MEXICO: Arca Continental feels pain of new tax, but H1 profits up
- H1 net profits up 4.4% to MXN3.1bn (US$239.8m)
- First-half net sales flat at MXN29.3bn
- H1 operating profits rise 6.5% to MXN6.5bn
- Beverage volumes slip 3.1% to 642m unit cases
Arca's volumes dipped slightly
Arca Continental, Latin America’s second largest Coca-Cola bottler, has seen its first-half volumes slip as a new sugary drinks tax in Mexico took its toll, but the group’s profits rose.
The Mexico-based bottler’s net profits in the six months to the end of June were up 4.4% to MXN3.1bn (US$239.8m), it said today (17 July). Sales in the period were flat however at MXN29.3bn, while volumes fell by 3.1% to 642m unit cases. Operating profits in the six months rose by 6.5% to MXN6.5bn.
In Q2, the group’s profits climbed by 3.1% to MXN1.9bn, while sales were flat at MXN16bn. Operating profits in the three months were up 5.9% to MXN3.8bn. The second quarter results mirrored those of Q1.
Mexico, Arca's core market, introduced a tax of MXN1 (US$0.08) per litre of “sugar-sweetened” beverage in January.
Francisco Garza Egloff, Arca’s CEO, flagged that the company had increased its EBITDA margin by 120 basis points, driven by “cost and expense efficiencies strategies in Mexico and South America”.
He added: “The constant market investment, as well as the targeted execution and actions that we have made in light of the new tax and low-consumption environment, have been key factors to continue strengthening our leadership position and deliver sound financial and operating results, despite the impact on our sales volumes in Mexico.”
Earlier today, The Coca-Cola Company announced it plans to invest US$8.2bn in Mexico over the next six years.
To read Arca's full statement, click here
With the FIFA World Cup underway in Brazil, our soft drinks columnist Richard Corbett investigates if the tournament historically offers a sales bounce to CSD producers in Western Europe. He also ques...
Project Synopsis: MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth act......
The Coca-Cola Company - SWOT Analysis company profile is the essential source for top-level company data and information. The Coca-Cola Company - SWOT Analysis examines the company’s key business stru...
The Coca-Cola Company has rolled out two of its Powerade Zero variants to Brazil. ...
Synopsis Canadean's "The Coca-Cola Company : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profil...
TCCC has made significant changes in its bottling operations, which is highlighted in its re-franchising in the NA bottling operations and the birth of the new CCE in WE. Coca-Cola FEMSA’s string of a...
- Comment - Heineken's 'No' Cuts SABMiller Options
- Irish whiskey eyes a slice of Scotch's global pie
- SABMiller spurned by Heineken: The start of the en
- Scottish Independence and Scotch Whisky
- Can the New World Learn a Lesson from the Old?
- Patron Spirits' Patron Citrónge Lime
- Heineken rejects SABMiller purchase proposal
- Wm Grant CMO to head Orangina Scweppes Int'l
- Diageo's Special Releases 2014
- SABMiller, Heineken silent on takeover offer talk