MEXICO: Arca Continental hails "outstanding" 2012 as sales, profits shine
By Andy Morton | 20 February 2013
- 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 released its Q4 and FY results yesterday |
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.
Expert analysis
Mexico Soft Drinks Review 2011
This exclusive soft drinks country review from Canadean provides an excellent high level overview of the key categories in Mexico's soft drinks market Summary Published in Acrobat pdf format and comprising of text, data tables and charts, Canadean’s Soft Drinks Reviews cover twelve beverage categories (where relevant): Bottled Water, Bulk/HOD Water, Carbonates, Juice, Nectars, Still Drinks, Squash/Syrups, Fruit Powders, Iced/RTD Tea Drinks, Iced/RTD Coffee Drinks, Sports Drinks, Energy Drinks. Data includes historical consumption trends (2005 to 2010), plus latest forecasts for 2011 and projections to 2014.
Sectors: Company results, Soft drinks, Water
Companies: Coca-Cola Enterprises
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MEXICO: Arca Continental hails "outstanding" 2012 as sales, profits shine
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