhancing operational efficiency. This involves expanding its digital capabilities through ongoing innovation and making targeted investments in technologies designed to improve operational performance and deepen customer interactions.

#### Competitive Advantages

Coca-Cola FEMSA benefits from a wide economic moat, largely attributable to its esteemed status as Coca-Cola's largest bottler by volume, fostering strong brand affinity. Furthermore, the company leverages significant cost advantages derived from its extensive manufacturing and distribution scale. This allows Coca-Cola FEMSA to effectively build and maintain strong retail relationships, which are crucial for driving volume growth, particularly in the still underpenetrated markets across Latin America.

Ownership Structure

The ownership structure of Coca-Cola FEMSA is shared between FEMSA and The Coca-Cola Company. FEMSA holds approximately 47% of the economic interest and 56% of the voting power through its non-publicly traded A shares. The Coca-Cola Company holds a 28% economic interest and 33% of the voting power via its non-publicly traded D shares. This arrangement ensures a strong alignment of interests between the bottler and the parent beverage company, while preserving Coca-Cola FEMSA's operational independence.

Trading Information

Coca-Cola FEMSA's shares are listed and traded on the New York Stock Exchange (NYSE) under the ticker symbol KOF. The company also maintains a listing on the Mexican Stock Exchange (Bolsa Mexicana de Valores - BMV), where it trades under the ticker KOFUBL. The exchange ratio between KOFUBL and KOF is 10:1.

Sustainability and ESG Commitment

Coca-Cola FEMSA is deeply committed to creating sustainable economic, social, and environmental value, a commitment recognized through its inclusion in various sustainability indices. The company has proactively integrated sustainability principles into its core business strategy, with focused initiatives in areas such as water stewardship, pioneering packaging innovation, and driving community development across all its operating territories.

The company's strategic positioning as the largest Coca-Cola bottler by volume, combined with its expansive distribution network and formidable market presence throughout Latin America, firmly establishes it as a pivotal player in the region's dynamic beverage industry. Through continuous investments in digital transformation and operational efficiency, Coca-Cola FEMSA demonstrates its ability to adapt to evolving consumer preferences while steadfastly maintaining its market leadership position.