Skip to main content

Arca Continental Reports Net Sales Growth of 39.3% with EBITDA up 44.6% in 1Q16

Arca Continental, S.A.B. de C.V. (BMV: AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America and third-largest in the world, announced today its results for the first quarter of 2016 (“1Q16”).

Table 1: Financial Highlights

Data in millions of Mexican pesos

1Q16

1Q15

Variation %

Total Beverage Volume (MUC)

408.5

298.5

36.9

Net Sales

21,274

15,273

39.3

EBITDA

4,281

2,961

44.6

Net Income

1,871

1,300

43.9

Total Beverage Volume includes jug water

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

FIRST QUARTER 2016 (1Q16) HIGHLIGHTS

  • Net sales reached Ps. 21,274 million, 39.3% higher when compared to 1Q15.
  • EBITDA totaled Ps. 4,281 million, 44.6% above 1Q15 and at a margin of 20.1%.
  • Net Income increased 43.9% to Ps. 1,871 million at a margin of 8.8%.

COMMENTS FROM THE CEO

“Supported by our geographic diversification with the integration of Peru, as well as the precise management of our portfolio and the perfecting of our execution at the point of sale, we achieved 20 consecutive quarters of positive results. In these first three months of 2016, we reported net sales growth of nearly 40% when compared to the previous quarter, with net income up 44% and EBITDA up nearly 45%”, stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

“These results compel us even further to continue seeking new value creation opportunities that will enable us to continue improving our operations and, above all, provide excellent service to our clients and consumers,” added Garza Egloff.

RECENT EVENTS

  • On March 23, 2016, AC completed the acquisition of 14,515,728 investment shares which represent 20.17% of the total investment shares of Corporación Lindley S.A, as a result of the public tender offer announced in the press release issued on February 24, 2016.
  • On April 6, 2016, AC acquired sugar production assets in Tucuman, Argentina for US$ 41.4 million aimed at strengthening its value chain.
  • On April 8, 2016, AC announced that it has decided to increase its current stake of 75% in the capital stock of its subsidiaries Arca Continental Argentina S.L. and Arca Ecuador S.A. to 100%, via a merger. The objective of this process is to consolidate AC’s operations in order to optimize decision making and operations in both countries.
  • On April 14, 2016, Arca Continental’s General Shareholders’ Meeting approved the payment of a cash dividend of Ps. 1.85 per share in one single payment to be made on April 26, 2016, equivalent to a total amount of Ps. 3,101 million. This dividend represents a 5.7% increase over the dividend paid last year.

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 22, 2016 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)
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 90 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 83 million consumers in Northern and Western Mexico, Ecuador, Peru and Northern Argentina. 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@arcacontinental.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.