Latest news with #ArcaContinental
Yahoo
5 days ago
- Business
- Yahoo
Arca Continental SAB de CV (EMBVF) Q2 2025 Earnings Call Highlights: Strong Revenue Growth ...
Consolidated Revenue: Increased 8% in the quarter and 10.1% year-to-date. Consolidated EBITDA: Rose 8.1% in the quarter and 9% year-to-date, with margins of 20.7% and 19.8% respectively. Net Income: Increased 1.2% in the quarter to MXN5.5 billion; year-to-date net income rose 4.9% to MXN9.6 billion. Mexico Unit Case Volume: Declined 4.8% in the quarter and year-to-date. Mexico EBITDA Margin: 24.6% in the quarter and 22.9% year-to-date. South America Revenue: Grew 11.8% in the quarter and 18.8% year-to-date. South America EBITDA: Increased 29.2% in the quarter and 33% year-to-date, with margins of 17.3% and 18.7% respectively. US Operations Revenue: Rose 3.9% in the quarter and 2.2% year-to-date. US Operations EBITDA: Increased 9.1% in the quarter and 6.7% year-to-date, with margins of 17.8% and 17% respectively. Cash and Equivalents: MXN26.6 billion as of June. Total Debt: MXN57.4 billion, resulting in a net debt-to-EBITDA ratio of 0.6 times. CapEx: Totaled MXN8.3 billion, representing 6.9% of sales. Dividend Distribution: Total of MXN7.62 per share, reflecting a payout ratio of 66% and a dividend yield of 3.8%. Warning! GuruFocus has detected 7 Warning Signs with CFG. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Arca Continental SAB de CV (EMBVF) reported an 8% increase in consolidated revenue for the second quarter, driven by effective pricing strategies and favorable FX effects. The company's EBITDA rose by 8.1% in the quarter, with a margin of 20.7%, marking the 29th consecutive quarter of EBITDA growth. Strong performance in the US operations contributed significantly to the company's financial results, with Coca-Cola Southwest Beverages achieving a 9.1% increase in EBITDA. The company announced the opening of its largest distribution center in Mexico, enhancing its operational footprint and service capabilities. Arca Continental SAB de CV (EMBVF) achieved important milestones in its sustainability agenda, including partnerships for plastics recycling and improvements in sustainability risk management ratings. Negative Points Total consolidated volume declined by 2.7% in the quarter, impacted by adverse weather conditions and softer consumer demand in some markets. In Mexico, unit case volume declined by 4.8%, affected by challenging comparisons and adverse weather conditions. The company's net income for the quarter increased only by 1.2%, with a 60 basis points contraction in the net profit margin. Ecuador faced rising security concerns that disrupted consumer mobility and shopping behavior, leading to a 3.1% decline in total volume. Despite revenue growth, the company experienced a contraction in volume performance in key markets, particularly in Mexico, due to macroeconomic headwinds and adverse weather. Q & A Highlights Q: Arturo, you reiterated the guidance for the year. Given the current operating dynamics and the sequentially lower pressure on margins from Mexico, do you still expect to close the year with flattish margins for 2025, specifically in Mexico? A: The situation for margins in Mexico was mostly impacted by volume performance. We are confident in recovering profitability throughout the year as volumes improve, which we expect to happen in the third quarter. We continue our cost control initiatives and leverage our hedging strategies for main raw materials. Our goal is to protect the margin for the full year, and we are optimistic about achieving this. Q: Can we expect any additional dividend if no M&A materializes throughout the next few months? A: We have already distributed two dividends, resulting in a 67% payout ratio. Any additional dividends will depend on the Board's decision. In the absence of M&A, they may approve an additional dividend later in the year. Q: Regarding Mexico, how much of the pressure seen year-to-date is structural versus related to temporary factors like weather or government incentives? A: Several factors impacted Mexico's performance, including tough comparisons to last year, adverse weather, and slower economic conditions. The traditional channel declined significantly, while the modern channel was almost flat. We don't see price as a factor affecting elasticity, and we aim to align pricing with inflation. Q: Could you provide more color on the distribution center in Jalisco and any labor issues in the US? A: The distribution center in Tonala, Jalisco, opened recently and will enhance our operational footprint. In the US, labor has stabilized, and our biggest project will open next year. We are not facing significant labor shortages currently. Q: What was the difference in strategy that led to improved profitability in the US this quarter? A: Our strategy in the US focuses on solid execution, prioritizing profitable packages, and disciplined expense management. We have seen growth in single-serve packages and have optimized promotions and pricing strategies. This approach, combined with lower OpEx due to reduced direct marketing expenses, has improved margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información
Yahoo
09-06-2025
- Business
- Yahoo
Arca Continental buys vending-machine firm
Mexico-based Coke bottler Arca Continental has struck a deal to snap up a vending business in the US. The company, a bottler for Coca-Cola in the Americas, is to buy Tulsa-based Imperial. The financial terms of the deal, announced in a brief filing on the Bolsa Mexicana de Valores, were not disclosed. According to the Imperial website, the company also supplies beverages to offices and on-site dining. Just Drinks has contacted Arca Continental for further comment. In March, the group said it was looking to bolster its production and distribution with 18bn ($883m) pesos of investment this year. Arca Continental is spending half the pot on its operations in its home market, with the rest 'primarily' in the US. At the time the business told Just Drinks is looking to open more distribution centres in Mexico and put investment into its factories in the US state of Texas. It said its investment plans for 2025 'primarily focus on our beverage business'. In 2024, Arca Continental generated net sales of 237bn pesos, up 10.9% year on year. Volumes dipped 0.3% to 2.47bn unit cases. Net income stood at 19.56bn, a rise of 11.8% on 2023. The company generates 46% of its net sales in Mexico. In its domestic market, net sales reached 110bn pesos last year, an increase of 9.6%. "Arca Continental buys vending-machine firm" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-04-2025
- Business
- Yahoo
Mexican bottler Arca Continental's Q1 earnings rise, volumes drop
By Natalia Siniawski MEXICO CITY (Reuters) -Mexican bottler Arca Continental reported a rise in first-quarter earnings on Thursday, as price hikes helped to offset a drop in beverage volumes across its markets. The company, which sells Coca-Cola products and snacks throughout the Americas, posted a 10% increase in core earnings, slightly below analysts' expectations. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 10.65 billion pesos ($520.6 million), up from 9.66 billion pesos a year earlier and less than the 10.89 billion pesos forecast by analysts polled by LSEG. Total beverage volumes fell by 3.1%, with revenue growth driven by higher prices rather than increased demand. Volumes of water jugs and sports drinks showed resilience, while carbonated drinks saw steeper declines. In the United States, sales volumes also slipped driven by lower consumer traffic, economic uncertainty and Easter holiday timing. But higher prices and a focus on premium, high-margin products helped to lift profits, the company said. Revenues climbed 12.4% at 57.04 billion pesos, while net profit grew around 10% to 4.14 billion pesos. Arca also cited a recovery in Argentina as helping to offset currency pressures and rising costs in the region. Volume recovery in Argentina is expected to continue, supported by lower inflation and rising consumer demand, executives from the company said in a conference call. The company reported an EBITDA margin of 15.4% for the country in the first quarter and said it sees further improvement for the full year. "While challenges persist, we remain cautiously optimistic about South America's outlook in 2025," CEO Arturo Gutierrez Hernandez said in a call with analysts, pointing to signs of macroeconomic stabilization. In Ecuador and Peru, volumes dropped due to economic weakness and security concerns. Ecuador saw a 7.4% decline, while Peru's fell 4.4. However, both countries are expected to see volume growth in the year, driven by a moderate economic recovery. ($1 = 20.4604 pesos at end-March)
Reuters
24-04-2025
- Business
- Reuters
Mexican bottler Arca Continental's Q1 earnings rise, volumes drop
MEXICO CITY, April 24 (Reuters) - Mexican bottler Arca Continental ( opens new tab reported a rise in first-quarter earnings on Thursday, as price hikes helped to offset a drop in beverage volumes across its markets. The company, which sells Coca-Cola products and snacks throughout the Americas, posted a 10% increase in core earnings, slightly below analysts' expectations. here. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 10.65 billion pesos ($520.6 million), up from 9.66 billion pesos a year earlier and less than the 10.89 billion pesos forecast by analysts polled by LSEG. Total beverage volumes fell by 3.1%, with revenue growth driven by higher prices rather than increased demand. Volumes of water jugs and sports drinks showed resilience, while carbonated drinks saw steeper declines. In the United States, sales volumes also slipped driven by lower consumer traffic, economic uncertainty and Easter holiday timing. But higher prices and a focus on premium, high-margin products helped to lift profits, the company said. Revenues climbed 12.4% at 57.04 billion pesos, while net profit grew around 10% to 4.14 billion pesos. Arca also cited a recovery in Argentina as helping to offset currency pressures and rising costs in the region. Volume recovery in Argentina is expected to continue, supported by lower inflation and rising consumer demand, executives from the company said in a conference call. The company reported an EBITDA margin of 15.4% for the country in the first quarter and said it sees further improvement for the full year. "While challenges persist, we remain cautiously optimistic about South America's outlook in 2025," CEO Arturo Gutierrez Hernandez said in a call with analysts, pointing to signs of macroeconomic stabilization. In Ecuador and Peru, volumes dropped due to economic weakness and security concerns. Ecuador saw a 7.4% decline, while Peru's fell 4.4. However, both countries are expected to see volume growth in the year, driven by a moderate economic recovery. ($1 = 20.4604 pesos at end-March)
Yahoo
27-03-2025
- Business
- Yahoo
Arca Continental Coca-Cola Southwest Beverages Wins 2025 Market Street Challenge
Texas-Based Coca-Cola Bottler Named National Leader in Competition Among U.S. Bottlers DALLAS, March 27, 2025--(BUSINESS WIRE)--Arca Continental Coca-Cola Southwest Beverages (AC-CCSWB), the Coca-Cola bottler for Texas and parts of Oklahoma, New Mexico and Arkansas, has been named the winner of the Coca-Cola Market Street Challenge for the third time, marking its second consecutive win. The Market Street Challenge honors the bottler demonstrating the highest level of executional excellence across the U.S. Coca-Cola system. Competing against the top bottlers in the U.S., AC-CCSWB was selected by its peers based on rigorous performance criteria, including topline growth, capability building and a steadfast investment in its people and culture. "Securing, for the third time the prestigious award of Coca-Cola North America Market Street Challenge, reaffirms our vision to be leaders in the markets we operate in, driven by our dedicated team members and our will to make a difference," said Arturo Gutiérrez Hernández, CEO of Arca Continental. "Coca-Cola Southwest Beverages' consistent performance over time exemplifies the power of a strategic blend of strong culture and shared principles." This achievement is a result of Arca Continental's commitment to create and share value. Since its inception in 2017, AC-CCSWB has merged the best practices of the U.S. and Latin America, creating a unique bottler proposition and a stronger future for both the company and the communities it serves. The Market Street Challenge win highlights the strength of its culture and collaboration, setting the stage for continued success in the years to come. Jean Claude Tissot, president of AC-CCSWB, expressed his pride in the company's achievement. "This award is a testament to the dedication of our Frontline Heroes, whose unwavering commitment and hard work drive the very heart of our company's success. Their efforts embody the commitment to create and share value that defines Arca Continental legacy, and the results we achieve across our territory." As the winner of the U.S. Market Street Challenge, AC-CCSWB will represent North America in the Candler Cup, Coca-Cola's international bottler competition. This year, CCSWB has also been recognized with the AC Cup from Arca Continental and Monster's Bottler of the Year for 2024. These prestigious awards reaffirm Arca Continental's commitment to excellence and its position as a leader in the Coca-Cola system. 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 in the United States. With an outstanding history spanning more than 99 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 128 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". About Arca Continental Coca-Cola Southwest Beverages Dallas-based Coca-Cola Southwest Beverages (AC-CCSWB), a company of Arca Continental, is one of the largest Coca-Cola bottlers in the United States. AC-CCSWB produces, markets and distributes Coca-Cola brands throughout Texas and parts of New Mexico, Oklahoma and Arkansas. The company employs more than 9,000 associates who operate 7 production plants and 37 distribution facilities, serving more than 31 million consumers. For more information, visit and View source version on Contacts Sara Jendrusch-Wongsjendruschwong@ Sign in to access your portfolio
