MEXICO: Arca Continental hails "outstanding" 2012 as sales, profits shine

• Full-year net profits rise by 17.2% to MXN5.01bn (US$395.1m)
• Net sales in 2012 jump by 27.9% to MXN56.22bn
• Operating profits leap by 46.9% to MXN8.43bn

Arca Continental has reported a strong end to 2012, with full-year sales and profits both delivering impressive rises.

The company, which is Latin America's second-largest Coca-Cola bottler, said yesterday (19 February) that net profits in 2012 came in 17.2% up on 2011, hitting MXN5.01bn (US$395.1m). The rise came on the back of a 27.9% lift in FY sales, which totalled MXN56.22bn. Operating profits jumped by 46.9% to MXN8.43bn.

For the last three months of 2012, however, net profits were down by 28.9% year-on-year at MXN1.05bn, with net sales rising by 9.5% to MXN14.45bn. Operating profits in the three-month period leapt by 42.6% to MXN1.94bn.

The profit fall came against a strong tax gain in Q4 2011 that made last year's comparison tougher.

Arca CEO Francisco Garza Egloff said 2012 was a year of “outstanding achievements” for the company. Looking forward, he said he wanted to “maintain our positive trend and reinforce our leadership as a stronger, better positioned company poised for growth”.

Volumes were positive, up by 20% in the full year and by 5% in the fourth quarter. Total sparkling beverages were up by 17.6% for the year, a sharp contrast to fellow Coca-Cola bottler Coca-Cola Enterprises, which saw the sparkling category fall by 3.5% in full-year results released earlier this month.

Water saw the most volumes growth, up by 28% in the full year and fourth quarter.

North American volumes were up by 25% in the full year, driven by strong performance in the core cola category (+23.4%). Volumes growth in South America was less impressive, up by 4.2% for the year and 3.5% for the fourth quarter.

Arca's share price dipped slightly just before close of trading yesterday.

For a breakdown of Arca's perfromance by region and by sector, click here.

To read the company's official statement, click here.