Latin AmericaWide moat

Coca-Cola (KO) — moat facet

The richest margin in the company, 59%, earned mostly on price in inflationary currencies.

Latin America is the smallest of the four geographic segments by revenue and the most profitable per dollar anywhere in Coca-Cola. It brought in $6,331 million of third-party revenue in 2025 and earned $3,742 million, about 59.1% of its segment revenue.12

Latin America operating income ($m)$1,953m2016$2,321m2018$2,116m2020$2,534m2021$3,436m2023$3,792m2024$3,742m2025Coca-Cola Forms 10-K FY2018, FY2021, FY2025; earlier years as reported then
Operating income nearly doubled in nine years, and dipped in 2025 on a 21% currency drag.

The margin comes from what the segment sells. Most of it is concentrate sold to independent bottlers, so cost of goods sold was $1,109 million, 17.5% of segment revenue.34 The bottlers build the plants, run the trucks and carry the working capital; Coca-Cola sells them the formula and the brand.

It has also grown fastest over the long run. Third-party revenue rose from $3,746 million in 2016 as reported then to $6,331 million in 2025, about 6% a year, and operating income from $1,953 million to $3,742 million, about 92% more.567 The margin rose from about 51.1% to 59.1% in the same period.8

The growth is mostly price, and much of the price is inflation. The 10-K attributes the segment's 2025 price/mix to pricing initiatives, including inflationary pricing in Argentina, and favourable mix.9 Currency takes most of it back: it reduced the segment's 2025 operating income by 21%, and operating income fell 1.3% to $3,742 million although concentrate volume fell only 1%.1011 Unit case volume was flat, with 2% growth in Brazil and 6% in Argentina offset by a 4% fall in Mexico.12

The latest quarter was the strongest of any segment. In the June 2026 quarter volume grew 3%, third-party revenue rose 15.9% to $1,839 million and operating income 23.0% to $1,177 million, a margin of about 64.0% against 60.3%.1314 First-half operating income rose 19.0%.1516

This is the segment that proves the concentrate model works, and the one most exposed to the dollar. The verdict rests on Mexico, where volume fell 4% in 2025: if Mexican volume keeps falling while the region's margin rises, the profit is coming from price increases in inflationary markets rather than from people drinking more.

Moat trajectory: Widening

Operating income up 23.0% in the June 2026 quarter and margin up from 60.3% to 64.0%.

The number that tests this moat
Moat Explorer calc
Latin America segment margin, June 2026 quarter
About 64.0% in Q2 2026, from 60.3%

The richest margin in the company; watch whether it holds while Mexican volume falls.

How it's calculated: 1,177 / 1,839 against 957 / 1,587, operating income over total segment revenue.
Source: Coca-Cola Form 10-Q, Q2 2026 (Moat Explorer calc) ↗
References
  1. ReportedIt brought in $6,331 million of third-party revenue in 2025 and earned $3,742 million, about 59.1% of its segment revenue.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  2. Moat Explorer calcIt brought in $6,331 million of third-party revenue in 2025 and earned $3,742 million, about 59.1% of its segment revenue.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. ReportedMost of it is concentrate sold to independent bottlers, so cost of goods sold was $1,109 million, 17.5% of segment revenue.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  4. Moat Explorer calcMost of it is concentrate sold to independent bottlers, so cost of goods sold was $1,109 million, 17.5% of segment revenue.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  5. ReportedThird-party revenue rose from $3,746 million in 2016 as reported then to $6,331 million in 2025, about 6% a year, and operating income from $1,953 million to $3,742 million, about 92% more.
    Coca-Cola Form 10-K FY2018 - segment note 2016-2018 as reported then: third-party revenue and operating income by segment (2016 EMEA $7,014M/$3,668M, Latin America $3,746M/$1,953M, North America $6,587M/$2,614M with intersegment revenue $3,738M, Asia Pacific $4,788M/$2,210M, Bottling Investments $19,601M/$1M; Bottling Investments $3,760M in 2018 and operating losses of $962M in 2017 and $649M in 2018) — FY2016-FY2018 · publ. February 2019 · source ↗
  6. ReportedThird-party revenue rose from $3,746 million in 2016 as reported then to $6,331 million in 2025, about 6% a year, and operating income from $1,953 million to $3,742 million, about 92% more.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  7. Moat Explorer calcThird-party revenue rose from $3,746 million in 2016 as reported then to $6,331 million in 2025, about 6% a year, and operating income from $1,953 million to $3,742 million, about 92% more.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  8. Moat Explorer calcThe margin rose from about 51.1% to 59.1% in the same period.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  9. ReportedThe 10-K attributes the segment's 2025 price/mix to pricing initiatives, including inflationary pricing in Argentina, and favourable mix.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  10. ReportedCurrency takes most of it back: it reduced the segment's 2025 operating income by 21%, and operating income fell 1.3% to $3,742 million although concentrate volume fell only 1%.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  11. Moat Explorer calcCurrency takes most of it back: it reduced the segment's 2025 operating income by 21%, and operating income fell 1.3% to $3,742 million although concentrate volume fell only 1%.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  12. ReportedUnit case volume was flat, with 2% growth in Brazil and 6% in Argentina offset by a 4% fall in Mexico.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  13. ReportedIn the June 2026 quarter volume grew 3%, third-party revenue rose 15.9% to $1,839 million and operating income 23.0% to $1,177 million, a margin of about 64.0% against 60.3%.
    Coca-Cola Form 10-Q for the quarter ended July 3, 2026 - segment third-party revenue and operating income for the three and six months (Q2 2026: EMEA $3,087M/$1,309M, Latin America $1,839M/$1,177M, North America $5,405M/$1,695M, Asia Pacific $1,487M/$656M, Bottling Investments $1,525M/$91M; six months operating income $2,568M/$2,215M/$3,301M/$1,192M/$282M against $2,390M/$1,861M/$2,962M/$1,271M/$178M); unit case volume growth by segment — Q2 2026 · publ. July 2026 · source ↗
  14. Moat Explorer calcIn the June 2026 quarter volume grew 3%, third-party revenue rose 15.9% to $1,839 million and operating income 23.0% to $1,177 million, a margin of about 64.0% against 60.3%.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  15. ReportedFirst-half operating income rose 19.0%.
    Coca-Cola Form 10-Q for the quarter ended July 3, 2026 - segment third-party revenue and operating income for the three and six months (Q2 2026: EMEA $3,087M/$1,309M, Latin America $1,839M/$1,177M, North America $5,405M/$1,695M, Asia Pacific $1,487M/$656M, Bottling Investments $1,525M/$91M; six months operating income $2,568M/$2,215M/$3,301M/$1,192M/$282M against $2,390M/$1,861M/$2,962M/$1,271M/$178M); unit case volume growth by segment — Q2 2026 · publ. July 2026 · source ↗
  16. Moat Explorer calcFirst-half operating income rose 19.0%.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026