MEXICO: Arca Continental posts healthy H1 one year after merger
- First-half net profits climb by 67.9% to MXN2.47bn (US$183.2m)
- Operating profits rise by 69.3% to MXN4.04bn
- Sales increase by 56.4% to MXN27.14bn
- Just over one year since merger that formed company
Arca Continental saw its profits climb by 67.9% in the first-half
Arca Continental, Latin America's second-largest Coca-Cola bottler, has posted a big jump in first-half profits, driven by increased volume across all territories.
However, higher prices for packaging and sweeteners saw operating costs rise slightly. For the six months to the end of June, net profits leapt by 67.9% to MXN2.47bn (US$183.2m) compared to a year earlier, the company reported on Friday (20 July).
Due to the merger between Embotelladoras Arca (Arca) and Grupo Continental (Contal) that formed the company on 1 June last year, 2011 H1's comparables include six months of Arca and one month of Contal.
Operating profits in the period rose by 69.3% to MXN4.04bn. Sales reached MXN27.14bn, a 56.4% year-on-year rise. Cost of sales increased by 57%, mainly due to sales volumes increases, but also because of higher PET and sweetener prices, the company said.
For the second quarter, profits rose by 49.7% to MXN1.49bn, while operating profits climbed by 58.1% to MXN2.43bn. Sales reached MXN14.8bn, a 46% increase on the prior-year period.
“At the one year mark of the merger that formed Arca Continental, we are quite proud of what we have achieved as a team,” said Arca CEO Francisco Garza Egloff.
Arca increased total beverage volume by 45.2% in the half, with cola volumes jumping by 41.6% and water by 45.9%. Significant volume growth in the home Mexican market were tempered by more conservative gains in South America, which accounts for about 20% of total volumes.
Colas posted a 4.2% increase in the first six months of the year, while still beverages dropped by 4.7%. Water remained strong in South American markets, with volumes increasing by 36%.
Arca's shares on Friday ended down by 0.36% on the day's trading.
To read the official release, click here.
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