Arca Continental (BMV:AC) Reports Revenue Growth of 16.2% with EBITDA Increasing 16.1% in 3Q22
Arca Continental reported impressive financial results for the third quarter (3Q22) and first nine months of 2022 (9M22). Net Sales soared 16.2% year-over-year to Ps. 55,723 million, with an EBITDA margin of 19.2%, up 16.1%. Net Income increased by 25.1% to Ps. 4,230 million. For 9M22, Net Sales reached Ps. 155,151 million, an increase of 15.6%, with EBITDA at Ps. 29,639 million. CEO Arturo Gutierrez noted the company's growth amid challenging market conditions. The firm also reinforced its long-term collaboration with The Coca-Cola Company, promising ongoing profitable growth opportunities.
- Net Sales grew 16.2% to Ps. 55,723 million in 3Q22.
- EBITDA increased by 16.1%, reaching Ps. 10,675 million, with a margin of 19.2%.
- Net Income rose 25.1% to Ps. 4,230 million in 3Q22.
- 9M22 Net Sales increased by 15.6% to Ps. 155,151 million.
- Long-term agreement signed with The Coca-Cola Company to enhance business operations.
- None.
MONTERREY, MEXICO / ACCESSWIRE / October 26, 2022 / Arca Continental, S.A.B. de C.V. (BMV:AC*) ("Arca Continental" or "AC"), the second-largest Coca-Cola bottler in Latin America, announced its results for the third quarter and first nine months of 2022 ("3Q22" and "9M22").
Table 1: Financial Highlights
3Q22 HIGHLIGHTS
- Net Sales were
16.2% higher than 3Q21, reaching Ps. 55,723 million. - EBITDA was Ps. 10,675 million for a margin of
19.2% , up16.1% versus 3Q21. - Net Income increased
25.1% for a margin of7.6% and a total of Ps. 4,230 million.
9M22 HIGHLIGHTS
- Net Sales reached Ps. 155,151 million, representing an increase of
15.6% . - EBITDA totaled Ps. 29,639 million for a margin of
19.1% ,12.8% higher than 2021. - Net Income increased
26.9% to Ps. 11,547 million for a margin of7.4% .
COMMENTS FROM THE CHIEF EXECUTIVE OFFICER
"Based on a solid commercial strategy, which combines new digital capabilities and a robust price-pack architecture, we strengthened the profitability of the business in an environment of volatile raw material prices and supply chain disruptions, achieving growth of
As the end of the year approaches, we will seek to maintain our pace of profitable growth and prepare to capitalize in 2023 the new business opportunities resulting from the long-term collaboration agreement we recently signed with The Coca-Cola Company for our operations in Latin America, while always striving to create shared value for our customers, consumers, and the communities in which we operate", he added.
ESG
- During the Business Summit for Sustainability, the company ratified its commitment to continue creating an environment of equal opportunity, as well as reducing carbon footprint of its operations. Furthermore, it established its commitment to the Principles of Women Empowerment and established Science-Based Objectives to combat climate change.
- Bebidas Ecuador and Tonicorp received the Socially Responsible Company Award, presented to companies that demonstrate their commitment to corporate social responsibility and sustainable development.
- In Peru, we received the certification I-REC Standard, issued by the firm The Green Certificate Company. This is the first certification granted in Peru for the use of
100% renewable energy in our production plants in Arequipa, Trujillo, Zárate and Pucusana. - Coca-Cola Southwest Beverages and The Coca-Cola Company partnered to share the new packaging for Sprite and Dasani bottles with the Texas market. The new packaging includes a transition to clear bottles from traditional green Sprite bottles, as well as
100% recycled plastic material. These changes help protect our planet by decreasing carbon emissions and minimizing new plastic, and they are a step forward in our goal to support our World Without Waste initiative.
RECENT EVENTS
- An agreement was reached with Diageo Mexico to start a distribution pilot in the metropolitan area of Guadalajara, Jalisco, which will be deployed in 4Q22. The scope of the pilot includes the distribution of 16 SKUs from Diageo's portfolio.
- On September 19, 2022, Arca Continental announced a new, long-term agreement with The Coca-Cola Company with the goal of strengthening the collaboration and solid relations between both companies.
- Besides aligning the key economic aspects of the business relationship for the long term, this new cooperation framework favors joint efforts to continue perfecting service for customers and consumers, promote new avenues of profitable growth, and deploy broader digital initiatives in Latin America.
- The scope of the agreement includes all the markets that AC serves in Mexico, Ecuador, Peru, and Argentina, and comprises the following key areas for creating value together:
- The new agreement confirms the vision and commitment for leading the beverage industry in Latin America and opens opportunities for innovation in commercial aspects, in the portfolio and value chain, to benefit the market and the community.
The full earnings reports and financial tables available for download in MS Excel format can be accessed at the following link: http://www.arcacontal.com/investors/financial-reports.aspx.
CONFERENCE CALL INFORMATION
Arca Continental will host a conference call to discuss these results on October 26, 2022 at 10:00 am Mexico/Monterrey time, 11:00 am New York time. A live webcast of this event will be available at www.arcacontal.com or via telephone using the following numbers:
To participate, please dial:
+1-800-225-9448 (U.S. participants)
+1-203-518-9765 (International participants)
Passcode: 36151
About Arca Continental
Arca Continental produces, distributes, and markets beverages under The Coca-Cola Company brand, as well as snacks under the Bokados brand in Mexico, Inalecsa in Ecuador, and Wise and Deep River in the United States. With an outstanding history spanning more than 96 years, Arca Continental is the second-largest Coca-Cola bottler in Latin America, and one of the largest in the world. Through its Coca-Cola franchise, the company serves more than 125 million people in the Northern and Western regions in Mexico, as well as in Ecuador, Peru, in the Northern region of Argentina, and in the Southwestern United States. Arca Continental is listed on the Mexican Stock Exchange under the ticker "AC". For more information about Arca Continental, please visit www.arcacontal.com
This material may contain forward-looking statements regarding Arca Continental and its subsidiaries based on management's expectations. This information as well as statements regarding future events and expectations is subject to risks and uncertainties, as well as factors that could cause the results, performance, and achievements of the Company to differ at any time. Such factors include changes in the general economic, political, governmental, and commercial conditions both domestically and globally, as well as variations in interest rates, inflation rates, exchange rate volatility, tax rates, the demand for and the price of carbonated beverages, water, and the price of sugar and other raw materials used in the production of sparkling beverages, weather conditions and various others. As a result of these risks and factors, actual results could be materially different from the estimates provided; therefore, Arca Continental does not accept responsibility for any variations or for the information provided by official sources.
SOURCE: Arca Continental
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