Coca-Cola Femsa SAB de CV ADR

KOF: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$87.00	Rcqns	Lrlmryrbx

Coke Femsa Earnings: In-Market Execution and Digital Platform Fueled Strong Volume Expansion

Dan Su

Jul 22, 2024

We plan to maintain our $97 fair value estimate for wide-moat bottler Coke Femsa after absorbing its second-quarter results, with sales and net profits up 13% and 14%, respectively. The strong performance, despite macro and weather-related headwinds in South America, reaffirms our confidence in the firm's long-term outlook, underpinned by the strength of Coke's brands and the bottler's logistics and in-market execution expertise. Our 10-year projection for a 6% sales CAGR and a 14% average operating margin remains in place. Shares look slightly undervalued.

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