Coca-Cola FEMSA S.A. de C.V. (KOF) is the largest Coca-Cola bottler in Mexico and Argentina, and is one of Coke’s two anchor bottlers in Latin America.

The company posted positive operating results for the first quarter of 2009, mainly considering the difficult economic situation. Moreover, the results in the Mercosur and Latincentro division were particularly impressive. The recent acquisitions will enhance company’s topline growth in the medium term.

However, in the very near term, the Mexican economy will be affected by the swine flu, which is rapidly spreading all over the world. Nevertheless, being a producer of an inexpensive, daily use product, focused on domestic markets, KOF is less exposed to the international credit crisis.

Finally, KOF has been reducing debt, a necessary step for lowering financial costs and increasing confidence. We are keeping our Buy recommendation on Coca-Cola FEMSA.

Read the full analyst report on “KOF”
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