Arca Continental Reports Revenue Growth of 16.6% with EBITDA up 16.8% in 1Q17

MONTERREY, Mexico--()--Arca Continental, S.A.B. de C.V. (BMV: AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America, announced today its results for the first quarter of 2017 (“1Q17”).

Table 1: Financial Highlights

 

Data in millions of Mexican pesos

           

1Q17

1Q16

Variation %

Total Beverage Volume (MUC)

417.4

408.5

2.2

Net Sales

24,802

21,274

16.6

EBITDA

5,002

4,281

16.8

Net Income

1,729

1,871

-7.6

                 

Total Beverage Volume includes jug water

EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses

1Q17 HIGHLIGHTS

  • Net sales reached Ps. 24,802 million, 16.6% higher than in 1Q16.
  • EBITDA was Ps. 5,002 million, representing a margin of 20.2%, 16.8% higher than 1Q16.
  • Net income declined by 7.6% to Ps. 1,729 million for a margin of 7%.

COMMENTS FROM THE CEO

“In the first quarter of the year we continued to deliver solid results, with top line growth of 16.6% and EBITDA up 16.8%, thanks to our ability to evolve through innovation in our market execution initiatives, as well as adapt efficiently to climates of economic volatility, always committed to our philosophy of satisfying the needs of our clients and consumers to continue delivering positive results”, commented Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

"As such, on April 1st we closed the transaction to become the first Latin American bottler to operate a Coca-Cola franchise in the U.S., in the state of Texas and parts of Oklahoma, New Mexico and Arkansas, which will expand our geographic footprint in the American continent and give us access to a potential market of 30 million consumers, allowing us to reach a third of our sales in dollars to further strengthen our financial position”, he added.

RECENT EVENTS

  • On March 28, 2017, in conjunction with The Coca-Cola Company and other bottler partners, AC announced the closing of the acquisition of the soy-based beverage business AdeS from Unilever.
  • On April 1, 2017, AC announced the closing of the transaction with The Coca-Cola Company (“TCCC”) to initiate operations as the exclusive bottler of a franchise in the Southwestern U.S. consisting of Texas and parts of Oklahoma, New Mexico and Arkansas (“the Territory”), so long as the agreed-upon conditions are met, including approval at the Arca Continental Shareholders’ Meeting and the non-objection of the Federal Anti-trust Authority.
  • On April 27, 2017, the Annual Shareholders’ Meeting of Arca Continental declared a cash dividend of Ps. 2.00 per share to be paid in one payment as of May 11, 2017, equivalent to a total of Ps. 3,528 million, representing an increase of 8% over the dividend paid in 2016.

For a full version of this earnings release with financial statements, go to: http://www.arcacontal.com/investors.aspx

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on April 28, 2017 to discuss these results at 10:00 am Mexico/Monterrey time / 11:00 am New York time. A live webcast of this event is available at www.arcacontal.com or connect via telephone by dialing:

To participate, please dial:
        +1-877-712-5080 (U.S. participants)
+1-334-245-3009 (International participants)
0-1-800-062-2650 (México)
Passcode: 36151

About Arca Continental

Arca Continental produces, distributes and sells non-alcoholic beverages under The Coca-Cola Company brand, as well as snacks under the brands of Bokados in Mexico, Inalecsa in Ecuador and Wise in the U.S. with an outstanding history spanning more than 91 years. Arca Continental is the second-largest Coca-Cola bottler in Latin America and one of the largest in the world. Within its Coca-Cola franchise territory, the Company serves over 118 million consumers in Northern and Western Mexico, Ecuador, Peru, Northern Argentina and the Southwest region of the U.S. The Company’s shares trade on the Mexican Stock Exchange under the ticker symbol "AC". For more information on 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.

Contacts

Investor Relations
Monterrey
Arca Continental
Ulises Fernández de Lara, 52 (81) 8151-1525
ulises.fernandezdelara@arcacontal.com
or
Felipe R. Barquin Goris, 52 (81) 8151-1674
felipe.barquin@arcacontal.com
or
New York
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
arcacontal@i-advize.com
or
Corporate Communications
Arca Continental
Guillermo Garza, 52 (81) 8151-1589
guillermo.garza@arcacontal.com

Recent Stories

RSS feed for Arca Continental, S.A.B. de C.V.

Arca Continental, S.A.B. de C.V.