KOF is not only the largest Coca-Cola bottler in the world: it is the best way to capture defensive consumption in Latin America, with solid margins, attractive valuation and a potential upside that is difficult to ignore. Its massive scale, operational discipline and dominant presence in markets such as Mexico, Brazil, Colombia and Argentina allow it to serve hundreds of millions of consumers who choose Coca-Cola products daily, ensuring a resilient and sustained demand base over time.

Unlike The Coca-Cola Company (KO)which is the global parent company in Atlanta and producer of the brand’s concentrate, KOF is the bottler: buys the concentrate, mixes it, bottles it, distributes and markets it in the region. This integration within the Coca-Cola ecosystem gives it access to one of the most powerful brands in the world, but with its own business model that directly reflects the dynamics of consumption in Latin America. KOF also has the support of FEMSAa Mexican group with more than 130 years of history operating successfully in the region and a leader in retail, logistics and bottling, which reinforces its solidity and long-term vision.

During the second quarter of 2025faced challenges, but maintained operational strength. Volumes fell 5.5%, while revenue rose 5.0%, and its operating profit remained stable. In the first six months of the year, volume fell 3.9%, but revenue increased 6.7%, and operating income grew 3.3%. In addition, it paid an approved ordinary dividend of Ps. 0.23 per sharea total distribution of Ps. 3,865.5 millionreflecting discipline in the return to shareholders and constant cash generation.

A differentiator is its ability to maintain strong margins in a challenging environment. In recent quarters, the company has recorded a gross margin around 45% and a operating margin close to 13%levels that stand out within the beverage industry in Latin America. This operational efficiency, a result of its regional scale and pricing discipline, allows it to sustain robust cash generation and continue investing in innovation and expansion without compromising its financial stability.

There are macroeconomic risks—such as exchange rate volatility, inflationary pressures, and increases in raw material costs—that affect the company’s performance. However, KOF has demonstrated resilience and operational adaptability. Proof of this is the successful placement of US$500 million in senior bonds to 2035 with a coupon of 5.1% during July 2025, which reinforces its financial profile and confirms its access to financing under competitive conditions.

KOF’s valuation is especially attractive within a demanding global market. Currently trading at a P/E 2025 of 13.7x and a EV/EBITDA close to 6.5xwhich means it operates at a discount to comparables such as Pepsi (17.3x), Arca Continental (14x) and the industry average (15x). Furthermore, his PEG ratio of 1.39 reflects a reasonable valuation aligned with its growth potential. According to analyst consensus, the company’s profits are expected to grow between 7% and 8% annually in 2025supporting a perspective of operational strength and attractive growth.

Currently, KOF shares are trading at $81.2 with a price target of $111, implying a potential upside of 37%. In addition, the company offers a dividend yield close to 2%.

Despite macroeconomic pressures, KOF has managed to strengthen its competitive position through efficient management and flexible offering. Its strategic proximity to the consumer, the operational scale in Latin America and the prestige of the Coca-Cola brand have allowed it to protect margins and respond with agility to challenging scenarios, consolidating your corporate resilience and its ability to execute in changing environments.

In conclusionKOF balances operational stability and growth potentialwith solid fundamentalshistorical support from FEMSA and a portfolio aligned with current consumer trends in Latin America. For medium and long term investors, KOF represents a strategic opportunity within regional consumption, with attractive growth backed by the strength of the Coca-Cola brand and its proven ability to execute in complex environments.