MEXICO: Arca Continental H1 profits up despite weak volumes

By | 24 July 2013

  • H1 profits increase by 20% to MXN2.97bn (US$237m)
  • Sales up by 7.6% to MXN29.2bn 
  • Operating profits rise by 16.6%  to MXN4.7bn
  • Volumes climb slightly by 0.9%
Arca is finding growth in water

Arca is finding growth in water

Arca Continental has overcome soft volumes to post strong profits and sales growth in its first-half.

Net profits rose by 20% to MXN2.97bn (US$237m) in the six months to the end of June, the Mexican company - Latin America's second-largest Coca-Cola bottler - said yesterday (23 July). Sales climbed by 7.6% to MXN29.2bn over the same period, while operating profits were up by 16.6% to MXN4.7bn.

Volumes stayed mainly flat, up by 0.9%, while sparkling beverages, which account for about three-quarters of Arca's overall volumes, dipped by 0.5%. Still beverages (+7.7%) performed better, and water posted a 13.4% increase, continuing a strong full-year performance announced in February.

Overall, the results mirrored Arca's Q1 results, where sales and profits rose despite weaker volumes.

Q2 saw profits up by 26% to MXN1.9bn and sales climb by 7% to MXN15.8bn. Operating profits jumped by 19% MXN2.9bn. Overall volumes rose by 1.1% in the second quarter, with still beverages up by 13.5%.

“The double-digit growth we continue to achieve in the still beverages category drives us to innovate further and work towards capturing volume and value growth, at the same time reinforcing our leadership position in sparkling beverages,” Arca CEO Francisco Garza-Egloff said.

Garza-Egloff added that Powerade has become the category leader within the traditional channel in Arca's territories.

Arca's share price had risen by 1% yesterday at close of trading.

In April, Arca announced plans to invest to consolidate its positions in markets including Mexico, Argentina and Ecuador.

Expert analysis

Mexico Food and Drink Report Q3 2013

Business Monitor International's Mexico Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Mexico's food and drink industry.

Sectors: Company results, Soft drinks, Water

There are currently no comments on this article

Be the first to comment on this article

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page