Coke Femsa Earnings: Strong 2024 on Agile In-Market Execution and Digital Initiatives

We plan to maintain our $92 fair value estimate for wide-moat Coca-Cola Femsa after digesting the company's solid 2024 results, including sales up 14% and operating profits up 17%. The shares have risen 4% following the Feb. 21 report and almost 20% since the trough in January but remain attractive at a discount to our intrinsic valuation. The resilient 2024 performance, despite macro headwinds and weather and logistical challenges in Mexico and Brazil, once again illustrates the strength of Coke’s brands and the bottler’s operational expertise that underpin our constructive view on the firm’s long-term outlook.