Coca-Cola FEMSA reports third-quarter profit growth

Coca-Cola FEMSA, the world’s largest Coca-Cola franchise bottler by sales volume, reported a 5.5% increase in third-quarter profit, reaching 6.22 billion pesos (approximately US$334 million). Revenue grew by 10.9% to 79.7 billion pesos, while unit case volume reached a third-quarter record of 1,089.8 million cases.

While overall profit rose, the growth was primarily driven by a 51.2% jump in South American operations, which offset a 3.1% decline in operating profit within Mexico and Central America. The company noted that gross margins improved due to lower costs for sweeteners and plastic materials, supported by hedging and stronger local currencies.

In Mexico, executives noted that rising minimum wages are creating a “spiral effect” on labor costs. Although the company stated it has no employees earning the legal minimum, successive wage hikes require adjustments to higher salary tiers to maintain pay differentials across the workforce, contributing to cumulative labor cost pressure.